opportunities and challenges with special reference to

https://doi.org/10.37187/gjoes.1219.0104.03

N. Khalil, B. Khan, Aurangzaib 321

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e-ISSN: 2682-7662, Volume 01, Issue 04, Pages 321-336, December 2019

Opportunities And Challenges With Special

Reference To Balochistan: China-Pakistan

Economic Corridor (CPEC)

1Naseema Khalil*, 2Bijar Khan, 3Aurangzaib 1,2,3University of Balochistan, Quetta, Pakistan

*Corresponding Author: [email protected]

Abstract

The China-Pakistan Economic Corridor (CPEC) stability the nearly recent

undertaking into a heritage marked by way of respective monetary collaboration,

together with a $46 billion pastime between power yet fabric improvement into

Pakistan is considered so a distinct advantage because Pakistan's economy. As a

leader undertaking about China's One Belt One Road activity, the passageway wish

companion Kashgar within Western China together with the city about Gwadar in

Pakistan about the Arabian nation Sea, filling within as much a gate in conformity

with the Middle East, Africa, and Central Asia. The CPEC, however boosting

Pakistan's economic system and meeting China's power needs yet improvement

regarding its western area, is probable going after find electricity the local thru

monetary mix.In some case, a challenge of certain distance positively faces

similarly vast difficulties. This postulation appears at obstructions so much be able

perhaps have an effect on the usage about the task, remembering the shaky

background because of Afghanistan, contending pastimes over quick neighbors

kind of India or Iran, specifically India's doubts, yet U.S. issues respecting the

activity.

Keywords: China-Pakistan Economic Corridor (CPEC), One Belt One Road (OBOR),

Balochistan Economy

Introduction

Over the years, Pakistan and China have successfully established very close bilateral economic

relations; as a result, they have emerged as one of the world's leading trading partners. Following

mega-developmental work as a result of the 1960s Indus River Treaty, this China-Pakistan

Economic Corridor (CPEC) is Pakistan's second-largest mega-developmental initiative, which

would definitely be extremely beneficial to the people of Pakistan in general and Balochistan in

particular (Afzal, Naseem and Anum, 2018).

http://www.goes.org/

mailto:[email protected]



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This project aims to connect the port of Gwadar to Xinjiang region in China through various

communication networks- highways, airports and railways, and oil and gas pipelines as well. The

$ 46 billion estimated project CPEC is not only a part of China’s vision of “Soft Power Investment”

through proposed Silk Roads Initiatives - One Belt One Road (OBOR) of 21st century but an

extension of the existing Silk Route (Karakoram Highway) as a biggest overseas investment,

termed as the “Strategic Game Changer” of the region in economic perspectives (Khalid, 2015).

This multi-purpose project would certainly have greater economic and strategic impacts on

Pakistan not only in making it a stronger and prosperous country but additionally would shape

Pakistan’s economic directions for the future by connecting the existing economic hubs, urban

landscapes and assessing certain new resources and sites for developments. From a socio-

economic perspective, this project aims to ease not only their peoples’ contacts but to encourage

and facilitate cultural exchanges for inter-civilization communication and coordination of

diplomatic strategies to gain mutual benefits (Review, 2016).

Equally important in the segments of this developmental project, is the province of Balochistan

particularly in reference to Gawar’s Port as foci of the project, because Gwadar’s port will be

directly connected to Xinjiang province through a series of networks. Being a focus of the project,

momentous developmental activities have been in progress over a couple of years in the coastal

belt of Balochistan (Chen and Zheng, 2019). Once this port of Gwadar becomes fully operational,

much is expected that it would be a game changer in all aspects not only for the province of

Balochistan but for the whole country as well. Being the shortest route between China and Central

Asia, this port will also facilitate trade for the entire region (Hassan, 2018).

In addition to CPEC's positive economic results, concerns and problems are arising from different

segments of society and need to be tackled rationally in general and in Balochistan Province in

particular (Toor, 2017). Most segments of society have different perceptions of the aims of the

initiative. There are so many things on which misunderstandings have been created, the important

ones being the shift in trade routes, identity crisis and some other reservations (Zhai et al., 2017).

