(CPEC)

INTRODUCTION:
CPEC has become an important concern in South Asia with special reference to
Pakistan-China relations. South Asia is among the less developed regions of the
world. There is only one regional organization South Asian Association for
Regional Cooperation (SAARC). Agreement was signed between Pakistan and
China to construct a corridor will pass through the whole Pakistan from south to
north. It will start from Gwadar and link it to China from Gilgit Baltistan. The
corridor is known as China Pakistan Economic Corridor (CPEC). This economic
corridor will connect East Asia, South Asia and Central Asia.

IMPORTANCE OF (CPEC):
CPEC is important not only for Pakistan but for China as well because it will
physically connect Pakistan and China with trading companies and markets in
Asia, Europe and Africa. energy sector of Pakistan will be controlled. It will
further strengthen the bilateral ties of Pakistan and China. It will bring closer the
people of both countries. It is about to provide more opportunities for investment
in Pakistan. It will help both countries to set on the track of progress. China will
help Pakistan to develop better infrastructure that will help to set the track of
development for Pakistan. It will also help to establish a progressive way for the
betterment of the less developed province of Pakistan Baluchistan. It will provide
jobs, better infrastructure and other valuable opportunities to the people of
Baluchistan that will be very beneficial for both Baluchistan and Pakistan.
China Pakistan Economic Corridor will be totally financed by China.

PROJECTS OF CPEC:
 Energy (33,793 US$ MILLIONS)
 Roads (6,100 US$ MILLIONS)
 Railway Networks (3,690 US$ MILLIONS)
 Mass transit in Lahore (1,600 US$ MILLIONS)
 Gwadar Port (784 US$ MILLIONS)

IMPACT OF CPEC ON SOUTH ASIA:

The strategic location of Pakistan is very important because it is situated at such
important place that can connect South Asia with Middle East and Central Asia
etc. That is why China is investing such huge amount in this region because due to
CPEC it will get more benefits. It will provide the shortest route to China to
connect with the Middle East. In 2015, a historical event took place in Pakistan in
the form of CPEC that will change the entire shape of South Asia as well as the
global shape of the trade. South Asia is the part of third world countries whose
member countries are mostly developing. The developed countries have set up
industries here. They bring raw material here and take the readymade items out of
the industries to the most developed countries where they earn a lot. The China
Pakistan Economic Corridor will change the entire fate of this trading system
because there is going to be built the best infrastructure ever in Pakistan that will
connect the different continents by roads and the movement of raw materials will
be more comfortable. In return, the businessmen of the whole world will be
attracted to invest here. This project will give benefits to all of the other South
Asian and regional states. South Asia is at the choke point of the world attention
since last a few years because a plenty of the developmental work is going to be
done in this region. CPEC will not only benefit China and Pakistan but will have
positive impact on Iran, Afghanistan, India, Central Asian Republic, and the
region. The enhancement of geographical linkages having improved road, rail and
air transportation system with frequent and free exchanges of growth and people to
people contact, enhancing understanding through academic, cultural and regional
knowledge and culture, activity of higher volume of flow of trade and businesses.

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.
 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.
 Enhance trade among Pakistan, China, Gulf States, Central Asia &Africa.
 China is interested to extend Iran Pakistan pipeline to its western territory.
MERITS OF CPEC:
 It provides profit to enhance the economy of country.
 It increases the number of jobs and decreases the unemployment of
country.
 It provides a balance of rupee with dollar.
 It provides a chance to the people of Pakistan to introduce their
products throughout the world.
 It will also increase the export of country which is in too declined form
today.
 It also provides a way to make CHINA- PAKISTAN friendship
strongest.
 It provides benefit to other countries for trade through safe route.

DEMERITS OF CPEC:
 62 billion dollars, a debt to poor economy of Pakistan which too much
feeble to bear it.
 It will increase the influence of chines market in Pakistan.
 It can crash the small manufacturing of Pakistan completely.
 Pakistan will be dependent on china.
 It will increase unemployment.
 It is very difficult to compete chines product in market.