BENEFITS OF CPEC FOR PAKISTAN

One thing we need to realize that at an international level there are no friends and no
enemies . It is all about the advantage one can get from other.
China will get a shorter route to import oil in the wake of the issue going in South China
Sea and will be able to maintain it's supremacy in Asia while Pakistan will get modern
infrastructure along with other small & large scale benefits.
So, the advantages for Pakistan are as follows:

As you can see in the image above, it is covering almost all of Pakistan. So what are the
benefits?

1.Game Changer :
CPEC will be a game changer for Pakistan once it is functional. China Pakistan
economic corridor is worth of almost 60 billion $ and its main focus is on connectivity,
communication, development and industrial change. This project is expected to change
the strategic landscape of Asia and has the potential to reshape the economic outlook of
Pakistan when a small economy like Pakistan will be physically connected with one of
the world’s largest economies.

2.Positive Social Change :

CPEC will uplift Pakistan’s economy through immense investment in various sectors
such as industrial, agricultural, and technological. This development would transform
the standard of living of Pakistani people and bring social change to the country.
3.Foreign Direct Investment :
Pakistan which is essentially weak in the field of technology needs the world attention
for foreign direct investment and CPEC will be the corridor to attract Foreign direct
investment in the country in the infrastructure , power and construction sectors.

4.Solving Energy Crises :

Energy is the source of power for economic development and a key factor in the
development of the Pakistan. Recognizing the growing energy needs of Pakistan, and to
overcome the existing problems, CPEC has allocated a major proportion of its funds to
energy generation and transmission. 50% of the investment is kept for the production of
electricity which is estimated to be 16500 megawatts. As we know due to shortage of
electricity many international standards factories shifted to other South Asian
countries. Because of CPEC , many countries might again begin to invest in Pakistan
seeing the way how Pakistan has overcome its energy shortage problems.

5.Economic Revival :
CPEC will bring the economic revival in country because the Chinese investment and
various other multinational corporations are interested to invest in Pakistan. FDI will
ultimately enhance the economic activities in the country. China Pakistan Economic
Corridor is expected to opening doors to immense economic opportunities to Pakistan.
For Pakistan, the combined value of the CPEC’s infrastructure projects would be
equivalent to 17 percent of Pakistan’s GDP in 2015, a report by Deloitte predicted[1].
The report estimated that the economic corridor would create some 700,000 direct jobs
between 2015 and 2030, and add up to 2.5 percent to the country’s growth rate. This
will boost the economy of Pakistan.

6.Industrial & Economic Development :

As the world is renowned to the FEZ ( free economic zones) and its importance, six Free
economic zones will be established all along the country enroute of CPEC. In these FEZ
various industries and production units will be established and these goods will be
transported to the the middle East and Central Asian Regions via Gwadar Port. This
will bring revolution in the industrial sector and it will also help Pakistan grow
economically.

7.Transportation Development :
Transportation business will rapidly grow due to CPEC, it is estimated about the
requirement of 1 lac new Cargo trucks for transportation of Goods and Chinese oil
from Kashgar to Gwadar. Modern transportation networks will be constructed. The
distance will be reduced from 12000kms to almost 2500kms due to establishment of
alternative route.This transport will be cost effective. All these mega developments will
change the lifestyle of masses of Pakistan.
1. https://www2.deloitte.com/content/dam/Deloitte/pk/Documents/risk/pak-china-eco-corridor-deloittepk-noexp.pdf
8.Improvements in Telecommunication Field :
Telecommunication field is expected to grow once the fiber optics will be laid from
China to Islamabad and the people of Pakistan will get so many benefits out of this.

9.New Business and Job opportunities :

Various new job opportunities will be created all over Pakistan. Especially Balochistan
which was unfortunately the ignored part of Pakistan will be given the opportunity to
develop. CPEC will change the lifestyle of balochi people giving them various business
and job opportunities near the port city Gwadar. It is estimated that 1 million new
jobs[2] will be created in various fields and sectors which are aligned with CPEC.

10.Military Help :
CPEC will help military in the sense as the Port city Gwadar provides the strategic
importance to Pakistan. Gwadar has the potential to act as a Naval base for joint
venture of Pakistan and Chinese navies. Ultimately navy which is far behind the Indian
navy will get more significance and advanced naval fleets and sources.

IMPORTANT PROJECTS
The China-Pakistan Economic Corridor (CPEC) includes a number of projects in the
fields of energy generation, industrial cooperation, transport infrastructure, and ports
development. However, experts are laying emphasis on 5 specific projects[3] on
assessing the success of this multi-billion dollar cooperation between Islamabad and
Beijing.

1.China-Pak Rail Link :

The China – Pakistan Rail link is a controversial project that would effectively connect
Khyber Pakhtoon Khwa which Pakistan’s Western province with China’s western
Xinxiang region, cutting through some of the most mountainous and unpredictable
lands in the world, including the Khunjurab pass which becomes covered in snow each
cold season. The route would be highly expensive and technically difficult, but would
make the transportation of goods and people between the two nations much more
straightforward and far less expensive.

2.Thar Coal Fired Power Station :

The USD 2 billion Thar coal fired power station is the key energy project in the China-
Pakistan Economic Corridor (CPEC). China Machinery Engineering Corporation
(CMEC) is set to lead the construction of this project. The lignite coal which will power
the plant comes from the region. The plant is expected to come online in a few years
2. https://nation.com.pk/08-Oct-2016/cpec-to-boost-pakistan-gdp-growth-to-7-5

3. http://www.cpecinfo.com/news/five-projects-that-will-define-the-success-of-the-china-pakistan-economic-corridor-
(cpec)/MTI0Ng==
 time. It is hoped that this deal, along with several other hydro and coal projects, will
help correct the shortfall in energy supplies across Pakistan.[4]

3.Karachi-Peshawar Motorway :
A motorway connecting Karachi to Peshawar would transform transportation in
Pakistan. This new route would connect the financial and commercial capital on the
coast of the Arabian Sea with Peshawar. A well-made road with capacity for large
amounts of traffic would boost commerce making goods easier, cheaper and quicker to
move. Work is well underway on this particular project with parts of the route such as
the Sukkur – Multan section already complete.

4.Rail Line around Karachi :

Karachi has developed into one of the world’s biggest cities with a population of around
26 million. Similar to many other South Asian big cities, it faces problems such as
widespread violence, overcrowding, and pollution. The revival and successful
implementation of the old plan for a rail line around Karachi will help with the issues of
overcrowding and pollution. China has agreed in principle to assist with the funding of
this project, which appears increasingly vital with the city’s population projected to
grow to 30 million by 2030.

5.Gwadar Port :
Gwadar Port is another major project backed by the Chinese. The strategically
positioned port will be a major central post for trade. Gwadar will change the strategic
environment and economy of the entire political country. Gwadar will able to control
the oil sea routes and trade links among regions such as South Asia, Africa, Central
Asia, Gulf and Middle East. It will provide strategic grip to Pakistan against India, as
the port is far from Indian reach as compared to other two Pakistani ports. The Chinese
are also backing a nearby international airport, and the development of new city to
service the port. These projects combined will help transform what was once a tiny port
in the corner of Pakistan into a major hub with ambitions of becoming the next
Dubai.[5]

4. http://www.pakistaneconomist.com/2018/10/08/energy-crisis-and-cpec-contribution/

5. http://www.cpecinfo.com/news/five-projects-that-will-define-the-success-of-the-china-pakistan-economic-corridor-
(cpec)/MTI0Ng==