TABLE OF CONTENTS

Table of Contents ................................................................................................................ 1

1. Introduction to CPEC ........................................................................................................ 2

1.1. Background of Gwadar Port ..................................................................................................... 2
1.2. Why is the port important? .................................................................................. 3
2. Benefits to CHINA ......................................................................................... 4
3. Benefits of CPEC for PAKISTAN .................................................................................. 5
3.1. Game Changer.................................................................................................................... 5
3.2. Solving Energy Crises ......................................................................................................... 5
3.3. Economic Revival......................................................................................... 5
3.4. Industrial and Economic Development……………………………………………………………….7
3.5. Improvement in telecommunication field………………………………………………………7
3.6. Military Help …………………………………………………………………………… 7
4. Major Projects………………………………………………………………………..7

4.1. Rail Line………………………………………7

4.2. Motorway………………………………………………...8

4.3. Port…………………………………………………………………..8

5. Route and Map ........................................................................................................ 9

6. Regional Significance of CPEC ......................................................................................... 10
7. Challenge to CPEC .................................................................................. 11
7.1. Regional and Security Challenges…………………………………………….11

7.2. Balochistan Conundrum……………………………………………….12

7.3. Political Discontentment in Pakistan……………………………….13

8. Conclusion………………………………………………………………………...13
 CPEC
Long Term Plan for China-Pakistan Economic
Corridor (2017-2030)
Introduction to CPEC:
China-Pakistan Economic Corridor is a monstrous task to improve infrastrucure inside Pakistan
for better exchange with China and to additionally work together to different nations of the
district. The undertaking was propelled in 2015 when Chinese President Xi Jinping and Pakistani
Prime Minister Nawaz Sharif consented to 51 arrangements of Understanding consented to
contribute more than $40 billion. The objective of CPEC is both to help Pakistan's economy by
building its street, rail, air, and vitality transportation framework and to interface the remote
ocean Pakistani ports of Gwadar and Karachi to Kashgar. This would diminish the time and cost
of moving merchandise and vitality, for example, petroleum gas to China. The declaration of
joint space and satellite activities among Pakistan and China prodded by CPEC followed in
2016. CPEC is a piece of the bigger Belt and Road Initiative to improve network, exchange,
correspondence, and collaboration between the nations of Eurasia declared by China in 2013.
CPEC has been contrasted with the world's biggest activities in this way various nations have
indicated enthusiasm for partaking in the activity.

The corridor which involves a series of infrastructure projects linking the two countries, has
distance 3,000 kilometres from Kashgar in western China to the port of Gwadar in Pakistan. Along
the corridor huge infrastructure projects, including roads, railways and power plants and an optical
cable fibre network are either being built or planned to be built which are largely funded by
Chinese and this loan has to be returned within next 10 to 12 years. The value of the corridor is
currently estimated to be $62 billion.

Background of Gwadar port:

A significant part of the CPEC is the Gwadar port. It is a profound water ocean port, which lies
toward the finish of the passageway and for that its significance china determined quite well and
which albeit claimed by the Pakistan government is being worked by Chinese Company. The port
was initially together created by the Pakistan and Chinese government and introduced in March
2007, anyway control was then given to the Port of Singapore Authority (PSA) under a multi year
concession understanding. In 2013, in light of the disappointment of the PSA to grow business,
absence of concurred speculation by the PSA because of security worries in the locale and the
Pakistan Navy's inability to move land for the advancement of an organized commerce zone, the
rights were moved back to COPHC. A second period of the port's development is presently in
progress as a component of the CPEC. This second period of extension includes a normal more
than $1 billion dollars of agreements and includes the development of nine new undertakings and
different extensions to port foundation. This extension is being financed by credits from China's
state-possessed banks.

Why is the port important?

The location of the port is actually significant. Gwadar is located near to the Persian/Arabian gulf,
through which significant percentages of the world’s petroleum passes, and it has been suggested
that the port will allow China to benefit from the shorter transportation route for the transportation
of oil and gas from gulf countries. This is something which some Chinese media has attempted to
downplay, claiming that benefit to China may be limited due to the size of the port when compared
to China’s demand for petroleum imports, and instead emphasizing the development opportunities
for Pakistan.

