The Role of China–Pakistan Economic Corridor (CPEC) in Addressing Unemployment in Pakistan

Abstract

The China–Pakistan Economic Corridor (CPEC), a flagship project under China’s Belt and Road Initiative (BRI), holds significant potential for transforming Pakistan’s economic landscape. This study examines the role of CPEC in addressing unemployment in Pakistan by analyzing its impact on job creation across sectors such as infrastructure development, energy, transportation, and industry. Using secondary data from government reports, academic studies, and international financial institutions, the research highlights that CPEC has generated both direct and indirect employment opportunities, particularly in construction, logistics, and ancillary services. The establishment of Special Economic Zones (SEZs) under CPEC is expected to further enhance industrialization, attract foreign investment, and create long-term employment prospects. However, the study also identifies challenges such as skill mismatches, uneven regional development, and limited participation of the local labor force in high-skilled positions. It concludes that while CPEC has contributed meaningfully to reducing unemployment in the short term, its long-term success in addressing structural unemployment depends on effective policy implementation, vocational training, and inclusive economic planning.