INTRODCTION:

 China-Pakistan Economic Corridor is a framework

of regional connectivity. CPEC will not only benefit
China and Pakistan but will have positive impact
on Iran, Afghanistan, India, Central Asian
Republic, and the region.

 China Pakistan Economic Corridor is journey

towards economic regionalization in the
globalized world. It founded peace, development,
and win-win model for all of them.

 China Pakistan Economic Corridor is hope of better

region of the future with peace, development and
growth of economy.

CPEC Mission and Vission

 To improve the lives of people of Pakistan and China by
building an economic corridor promoting bilateral
connectivity, construction, explore potential bilateral
investment, economic and trade, logistics and people to
people contact for regional connectivity.

It includes:
 Integrated Transport & IT systems including Road, Rail, Port, Air and Data Communication
Channels

 Energy cooperation

 Industries and industrial parks

 Agricultural development & poverty alleviation

 Tourism cooperation & people to people communication

 Financial cooperation

 Human Resource Development

Sinificance/Potential:
China-Pakistan Economic Corridor has Significance for the development of the region.
Potential areas of cooperation/development include:

 Regional Connectivity

 Transport Infrastructure

 Energy Hub/flows

 Logistic Hub/flows

 Trade & Commerce

 Industrial Cooperation

 Financial Cooperation

 Agricultural Cooperation

 Tourism

 Educational linkage

 Human resource development

 Health Care

 People to people contact

 Enhance Security and stability of the region

Locations:
 Pakistan:

Baluchistan, Gilgit-Baltistan, Khyber Pakhtunkhwa, Punjab, Sindh

 China:

Xinjiang

Route of CPEC:
 The economic corridor is considered central to China–Pakistan relations and will run about
3000 km from Gwadar to Kashgar.

 Pakistan and China have agreed to initially include nine Pakistani and two Chinese cities in
CPEC project.
  Initially Kashgar, Taxkorgan, Khunjrab, Peshawar, Islamabad, Lahore, Multan, Sukkar, Quetta,
Karachi and Gwadar will be included in the CPEC project.

 In the second stage, Gilgit, Chilas, Dasu, Thakot, Shankiari, Mansehra, Khanpur, Haripur,
Havelian, Burhan, DI Khan, Mughal Kot, Zhob, Quetta, Khushab, Darya Khan, Jam Pur,
Khuzdar, Faisalabad, Sama Satta, Lodhran, Lala Musa, Khanewal, Sahiwal, Gujranwala,
Wazirabad, Rawalpindi, Golra, Taxila, Attock, Nowshehra, Landi Kotal, Hyderabad, Rohri,
Dadoo, Larkana, Habib Kot, Shikar Pur and Jacobabad will be included in the CPEC project.

Investment:
 Pakistan and China formalized plans for the CPEC in April
2015, when they signed fifty-one agreements and
memoranda of understanding on Chinese investments,
totaling $46 billion over the next ten to fifteen years.

 China’s investment in its ambitious economic corridor

project in Pakistan has reached $62 billion, jumping
more than 34% from its initial investment of $46 billion.

Main components of corridor:

 Gwadar ( including port and city and Gwadar region socio-economic development).

 Energy (Coal, Hydel, Wind, Solar, LNG , Transmission).

 Transport Infrastructure (Road, Rail, Aviation).

 Investment & Industrial Cooperation (Gwadar Free Zone and other industrial parks to be
finalized).

 Any other area of interest mutually agreed.

Number of Projects:

Sr No: Sector No. of Projects Estimated Cost

(Million $)

01 Energy 21 33,793

02 Transport & 04 9,784

Infrastructure

03 Gawadar 08 792.62
  The prioritized or early harvest projects mean the projects which will be completed before 2018 or
2020 (For Hydro Power Projects).

 CPEC is a vision with the long-term planning up to 2030.

CPEC Energy Projects:

 Coal-fired Power Plants at Port Qasim Karachi
 Suki Kinari Hydropower Station, Naran,Khyber Pukhtunkhwa
 Coal-fired Power Plant Sahiwal, Punjab
 Hydro China Dawood Wind Farm(Gharo Thatta)
 Imported Coal Based Power Project at Gwadar, Pakistan
 Quaid-e-Azam Solar Park Bahawalpur
 Sachal Wind Farm (Jhimpir, Thatta)
 Karot Hydropower Station
 CPHGC Coal-fired Power Plant, Hub,Balochistan
 Thar Coal Power Plant

CPEC Gawadar Project:

 Construction of East-Bay Expressway, Gwadar Port
 New Gwadar International Airport
 Construction of Breakwaters, Gwadar Port
 Pak China Friendship Hospital
 Pak-China Technical And Vocational Institute At Gwadar
 Development Of Gwadar University (Social Sector Development)

CPEC Infrastructure Projects:

 Peshawar-Karachi Motorway (Multan-Sukkur Section)
 Khuzdar-Basima Road N-30
 Upgradation of D.I.Khan (Yarik) - Zhob, N-50 Phase-I
 Expansion and reconstruction of existing Line ML-1

CPEC Rail Based Mass Transit Projects

 Karachi Circular Railway
 Greater Peshawar Region Mass Transit
 Quetta Mass Transit
 Orange Line Train, Lahore
Principles Guiding the Construction of CPEC
 As a large and systematic project, which covers 2013-2030, CPEC needs joint and unremitting
efforts by governments, companies and all social sectors of China and Pakistan.

