China–Pakistan Economic Corridor (CPEC) is a collection of infrastructure projects that are

currently under construction throughout Pakistan. Originally valued at $46 billion, the value of

CPEC projects is worth $62 billion as of 2017. CPEC is intended to rapidly upgrade Pakistan's
required infrastructure and strengthen its economy by the construction of modern transportation
networks, numerous energy projects, and special economic zones.
On 13 November 2016, CPEC became partly operational when Chinese cargo was transported
overland to Gwadar Port for onward maritime shipment to Africa and West Asia, while some
major power projects were commissioned by late 2017.
A vast network of highways and railways are to be built under the aegis of CPEC that will span
the length and breadth of Pakistan. Inefficiencies stemming from Pakistan's mostly dilapidated
transportation network are estimated by the government to cause a loss of 3.55% ($ 10bn) 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. A 1,100-kilometre-long motorway will be built between the
cities of Karachi and Lahore as part of CPEC, while the Karakoram Highway from Hasan
Abdal to the Chinese border will be completely reconstructed and overhauled. The Karachi–
Peshawar main railway line will 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.
Over $33 billion worth of energy infrastructure are to be constructed by private consortia to help
alleviate Pakistan's chronic energy shortages, which regularly amount to over 4,500MW, and
have shed an estimated 2–2.5% ($ 6.7 bn) off Pakistan's annual gross domestic product. Over
10,400 MW of energy generating capacity is to be brought online by the end of 2018, with the
majority developed as part of CPEC's fast-tracked "Early Harvest" projects. 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.
CPEC's potential impact on Pakistan has been compared to that of the Marshall Plan undertaken
by the United States in post-war Europe. Pakistani officials predict that CPEC will result in the
creation of upwards of 2.3 million jobs between 2015–2030, and add 2 to 2.5 percentage points
to the country's annual economic growth.
Should the initial $46 billion worth of projects be implemented, the value of those projects would
be roughly equivalent to all foreign direct investment in Pakistan since 1970, and would be equal
to 17% of Pakistan's 2015 gross domestic product. From the initial project, the scope has
expanded from a net worth of $46 billion to $60 billion according to some sources. CPEC is seen
as the main plank of Chinese President Xi Jinping's Belt and Road Initiative.
According to official statistics, 20% of CPEC is debt-based finance, while 80% of CPEC are
investments in Joint Ventures (JV) enterprise between Pakistan and China, with the project
contributing to 40,000 jobs for local Pakistanis and 80,000 jobs for Chinese. Official statistics
suggested a return of US$6 billion to 8 billion from taxes per annum such as road and bridge
tolls. The total CPEC loan is 6% of Pakistan's GDP, however the Indian Government has
claimed the project a debt-trap. Nevertheless, officials countered that 3.5% of Pakistani GDP per
annum is lost due to poor transportation networks, which the CPEC investment aims to remedy
leading to added benefits for any lag in Pakistan's growth statistic.
Economic analysts have stated tangible benefits of this initiative including an end to the major
energy shortages in Pakistan which had previously crippled economic growth. On 14th January
2020, Pakistan operationalized Gwadar Port for Afghan transit trade.
Background
Plans for a corridor stretching from the Chinese border to Pakistan's deep water ports on
the Arabian Sea date back to the 1950s, and motivated construction of the Karakoram
Highway beginning in 1959. 
Chinese interest in Pakistan's deep-water harbour at Gwadar had been rekindled by in 2002
China began construction at Gwadar port which was completed in 2006. Expansion of Gwadar
Port then ceased thereafter owing to political instability in Pakistan following the fall of
General Pervez Musharraf and subsequent conflict between the Pakistani state and Taliban
militants.
In 2013, the then Pakistani President Asif Ali Zardari and Chinese Premier Li Keqiang decided
to further enhance mutual connectivity. A memorandum of understanding on cooperation for
long-term plan on China–Pakistan Economic Corridor between the two governments was inked
by Xu Shao Shi and Shahid Amjad Chaudhry.
In February 2014, Pakistani President Mamnoon Hussain visited China to discuss the plans for
an economic corridor in Pakistan. Two months later, Pakistan Prime Minister Nawaz Sharif met
with Premier Li Kequiang in China to discuss further plans, resulting in the full scope of the
project to be devised under Sharif's tenure. In November 2014, Chinese government announced
its intention to finance Chinese companies as part of its $45.6 billion energy and infrastructure
projects in Pakistan as part of CPEC.
During the state visit of Xi Jinping to Pakistan in April 2015, 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.
Subsequent developments
The first convoy from China arrived in Gwadar on 13 November 2016, thereby formalizing
operation of CPEC. On 2 December 2016, the first cargo train, launching the direct rail route and
sea freight service between China and Pakistan, departed from Yunnan. A cargo train loaded
with 500 tonnes of commodities left Kunming for the port city of Guangzhou from where the
cargo will be loaded on ships and transported to Karachi, marking the opening of the new
route. The new rail, sea freight will cut logistics cost, including that of transport, by 50 per cent.
