Fast Friends: China, Pakistan, and the CPEC

The CPEC is set to overhaul Pakistan's infrastructure, yet it should change trade between the two countries as well.

The China-Pakistan Economic Corridor (CPEC) project is underway. The focus is primarily on infrastructure, but we expect trade between the two countries to increase in volume. Take a look at the figure below, China’s YoY import growth from Pakistan increased more than 30%. Conversely, exports to Pakistan decreased, but are not a YTD low. January 2018 was the lowest growth rate for 2018. When examining trade in prior years the strengthening trade partnership is evident. We believe that there will be increased trade growth between China and Pakistan as the CPEC influences trade growth.

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