All things considered given worries over vitality security and the way that its key existing course
for the transportation of oil imports , the Straits of Malacca through which 80% of its oil are
imported, are oftentimes watched by the US and can possibly be influenced by regional debates in
the South China Sea and there is likewise expanded observation by the Malacca Straits by India
as it turns out to be increasingly worried about China's String of Pearls, the Gwadar port is
accordingly key as it can possibly evade this issue if China's vitality imports are undermined
subsequently additionally conceivably diminishing the probability of contention between the US
and China. For sure, there are further geopolitical ramifications related with nearer China-Pakistan
relations and OBOR, as the CPEC itself has likewise been an extra wellspring of strain with India
because of regional debates in the area which the hallway goes through. A ton of the underlying
load took care of by the recently extended port is required to comprise of development materials
for other CPEC ventures.
[1] What’s happening at Pakistan’s Gwadar Port? Zofeen T. Ebrahim, 16th June
2017. https://www.chinadialogue.net/article/show/single/en/9869-What-s-happening-at-Pakistan-s-
Gwadar-port-

However, current expected traffic for the port is far below original expectations in part because
the roads that the CPEC is expected to build to link it to industrial zones in China are not
constructed yet.

A free trade zone is also being established in collaboration with the expanded port. In late 2015
COPHC leased 650 acres of land to build and operate the free trade zone (as part of a total of 2,2,81
acres that Pakistan will provide to the company as part of this zone. The Gwadar Free Trade Zone
will provide an entry point for Chinese companies and products to enter Pakistan and in April
2016, COPHC chairperson, Zhang Bozhong, said that the company would commit US$4.5 billion
to roads, power, hotel and infrastructure for the zone.

Benefits to China:
CPEC will connect China with Europe through Central Asia and the Maritime Silk Road will
safeguard a safe passage for sea trade through the Indian Ocean and the South China Sea. CPEC
will link China with nearly half of the population of the world. Development of Gwadar seaport
will allow China’s marine warships and trade ships to avoid Malacca Strait and allowing Beijing
to keep an eye on American and Indian marine activities in the Indian Ocean. China wants prompt
modernization of Xinjiang and other underdeveloped provinces to bring them at par with eastern
provinces. For the achievement of these objectives, China needs access to deep waters in the
Arabian Sea through Gwadar since this path to world markets is the shortest and the inexpensive.
Following are some important benefits which china will get:

 China will cover short distance of 3000km previously it was 13000km.

 China will make their west south underdeveloped provinces to huge market.
 China will rule in Arabian Sea and they can challenge India then.
 China’s east part has sea side which is a disputed sea side and from that china had to come
to gulf countries for oil and petroleum. By CPEC route they would never disturbed by this
dispute.
 China’s 95% population lives in the 30% area of china and other 70% are like our
Balochistan deserted area and barren hills which become industrialized.
The most important benefit for China under CPEC would be the decrease of China’s trade way
from existing sea route of 12,000
kilometers to 3,000 kilometers. The oil
consignments from Gulf nations would
be transported to China via Pakistan,
while nonoil imports could be
transported to the world by Gwadar as
a transport route. CPEC will also help
to resuscitate the early trade route
called Silk Route, that was one of the
historically and oldest trade routes
preexisting the Han Dynasty of China,
connecting China through the Indian
subcontinent, Asia Minot, Africa, Greece, Rome, and Britain. Apart from moneymaking goods,
the highest worth of the Silk Route lies in swap of culture, technology, science, and architecture.
Keeping in view narrowness and nationalism in modern societies, such advantages may act as a
sign of raise of peace and acceptance to unite people.

Being a neighboring country, Pakistan and China will strengthen their trade relations. Due to
construction and improvement of land route, physical distance and travel time between Pakistan
and China will fall significantly and the GDP of both economics will increase sharply. The
advantages for China in trade will happen not only from the decrease in travel time and distance
but through the linkage with the larger market. In addition, the development in worldwide trade
flows; a considerable shift is expected in the within trade between various regions of Pakistan and
China [2]

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?
[2] Expanded Chinese operated Chinese port almost ready, Kay Johnson, April 12
2016, http://in.reuters.com/article/pakistan-china-ports-idINKCN0X91PT
[3] https://www.britannica.com/topic/China-Pakistan-Economic-Corridor

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.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.

