Economic risks to Pakistan posed by the China-Pakistan Economic Corridor.
Ahead of the 2018 parliamentary elections and to offset the damage caused by the ongoing Panama probe, Prime Minister Nawaz Sharif’s government is fast-tracking the execution of several projects related to the China-Pakistan Economic Corridor (CPEC). This is drawing increased attention to the cost and ultimate benefit to Pakistan from Chinese investment in CPEC.
Chinese-backed energy projects may deliver surplus but possibly prohibitively costly electricity to Pakistan.
Public funds for social spending in areas such as health and education are likely to decline as authorities prioritise CPEC-linked payments.
A change in government in 2018 is unlikely to disrupt CPEC plans as all political parties stand to gain from provincial-level development.
Local protests (and violence) against Chinese workers will occur sporadically.
