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China–Pakistan Economic Corridor: Macro Environmental Factors and Security Challenges

Author

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  • Muhammad Kashan Surahio
  • Shengyu Gu
  • Hakim Ali Mahesar
  • Mansoor Mumtaz Soomro

Abstract

Pakistan, excepting external issues, has been enduring from chronic problems, that is, political-military anarchy, bad-governance, interprovincial conflicts, social divisions, sectarian influence, and terrorism resulting negatively on inland politics, economics, socioculture, and techno-industry (PEST). This amplified domestic instability and governmental dependency toward external support. Appropriately, China’s recent FDI for CPEC is aimed to revive Pakistan’s energy, transport, infrastructure, industries and also procure China’s energy and trade transmission, and opportunities. So far, some studies separately have reported favorable and unfavorable effects emerged between projects and local PEST domains. Apart from numerous advantages, the drawbacks are also found many that are not limited to institutional concerns, project misappropriations, ethnic and provincial reservations, opposition, and targeted terrorism. Therefore, current study systematically revolves around exploring, comparing, and analyzing the cross-impact among CPEC, PEST, and Security concomitantly. Employing qualitative interviews, all-round literature, and statistical index datasets, study determines that the security risk is critical for Chinese manpower whereas the concerns of inter-government, projects, institutions, civil-military, and ethnicities are somehow manageable. Results show positive trend in Pakistan’s many PEST indicators except political violence, corruption, security costs and threats, electricity costs and supply, debts, imports, and forestry that are in continuous negative impact. Moreover, opposition, trust-deficit, and attacks against CPEC are yet unchanged factors. The study, therefore, argues that if negative impact factors are recognized for elimination, the CPEC as a result will improve the both host and investor environments with promised socioeconomic advantages, and minimize challenges including terrorism. In last, study also suggests various practical and policy implications.

Suggested Citation

  • Muhammad Kashan Surahio & Shengyu Gu & Hakim Ali Mahesar & Mansoor Mumtaz Soomro, 2022. "China–Pakistan Economic Corridor: Macro Environmental Factors and Security Challenges," SAGE Open, , vol. 12(1), pages 21582440221, March.
    • Handle: RePEc:sae:sagope:v:12:y:2022:i:1:p:21582440221079821
    DOI: 10.1177/21582440221079821
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    References listed on IDEAS

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    1. Maryum Ashraf & Awaisra Shafiq & Sana Batool, 2017. "China Pakistan Economic Corridor (CPEC): Analysis of Internal and External Challenges," International Journal of Business, Economics and Management, Conscientia Beam, vol. 4(5), pages 106-111.
    2. Rashid Menhas & Shahid Mahmood & Papel Tanchangya & Muhammad Nabeel Safdar & Safdar Hussain, 2019. "Sustainable Development under Belt and Road Initiative: A Case Study of China-Pakistan Economic Corridor’s Socio-Economic Impact on Pakistan," Sustainability, MDPI, vol. 11(21), pages 1-24, November.
    3. Shamsa Kanwal & Abdul Hameed Pitafi & Muhammad Yousaf Malik & Naseer Abbas Khan & Rao Muhammad Rashid, 2020. "Local Pakistani Citizens’ Benefits and Attitudes Toward China–Pakistan Economic Corridor Projects," SAGE Open, , vol. 10(3), pages 21582440209, July.
    4. Maryum Ashraf & Awaisra Shafiq & Sana Batool, 2017. "China Pakistan Economic Corridor (CPEC): Analysis of Internal and External Challenges," International Journal of Business, Economics and Management, Conscientia Beam, vol. 4(5), pages 106-111.
    5. Chunyang Pan & William X. Wei & Etayankara Muralidharan & Jia Liao & Bernadette Andreosso-O’Callaghan, 2020. "Does China’s Outward Direct Investment Improve the Institutional Quality of the Belt and Road Countries?," Sustainability, MDPI, vol. 12(1), pages 1-21, January.
    6. David Ward & Elena Rivani, 2005. "An Overview of Strategy Development Models and the Ward-Rivani Model," General Economics and Teaching 0506002, University Library of Munich, Germany, revised 07 Jun 2005.
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    Cited by:

    1. Muhammad Naeem Sadiq & Muhammad Shahid Nawaz, 2022. "Nexus betweenAmbidextrous Leadership and Xenophobia in Construction Project Success," iRASD Journal of Management, International Research Alliance for Sustainable Development (iRASD), vol. 4(2), pages 330-345, june.
    2. Muhammad Bilawal Khaskheli & Shumin Wang & Xiaoshan Yan & Yuehan He, 2023. "Innovation of the Social Security, Legal Risks, Sustainable Management Practices and Employee Environmental Awareness in The China–Pakistan Economic Corridor," Sustainability, MDPI, vol. 15(2), pages 1-21, January.

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