In November 2016, China announced an additional $8.5 billion investment in Pakistan with $4.5
billion allocated to upgrade Pakistan's main railway line from Karachi to Peshawar including
tracks, speed and signalling, and $4 billion toward an LNG terminal and transmission lines to
help alleviate energy shortages. In March 2017, an agreement was signed for the projects, which
include: a $1.5 billion oil refinery, irrigation projects worth $2 billion, a $2 billion motorway
between Chitral and DI Khan, and $7 billion worth of hydro-electric projects.
As of September 2017, more than $14 billion worth of projects were under construction. In
March 2018, Pakistan announced that following the completion of under-construction energy
projects, future CPEC energy projects would be geared towards hydropower projects.
Projects in Gwadar Port and City
Gwadar forms the crux of the CPEC project, as it is envisaged to be the link between China's
ambitious One Belt, One Road project, and its 21st Century Maritime Silk Road project. In total,
more than $1 billion worth of projects are to be developed around the port of Gwadar by
December 2017.
1. Under CPEC agreement, Gwadar Port will initially be expanded and upgraded to allow
for docking of larger ships with deadweight tonnage of up to 70,000.
2. The expanded port is located near a 2,282-acre free trade area in Gwadar which is being
modelled on the lines of the Special Economic Zones of China. By the China Overseas
Port Holding Company as part of a 43-year lease. The special economic zone will be
completed in three phases. By 2025, it is envisaged that manufacturing and processing
industries will be developed, while further expansion of the zone is intended to be
complete by 2030. On 10 April 2016, Zhang Baozhong, chairman of China Overseas Port
Holding Company said in a conversation with The Washington Post that his company
planned to spend $4.5 billion on roads, power, hotels and other infrastructure for the
industrial zone as well as other projects in Gwadar city.
3. China will grant Pakistan $230 million to construct a new international airport in Gwadar.
4. The city of Gwadar is further being developed by the construction of a 300 MW coal
power plant, a desalinization plant, and a new 300-bed hospital.
5. Plans for Gwadar city also include construction of the East Bay Expressway – a 19
kilometre controlled-access road that will connect Gwadar Port to the Makran Coastal
Highway. These additional projects are estimated to cost $800 million, and are to be
financed by 0% interest loans extended by the Exim Bank of China to Pakistan.
6. In 2020, Government released funds of Rs 320 million for a seawater desalination plant
at Gwadar,
Corridors
Three corridors have been identified for cargo transport: the Eastern Alignment through the
heavily populated provinces of Sindh and Punjab where most industries are located, the Western
Alignment through the less developed and more sparsely populated provinces of Khyber
Pakhtunkhwa and Balochistan, and the future Central Alignment which will pass through Khyber
Pakhtunkhwa, Punjab, and Balochistan.
The CPEC projects call for reconstruction and upgrade works on National Highway 35 (N-35),
which forms the Pakistani portion of the Karakoram Highway (KKH). The KKH spans the 887
kilometre long distance between the China-Pakistan border and the town of Burhan, near Hasan
Abdal. At Burhan, the existing M1 motorway will intersect the N-35 at the Shah Maqsood
Interchange. From there, access onwards to Islamabad and Lahore continues as part of the
existing M1 and M2 motorways. Burhan will also be at intersection of the Eastern Alignment,
and Western Alignment.
Eastern Alignment
As part of the Eastern Alignment, a 1,152 km long motorway will connect Pakistan's two largest
cities, Karachi and Lahore with 6-lane controlled access highway designed for travel speeds up
to 120 kilometres per hour. The entire project will cost approximately $6.6 billion, with the bulk
of financing to be distributed by various Chinese state-owned banks.
The entire Eastern Alignment motorway project is divided into four sections: a 136 kilometre
long section between Karachi and Hyderabad also known as the M9 motorway, a 345 kilometre
long section between Hyderabad and Sukkur, a 392 kilometre long section between Sukkur and
Multan, and a 333 kilometre section between Multan and Lahore via the town of Abdul Hakeem.
Western Alignment
The Western Alignment project will result in the upgrading of several hundred kilometres worth
of road into 2 and 4-lane divided highways by mid-2018. In total, the CPEC project envisages re-
construction of 870 kilometres of road in Balochistan province alone as part of the Western
Alignment. Of those 870 kilometres of road, 620 kilometres have already been rebuilt as of
January 2016.
The Western Alignment roadway network will begin at the Barahma Bahtar Interchange on
the M1 Motorway near the towns of Burhan and Hasan Abdal in northern Punjab province. The
newly reconstructed Karakoram Highway will connect to the Western Alignment at Burhan, near
where the new 285-kilometre-long controlled-access Brahma Bahtar-Yarik Motorway will
commence. The motorway will terminate near the town of Yarik, just north of Dera Ismail
Khan. 
