CPEC IMPACT ON PAK AND LIKELY CHALLENGES

INTRO

Pak China friendship High-lvl visits

INTRO

Sharing of info

INTRO

Tele CommEnergy InfrastructureNetworks of Infrastructure

INTRO

Regional eco hub

Game and fate changer

INTRO

Build much-needed infrastructural

INTRO

Open trade routes for Western China

INTRO

Strait of Malacca

INTRO

CPEC

Chinese President Xi Jinping

INTRO

INTRO

INTRO

Dev of Xinjiang

AIM

Impact On Pak and Likely

Challenges

PART I

• Back Gr• 2/Lt Arslan

PART II

• Salients of Eco Corridor• Lt Tanveer

PART III

• Implication for Pakistan• Capt Nawaz

PART IV

• Recommendations• Capt Tameem

SEQ

SALIENTS OF CPEC

$46 billions investment incl :- $33.8 billions

Energy Projs $11.8 billions

Infrastructure Proj $44 million Fiber

Optic Cable Add 10,400 MW of Energy

SALIENTS OF CPEC

SALIENTS OF CPEC

KKH (Havelian to

Thakot)

Kci -Lhr Motorway

(Multan to Sukkur)

The Gwadar Port east

bay Expressway Proj

Gwadar Intl Airport

Relations are progressing

Dev Eco relation

SALIENTS OF CPEC

Steps to boost eco ties

SALIENTS OF CPEC

China trading partners

SALIENTS OF CPEC

SALIENTS OF CPEC

Major export of Pakistan

SALIENTS OF CPEC

Pak & China with same geo region

SALIENTS OF CPEC

DEV OF TRADE ROUTES

Trade route b/w China , Middle East and Africa

China Energy Concern

DEV OF TRADE ROUTES

Proposed pipeline through Pakistan

DEV OF TRADE ROUTES

$45.6 Billion From 2014-2020

DEV OF TRADE ROUTES

80% Oil tpt through Strait of Malacca

DEV OF TRADE ROUTES

PROPOSED ROUTES

Turbat

Panjgur

Mastung

Quetta

Zhob

DI Khan

ROUTE 1

Khuzdar

DG Khan

Mianwali

ROUTE 2

Karachi

Sukkur

Multan

Lahore

Islamabad

ROUTE 3

PROJs

Gwadar Intl Airport by 2017

Gwadar port

Control was transferred to

China Overseas Ports Holding

in February 2013

Built by Chinese workers and

opened in 2007

Undergoing a major expansion

to turn it into a full-fledged deep-

water commercial port

Will be handed over to China for

40 year

PROJs

OFC Comm Link

Upgrading sec of 1,300-

km KKH connecting to

Islamabad

Laying a OFC from

Chinese border to Rwp

PROJs

Quaid-e-Azam solar park in Bwp

900 MW Investment of $1.5 billion Zonergy Ltd

PROJs

ENERGY PROJs

China-Pak Jt Cotton Bio-Tech Lab

Gwadar-Nawabshah LNG terminal and pipeline

ENERGY PROJs

70 MW hydro-electric Suki Kinari hydropower

ENERGY PROJs

Port Qasim 2x660MW Coal-fired Power Plant

720MW Karot Hydropower Proj

Zonergy 9x100 MW Solar Proj in Punjab

Jhimpir Wind Power Proj

Thar Block II 3.8MW Proj

Thar Block II 2x330MW Coal Fired Power Proj

Dev of Pte Hydro Power Proj

Dawood Wind Power Proj

Hubco Coal-Fired Power Plant Proj

ENERGY PROJs

OTHER MAJ PROJs

Projs DetailsUpgrad of Kci–Psc Main Line Feasibility study underwayKhunjerab Rly Feasibility study underway

Kci - Lhr Motorway (KLM) Approved, Const to begin 2015Havelian to Khunjrab Rail track ApprovedHazara Motorway Under const

Gwadar-Ratodero Under const, approx. 820-km long expected completion Dec, 15

Economic Corridor Sp Force Completed, armed div of the army for security of workforce, cost $250 million

Havelian Dry Port Feasibility study underway for the container port

Orange Line (Lhr Metro) Approved

OBJECTIVEs - CPEC Inc the vol of trade between Pak and China

Take full adv of Preferential Trade Agreement (PTA) and Free

Trade Agreement (FTA)

