For a developing state, there is hardly anything more tempting than Foreign Direct Investment. Pakistan is not an exception in this regard. Having always lured towards the aid packages and monetary gifts from USSR and the United States, Pakistan unconsciously gave itself the impression of being a client state in the world. Although, the USSR and now the USA turned hard on Pakistan in terms of economic packages, yet we found another host in the shape of China which is gradually bringing over $50 billion of investment here. Under the umbrella of China-Pakistan Economic Corridor (CPEC), the investment is going to uplift Pakistan’s infrastructure, especially in the energy sector. But, being under the irresistible psychological impact of this package, the political leadership has failed to let the masses know what challenges CPEC is bringing for the country. These challenges are concrete. Here is a brief glimpse of two un-noticed challenges:
· CPEC is an economic merger of two different nations with China being a giant while Pakistan as a tiny economy. In such situations, the giant economy often remains at the upper end thus seeking more benefit through deals and monetary tactic. Pakistan needs to beware of this challenge.
· CPEC is bringing a huge environmental challenge for Pakistan. The country’s Northern region is a hub of natural beauty in shape of forests and glaciers. The massive movement of traffic there carrying out trade will surely degrade the environment of a region which ought to be the hub of tourism.