 In the process of planning and construction of CPEC, both sides agreed that the governments
of the two countries should play the guiding role, and the companies as market entities
should make investment in line with market rules.

Challanges:
 The primary obstacle to the CPEC’s full implementation is security.

 Islamist militant groups have already attacked Chinese targets, including kidnapping
and construction personnel.

 Balouch insurgents have attacked Chinese projects and workers.

 The CPEC also faces domestic political opposition in Pakistan, with infighting between
provinces and the central government over the allocation of investments.

Security of CPEC Projects:

 A CPEC parliamentary committee was told in August 2016 that the Special Security Division
would comprise 15,000 troops.

 Pakistan Army soldiers

 Para-military forces personnel.

 Maritime Security Force (MSF)

Government Links:
 Government of Pakistan

 Government of AJK

 Government of Balochistan

 Government of Gilgit Baltistan

 Government of Punjab

 Government of Sindh

 Government of Khyber Pakhtunkhwa

Ministries Links:
 Ministry of Planning, Development & Reform

 Ministry of Information Technology

 Ministry of Communications

 Ministry of Ports and Shipping

 Ministry of Railways

 Ministry of Finance

 Ministry of Water & Power

 Board of Investment

Departments Links:
 National Highway Authority

 Gwadar Port Authority

 Gwadar Development Authority

 National Electric Power Regulatory Authority

 Private Power and Infrastructure Board

CPEC for Pakistan:

 The China Pakistan Economic Corridor (CPEC) is a 3,218-km set-up of roads, railways and dry
ports from Gwadar Port to Kashgar and will enhance lives of about 3 billion people of this
region.

 It will help China through Pakistan to do trade with the half of the world countries.

 With the CPEC, there is hope that this project will open new business outlets for businessmen
from China, Pakistan and Iran.

 It will also provide a platform of cooperation in huge agricultural sector and will boost
tourism industry of Pakistan.

 CPEC is an historic opportunity for Pakistan, to place the country on a high growth economy,
create jobs, improve & construct critical infrastructure and augment access to energy .

Overcoming Malacca Dilemma

  China already has dispute with the island nations in the region due to the South China Sea
and Fears that they can choke Chinese economy at the time of crisis.

 Therefore, China needs an additional route to safeguard its energy requirement, and CPEC
exactly fits the requirement. Thus, CPEC has strategic significance for China.

Influence in the Middle East and Central Asia

 CPEC will lead to strong economic integration of the Middle East and Central Asia with China.

 This economic dependency and integration will increase the influence of China in both the
regions.

India’s Concern:

 The route passes through the disputed Kashmir region seems to have worried India.

 Economic and security interests in these territories are growing.

 The port might become a Chinese naval outpost, thereby threatening India's energy and
economic security.

Impact of CPEC on Pakistan's Economy

GDP Growth
 $62 billion to be added to the economy, 20% of the total GDP of Pakistan.

 Pakistan’s GDP growth rate increased from 4.7% in 2015 to 5.4% in 2016 (World Bank)

 Pakistan total GDP has increased from $244 billion in 2014 to more than $ 300 billion in
2017(World Bank)

 $13 billion will be added to Pakistan’s GDP by 2025 (IMF)

Energy Generation
 Access to electricity for the rural population increased from 90.3% in 2015 to 98.8% in 2016
(World Bank)

 Transmission and Distribution Losses went down to 16.5% in 2017 from 19% in 2015
(Ministry of Finance)

 Bill recoveries increased from 16% in 2015 to 19% in 2017 (Ministry of Finance)

 Electricity generation increased from 96,496 GW/h to 117,326 GW/h (Ministry of Finance)

Job Creation
 Early harvest projects of CPEC have created 30,000 direct jobs for Pakistanis (ACCA Global
and PCI)

 800,000 direct jobs estimated in the next 15 years. (Ministry of Planning and Development)

 CPEC will reduce unemployment by 2.32 million by end of 2018 (Global Times)

 75% of the total employees working in CPEC projects are Pakistanis, contrary to the belief
that the Chinese have a higher representation (Ministry of Planning and Development)