Future Central Alignment
Long-term plans for a "Central Alignment" of the CPEC consist of a network of roads which will
commence in Gwadar and travel upcountry via the cities of Basima, Khuzdar, Sukkur, Rajanpur,
Layyah, Muzaffargarh, and terminating in Dera Ismail Khan, with onward connections to
Karakoram Highway via the Brahma Bahtar–Yarik Motorway.
Railway Lines
Main Line 1- Railway ML-1
The CPEC "Early Harvest" plan includes a complete overhaul of the 1,687 kilometre long Main
Line 1 railway (ML-1) between Karachi and Peshawar at a cost of $3.65 billion for the first
phase of the project.
Upgrading of the railway line will permit train travel at speeds of 160 kilometres per hour, versus
the average 60 to 105 km per hour speed currently possible on existing track, and is expected to
increase Pakistan Railways' annual revenues by approximately $480 million. The upgrades are
also expected to cut transit times from Karachi to Peshawar by half. Pakistani railways currently
account for 4% of freight traffic in the country, and upon completion of CPEC, Pakistani
railways are expected to transport 20% of the country's freight traffic by 2025.
Main Line 2
In addition to upgrading the ML-1, the CPEC project also calls for similar major upgrade on the
1,254 kilometre long Main Line 2 (ML-2) railway between Kotri in Sindh province,
and Attock in northern Punjab province via the cities of Larkana and Dera Ghazi Khan.
Main Line 3
Medium term plans for the Main Line 3 (ML-3) railway line will also include construction of a
560 kilometer long railway line between Bostan near Quetta, to Kotla Jam in Bhakkar
District near the city of Dera Ismail Khan, which will provide access to southern Afghanistan.
Lahore Metro
The $1.6 billion Orange Line of the Lahore Metro is under construction and is regarded as a
commercial project under CPEC.  The line will be 27.1-kilometre (16.8 mi) long, of which 25.4
kilometres (15.8 mi) will be elevated, with the remaining portion to be underground, the project
will have the capacity to transport 250,000 commuters per day, with plans to increase capacity to
500,000 commuters per day by 2025.
Khunjerab Railway
Longer term projects under CPEC also call for construction of the 682 kilometre long Khunjerab
Railway line between the city of Havelian, to the Khunjerab Pass on the Chinese border, with
extension to China's Lanxin Railway in Kashgar, Xinjiang. The railway will roughly parallel
the Karakoram Highway, and is expected to be complete in 2030. The cost of the entire project is
estimated to be approximately $12 billion, and will require 5 years for completion.
Energy sector projects
Energy generation will be a major focus of the CPEC project, with approximately $33 billion
expected to be invested in this sector. An estimated 10,400 MW of electricity are slated for
generation by March 2018 as part of CPEC's "Early Harvest" projects.
The energy projects under CPEC will be constructed by private Independent Power Producers,
rather than by the governments of either China or Pakistan. The Exim Bank of China will finance
these private investments at 5–6% interest rates, while the government of Pakistan will be
contractually obliged to purchase electricity from those firms at pre-negotiated rates.
Renewable-energy
1. China's Zonergy company completed construction on the world's largest solar
power plant – the 6,500 acre Quaid-e-Azam Solar Park near the city of Bahawalpur with
an estimated capacity of 1000 MW.
2. The Jhimpir Wind Power Plant, built by the Turkish company Zorlu Enerji has already
begun to sell 56.4 MW of electricity to the government of Pakistan, though under CPEC,
another 250 MW of electricity are to be produced by the Chinese-Pakistan consortium
United Energy Pakistan and others at a cost of $659 million. Another wind farm,
the Dawood wind power project is under development by Hydro China at a cost of $115
million, and will generate 50 MW of electricity.
3. SK Hydro Consortium is constructing the 870 MW Suki Kinari Hydropower Project in
the Kaghan Valley of Pakistan's Khyber Pakhtunkhwa province at a cost of
$1.8 billion, SK Hydro will construct the project with financing by China's EXIM bank.
4. The $1.6 billion 720 MW Karot Dam which is under construction is part of the CPEC
plan, but is to be financed separately by China's Silk Road Fund.
5. The $2.4 billion, 1,100 MW Kohala Hydropower Project being constructed by
China's Three Gorges Corporation 
Coal Power Projects
Despite several renewable energy projects, the bulk of new energy generation capacity under
CPEC will be coal-based plants, with $5.8 billion worth of coal power projects expected to be
completed as part of the CPEC's "Early Harvest" projects. Thar, Port Qasim and Hub. It would
have the capacity to supply 2000MW.