Given the viewpoints of society, it is important to resolve these concerns beforehand in order to

promote a positive image of China's Economic Corridor in Pakistan. Therefore, this study will

examine CPEC's possible effect on Balochistan and discuss potential outcomes, incentives and

challenges (Hassan, Janjua and Asif, 2018).

The project documents reflect that the project on execution will not only strengthen the economy

of the country but would drive it in radical direction. But the ground realities are contradictory to

the project objectives as the concerned authorities have brought many changes in the project’s

execution like change in communication links, such as road, railway tracks and establishment of

industrial zones of which many were planned to be in the province of Balochistan, without taking

into confidence the stake-holders and beneficiaries (public) of the Province (Farooqui and Aftab,

2018). Up till now, clarification over the issues like change in corridor routes for the satisfaction

of the public has not been made by the project’s authorities, which has developed not only

misconceptions/doubts but resentment in different segments of the society- politician and public




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of Balochistan on the opportunities and challenges attached to CPEC has been put into question

(Meraj, 2016).

The major objective of this research deals with CPEC relevancy to Balochistan. The emphasis of

this research will be on evaluation of the overall developmental activities associated with

Balochistan through CPEC. Moreover, the research also aims to highlight the possible

opportunities and challenges of CPEC with special reference to Balochistan. To accomplish the

above mentioned objectives, three important questions will be addressed in this research such as

i. What is the relevance of CPEC to Balochistan?

ii. What are the possible opportunities to Balochistan through CPEC?

iii. What are societal reservations and challenges of CPEC with special reference to Balochistan?

Literature Review

Balochistan the province of Pakistan is one of the biggest regions by area and little ones in terms

of population. As in Pakistan, financial standings are on the basis of population criteria, so, this

region-Balochistan gets the minimum as a consequence of its little population in comparison to

the other regions of the country. Although, this region is rich in unexplored assets but the under

population and incompetent carelessness of specialists in addition to tribal tormented structure

have failed to bring the utilization of these assets to the most extreme (Yousaf, 2012).

Figure 01: Current seaway and roadway route

The disappointment of the governments to upgrade the limits of the population and its

organizations, has added additional burden to a work in progress of the area. It has been highlighted

by PILDAT in one of working paper that Balochistan's proficiency rate remains at 51.5% and

requires genuine consideration(Abbas et al., 2019). The low rate of yearly development of the

province has been associated additionally with a very low rate of urbanization and a high rate of




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unemployment of about 20% (PILDAT, 2012). On the basis of available data, the province of

Balochistan has had unsteady development execution over the previous decades and a very low

GDP, found further reduced in contrast to other regions of the country (Butt and Rehman, 2010).

The Proprietor of CPEC, being an economic world’s power have drew the attention of the

interested groups who considered their interest at stake as a consequence of this project, have

driven Balochistan into a militancy driven territory, consequently, created potential dangers for a

common person to take advantages from this project. The whole province is at interface between

the port of Gwadar and the Chinese city of Kashgar (Abid and Ashfaq, 2015). The different clans

of Balochs consider the project CPEC as an extended pre-treachery approach to the population of

Balochistan in general and hardship to the nearby Balochs in particular. Consequently, many

separatists groups assaulted on gas-pipelines, trains, and Chinese architects in order to wide spread

the dread to harm the venture achievements with a main goal to keep Balochs away and denied of

the chances from One Belt One Road (OBOR). In the words of Muhammad Ali Talpur, “CPEC

venture is just for the China, and he added and clarified that for the Balochs lives it would crush

them for the sake of advancement china (Ramay, 2016).

Figure 02: New Seaway and roadway route

On the other hand some patriot pioneers of Balochistan territory firmly restricting CPEC project

contradictory to people cause of the area, and requested that the choice may be given to the people

of Balochistan for eventual fate of Balochistan under the propitious of UN (Ranjan, 2015). These

rap-clarions required in the capturing and killings of the Chinese Expertise’s tankers, carrying fuel

to Chinese organization taking a short at the mining venture, and also attempt to focus on the

administration of a Chinese state organization(Arif, Ilyas and Hameed, 2013).

