CPEC is not just a project deal signed by two countries: China and Pakistan. It has enhanced the geopolitical situation for Pakistan at many levels. CPEC is supposed to benefit the Pakistan’s financial markets given that there will be an increase in the trade activity. As the geopolitics has a crucial role in determining the fate of the financial activity of Pakistan.
Pakistan’s key players have not just been involved in deriving benefits from China, they have a history of getting benefited from the Americans too. An example of this can be seen in 2001, when America waived off all the loans off Pakistan after Pakistan showed its support with America to assist the Afghans in Soviet-Afghan war (2001). Although we had to pay the price in terms of terrorism and Talibanization as a result of this cooperation, but nonetheless it was beneficial for the time being.
Large investments have been seen as part of the CPEC. The reason why China is so committed to this project is the fact that CPEC will provide China a route to enter the Middle Eastern and African markets. Hence the commitment of about $46 Billion dollars to the Pak China Economic Corridor popularly known as the CPEC.
CPEC has been a lot of distress for India, as China has a history of blocking the entry of India continuously in the Nuclear Supplier Group (NSG), choosing Pakistan as an ally has further disheartened India.
To India’s utter dismay, Pakistan has been a number one priority for Pakistan in many ways. China sided with Pakistan on its Kashmir’s stance as well. Hopefully, this friendship will keep on going for a long time in the future as well, disheartening India as always.