In Balochistan province, a $970 million coal power plant at Hub, near Karachi, with a capacity
of 660 MW to be built by a joint consortium of China's China Power Investment Corporation and
the Pakistani firm Hub Power Company as part of a larger $2 billion project to produce 1,320
MW from coal.
A 300 MW coal power plant is also being developed in the city of Gwadar, and is being financed
by a 0% interest loan. Development of Gwadar also include a 132 KV(AIS) Grid Station along
with associated D/C Transmission line at Down Town, Gwadar along with other 132 KV Sub
Stations at Deep Sea Port Gwadar.
The $1.8 billion Sahiwal Coal Power Project, in full operation since 3 July 2017, is a project in
central Punjab that has a capacity of 1,320 MW.
The $589 million project to establish a coal mine and a relatively small 300 MW coal power
plant to be built in the town of Pind Dadan Khan by China Machinery Engineering Corporation
in Punjab's Salt Range.
The Shanghai Electric company of China will construct two 660 MW power plants as part of the
"Thar-I" project in the Thar coalfield of Sindh province, while "Thar-ll" will be developed by a
separate consortium. 
The 1,320 MW $2.08 billion Pakistan Port Qasim Power Project near Port Qasim will be a joint
venture of Al-Mirqab Capital from Qatar, and China's Power Construction Corporation
Liquified natural gas
Liquefied natural gas power LNG projects are also considered vital to CPEC. The Chinese
government has announced its intention to build a $2.5 billion 711 kilometre gas pipeline from
Gwadar to Nawabshah in province as part of CPEC.
"Early Harvest" projects
As part of the "Early Harvest" scheme of the CPEC, over 10,000 megawatts of electricity-
generating capacity is to be developed between 2018 and 2020. While some "Early Harvest"
projects will not be completed until 2020.
1,223 MW Balloki Power Plant, and the 1,180 MW Bhakki powerplants have both been
completed in mid 2018 , which along with the 969 MW Neelum–Jhelum Hydropower
Plant completed in summer 2018 and 1,410 MW Tarbela IV Extension Project, competed in
February 2018, 
Concessionary loans
Approximately $11 billion worth of infrastructure projects being developed by the Pakistani
government will be financed at an interest rate of 1.6%, after Pakistan successfully lobbied the
Chinese government to reduce interest rates from an initial 3%. Loans will be dispersed by
the Exim Bank of China, China Development Bank, and the ICBC For comparison, loans for
previous Pakistani infrastructure projects financed by the World Bank carried an interest rate
between 5% and 8.5%, while interest rates on market loans approach 12%.
Interest-free loans
The government of China in August 2015 announced that concessionary loans for several
projects in Gwadar totalling $757 million would be converted 0% interest loans. The projects
which are now to financed by the 0% interest loans include: the construction of the $140
million East Bay Expressway project, installation of breakwaters in Gwadar which will cost
$130 million, a $360 million coal power plant in Gwadar, a $27 million project to dredge berths
in Gwadar harbour, and a $100 million 300-bed hospital in Gwadar. Thus, Pakistan only has to
repay the principal on these loans. In September 2015, the government of China also announced
that the $230 million Gwadar International Airport project would no longer be financed by loans,
but would instead be constructed by grants which the government of Pakistan will not be
required to repay.
China’s Story
1. The importance of CPEC to China is reflected by its inclusion as part of China's
13th five-year development plan. CPEC projects will provide China with an alternate
route for energy supplies, as well as a new route by which Western China can conduct
trade.
2. On 8 January 2017, Forbes claimed that CPEC is part of China's vision to write the rules
of the next era of globalization and help its export and investment engines run for years to
come.  
3. Writing in January 2017, Arun Mohan Sukumar of India's Observer Research
Foundation claimed that "CPEC is an important enough project whose economic and
strategic consequences require methodical assessment", adding that "CPEC may be a
 bilateral endeavour, but New Delhi cannot ignore its spillover effects on regional
governance" and concluding that "India would be ill-advised to rely on the false comfort
that profits alone will drive China's business with Pakistan".
Pakistani economy
1. The CPEC is a landmark project in the annals of history of Pakistan. It is the largest
investment Pakistan has attracted since independence and largest by China in any foreign
country.
2. The massive investment plan will transform Pakistan into a regional economic hub and
further boost the deepening ties between the two countries.
3. Pakistan as late as early 2017 faced energy shortfalls of over 4,500 MW on a regular
basis with routine power cuts of up to 12 hours per day, which has shed an estimated 2–
2.5% off its annual GDP. The Financial Times noted that Pakistan's electricity shortages
are a major hindrance to foreign investment, and that Chinese investments in Pakistani
infrastructure and power projects will lead to a "virtuous cycle" that will make the
country more attractive for foreign investment in a variety of sectors.
4. Cheap availability of electricity is considered by the World Bank to be a main constraint
to both economic growth and investment in Pakistan.
5. December 2017, Pakistan succeeded in producing surplus electricity which was 2700
megawatts more than the demand.
