Abstract:
This paper examines the current status of Pak-China commercial
cooperation, the convergence of this cooperation towards the
realisation of China-Pakistan Economic Corridor (CPEC), and the
challenges and opportunities envisioned for this relationship.
Constructivism is the best possible characterisation of the nature of
Pakistan’s commercial relations with China, as these do not amount
to a zero-sum regional game that would seek maximisation of power
at the cost of their Asian neighbours. The current trajectory of
Beijing-Islamabad relations transcends the geopolitical and geoeconomic expediencies that could beckon prosperity and economic
cooperation. Both countries have an interest in creating an enabling
security, political, and trade environment for the envisioned growth
and sustainability of their commercial relations. An environment of
peace and stability will not happen in a vacuum, especially if other
regional and extra-regional powers are not willing to tango. For the
first time in Pakistan’s history, its territory shall set a course of
economic cooperation rather than geopolitical competition. The
CPEC is not only the pivot of Pakistan-China politico-economic
relations, but holds similar promise for the region and beyond. In
the aforementioned context, the paper explains multifarious
economic and trade linkages between the two countries, and proffers
recommendations for deepening commercial cooperation through
optimisation of trade balance, export diversification, and foreign
direct investment (FDI) inflows.
