EVALUATING THE LONG-TERM ECONOMIC AND SOCIAL IMPACT OF CPEC ON LABOUR MARKET DYNAMICS AND SECTORAL GROWTH IN PAKISTAN: A COMPARATIVE ANALYSIS OF SAM 2010-2019

Abstract

This study investigates the impact of Chinese investment in Pakistan by using SAM. The main purpose of this study is to find the initial institutional impact of China Pakistan economic corridor on Pakistan’s Economy, with particular focus on Pakistani Labour. In this study two SAM were developed by using two Input output tables 2010 and 2019 for the clear picture of the changes happened in the economy. The results reveal that CPEC has fostered industrial capacity of Pakistan, primarily in the construction sectors and manufacturing, which have drawn major international investment. With an increase in demand for medium -and high skilled worker, the Labour market has been changed, reflecting the structural revolution brought about by industrialization and infrastructural development. Moreover, the study asserts gender inclusion gains, increasing female involvement across all skill levels. In addition to the favourable economic changes, this study emphasizes issues such as governance, sustainability and Pakistan's economic reliance on China. The results highlight the growing body of knowledge about the role that infrastructure investment play in promoting structural transformation in developing countries by using Pakistan as a case study.