6. As a result of improved infrastructure and energy supplies, the Pakistani government
expects that economic growth rates will reach 7% by 2018.
7. Former Pakistan Prime Minister Shaukat Aziz also stated in May 2016 that predicted
economic growth from CPEC projects would result in stabilization of Pakistan's security
situation, which has also been cited by the World Bank as hindrance to sustained
economic growth in Pakistan.
8. According to Chinese Foreign Ministry Spokesperson Hua Chunying, the corridor will
"serve as a driver for connectivity between South Asia and East Asia." Mushahid
Hussain, chairman of the Pakistan-China Institute, told China Daily that the economic
corridor "will play a crucial role in regional integration of the 'Greater South Asia', which
includes China, Iran, Afghanistan, and stretches all the way to Myanmar." 
9. Moody's Investors Service has described the project as a "credit positive" for Pakistan. In
2015.
10. On 14 November 2016, Hyatt Hotels Corporation announced plan's to open four
properties in Pakistan, in partnership with Bahria Town Group, citing the investment of
CPEC as the reason behind the $600 million investment.
11. On 12 March 2017, a consortium of Pakistani broker houses reported 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.
CPEC and the "Malacca Dilemma"
The Straits of Malacca provide China with its shortest maritime access to Europe, Africa, and the
Middle East. Approximately 80% of its Middle Eastern energy imports also pass through the
Straits of Malacca. As the world's biggest oil importer, energy security is a key concern for
China while current sea routes used to import Middle Eastern oil are frequently patrolled by the
United States' Navy.
In the event that China were to face hostile actions from a state or non-state actor, energy imports
through the Straits of Malacca could be halted, which in turn would paralyse the Chinese
economy in a scenario that is frequently referred to as the "Malacca Dilemma". In addition to
vulnerabilities faced in the Straits of Malacca region, China is heavily dependent upon sea-routes
that pass through the South China Sea, near the disputed Spratly Islands and Paracel Islands,
which are currently a source of tension between China, Taiwan, Vietnam, the Philippines, and
the United States. 
The CPEC project will allow Chinese energy imports to circumvent these contentious areas and
find a new artery in the west, and thereby decrease the possibility of confrontation between the
United States and China. However, there is evidence to suggest that any pipelines from Gwadar
up to China would be very expensive, would encounter numerous logistical difficulties including
difficult terrain and potential terrorism, and would barely make any impact on China's overall
energy security.
China's stake in Gwadar will also allow it to expand its influence in the Indian Ocean, a vital
route for oil transportation between the Atlantic and the Pacific. Another advantage to China is
that it will be able to bypass the Strait of Malacca. As of now, 60 percent of China's imported oil
comes from the Middle East, and 80 percent of that is transported to China through this strait, the
dangerous, piracy-rife maritime route through the South China, East China, and Yellow Seas.
Access to western China
The CPEC Alignments will improve connectivity to restive Xinjiang, thereby increasing the
region's potential to attract public and private investment.  The CPEC projects will also
complement China's Western Development plan, which includes not only Xinjiang, but also the
neighbouring regions of Tibet and Qinghai.
CPEC will provide China an alternative and shorter route for energy imports from the Middle
East, thereby reducing shipping costs and transit times. The currently available sea-route to
China is roughly 12,000 kilometres long, while the distance from Gwadar Port
to Xinjiang province is approximately 3,000 kilometres, with another 3,500 kilometres from
Xinjiang to China's eastern coast. As a result of CPEC, Chinese imports and exports to the
Middle East, Africa, and Europe would require much shorter shipment times and distances.
Route to circumvent Afghanistan
The Afghanistan–Pakistan Transit Trade Agreement of 2010 provided Pakistan access to Central
Asia via Afghanistan. The "Quadrilateral Agreement on Traffic in Transit" (QATT) was first
devised in 1995, and signed in 2004 by the governments of China, Pakistan, Kazakhstan, and
Kyrgyzstan to facilitate transit trade between the various countries, with no inclusion of
Afghanistan. 
During the visit of Afghan President Ashraf Ghani to India in April 2015, he stated "We will not
provide equal transit access to Central Asia for Pakistani trucks" unless the Pakistani government
included India as part of the 2010 Afghanistan–Pakistan Transit Trade Agreement.
The current Transit Trade Agreement provides Afghanistan access to the Port of Karachi to
conduct export trade with India, and allows Afghan goods to be transited up to any border of
Pakistan, but does not guarantee Afghan trucks the right to traverse the Wagah Border, nor does
the agreement permit Indian goods to be exported to Afghanistan via Pakistan. Owing to
continued tensions between India and Pakistan, the Pakistani government expressed reluctance to
include India in any trade negotiations with Afghanistan, and as a result, little progress was made
between the Afghan and Pakistani sides.
