The Potential Role Of Islamic Finance In Pak-China Economic Corridor Project

Abstract

The China-Pakistan Economic Corridor (CPEC) is a major economic project aimed at building a wide motorway, the railway line from Xinjiang in North-western China to Gwadar in south-western Pakistan. The project is looking forward to building and administer Gwadar Port also. This project will not only shorten the distance for remittance of oil, gas, and other goods to and from China, but also enable China to approach the western world via Gwadar port, which is under construction on the Arabian Sea. According to experts CPEC project will serve as a cornerstone not only in Pakistan-China bilateral Economic & Commercial Relations, but also for the political relationship of both neighbouring countries. In this regard what would be the potential role of Islamic Finance in this project? Or does Islamic finance have the capability to take an active part in this project?  If the answer is yes, then how? Subsequently, how it will be better or at least distinguished from the conventional finance? To seek out answers to these questions is the prime concern of this paper.