Research Methodology




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This chapter will include description of qualitative research approach, justification of research

method, research design which applied to sample and analyse data, and different methodological

approaches implemented to carry out this study. Explanation of ethical consideration, which have

used during conducting research as well as limitations of the study, will also be elaborated.

Qualitative research speaks to the approach utilized in this thesis. Initially, it builds up the

establishment for the theme by portraying the recorded viewpoint of China-Pakistan relations,

including these countries' monetary ties, to distinguish the conditions that prompted the

commencement of the present task (Khawaja, Saeed and Urooj, 2018). This book wish encompass

announcement over characteristic research approach, justification concerning lookup method,

research graph which utilized in conformity with sample or analyse data, and unique

methodological tactics carried out after elevate oversea this study.

The CPEC so a background regarding nation evident perspectives has numerous combination

about benefits then accomplishment worth, namely the existing document is tending to the hard

factors regarding score regarding Pakistan. The current test execute be marked as much 'Contextual

investigation'. The facts sources are generally contained the reliable media offices, administration

archives, then the scholarly literature as have featured the geographic magnitude yet the vital

estimation regarding CPEC. At the cease regarding the day, the big predominance on the elements

utilized namely the records sources are description or subjective between makeup (Han and Yi,

2018; Khawaja, Saeed and Urooj, 2018).

Be as as much that may, the real help of a measured path is moreover embraced who concentrating

the occasion about Pakistan. The day skyline over the gathered data is unconscious within nature.

In particular, the data dated again in accordance with the year 2005 fore are audited and considered

namely the manageable sub-set for the present archive. Regarding lookup procedure, the

longitudinal age region chose because the investigation. The methodological sketch is exploratory,

because of where it's price with the paltry in accordance with build the expertise (Malhotra, then

Birks, 2007)and discovery influencing factors for CPEC in the standpoint about Pakistan as much

a nation.

The records investigation of an evaluated course at advance separated the gathered information in

normal classifications and last similarly lowered after the worry measurements, yet into the last

stage, it was once translated within the originative produce in accordance with assist the proposed

contentions yet talking in relation to the pursuits regarding the current examination. As it were,

the theoretical information with the aid of Robson was once obtained the place the creators of the

present archive embraced the role regarding social researchers

Research Design

Research oriented experts explain that there is no specific method to any particular research

activity, but the important thing is to reach a consensus on an approach that can facilitate the

researchers to address their research questions (Garson & Horowitz, 2017). The proposed research

seeks to analyze China-Pakistan Economic Corridor and its impacts on the province of

Balochistan. It is therefore, important to adopt research techniques that are convenient for the




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analysis of issues in this research. As this proposed research is in fact interdisciplinary, so it would

engage issues that connect with certain factors of economy, society and politics so it is equally

important to employ a method that can provide access to the fullest range of information (Abid

and Ashfaq, 2015).

Keeping in view the above mentioned reasons, the proposed study would employ qualitative

interviews, as are important in a sense that through this procedure diverse and multiple informative

data can be collected in a shortest time. Moreover, finding based on qualitative method are likely

to be authentic simply because they are grounded in different way of analyzing realities (Brewer

and Hunter, 2016). In addition, qualitative interviews are efficient in adding consistency, breadth

and depth to the issues of analysis (Denzin & Lincoln, 2019; Meadows, 2018).

Research Results

CPEC advancements are a section concerning Chinaman One Belt One Road activity, a signal on

Chinaman President Xi Jinping's worldwide strategy venture. Drafted through China's NDRC

between March 2015, the pastime plans in conformity with motivate every other kind over global

relationship, highlighting win-win cooperation. OBOR imagines recent state-coordinated hobbies

in the dictation regarding comparison framework, fat yet fuel pipelines, and sordid foundation

extends then namely to advance economic reconciliation and linkages diagonally above Asia as

well as much to Africa then Europe.

The Silk Road Economic Belt or the 21st Century Maritime Silk Road are the couple portions of

the OBOR activity, yet Pakistan, via CPEC as much an augmentation about the Silk Road can

continue in regard to as like a attachment because the twins routes. The's CPEC intention possibly

repair the historic Silk Road changing course petition in conformity with accomplish native

obstinacy yet monetary harmony within the globalized world. This portion for that reason decides

according to clarify the specialized and money related subtleties over the CPEC project then its

indispensable centrality for both China and Pakistan.

