CPEC

China Pakistan economic corridor

Background

Belt and Road Initiative

The Belt and Road Initiative (BRI), also known as the One Belt One Road(OBOR) or the Silk Road
Economic Belt and the 21st-century Maritime Silk Road is a development strategy adopted by
the Chinese government involving infrastructure development and investments in countries
in Europe, Asia and Africa. "Belt" refers to the overland routes for road and rail transportation, called
"the Silk Road Economic Belt"; whereas "road" refers to the sea routes.

Here we discuss Road and Belt Initiative for Asia especially for Pakistan Only.

In Asia Road and Belt Initiative is launched mainly in seven (7) countries

1. Pakistan

2. Malaysia

3. Indonesia

4. Sri Lanka

5. Laos

6. Thailand

7. Hong Kong

Here we Discuss Road Belt initiative for Pakistan only

Road and Belt initiative for Pakistan

In Pakistan the Project of Road and Belt Initiative is termed as “The China–Pakistan Economic Corridor
or CPEC”

The China–Pakistan Economic Corridor

China–Pakistan Economic Corridor is a collection of Projects that are currently under construction
throughout Pakistan. These projects include:
1. Transportation

2. Energy

3. Maritime Infrastructure (maritime means “connected with the sea”)

4. Special Economic Zones

Announcement of CPEC
“CPEC” is announced During the state visit of Xi Jinping to Pakistan in April 2015, he wrote in an open
editorial stating:
"This is my first trip to Pakistan, but I feel as if I am going to visit the home of my own brother."
Agreement and Total cost of CPEC
On 20 April 2015, Pakistan and China signed an agreement to commence work on the $46 billion
agreement, which is roughly 20% of Pakistan's annual GDP, with approximately $28 billion worth of fast-
tracked "Early Harvest" projects to be developed by the end of 2018.
CPEC Projects are originally valued at $46 billion but now its cost is increased to$62 billion as of 2017.
“CPEC”“A game changer for Pakistan”
CPEC is intended to rapidly modernize Pakistani infrastructure and strengthen its economy by the
construction of modern transportation networks, numerous energy projects, and special economic
zones.
1. Transportation
A vast network of highways and railways are to be built under CPEC that will span the length and breadth of
Pakistan.

Inefficiencies stemming from Pakistan's mostly dilapidated or bad transportation network are estimated by the
government to cause a loss of 3.55% of the country's annual GDP.

Modern transportation networks built under CPEC will link seaports in Gwadar and Karachi with northern
Pakistan, as well as points further north in western China and Central Asia.

100 kilometre long motorway will be built between the cities of Karachi and Lahore as part of CPEC, while
the Karakoram Highway between Rawalpindi and the Chinese border will be completely reconstructed and
overhauled.

The Karachi–Peshawar main railway linewill also be upgraded to allow for train travel at up to 160 km per hour by
December 2019. Pakistan's railway network will also be extended to eventually connect to China's Southern
Xinjiang Railway in Kashgar .

The estimated $11 billion required to modernise transportation networks will be financed by
subsidized concessionary loans.

2. Energy

Over $33 billion worth of energy infrastructure are to be constructed to help alleviate Pakistan's chronic
energy shortages.
Over 10,400MW of energy generating capacity was estimated to brought online by the end of 2018.

A network of pipelines to transport liquefied natural gas and oil will also be laid as part of the project, including a
$2.5 billion pipeline between Gwadar and Nawabshah to eventually transport gas from Iran.

Electricity from these projects will primarily be generated from fossil fuels, though hydroelectric and wind-power
projects are also included, as is the construction of one of the world's largest solar farms.

3. Maritime Infrastructure
Maritime infrastructure means infrastructure related to seas and ports.
Under CPEC maritime infrastructure must be built mainly in Gwader which is one of the deepest sea ports of the
world.
This may also increase naval co-operation between China and Pakistan
Due to the importance of the port for this project CPEC is also called as “Maritime Silk Route project”
4. Special Economic Zones
A special economic zone (SEZ) is an area in which business and trade laws are different from the rest of the
country. SEZs are located within a country's national borders, and their aims include: increased trade, increased
investment, job creation and effective administration.
The creation of special economic zones by the host country may be motivated by the desire to attract foreign
direct investment.
Some economic zones which are included in CPEC are as follows
1. Rashakai Economic Zone , M-1, Nowshera
2. China Special Economic Zone Dhabeji (A town of district Thatha Sindh)
3. Bostan Industrial Zone
4. Allama Iqbal Industrial City (M3), Faisalabad
5. ICT Model Industrial Zone, Islamabad
Some other Economic zones are also considered in CPEC.
Economic Growth of Pakistan:
From above details it is clear that how Economic growth rate of Pakistan will be boost up by CPEC and we also
admired that$62 billion investment is largest investment in the history of Pakistan.
According to foreign office of Pakistan the entire project will be functional in 2030 and thus the Pakistan will
become the “financial Hub”
Removal of Unemployment:
Un employment is the problem of entire world but is one of the major problems of Pakistan .CPEC has created a lot
of job opportunity and has a capacity of creation of about 1 to 2 million jobs and thus help to remove
unemployment and poverty.
Removal of Energy crises :
Energy crises another major problem of Pakistan will be overcome by the projects of CPEC as discussed above.

From all above details it is clear that how CPEC is a game changer for Pakistan .but now a question arises :
A Question mark :- ?????
That how Pakistan will return all this money which china is investing in Pakistan????
The answer is that Pakistan will end up paying $90 billion to China over a span of 30 years with annual average
repayments of $3–4 billion per year post fiscal year 2020. The report further said that CPEC-related transportation
would earn $400–500 million per year to Pakistan, and would grow Pakistani exports by 4.5% a year till fiscal year
2025.[256]