CHINA PAKISTAN ECONOMIC CORRIDOR

BACKGROUND

• CPEC is a collection of projects.• Project was formally conceived in May 2013• PM Li Keqiang officially visited Pak on 22 May

2013• Later Prime Minister Nawaz Sharif made visits to

China to discuss the importance of this project.• President Xi Jinping visited Pak in April 2015 and

formally announced China’s offer of US$ 46 billion.• Agreements were inked giving importance to energy

projects.

INTRODUCTION

• CPEC is a series of under construction projects of worth more than $50 billion.

• It is a 3000 km long extensive network of roads, railways, pipelines and optical fiber cable network.

• CPEC will link Kashgar in northwest China’s Xinjiang Uygur Autonomous Region & southwest Pakistan’s Gawadar Port.

• CPEC is considered as a golden opportunity for Pak to develop its infrastructure

OBJECTIVES OF CPEC• Increase the volume of trade between China and Pak.• Pak and China are 2nd largest partners in South Asia/ this will help to retain

partnership.• Widen Karakoram highway and open new economic corridor from China to

Gwadar.• Approximately reduce 10000 Km distance & is the shortest route.• Expand trade with Russia by providing trade route till Gwadar port.• Development of infrastructure along Pakistan.• China’s access to Indian Ocean with the aim of widening its geopolitical

influence.• Job opportunities and economic development in Baluchistan.• Increase in Chinese investment.• Regional peace, prosperity and elevate the lives of poor people in south

Asia.• Enhance trade among Pakistan, China, Gulf States, Central Asia & Africa.• China is interested to extend IranPakistan pipeline to its western territory.

PROJECTS IN CPEC

Total number of projects: 49Baluchistan: 16 projectsKPK: 8 projects Sindh: 13 projectsPunjab: 12 projects

PROJECTS ALLOCATED FOR BALUCHISTAN

1. Gwadar Power Plant2. Khuzdar-Basima Highway (N-30)3. Hubco Coal Power Plant4. Gwadar New International Airport5. Gwadar Smart Port City Master Plan6. Gwadar Eastbay Expressway7. Gwadar Primary School8. Gwadar Eastbay Expressway II9. Gwadar Hospital Upgradation10. Gwadar-Nawabshah LNG Terminal and Pipeline11. Gwadar Technical & Vocational College12. Khan-Quetta Highway (N-50)13. Wastewater Treatment Plants for Gwadar City14. Gwadar Free Zone15. Fresh Water Supply16. Expansion of Multi-purpose Terminal including Breakwater & Dredging

PROJECTS ALLOCATED FOR KPK

1. Establishment of Havelian Dry Port2. Suki Kinari Hydropower Project3. Upgradation of ML-14. Optical Fiber Cable from Rawapindi to Khunjrab5. KKH II (Havelian-Thakot)6. Khan-Quetta Highway (N-50)7. KKH III (Raikot-Thakot)8. Joint Feasibility Study for Upgradation of ML1

PROJECTS ALLOCATED FOR SINDH1. Port Qasim Power Plant2. Matiari-Faisalabad Transmission Line3. Dawood Wind Farm4. Matiari-Lahore Transmission Line5. Sachal Wind Farm6. Jhimpir Wind Farm7. Upgradation of ML-18. Thar Coal Block I & Mine Mouth Power Plant9. Gwadar-Nawabshah LNG Terminal & Pipeline10. China-Sunec Wind Farm11. Karachi-Lahore Motorway (Sukkur-Multan)12. Joint Feasibility Study for Upgradation of ML113. Engro Thar Power Plant & Surface Mine in Block II of Thar Coal Field

PROJECTS ALLOCATED FOR PUNJAB

1. Karachi-Lahore Motorway (Sukkur-Multan)2. Upgradation of ML-13. Sahiwal Coal-Fired Power Plant4. Rahimyar Khan Coal Power Plant5. Lahore Orange Line Metro Train6. Haier & Ruba Economic Zone II7. Karot Hydro-Power Plant8. Joint Feasibility Study for Upgradation of ML19. Matiari-Lahore Transmission Line10. Optical Fiber Cable from Rawapindi to Khunjrab11. Quaid-e-Azam Solar Park in Bahawalpur12. Matiari-Faisalabad Transmission Line

CPEC IMPORTANCE TO CHINA

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

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

• Even if China uses CPEC for 50% of its oil supplies then it will save $6 million every day.

• Independent path from USA and India’s interference.• New business market in another country.

CPEC IMPORTANCE TO PAKISTAN• Strategic and economic trade routes• Development of infrastructure• Connect all the provinces• Development of FATA, KPK and Baluchistan• Job opportunities• Equalization among all provinces• Import and export of Pakistan will increase• The Power capacity will increase• Gwadar Port will be upgraded • Roads, Railways, Aviation and Data Transfer will be

upgraded.

DISADVANTAGES OF CPEC

• FTA leads to threat for local markets and local manufactures

• Disturbance of local industries• Difficult to compete Chine’s product in market• Increase the ratio of unemployment• Dependence on China • Work stopped on 5 Chinese power projects in Punjab

that generated 6600 MW, though Pakistan’s installed capacity is 22,800 MW to meet current demand of 19,000 MW, it produces only 12,000 MW.

CPEC ROUTE MAP