3.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.
4.Industrial & Economic Development :

As the world is renowned to the FEZ ( free economic zones) and its importance, six Free economic

[1].https://www2.deloitte.com/content/dam/Deloitte/pk/Documents/risk/pak-china-eco-corridor-deloittepk-
noexp.pdf

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.

5.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.

6.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 interface is a disputable venture that would adequately associate Khyber
Pakhtoon Khwa which Pakistan's Western region with China's western Xinxiang district, slicing

through the absolute generally precipitous and capricious terrains on the planet, including the
Khunjurab pass which gets canvassed in snow every virus season. The course would be profoundly
costly and actually troublesome, yet would make the transportation of merchandise and individuals
between the two countries substantially more clear and far more affordable.
2.Thar Coal Fired Power Station :

The USD 2 billion Thar coal terminated power station is the key vitality venture in the China-
Pakistan Economic Corridor (CPEC). China Machinery Engineering Corporation (CMEC) is set
to lead the development of this undertaking. The lignite coal which resolve the plant originates
from the locale. The plant is relied upon to come online in a couple of years time. It is trusted that
this arrangement, alongside a few other hydro and coal ventures, will help right the setback in
vitality supplies crosswise over Pakistan.[4]

3.Karachi-Peshawar Motorway :

A motorway interfacing Karachi to Peshawar would change transportation in Pakistan. This new
course would associate the money related and business capital on the shoreline of the Arabian Sea
with Peshawar. A well-made street with limit with regards to a lot of traffic would support business
making products simpler, less expensive and faster to move. Work is well in progress on this
specific undertaking with parts of the course, for example, the Sukkur – Multan area effectively
complete.

4.Rail Line around Karachi :

Karachi has formed into one of the world's greatest urban communities with a populace of around
26 million. Like numerous other South Asian large urban communities, it faces issues, for
example, far reaching viciousness, congestion, and contamination. The restoration and fruitful
usage of the old arrangement for a rail line around Karachi will help with the issues of congestion
and contamination. China has concurred on a basic level to help with the subsidizing of this task,
which shows up progressively indispensable with the city's populace anticipated to develop 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]

[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

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

Route and Map:

The route and map of CPEC is of great importance. The deep seaport of Gwadar is to be connected
to the border of the china via two routes- eastern route and western route. The eastern route will
pass through Makran, coastal highway, Karachi, Hyderabad, Sukkur, Multan, Lahore, Islamabad,
Mansehra, Thakot, Raikot to Khunjarab while the CPEC western route will pass through Gwadar,
Turbat, Bismah, Surab, Qalat, Quetta, Zhob, Dera Ismail Khan, Bannu, Kohat, Peshawar and
Islamabad onward.

Western route compromises of:

• Gwadar-Quetta Expressway N 85, which is 650 Km long.

• Halka-Dera Ismail Khan motorway, four lane, 280 Km long. Upgradation between Quetta
Zhob and between Zhob-Dera Ismail Khan.

• Hazara-Havlian Thakot Motorway 180 Km.

• Gilgilt-Skardu (S-1) 167 Km.

• Sari Gambila-Kohat Highway 128 Km long, estimated cost 30 billion rupees with 4 lanes.

The western route is the original route of CPEC. It is the shortest route of 2442 km than eastern
route which is more than 3000 Km. But it is a fact that western route passes through hilly areas of
KPK and Baluchistan which is difficult to travel. It is also a fact that western route is not being
constructed by the fund of CPEC. It is purely constructed by financial assistance of Federal
government of Pakistan. China was not agreed on western route of CPEC because of the security
situation of KPK and Baluchistan. At first Federal government deferred this project but after strong

protest of the nationalist parties and provincial government of KPK and Baluchistan decided to
construct western route along with eastern route of CPEC.
 At first, the Government of Pakistan pledged a CPEC route that goes through Western Pakistan
via Zhob and Quetta which will result in the development of Baluchistan. But afterward, the other
side of the corridor route has come out, which is CPEC Eastern route will pass through Multan,
Faisalabad, Pindi Bhatia and Rawalpindi while the Western Route will go through North Eastern
Baluchistan through towns of Kalat Quetta and Zhob.