In February 2016, the Pakistani government signalled its intention to completely bypass
Afghanistan in its quest to access Central Asia by announcing its intent to revive the QATT so
that Central Asian states could access Pakistani ports via Kashgar instead of Afghanistan.
Comparison to Chabahar Port
In May 2016, Indian Prime Minister Narendra Modi and his counterpart, Iranian
President Hassan Rouhani, signed a series of twelve agreements in Tehran, in which India
offered to refurbish one of Chabahar's ten existing berths, and reconstruct another berth the Port
of Chabahar, in order to allow Indian goods to be exported to Iran, with the possibility of onward
connections to Afghanistan and Central Asia. As of February 2017, the project remains delayed
while the governments of Iran and India blame one another for delays.
India, Iran, and Afghanistan also signed an agreement with the intention of simplifying transit
procedures between the three countries. Despite the expressed desire to circumvent Pakistan in
order to augment Iranian and Indian economic ties, Indian goods destined for Iran currently do
not require transit through Pakistan, as those goods can be exported to Iran via Bandar Abbas,
where India also currently maintains a diplomatic mission. Bandar Abbas is also consider a key
node on the North–South Transport Corridor, backed by India and Russia since 2002.\ Indian
goods also can be imported and transited across Iran upon arrival at Bandar-e Emam
Khomeyni near the Iraqi border.
Security Issues
Afghanistan's politically instability could limit the potential usefulness of transit corridors to
population centers near Kabul or Kandahar, as those routes traverse southern and eastern
Afghanistan, where the Taliban is most active. The Chabahar plan relies upon connections to
the Afghan Ring Road. By August 2016, the Taliban was noted to have captured large swathes of
land in Helmand Province, and threatened to capture the provincial capital of Lashkar
Gah, which lies on the portion of the Afghan Ring Road connecting Chabahar to Kandahar and
Kabul. As a result, portions of the Afghan Ring Road were closed due to Taliban insurgent
activity. Also in August 2016, the Taliban claimed responsibility for an attack which left twelve
foreign tourists dead as they were traveling on an alternative route to the Afghan Ring Road,
between Kabul and Herat. In September 2016, Iran's president Hassan Rouhani expressed his
country's interest in joining CPEC during a meeting with Nawaz Sharif.
Pakistan Security Arrangements
Pakistan Navy and Chinese Navy ships are to jointly guard the safety and security of the trade
corridor, as Pakistan seeks to expand the role of its maritime forces. From December 2016,
Pakistan's Navy established a special taskforce "TF-88" to ensure there is maritime security for
trade. 
Chairman Parliamentary Committee on CPEC confirmed that Sindh province will dispatch 2000
police officers, while Punjab will dispatch 5000 police officers for the project, while the
Pakistani Army will deploy 12,000 troops to safeguard the route. 
Baloch militants
The Baluchistan province saw multiple attempted nationalist and separatist insurgencies before
CPEC, but investments in Balochistan have led to a significant drop in separatist groups, and this
effect has even seen the integration of Bolchis in the workforce at Gwadar.
Despite this, Pakistan still alleges that India is supporting anti-CPEC agenda, and the Pakistani
government often points to such evidence as the alleged Indian spy Kulbhushan Jadhav, who was
caught in the Baluchistan province on 3 March 2016. Information regarding Jadhav was then
presented to the United Nations.
Criticism
1. A neo-imperialist exercise
2. The Provincial Assembly of Khyber Pakhtunkhwa province adopted a resolution against
the alleged decision of the central government to change the multibillion route of the
proposed project by diverting it away from Khyber Pakhtunkhwa province.
3. In addition to the aforementioned issues, some sources have suggested that the interest
rate for CPEC related loans would be high, with India's Daily News and Analysis paper
suggesting that Pakistan had unwittingly accepted loans that would "be offered at very
high rates of interest", although the actual interest rates were negotiated prior to
acceptance, and for most projects will be 1.6%; conversely previous Pakistani
infrastructure projects financed by the World Bank carried an interest rate between 5%
and 8.5% in comparison, and have strings attached.
4. Several articles in Pakistan have criticised the project's finances as being shrouded in
mystery, while one article suggested that "there is far too much secrecy and far too little
transparency". 
5. The Private Power and Infrastructure Board has also been accused of irregularities in the
approval process for coal power plants and the tariffs at which Pakistan is contractually
obliged to purchase electricity from those plants, with special concern regarding potential
irregularities in the tariff approved for the 300 MW coal power plant to be built in Pind
Dadan Khan by China Machinery Engineering Corporation.
6. Chinese exports through the Karakoram Highway have entered the domestic Pakistani
market, and are cheaper due to the relatively higher cost of production in Pakistan.
7. Some Baloch nationalists have opposed the large-scale development projects envisioned
by CPEC, fearing that such developments in the province would eventually result in local
residents "losing control" over natural resources. Others have alleged that CPEC is a
"conspiracy" meant to stimulate the settlement of migrants from other regions of Pakistan
in order to render ethnic Baloch a minority in the province.
