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The Silicon Review Asia

China and Pakistan back in talks for the ‘One Belt, One Road’ program.

China and Pakistan back in talks for the ‘One Belt, One Road’ program.

China, for a very long time, has been in discussion with Pakistan regarding the ‘One Belt, One Road’ (OBOR) program. Due to the current unrest situation created by the US, the Iran-China-Pakistan deal is in serious discussion to be back on.  China and Pakistan jointly released statements regarding projects that require co-operation between both countries. All the statements made in regard to the project make it evident that it is part of the China-Pakistan Economic Corridor (CPEC). Beijing finances the projects, so there is speculation that Pakistan would be in massive debt obligation to China, ultimately only the host would benefit from these projects.

The CPEC corridor might take a toll on Pakistan’s economic growth, primarily due to the bulk payments that will occur in the next few years. Even if the loan payments are deferred by the host country, the potential of Pakistan’s economic growth might see a setback and hurt the country’s reform agenda. The new pipeline will make Pakistan and Iran as client states for China, and this will significantly benefit them in the ongoing trade war. The plans must be seen in practical light for Pakistan because it will be able to meet its energy requirement from the sustainable energy sources.


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