[1] https://blogs.lse.ac.uk/southasia/2018/05/22/cpec-a-continuum-of-opportunities-and-
challenges-for-pakistan

There was also a third route which was called route of CPEC. through Gawadar-Turbant-Panjgur-
Khuzdar-Ratodero-Kashmore-Rajanpur-Dera Ghazi Khan-Dera Ismail Khan-Bannu-Kohat-
Peshawar-Hassan Abdal- Abbotabad and onward.

Government of Pakistan has finally deferred central route and no work is in progress on central
route of COEC. Firstly, it was purposed that despite eastern and western route only central route
of CPEC should be constructed and the whole country should be connected by central route
through link roads. But this plan was not accepted by the stake holders and was deferred.[2]

Regional Significance of CPEC:

1. CPEC connects china directly to the Indian ocean and middle East from the Gwadar port reducing
its current dependency on south china that is a disputed area between various regional and global
actors and can be gasped by any time in the competing powers of Asia-pacific Region.
2. Gwadar port in Baluchistan is only 400 km away from the strait of Hormuz and it is a pivot point
for china to transporting its energy and oil needs from west Asian countries reducing its path from
12000 km to 3000 km.
3. Accessing the Indian ocean through the Gwadar is important for china as it makes it less in danger
to its economic security to access Indian ocean because its strait of Malacca is becoming a
contested territory among various players including China.
4. China transports 80% of its oil and energy needs from the Malacca strait and increasingly feel that
its economic and energy security interest are in danger due to rise of tensions between China and
other actors in south and East-china sea. That’s why china is finding an alternate route due to
Economic and security wise; CPEC is the best route that connects China directly to the Indian
ocean through Gwadar.
5. Geographically Pakistan is a most suitable Economic corridor for trading and provide a gateway
to central Asia, west Asia, South Asia and East Asia. However, Pakistan is failed to take advantage
 of its strategic location. CPEC passing through the region of Pakistan and china can be extended
to other states west-Asia, Afghanistan, Central Asia and India. The landlocked and rich resources
6. countries of central Asia always want to access to regional markets of Pakistan, India, China, and
other West Asian countries. Afghanistan and Tajikistan have transit agreement that CPEC will
provide them opportunity to transport their Goods and marketing opportunity in the Global Market
for advancement of regional economic and trade connectivity.

[1 ]http://www.cpecinfo.com/news/cpec-opportunities-and-challenges

7. Pakistan also want to access resources rich countries of Central Asia through Afghanistan to meet
its energy needs and transport its goods to these countries. The Area through the CPEC passes is
at the crossroads of central Asia, south Asia, Asia. For greater benefits of the Project it could be
extended to India and Afghanistan give them access to the global Market. President Xi jinping Has
addressed such an arrangement in future during his first visit to Pakistan in April 2015.The
changing Geopolitical environment demands Pakistan to change its trade policy to more export
oriented by extending its trade with its neighbors including India and Central Asian countries.
CPEC is the best Opportunity for Pakistan to Extended its Trade with its Neighbor’s and central
Asian countries.India always want a transport route through Pakistan to Afghanistan and Central
Asian Countries however, due to political Rollers between two countries has denied these routes
through Pakistan to Afghanistan. Despite of its good strategic location and economic geography
Pakistan has very limited trading with its neighbor’s, including India and Afghanistan. India wants
a transport route to Afghanistan and Central Asian countries for Trading and Pakistan Wants to
Access Central Asian Countries through Afghanistan to for its Energy needs. This is only Possible
when Pakistan allow India to access its routes to Afghanistan for trading. CPEC Provides
opportunity to India, Pakistan, Afghanistan and Central Asian countries to have regional trade
Connectivity between them.The region of South Asia remained least integrated despite of its
having power to accelerate its economy and rich in natural resources still facing the problems of
energy crisis that affects its economy badly. The regional Economic Corporation through CPEC
could pave a way for these countries to reduce its energy crisis through gas line project namely
(IPI) and TAPI and cross border electricity supply.

