The Silk Road Economic Belt is a proposed belt of economic zones along the edges of China and Russia that is supposed to increase trade between the two countries. It would connect the most important cities on each side by land, water, and rail. However, if one looks at the bigger picture, what this belt really means is that the people who live in the border regions would have a lot more opportunities to access the products and services that they need to live their lives normally. The benefits are not just limited to the residents of these regions, as China and Russia are also hoping that this economic zone will help increase their sales enough for them to become a strong and reliable trading partner.
If the Silk Road Economic Belt was to be successful, it will bring more companies, products, and services from these two countries into the areas where the global market is currently experiencing problems. Therefore, not only will the citizens of these two countries benefit from this, so will the countries surrounding them. These countries include India, Pakistan, Tajikistan, and Afghanistan. Each country has a different reason for wanting to have more access to the resources that the other country has.
However, whatever the case is, this type of trading agreement would give the people in these regions access to products, materials, and services that they currently cannot acquire because of the distance that they have from the large-scale importing and exporting corporations in their home countries. Thus, these countries would have more potential customers. They would also be able to build better relationships with the countries in the region, something that is necessary for development.
Besides developing stronger trading ties, the economies of these two countries would also find themselves with greater foreign investment. The current status of the political situation in Pakistan and India is uncertain, which means there is a big potential for investors in these countries to invest in businesses that make use of the natural resources present in these countries Silk Road economic belt. Furthermore, the lack of infrastructure in these two countries makes it difficult for businesses to penetrate the market. In order to facilitate trade and investment, the countries would need to improve their infrastructures, and create stronger legal frameworks for these businesses to ensure their safe and secure transactions.
Another part of this agreement is that of regional integration. Regional integration refers to the fact that the countries in the Middle East and Asia-Pacific area to promote and encourage regional cooperation in order to increase trade and investment. This agreement would therefore allow the transnational companies to establish bases in these regions. It would also promote the opening of free trade areas, such as the Silk Road Economic Belt, the agricultural export-import depot, and the regional integration club. Regional integration would also allow the transnational companies to establish their own international airports and ships to cater to the regional businesses. It would also encourage the countries to build the infrastructure and increase the tax and customs duties on the companies’ imports and exports.
This regional integration would boost the economic growth of both Pakistan and India. Through this economic pact, the companies from India would be able to access the market for their products at a much cheaper and efficient rate. At the same time, the countries in the Middle East and Asia-Pacific region would be able to reduce their import duties and boost their gross domestic product. The countries in these regions would then be able to increase the exports.
The economic pact will further provide a venue for economic growth and political stability to both the Pakistan government and the Pakistan people. It is a win-win situation for everyone. Trade and investment in the region will become more secure and open. Political stability can be achieved through the successful execution of the negotiation. The economic pact will also improve the political stability of the border areas, which have witnessed a series of political incidences over the past few years.
Furthermore, this economic pact will further help the countries in South Asia to eliminate their illegal economic activities such as the drug trade and human slavery. These activities will reduce violence in the countries and will contribute to the development of the economic belts. Furthermore, the countries in the southern part of the economic belt will be able to increase productivity levels by investing in research and technology.