Assignment NO 4

[Author name]
[COMPANY NAME] [Company address]
Name : Irfan Ali Kahn
Reg No: fa15-bse-063
Topice :
SWOT Analysis of the China- Pakistan Economic Corridor
(CPEC)

Submitted To:
Sir Tauqir Shams
Date :
27/06/2019
Tittle: SWOT Analysis of the China- Pakistan Economic Corridor (CPEC)
STRENGTH
➢ Transportation cost is low
(customer)
➢ low cost fast internet service
(customer)
➢ Establishment of research
laboratory for biotechnology in
Multan (customer)
➢ Gwadar International Airport
(supplier)
➢ Power Infrastructure Project
China agreed for fast track
implementation of the 21,690
MV energy project (supplier)
➢ Fiber Optic Project. The main
aim of this project is to
establish safe, fast and reliable
route for communication two
countries (supplier)
➢ highway projects ranging to 1660 km
is under progress. This will enhance
the outreach of CPEC across South
Asia. (Substitute)
➢ Highway Projects (substitute)
➢ The Chabahar port (India, Iran
and Afghanistan with central
Asian countries). (Rival)
➢ The CPEC will provide a secure
trade route to Pakistan so that its
market will increase Europe, Middle
East, Russia, Gulf States and Africa.
WEAKNESSES
➢ Difficult to enter in Chinese
market (customer)
➢ Difficult to sale our own goods
in market because Chinese
products are less expansive
then ours (customer)
➢ Chinese product enter into our
market (customer)
➢ China use their own labors
mostly (suppliers)
➢ China control over all the
projects(suppliers)
➢ If the project in not complete in
time therefor the Chabahar port
get advantage (rival)
➢ The volatile security situation is
major impediment in the way
of successful implementation of
the multi- billion project.
➢ Poor Governance and lack of
consensus.
➢ Lack of Transparency.
➢ Geographical obstacles.
➢ Weakness of Gwadar to
Generate Potential Economic
Incentives.
OPPORTUNITIES
➢ CPEC empowers backward and
affected areas of Baluchistan, FATA,
North Sindh, Gilgit-Baltistan and
regions of North-West China
(economic)
➢ CPEC will help Pakistan to advance
its economic interests(economic)
➢ Chinese investment will increase
GDP by over 15%. (economic)
➢ The Pakistan-China Optical Fibre
Cable project provides 3G and 4G
services to Pakistan (technology)
➢ Huawei(Chinese company) the
commercial deployment
of 5Gservices in the second half of
2020 (technology)
➢ Learning Chinese language by
people in Pakistani will play a
pivotal role in communication and
understanding China( demography)
➢ Govt of Pakistan give Chinese
Pakistani nationality (law and
politics)
➢ Govt provide Chinese labor full
security (law and politics)
➢ Chinese nationals marry
Pakistani girls (social issue)
➢ Joint Research Activities research
work would be based upon on
agriculture, fisheries, wildlife and
languages. (demographics)
➢ As a game changer opportunity
which will help people of Pakistan
and China to improve their living
standard. (Social issue)
THREATS
➢ Huawei (chains company)stole
personal data (technology)
➢ Security Threat Today, Pakistan is
facing extremism and terrorism
which is the main hurdle in the
successful completion of CPEC
project
➢ Chinese nationals suspected of
fake marriages arrested from
Islamabad(social issue)
➢ Chinese eat haram(social issue)
➢ Chinese nationals marry Pakistani
girls to sell(social issue)
➢ KPK government is against changing
original Gwadar-Kashgar route
which is a western route and
demanded government to stop
amending the project.) (law and
politics)
➢ Language of both countries are
different so it is difficult to
understand what they say to each
other. (demographic)
➢ Nationalist leaders of Baluchistan are
also against CPEC and demanded
referendum to decide future of
Baluchistan. (law and politics)
➢ The KPK province is of the view that
the change has been made in CPEC
project and economic benefits are
divert to Punjab by federal
government. (Economy)
Conclusion: CPEC is a comprehensive mega project for Pakistan and China ,
and after successful completion Pakistan is expected to transform into a regional
economic hub and gateway for regional connectivity .Similarly , it extend generous
reward to china in terms of providing the shortest overland energy and trade rout to
middle East and Africa . Additionally ,Gwadar will provide a basecamp for he
PLA Navy to observe U.S and Indian naval activities .However ,after applying the
swot analysis framework we found that CPEC has more weakness and threat than
strengths and opportunities .We are not denying its opportunities and strength but
Pakistan and china must consider strategies to counter the weakness and threats of
CPEC on Pakistan’s part it is of utmost important for state to curb terrorism across
the country and develop institutions to cope with poor governance and corruption,
likewise the country needs to develop strong inter provincial cohesion over project
routes sand the federal government need to take into account the reservation of
smaller provinces .it is a necessary to disclose the terms and conditions of the
projects which have been set with china.
Regarding eternal threats china and Pakistan need to form a strong institutional
mechanism to monitor the pace of work and smooth transaction of committed
investment both also need to expand cooperation to oppose external threats in
Baluchistan province .
Both Pakistan and china need a strong commitment to finished projects according
to already settled timeline which will reduce extra expenditure and save them from
conspiracy