8. Burzine Waghmar, a member of the Centre for the Study of Pakistan, SOAS, University
of London, suggested that CPEC projects are not targeted towards benefiting the
indigenous Baloch population, and will accelerate human rights violations in the
province.
9. The Government wait of India, which shares tense relations with Pakistan, objects to the
CPEC project as upgrade works to the Karakoram Highway are taking place in Gilgit
Baltistan; territory that India claims as its own.
a. India did not object to Chinese construction of the Karakoram Highway, which
was built between 1959 and 1979. India further did not initially object to major
Chinese-sponsored upgrade works to the Karakoram Highway after a 2010
earthquake, though it did object the presence of Chinese troops in the region that
were sent to guard Chinese workers.
b. India further did not object to construction of the Mangla Dam, undertaken
with World Bank funding and British technical assistance in southern Kashmir −
a region which India claims as its own territory.
c. India further did not object to construction works at the Kashmir's Neelum–
Jhelum Hydropower Plant, under construction with Chinese assistance since
2008. India in 1991 agreed to allow the Neelum-Jhelum project to move
forward, despite the project's location in territory which India legally considers as
its own.
 d. Former Indian ambassador, Phunchok Stobdan, alleged that China and Pakistan
intended to develop the corridor not just for its economic benefits, but also is
motivated by the "strategic intent of besieging India",
List of major projects[edit]
Project Notes
Phase 1 complete. Phase
Gwadar Port 2 under construction.[419]
[420]

Under construction.
Gwadar-Ratodero Motorway (M-8) 193 km out of 892 km
operational[136]
Commercial operation
date (COD) 5 April
Dawood wind power project (50 MW)
2017. Fully operational.
[421]

Under
construction[232] Funded
by the Asian
Development Bank,
[88]
 but is considered vital
to the Karakoram
E-35 Expressway (Hazara Motorway) Highway Reconstruction
project. The 47
kilometers long Burhan
to Shah Maqsood section
was completed and
opened to traffic in
December 2017.[422]
Under construction.
Iranian portion
completed.[232] Gwadar to
Nawabshah portion is to
be funded by CPEC
Iran–Pakistan gas pipeline
agreements, while the
Gwadar – Iran border
portion will be funded by
the Pakistani
government.
Reconstruction of the Karakoram Highway Under construction.
Portion between Raikot
and Chinese border had
been under construction
prior to CPEC
announcement, and was
Project Notes
completed in 2012.
[97]
 The 24 kilometer
long Karakorum
Highway
Realignment around
Attabad Lake was also
completed in 2015.[99]
Thakot-Havelian
(118 km) is in early
harvest Project category
and it is to be completed
by March 2020.
KKH Phase II (Thakot -Havelian Section)
Havelian- Abbotabad-
Mansehra (39 KM)
section is Inaugurated by
Prime Minister on 18
November 2019 [423]
Project Completed and
Multan-Sukkur Motorway (M-5) (392 KM) inaugurated on 5
November 2019.[424]
Project has been
completed and
Abdul Hakeem-Lahore Motorway (M-3) (230 KM)
inaugurated on 30 March
2019
Completion Planned in
Hakla D.I Khan Motorway (285 Km)
June 2020.[425]
50% civil work
Karot Hydropower Project (720 MW) completed. expected
COD December 2021.[426]
Rahimyar khan imported fuel Power Plant 1320 MW LOI by GoP issued[427]
expected completion in
Kohala Hydel Power Project, AJK (1100 MW)
2026[428]
Under construction.
[164]
 train service's
Orange Line (Lahore Metro)
deadline is January
2020 [167]
Project has been
Pakistan Port Qasim Power Project (1320 MW) completed on 25 April
2018[429]
Quaid-e-Azam Solar Park (1000 MW) Under
construction[176] First
Project Notes
phase complete,
generating 400 MW of
electricity.[178]
Completed in July 2017.
Sahiwal Coal Power Project (1320 MW)
In operation.[193]
Under construction. Of
the 870 kilometres of
road in Balochistan
province to be
constructed/reconstructed
as part of CPEC's
Western Alignment, 620
kilometres have already
Western Alignment projects in Balochistan province.
been rebuilt as of January
2016.[121] Surab to
Gwadar portion is funded
by the Asian
Development Bank, but
is considered vital for
completion of CPEC's
Western Alignment.