The CPEC implies another kind on Sino-Pakistan participation abject the capacity in accordance

with additionally support their political and financial kin through exchange then advancement. The

undertaking has imperative yet economic magnitude for both China and Pakistan yet be able

between the cease inspire the erection of local soundness into South Asia. Resulting sections shine

the accomplishment importance on CPEC because of each China and Pakistan. longevity

In spite of the centrality of CPEC for the district all in all and for China and Pakistan specifically,

the undertaking is likewise stood up to with different inner and outside difficulties. In spite of the

centrality on CPEC because the district every in all then for China and Pakistan specifically, the

venture is too stood above to along specific intimate or outside difficulties. The success over the

calamity specifically depends upstairs local geopolitical issues, in particular India's situation about

the venture and Afghanistan's flimsiness. Inside, Pakistan need to either superintend security

challenges and politic obstacles, which may additionally stop the origin regarding the peril (Abbas

et al., 2019; Alam, Li then Baig, 2019). This portion surveys both the chief provincial geopolitical




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factors just as much the brawny internal yet residential jeopardies and the hindrances in Pakistan

itself to that amount perform impact the usage regarding the task.

Figure 03: Major CPEC projects illustrated in map

As indicated by the insights for the Fiscal Year 2015 discharge by IMF the contemporary GDP of

Pakistan remains at USD 271 Billion. As indicated by means of the insights because the Fiscal

Year 2015 redemption by IMF the modern-day GDP concerning Pakistan stays at USD 271

Billion. The existing GDP fixity regarding Pakistan relates in conformity with 0.39% in conformity

with the all-out economy on the world. The Gross Domestic Product (GDP) between Pakistan

waiting in imitation of 4.71% into the 12 months 2016 when contrasted along the pristine year.

From 1952 till 2016 Pakistan GDP Growth Rate observed the middle cost about 4.91%. Getting

unequaled receiving aloof tallness on 10.22% of 1954 yet report brief degree about - 1.80% of

1952 (Trading Economics, 2017).

As per world meter public statistics 2017 the existing data uncovers so entire abroad public

regarding Pakistan is 196 million forlorn yearly change in people is 2.03% who equivalents after

2.62% on every outdoors aggregate populace. Pakistan too placed sixth largest over the ball as




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some distance as much near people state within the ball (Worldometers, 2017). Pakistan is

additionally important along attribute belongings, for example, minerals, some distance

accomplishing pneumatic petrol saves, gas, oil, limestone, copper yet iron. Pakistan is a farming

based totally state yet her indispensable harvest contains Rice, Sugarcane, Wheat and on whole

Cotton (Alam, Li yet Baig, 2019).

Table 01: Power Generation & Energy Projects

Absolute cultivating shore is 35.2% yet the coast who perform stay utilized for rising yields is

27.6%.(CIA, 2017). Pakistan economic system is considered as like growing economic system

within the growing scene. It has close according to give up over wight certain regarding the world's

frequent economies in the 21st century(Tavia Grant, 2011).

Significant sell overseas over Pakistan comprise texture, downy great, sports, design article or

floor covering. The best city regarding Pakistan is Kara-chi, which is the integral pecuniary center

point of Pakistan. Through the non-obligatory wellspring concerning fact e book with the aid of

CIA, the whole USD of 29.87 billion traded via Pakistan of the yr 2013-14 then beautiful on the

charge potential about USD 5.741 billion through help zone (Trading Economics, 2017).The US

intrusion about Afghanistan in 2001, not just expanded the development concerning evacuees after

Pakistan, yet as giant inundation moreover has offered arise after fear mongering the country over.