Inc export to China, recently export to China is $3.14 billion

Widen of KKH and open new Economic Corridor from China

to Gwadar

Approx reduce 10000 km dist and it is the shortest route

TRADE OPPORTUNITIES

CPEC would prom commerce and trade b/w the two ctys

Transit hub of second largest eco of the world

TRADE OPPORTUNITIES

Provide opportunities to Chinese investors for jt ventures

China an eco powerhouse of the future

Adv for Pakistani coys to enter in the mkts

CHALLENGES Difficulties of terrain and weather in the Northern

mtn areas

CHALLENGES

Peace in Bln Baloch militant gp

Investors and dev face

a strong oppn by

these militants

Success of eco corridor

INDIAN FACTOR

CPEC thorn in India’s side Indian govt has openly opposed in public

HIGHEST CIVIL AWARD OF PAKISTAN

Indian concerns expressed in harsh tones

Propaganda campaign by (RAW)

RAW “consulates” along the Pak-Afghan border

INDIAN FACTOR

India never misses a chance to strangulate Pakistan

Chinese investment of US $46 Billion

INDIAN FACTOR

Apprehensive of Chinese presence in Indian Ocean

ARABIAN SEA

INDIAN FACTOR

Port enables to take con of more of the world energy

INDIAN FACTOR

India generously invests in Port of Chabahar

Port was partially built by

India in 1990s

INDIAN FACTOR

Three key factors compelled China to opt for Op comd of the Gwadar Port Inc US influence in the Asia-

Pacific Eases its reliance on Straight of

Malacca Wdr of US from Afghanistan

US FACTOR

US FACTOR

Expected wdr of US Forces from Afghanistan in 2016

ECONOMIC

VENTURES

• Afghanistan and CARs

US WITHDRAW

L

China, an emerging and 'soft power‘ can act as a countervailing force Negative trends of unilateralism Global ambitions of the 'hyper power’

US FACTOR

Safest and shortest trade route

Insecure and largest

route

Strait of Malacca

IOK

Oil storage facilities and refinery at Gwadar

US FACTOR

Gwadar Port to face stiff competition from

Chabahar

Not operating vigorously as Chabahar

Can operate efficiently

No kidnapping and deadly attacks on

foreigners

Government makes favorable concessions to

Baloch people

IRAN FACTOR

Activities sup by Iran and India in rift to prom their own agenda

IRAN FACTOR

India and Iran port deal to boost regional trade

IRAN FACTOR

Chabahar port reflects India’s interest in trade with Central Asian countries including Afghanistan

CHABAHAR

CARs

IRAN FACTOR

New Delhi spent $100 million on building a 220 Km road in the Nimroz province of Afghanistan

IRAN FACTOR

India planning 900 Km rail line from Chabahar - Afghanistan’s province Bamiyan

IRAN FACTOR

INTERNAL CHALLENGES

Power struggle over its route

All parties conference chaired by Prime Minister

Zhob

Hassan Abdal

INTERNAL CHALLENGES

Political leadership opted to first complete Western route

INTERNAL CHALLENGES Baloch nationalists

dismay at the Proj Difficult economic

conditions Lack of local control

over native resources

Smaller provinces should be allayed

SECURITY CHALLENGES

People of Balochistan would be real beneficiaries of this proj

Transform Gwadar into eco hub

SECURITY CHALLENGES

Providing Job Opportunities

Infrastruture improvement in province

Free trade zones in Gwadar

SECURITY CHALLENGES

Mil separatist gp op in Bln

BLA

JUNDULLAH

LOCAL

SARDARS

SECURITY CHALLENGES

Estb Security Div for CPEC projs and Chinese employees

12,000 security personnel to protect Chinese workers

8000 security officials already deployed for the protection of 8,100 Chinese workers

SECURITY CHALLENGES Dev

process on corridor b/w

Pakistan and China

Militancy resolve

RECOM

Business opportunities from CPEC

RECOM

Toll tax on Chinese oil shipment and trade traffic

RECOM

Deprived benefits of EC & more security issue

RECOM

Embrace the huge opportunity

RECOM

Main obs in the way of CPEC

RECOM

Implement and handle policies

RECOM

The training cen

RECOM

Develop auto industries

RECOM

CONCL