china pakistan economic corridor (cpec)

China Pakistan Economic Corridor

Presented By:-Muhammad Shahroze IlyasMubeen Abdul ShakoorAdeel AsifMuhammad Fahad Khan

Contents

• Historical background of Gwadar• Introduction to CPEC• History of Pak china Relations• Investment in Pakistan• Project proposed• MOU• Major projects• Benefits for Pakistan and China• Conclusion

Historical background of Gwadar

• Port city on the southwestern coast of Pakistan's Balochistan province.

• Pakistan purchased it from Oman.• Gwadar Port is a strategic warm-water

deep-sea port.• Officially opened on 20 March 2007

Introduction to CPEC

• The karakoram highway(kkh) was started in 1959 and was completed in 1979 (open to the public since 1986 )

• It connects China's Xinjiang region with Pakistan's Gilgit–Baltistan and Khyber Pakhtunkhwa regions

Introduction to CPEC

• China Pakistan Economic Corridor is a collection of projects.

• Link the Pakistani city of Gwadar Port in southwestern to China’s northwestern autonomous region of Xinjiang

Route Of CPEC

History Of Pakistan China Relations

• Pakistan–China relations began in 1950 • Strategic alliance was formed in 1972 and

economic co-operation began in 1979• China has invested $20 billion in various

projects

Investment in Pakistan

Project Proposed

• Proposed in May 2013.• CPEC act as a bridge in Maritime Silk

Route.

MOU

• Concessional Loan for Karachi-Lahore Motorway

• Concessional Loan for Gwadar International Airport

• MOU between NUML Pakistan and Xinjiang Normal University

•  Establishment of NUML International Center of education (NICE) between NUML Pakistan and Xinjiang Normal University

MOU

• Cooperation between WAPDA and CTG• Contract on Lahore Orange Line Metro

Train Project •  financing for Lahore Orange line Metro

Train project• financing for KKH up-gradation Phase-2

(Havelian to Takot)

Major Projects

List Of Projects• Wind Energy

o Jhimpir wind Power projecto Dawood Wind Power Project

• Coal Power Planto Hubco Coal-fired Power Plant Projecto Development of Private Hydro Power Projects

• Nuclear Power Planto Kanupp-II, Kanupp-III.

• Coal Power Planto Zonergy 9x100 MW solar project in Punjab

• Hydro Power Planto 720MW Karot Hydropower Projecto Development of Private Hydro Power Projects

List Of Projects

• Gwadar Port up gradation• Lahore Karachi Motorway• Peshawar Karachi Motorway• Havelian-Khujerab Railway• Hazara Motorway• Gwadar Ratodero Motorway• Gwadar International Airport• Lahore Orange Lane Metro Train

Benefits to China

• Chinese industries are facing problems to compete in global market due to high transportation cost and delivery time.

• China is using a longest way due to which transportation cost and time increases, which gives a competitive edge to competitors e.g. Japan, USA

Benefits to China

Benefits to China

• It would decrease the travel distance and cost greatly from China to Gulf.

• Even if China uses PCEC for 50% of its Oil supplies then it will save $6 Million every day, almost $2 billion every year.

• Independent path from India and USA’s interference.

• New business market in another country.

Benefits to Pakistan

• Strategic and economic trade routes.• Development of Infrastructure.• Connect all the Province.• Development of Fata, KPK and

Baluchistan.• Job opportunities

Benefits to Pakistan

• CPEC from all counts will prove a game changer

• Investments by China will boost Pakistan’s $274 billion GDP by over 15 %

• Given the solid foundations of friendship 

Disadvantages

• FTA leads to threat for local markets and local manufacturers

• Disturb of local industries• Difficult to compete chine’s product in

market• Dependent to China

Conclusion

• Natural Gateway for China• Positive response by both countries through

mutual cooperation• Both countries are keen to enhance trade

activities• Infrastructural improvement and Development

of Dams• Stability of economy by investment in different

sectors