THE ECONOMIC IMPACT OF CPEC ON THE LOCAL EMPLOYMENT IN PAKISTAN (2015-2024)

Abstract

The CPEC, launched in Pakistan in 2015, has been widely regarded by politicians, policy makers, national and international analysts as a transformative economic project for Pakistan. It was launched as a project of China’s broader Belt and Road Initiative. This paper/assignment evaluates the impact of CPEC on local employment in Pakistan. Especially between 2015-2024. The framework of Keynesian Economics, particularly the Multiplier Effect, is used to analyze the impact. On the basis of the secondary data, Government reports, and academic literature, the study finds that while CPEC has significantly generated short-term, direct, and infrastructure-led economic activity and employment in Pakistan, its long term impact on sustainable employment remains mixed due to structural issues such as skill gaps, regional inequality, and reliance on foreign labor.