Project has been
completed and
Pakistan-China Fiber Optic Project
inaugurated on 13 July
2018[430]
Recruitment in
Economic Corridor Support Force
progress[431]
Planning studies
Main-Line 1 railway overhaul between Karachi and Peshawar
underway[144]
Framework agreement
Havelian Abbottabad Dry Port
signed in May 2017
China-Pakistan Joint Cotton Bio-Tech Laboratory Approved[232]
Mansehra Muzaffarabad Mirpur Expressway Approved[432]
China-Pakistan Joint Marine Research Center Approved[232]
Construction work
underway. Date of
Gwadar East Bay Expressway
Completion October,
2020.[232]
Pak China Friendship Hospital Groundbreaking
expected at the end of 
Project Notes
2019[232]
Construction work
New Gwadar International Airport started on 31 October
2019.[232]
Gwadar-Nawabshah LNG terminal and pipeline project Approved[232]
Commercial operation
UEP 100 MW Wind Farm (Jhimpir, Thatta) date (COD) 16 June
2017, Operational[433]
Commercial operation
date (COD) attained 11
Sachal 50 MW Wind Farm (Jhimpir, Thatta)
April 2017,
Operational[434]
Commercial operation
Three Gorges Second and Third Wind Power Projects(100 MW) date (COD) attained 9th
Jul 2018, Operational[435]
LOI ( letter of intent)
Cacho 50 MW Wind Power Project
Stage[436]
Western Energy (Pvt.) Ltd. 50 MW Wind Power Project Approved[437]
Under issuance of
Thar Mine Mouth Oracle Power Plant (1320 MW) & Surface Mine
NTP/LOI[438]
COD is 14 Aug 2019,
CPHGC 1,320 MW Coal-fired Power Plant, Hub, Balochistan
fully operational.[439]
Project will be completed
in 2 phases. PC-1 of
Expansion And Reconstruction Of Existing Line ML-1 Phase-1 approved by
CDWP in May 2018
Expected COD 2022.[440]
under review of experts
Phandar Hydropower Station (80 MW)
from both sides[441]
under review of experts
Gilgit KIU Hydropower (100 MW)
from both sides[442]
Completion expected in
Matiari to Faisalabad transmission line
2020/21[232]
Expected COD in March
Matiari to Lahore Transmission Line (878 Km)
2021.[443]
Under construction,
Commercial operation
Suki Kinari Hydropower Project (870 MW)
date (COD) December
2022.[444]
Project Notes
SSRL Thar Coal Block-I 6.8 Mtpa &SEC Mine Mouth Power Expected completion of
Plant(2×660 MW) coal mine in late 2019[445]
Thar block II unearths
Surface mine in block II of Thar Coal field, 3.8 million tons/year
coal on 10 June 2018[446]
COD is 10 July 2019. in
Engro Thar Block II 2×330 MW Coal fired Power Plant
operation.[447]
TEL 1×330 MW Mine Mouth Lignite Fired Power Project at Thar Expected completion in
Block-II, Sindh, Pakistan March 2021[448]
ThalNova 1×330 MW Mine Mouth Lignite Fired Power Project at Expected completion in
Thar Block-II, Sindh, Pakistan March 2021[448]
Groudbreaking done on 4
Imported Coal Based Power Project at Gwadar, Pakistan (300 MW)
November 2019.[449]
Feasibility studies
Khunjerab Railway
underway[232]
Under Growing -
China Pakistan Economic Corridor Businessman Networking Membership Open for
business community
Cancelled projects[edit]
Projects Capacity Location Notes
6,600 MW (10 x 660 MW
Gadani Power Project Balochistan
plants)
1,320 MW (2 x 660 MW [450]
Rahimyar Khan coal power project Punjab
plants)
1,320 MW (2 x 660 MW [451]
Muzaffargarh coal power project Punjab
plants)
Matiari to Faisalabad transmission Sindh and
660 kilovolt
line Punjab
Table of projects
"Early Harvest" Energy
[226]
Project Capacity Location
Pakistan Port Qasim Power
1,320 MW (2 x 660 MW plants) Sindh
Project.
Thar-l Project 1,320 MW (4 x 330 MW plants) Sindh
Thar-ll Project and coal mine 1,320 MW (2 x 660 MW plants) Sindh
Sahiwal Coal Power Project 1,320 MW (2 x 660 MW plants) Punjab
Rahimyar Khan coal power project 1,320 MW (2 x 660 MW plants) Punjab
Quaid-e-Azam Solar Park 1,000 MW Punjab
870 MW (expected completion in Khyber
Suki Kinari Hydropower Project
2020)[227] Pakhtunkhwa
720 MW (expected completion in
Karot Hydropower Project Punjab
2020)[228]
China Power Hub Generation
2X660 MW Balochistan
Company
Thar Engro Coal Power Project 660 MW (2 x 330 MW plants) Sindh
Gwadar coal power project 300 MW Balochistan
UEP Windfarm 100 MW Sindh
Dawood wind power project 50 MW Sindh
Sachal Windfarm 50 MW Sindh
Sunnec Windfarm 50 MW Sindh
Matiari to Lahore Transmission
660 kilovolt Sindh and Punjab
Line