Impact Of CPEC On Removing Financial Crises In Pakistan

Abstract

Regional disparities in social welfare remain a significant development challenge in Pakistan, particularly with respect to access to education, healthcare, and adequate housing. In this context, the China–Pakistan Economic Corridor (CPEC) has emerged as a large-scale development initiative with the potential to influence not only economic growth but also social welfare outcomes across regions. Despite its importance, empirical evidence on the social welfare impacts of CPEC at the district and provincial levels remains limited. This study examines the net impact of CPEC on social welfare in Pakistan by analyzing key indicators of education, health, housing, and a composite social welfare index across provinces and districts. The study utilizes secondary data from the Pakistan Social and Living Standards Measurement (PSLM) Survey 2014–15, complemented by projected CPEC impacts reported by Haq and Haq (2016). Descriptive and inferential statistical techniques are employed to assess the magnitude, statistical significance, and regional distribution of CPEC’s effects on social welfare indicators. The results indicate that CPEC has a positive and statistically significant impact on overall social welfare across all four provinces of Pakistan. While improvements are observed in education, health, and housing, the magnitude of impact varies across regions. Housing appears to be the most responsive indicator to CPEC-related investments, whereas education and health exhibit relatively weaker improvements, particularly in less-developed and remote districts. Inter-provincial comparisons reveal statistically insignificant differences, suggesting broadly uniform welfare effects at the provincial level despite persistent district-level disparities.