Under the auspices of the China Pakistan Economic Corridor (CPEC), the Karot Hydropower Project (HPP) and other numerous projects have been launched with public welfare in mind. On April 20, 2015, President XI Jinping and the former Prime Minister of Pakistan attended the opening ceremony of Karot Hydropower Project. The Karot HPP, which is situated on the Jhelum River in Pakistan’s eastern province, is one of the major energy cooperation projects between Beijing and Islamabad, and is intended to have a positive socioeconomic impact on Pakistani society. China Three Gorges South Asia Investment Ltd. (CSAIL) provided funding for this project.
Since 2007, Pakistan has been dealing with a severe energy crisis. This crisis had an adverse effect on both the general populace and, of course, industrial production. The Karot HPP produced a significant amount of clean energy that can be deployed for both commercial and industrial uses. Last year, Karot HPP has increased production in each sector and produces 720 MW. For instance, this year the Karot HPP investment and its anticipated output of 800 MW will increase output in the heavy manufacturing industry by 0.85%, in the light manufacturing sector by 0.44%, in the extraction sector by 0.54%, and so on. For Pakistan’s economy, it is undoubtedly a positive development.
The productive growth of economies depends on both labor and capital. Pakistan, a developing nation, relies heavily on its labor sector and produces a majority of goods that are labor intensive. Due to its substantial investment, Karot HPP has a positive effect on real labor wages. For instance, the real factor price of land has increased. The real wages of farm workers have increased by 0.21%, followed by medium farmers by 0.20%, labor small farmers, high skilled labor, and then low skilled labor. Large and medium-sized parcels of land both saw price increases of 0.18%. Additionally, the capital’s price return also increased. GDP has also increased from a side perspective. An investment of US $1.7 million in the hydropower project would boost total exports by US $61.2 million and real GDP by $141 million.
The Karot hydropower project is committed to assisting people and the development of Pakistani communities and is founded on the principles of altruism, and legal and economic responsibility. Pakistan also requires social programs that would benefit the community’s health, education, infrastructure, and—most importantly—access to clean water. The CIP program carried out the project, fulfilling corporate social responsibility through particular construction, greatly enhancing Pakistani people’s way of life. The Karot HPP’s surrounding communities are being given employment opportunities by CSAIL.
In Pakistan, CSAIL currently employs 60 people, 16 of whom are women, 26.7% of the total. In terms of technical education and skill development, which are important for Pakistan, it is very advantageous for Pakistani citizens. The Karot hydropower project gave Pakistani citizens 5,000 direct jobs during the height of the project. Mr. Imran Khan, former PM of Pakistan, also acknowledged and commended the creation of 5,000 jobs. Additionally, it will generate 4500 jobs per year for Pakistani citizens. By the end of 2021, CSAIL had also given approximately 6000 jobs to Pakistani citizens, which undoubtedly had a positive impact on Pakistan’s economic and social development.
Dealing with climate change is the CSAIL’s top priority. In this regard, CSAIL is generating clean energy by lowering atmospheric carbon emissions. Currently, Pakistan produces enough electricity annually from clean energy sources to replace between 250,000 and 300,000 tons of standard coal, cutting the country’s annual carbon dioxide emissions by between 100,000 and 120,000 tons. The emission reduction equivalent will rise to 2.5-3 million tons of carbon dioxide once the Karot hydropower project is operational, making a significant contribution to Pakistan’s environmental protection.
Similar to this, the Karot hydropower project has strengthened environmental management, and some wastewater treatment facilities and land filling in the slag yard have helped to reduce pollutants to the lowest level. To lessen the amount of sewage produced by the locals, Kohala planned to erect a wastewater treatment facility in Muzaffarabad.
For the Karot HPP, the project company has also established 8 conservation committees in the valleys, which are another way that CSAlL is preserving Pakistan’s biodiversity. It is of course to protect the precious plants and trees. The priceless trees and plants from the past 100 years were also preserved in their natural environments. Additionally in this regard, eight nature clubs have been established in the nearby schools. It benefits the neighborhood because it encourages schoolchildren to get involved in biodiversity conservation. Additionally, this raised public awareness of the need to protect the environment.
Pakistan is constantly adversely affected by floods. A flood season that affected the Karot HPP in 2020 occurred only once every 50 years, so the company took precautions to avoid and be ready for future flood seasons that might have an impact on the project.
Educating people about Karot HPP is another step that is valued. Due to a lack of some crucial facilities that are necessary for education, Pakistan is experiencing some difficulties with children’s education. But Karot HPP also made investments in this area; for instance, the project paid for the girls’ and boys’ junior high schools in Hollar Village. In 2020, these schools were formally transferred. There are enough classrooms in the schools for 400 students to study simultaneously. Additionally, school supplies such as stationery and office equipment have been given to the students.
In the affected area of the Karot HPP station project, the CIP plan was put into place to improve Pakistan’s educational and medical facilities, repair the public water supply system, roads, build public libraries, restrooms, and other amenities for the general public.
Pakistan received the hydropower project resettlement management information system from Karot HPP, which is used in China. It is based on the original system, and the technical team has also upgraded and developed it. This system offers new ideas and paradigms for enhancing the effectiveness and level of management of Pakistan’s resettlement program. In terms of management, Pakistan will benefit from this.
The other important step taken by the Karot HPP was related to the epidemic. It also offered some excellent initiatives to deal with Covid-19’s effects. Pakistan was successful in eradicating the epidemic in this case. Here guidelines such as “Epidemic Prevention and Control Plan of CSAIL” also formed a top scientific epidemic prevention system and reduced the negative impact of the epidemic. It is because CSAIL has taken many steps to ensure the life and health of the people, and help Pakistan in terms of economic recovery and social stability along with high quality clean energy projects. It also demonstrated “Chinese speed” and “Chinese quality” during the unique period of the epidemic, which will also polish Pakistan’s policies to overcome the negative impact of any pandemic.
Karot HPP is the need of Pakistan today. Pakistan continues to struggle with the transition to sustainable energy sources. No country is currently working to assist Pakistan in achieving its goal of sustainable energy, except China. Pakistan will need an ever increasing amount of energy resources to support Pakistan’s economy, because no country can advance toward development without having sustainable energy resources. Both China and Pakistan are moving toward a shared future, which will of course be advantageous for Pakistan. It is pertinent to note that under CPEC, Karot HPP is playing a vital role in developing Pakistan and fostering sustainable socio-economic development.
