Abstract
The beginning of 21st century is considered as atmosphere of economic globalization and
geo-strategic partnership among countries. The China-Pakistan Economic Corridor (CPEC)
is one of such partnership that will connect these two countries with Asia, Africa and Middle
East. The CPEC agreement includes projects of energy, Gwadar port, highways, railways and
others having total investment of 46 billion U.S $. In this study, we have examined business
articles, news articles, facts and figures under content analysis to test the potential impact of
CPEC on Pakistan’s trade, investment, energy, and infrastructure. We may conclude that at
present CPEC has limited impact, but it will increase on completion of CPEC. We have also
analyzed impact of CPEC on Pakistan Stock Market (PSX) by using idea of event study and
have identified four events from start of CPEC (April 2015) to purchase of 40% share of
Pakistan Stock Exchange (PSX) by China (December 2016). We established theoretically and
practically that CPEC has positive impact on stock market. This finding is supported by
practical occurrences that Morgan Stanley Capital International (MSCI) announced to
include Pakistan index in Emerging Market Index and Bloomberg ranked Pakistan index as
5th best performing stock around the world in 2016.Overall the CPEC is game changer for the
Pakistan economy and will support to China as well as to achieve its targets.
Salman Bahoo, Sohail Saeed, M. Javed Iqbal, Shahid Nawaz. (2018) Role of China-Pakistan Economic Corridor in Pakistan’s Trade, Investment, Energy, Infrastructure, and Stock Market, Journal of Independent Studies and Research-Management, Social Sciences and Economics, Volume-16, Issue-1.
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