Because concerning worry practitioner exercises, the steady ventures have been deserted, which

severally have an effect on the average economic improvement rate. As in accordance with and




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safety issues Pakistan proceed following thru about an overwhelming cost, so so in imitation of

collect lawfulness background yet adjust over worry based torment a full-size piece regarding

countrywide assets both ethnic commodity and material, hold been redirected to tackle the

increasing protection challenges. longevity

Table 02: Industrial Projects

Because concerning shakiness among Afghanistan, the fanaticism yet increment of fear mongering

damage Pakistan economy, but the ascendant background is additionally useful because of the

patient concerning proper ethnical lives so a result about the aimless assaults in opposition to the

nonmilitary army populace. This disorderly background turnover Pakistan's honor replacing and

financial workouts or fundamental deferrals round the world, as brings touching higher fees

concerning technology or moreover done disturbance among the advent cycles. As a result over it

vulnerability, Pakistani objects bear relentlessly misplaced theirs section regarding the standard

enterprise in accordance with theirs adversary. Therefore, Pakistan economy could not get a move

regarding as much that was proposed. As indicated by the views regarding Asiatic Development

Bank together with respect in conformity with the venture, as state as, "CPEC choice interface

financial operators alongside a characterised topography. It wish deliver the affiliation among

financial hubs then centers, fixated over civic scenes, between as a brush about pecuniary property

yet entertainers are concentrated. They interface the natural market facets regarding the demand

(Ahmar 2015). At present, within South Asia the 2nd largest replacing accomplice regarding China

is Pakistan; the whole abroad alternate aggregation between joining countries comes in imitation

of on in conformity with the US $ 19 billion (Greenaway, Mahabir et al. 2008). According to

insights tested via the State Bank over Pakistan, during July-March 2015/16 the Foreign Direct

Investment – FDI as the country got is US $ 975.4 pile when contrasted together with the US $

832.2 million within the previous economic year.

Table 03: Estimated Cost for CPEC Projects




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The FDI beside China grows over via 167 p.c in conformity with the US $ 516 bags of during July-

March 2015/16 then contrasted with the US $ 193.3 million among the subsequent epoch of the

past pecuniary 12 months (Akhter 2016). The lagger yet remote territories will beget namely the

CPEC would ignore and contacts whole the 4 regions then simply as Gilgit-Baltistan and Azad

Kashmir.

While investigating diverse mechanical divisions, which execute assimilate to the economy, some

cannot sideline the excavation segment. As a result regarding CPEC Pakistan mining, the place

would thrive. It would provide outside according to attire beneath toward the joblessness within

neighborhoods; intention develop baby scale, core and reasonable enterprises, subsequently,

elevating or presenting abilities in conformity with the nearby populace. Pakistan Federal Minister

because of Planning Development and Reforms, Ahsan Iqbal stated: "The advent regarding 10,000

megawatts regarding vigour underneath the CPEC would assist conquer the vigour fortuity by

2018 just namely replace the present day road provision about the nation" (Iqbal 2016).

Advanced lesson agencies and universities are too share concerning the arrangement, as wish stay

primarily based over CPEC's Western course. These Higher manage enterprises will alternate the

individuals on immature territories. The instruct desire allow the folks over FATA, Zhob, yet

Gwadar. On calculation concerning psychological stress Pakistan Tourism enterprise has been

severely hit, appropriate to so much Pakistan now not just obtained a great bend in theirs economy,

yet moreover the folks whoever were living among those regions the place their strenuous covering

established about the tour industry .the fruition of CPEC execute be brought via for Pakistan the

travel enterprise yet it intention earlier than lengthy cultivate underneath CPEC (iqbal 2016).

Conclusion

All things considered, the United States, mindful concerning the external solution repercussions

regarding the CPEC venture, sees the communication as much forlorn long draw dangers. Along

this lines, Chinaman advancement regarding Gwadar foundation may additionally confront the

U.S. government's obstruction namely operational government on the port gives have an impact




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on after Chinese maritime power in the Indian Ocean, a dynamic gamble in imitation of the

unrivaled multiplication into the seas up to expectation U.S. maritime powers right currently enjoy.

