ISLAMABAD: In order to improve local conditions in areas from where the China-Pakistan Economic Corridor (CPEC) will pass, the relevant stakeholders will have to undertake complementary measures, according to a joint study carried out by four international donors.
With investments in roads, railways and ports, the $60-billion CPEC offers enormous potential for Pakistan to boost its economy, reduce poverty, spread benefits widely and help those likely to be affected by the new trade route, a new report “The Web of Transport Corridors in South Asia”, states.
The study has been carried out by the Asian Development Bank (ADB), United Kingdom’s Department for International Development, Japan International Cooperation Agency (Jica) and World Bank.
The World Bank on Thursday released a press release that briefly discussed few aspects of the study, but did not publish the full report.
“Appraisal simulations for CPEC and the Kolkata-Dhaka corridor suggest that complementary measures are needed to improve local conditions that, in turn, will create formal jobs and generate tax revenues that could pay for corridor investments,” said the statement.
In light of the international evidence and specific analyses for South Asia, the report advocates a more comprehensive design of corridor programmes that actively manages trade-offs and closes potential financing gaps in a sustainable manner.
“The ability of large-scale transport investments to generate wider economic benefits depends on the population density in the areas they cross,” it said. Their capacity to spur structural transformation along the way depends on complementary factors around the transport corridors, such as skills of the local population or restrictions on local land use, it added.
The new transport infrastructure must come with the means for people to take advantage of the improved connectivity right from the start.
“Transport corridors are very important in today’s economy as they bring regions together, connect markets and create demand, which is critical for new growth,” said Ahsan Iqbal, Minister for Planning and Development.
