CPEC to create over 700,000 direct jobs: expert

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KARACHI – The China-Pakistan Economic Corridor (CPEC) is expected to create over 700,000 direct jobs between 2015 and 2030 and add 2 to 2.5 points to the annual economic growth of the country, says Prof Dr Samina Khalid, director of the Applied Economics Research Centre (AERC).

Dr Samina, delivering a lecture here on Sunday, said that private consortia under this initiative would build energy infrastructure worth $33 billion to overcome Pakistan’s energy shortages.

One of the expected outcomes of the CPEC is expansion of the economy from $229 billion to $1.30 trillion by 2025, Dr Samina added. She said that project’s priorities included transport and communications, energy infrastructure, industrial parks, special economic zones and people-to-people cooperation.

Dr Samina maintained that CPEC activities were expected to galvanise Pakistan’s economy and propel it onto a higher growth trajectory by lowering transaction costs, improving productivity, encouraging research and development and spurring innovation.

Talking about the major outcomes of the CPEC, she said that some of the likely outcomes of this project include expansion of the economy from $229 billion to $1.30 trillion by 2025, increase in the per capita income up to $5,000 by 2025, increase in exports from current level of less than $25 billion to $150 billion by 2025 and increase in national savings up to 26 per cent of the gross domestic product (GDP) by terminal year.

Some important economic features of this project make it important for Pakistan that include reinforced investor confidence, GDP growth above seven per cent, accelerated economic activity led by the construction sector, overcoming energy deficiency, infrastructure development, employment opportunities in Balochistan and Khyber Pakhtunkhwa, establishment of new special economic zones along the corridor. All provinces and regions will be equal beneficiaries of the project, she said.