Challenges to CPEC:
Despite its significance for both china and Pakistan CPEC are not without challenges.

Regional and internal Security changes:

 Provincial security is the greatest issue to the CPEC as it goes through a portion of the zones
confronting the greatest security challenges. Afghanistan problem is the greatest security issue for
the CPEC. China immense speculation is hanged because of harmony and dependability both in
Afghanistan, Pakistan and western piece of china. That is the reason china is consistently seeking
after Taliban to arrange their issues through casual conversation in the local edge of china,
Pakistan, US and Afghanistan.

The security circumstance in Afghanistan is deteriorating step by step after the withdrawal of
NATO powers from Afghanistan as the Taliban have wouldn't go to the exchange table. After the
murdering of Taliban Leader Mulla Mansoor there are not many possibilities that Taliban could
go to the exchange table. In any case, Pakistan has expressed that after the slaughtering of Taliban
pioneer it is preposterous to expect to acquire Taliban table talk. with the refusal of talk it appears
that it will require some investment to win harmony in Afghanistan.

Security in Afghanistan is generally significant as its overflow impacts can additionally destabilize
the tranquility of Pakistan and western piece of china. Handicap could cause security issues for
Maga ventures TAPI and CPEC ventures. The durable revolt in Baluchistan and FATA is likewise
preventing CPEC ventures.

After the withdrawal of western powers from Afghanistan Pakistan endurance is significant for
western and Chinese intrigue. china is additionally stress over the security circumstance in
Afghanistan as it influences its xingjing region which is a significant region for CPEC.

Pakistan inside security has improved after the military activity against aggressor yet at the same
time a test to execute its super ventures. For the assurance of CPEC Pakistan has shaped unique
security powers to ensure its significant tasks close to Afghanistan and secure its outskirt with
Afghanistan.

Baluchistan conundrum:
The long existing insurgency in Afghanistan against CPEC is major issue for CPEC projects and
Gwadar port. Many non-locals, businesses persons and multinational companies have come under
attack in Baluchistan region. A debate is going on in the residents of Baluchistan that CPEC will
give benefits only Chinese and they use their resources and convert local population into
minorities. Such feelings of depression are due to foreign agency involvement in the province. The
concerns of Baloch people are necessary for the CPEC that can be done through political
involvement of least integrated Baloch in the political process of Pakistan.

The stability in FATA is also necessary for the Extension of its future Routes to Afghanistan. The
security of Gwadar and its whole region of Baluchistan is necessary for the interest of China. The
People of Gilgit Baltistan also demanding their part in CPEC.

Political Discontentment in Pakistan:

The political contention between various ideological groups is likewise a test to the CPEC smooth
movement. This contention is predominantly because of courses determination and allocations of
assets for the undertaking under the CPEC. Because of greatness and the extent of the CPEC
Pakistan needs increasingly high aptitude work to execute the venture yet existing work abilities
are insufficient to contend CPEC and its related undertakings in Pakistan. The issue among
different ideological groups is straightforwardness of CPEC ventures.

The ideological groups and a few partners indicated their inclinations that all CPEC ventures ought
to be made Public. Nonetheless, the worries services are hesitant to make its open and there are
numerous questions among shifts ideological groups.

Conclusion:
CPEC is key to social and Economic development in Pakistan. It can also pave the way of regional
social and Economic development in the region of south, center and East Asia but that needs a
change in the attitude of India and Pakistan towards more economic and trade relations. The
regional economic corporation through CPEC could solve the conflicts between Pakistan, India
and Afghanistan. The states of south Asia, central Asia and East Asia through regional economic
connection make the 21 century the Asian century setting aside the political issues and starts a new
journey. CPEC play an important role in the regional trade and economic integration. However,
some potential threats make hurdles in the smooth execution of CPEC projects like security
situation in Afghanistan and its spill over to Pakistan, political discontentment in Pakistan
regarding selection of routes and distribution of funds in the different provinces of Pakistan.

In a longer perspective CPEC stimulate economic development of overall region of south, central,
East Asia and china.