Figure 04: Strategic corridor diagram: The Wall Street 2015

To square Chinese improvement in the area, the United States might keep chipping outdoors at

such processes as much propelling its altogether own New Silk Road Initiative, declared into 2011

in conformity with interface Central Asia to South Asia. The undertaking is centered regarding the

territorial harmony about Afghanistan in imitation of assist its pecuniary growth. Furthermore, in

conformity with hold above its predominant state of affairs into the district, the United States is




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creating essential ties with India. The Civilian Nuclear Agreement among India or the United

States, marked with the aid of President Bush between 2006, or the rising U.S.- Indian imperative

kinship in the almost current decennary is impenetrable concerning the United States empowering

yet aiding Indian maritime ability according to counter the growing Chinese have an impact on in

the Indian Ocean. government about its previous states the CAR states in the post-NATO

withdrawal scenario.

Table 04: Gwadar Port Projects

Consequently, such turns of a genuine check because Pakistan not completely after find these

worry based totally oppressor gatherings then their basis yet into addition after find theirs

supporters or facilitators the nation over. To that end, ignoble than elevating a Special Security

Division fully because the insurance about the Chink laborers or the passageway, the Pakistan

military struck recreation Zarb-e-Azb between June 2014, in imitation of obvious oversea the

hotbeds about all nearby and outside fear primarily based oppressor bunches Immune among the

meanwhile blocked away segments of the state in North Waziristan flanking Afghanistan entire

preceding the argument over CPEC. Pakistan's previous Chief about the Army Staff (COAS)

General Raheel Sharif's clarification that, Pakistan's safety army might not cease besides postulate

we accomplish our quit goal regarding a fear free Pakistan," communicates it commitment.

This exercise namely concerning now has substantially debilitated these gatherings, along a

beneficiant dunk of the volume over concern based oppressor assaults within Pakistan. As per

media reports, the country saw around a 65 percentage reduce within the extent regarding

psychological oppressor assaults close to 12 months since its launch. The Pakistan Army has

correctly wrecked worry mongers' asylums within the western or northwestern outskirts districts

or has devitalized the operational control regarding whole regional or remote psychological




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oppressor gatherings, such as ETIM yet Uighurs, of the perdurable past. The endeavor has been

fecund in the disavowal over room in conformity with the psychological militants whoever were

making use of Pakistan's dirt in imitation of plan yet accomplish psychological militant assaults

across atop Pakistan.

The duties virtue US$46 billion provide an exceptional gamble according to Pakistan after tackle

a section concerning the most important obstacles to its financial development, because of

example, the vigor emergency, poor correspondence framework, and peaked faraway venture.

CPEC's foreseen pecuniary enchancment would elevate concord and protection in accordance with

the state so all is stated into taken and explicitly after the fretful then into turn over canton of

Balochistan with the aid of connecting including formative years into enterprise exercises, working

the place whole the more monetarily sensible or maintainable. The project is relied on after

construct employment openings, limit destitution via main economic encourage concerning

immature regions, and enhance the monetary voice regarding the state by way of multiplied

carrying on on instruction, wellbeing, and lousy essential administrations.

Figure 05: CPEC Proposed Map with 3 different Routes

In spite over the centrality concerning CPEC because the location now every is pointed out in done

and for China yet Pakistan specifically, the undertaking is long past upon against including

different intestinal or chief difficulties. The accomplishment concerning the undertaking specially

relies regarding local geopolitical issues, specially India's situation regarding the task,

Afghanistan's shakiness yet its overflow to Pakistan, then the have faith shortfall of half partial

nations. Inside, Pakistan wishes in conformity with control protection challenges then political

rivalry regarding route determination, which may also cross the knowledge of the undertaking.




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In spite about the fact so the advancing provincial factors perform have an effect on the proof of

the CPEC, both Pakistan then China are resolved in accordance with accomplish the task a triumph

because concerning its enormous benefits because the location every into entire yet because each

the nations specifically. Notwithstanding, the tremendous effect regarding the place relies

regarding the task's capacity in conformity with attain outdoors previous China-Pakistan fringes

for territorial availability. Along it lines, via the method about consideration, Pakistan then China

duty in conformity with reasonably compile of along blanketed on-screen characters then convince

them after come to be equivalent companions as a substitute than opponents between the task. In

somebody case, atop the long haul, favorable or straightforward usage of the CPEC calamity of

pursuance together with the desires over whole the solution companions may perchance flourish

the monetary administration concerning Pakistan or trade the pecuniary standpoint regarding the

stage into general.

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opportunities and challenges with special reference to

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