Pakistan Institute of Development Economics


Impact of CPEC Projects on Agriculture Sector of Pakistan: Infrastructure and Agricultural Output Linkages

Formation of regional and global strategic movements around the world in present century has led to geo-strategic and geo-economical partnerships among countries. China Pakistan Economic Corridor (CPEC) is one of the best examples of such partnerships. The overall launching time span of CPEC spreads from 2014 to 2030. There are three phases for implementation of the projects under CPEC. The short-term, mid-term and long-term projects are estimated to be completed by 2017, 2025 and 2030 respectively. The estimated construction cost for these projects is $46 billion. It is the network of highways, railways, pipelines, transport, oil, gas and energy. Agriculture sector would be a direct as well as indirect beneficiary of CPEC via development in backward and forward linkages. Agriculture has been backbone of low-income economies. It is generally the primary source of income and employment in rural areas. Agriculture sector of Pakistan has continuously been facing downfall during the last one decade. Worst energy crisis during the recent years might be one of the major reasons behind such down turn. The paper has been prepared to see the impact of development of infrastructure on growth of agriculture sector. Also critically assessing the explicit and implicit economic benefits that can be gauged from various initiatives of CPEC particularly the infrastructural development. A thorough literature has been scanned to achieve this objective. Given all ifs and buts, the development of infrastructure including energy projects under CPEC plan will help in uplifting the agriculture. It is imperative that governments at all levels should support and back up these projects through institutional development and regulatory mechanism so that maximum economic benefits could be reaped.

Riaz Ahmed And Usman Mustafa

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