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pg. 1
Topic: page
Abstract 3
Introduction of CPEC 3

Mission and Vision 3

History of CPEC 3-4

MOU’S 4

List of projects 5

CPEC and other countries 6-7

Benefits of CPEC 7-8

Risk of CPEC 8

Abstract:

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 CHINA-Pakistan Economic Corridor (CPEC) is a 46 billion US$ mega project of construction of
roads, railways, oil and gas pipelines and fiber optical cable network. Its mission and vision are to
improve the lives of people of Pakistan by promoting bilateral connectivity, construction, explore
potential bilateral investment, economic and trade, logistics and people to people contact for regional
connectivity. It includes many projects like Gwadar-Ratodero Motorway, Dawood wind power project, E-
35 Expressway (Hazare Motorway), Iran–Pakistan gas pipeline and many more. Many more countries
also show interest in CPEC. Economic and Infrastructural Enhancement. It benefits Pakistan in many
ways like Overcoming the Energy Crisis, Freedom From Over-reliance on the United States, Freedom
from Reliance of other countries, Development of Fata, KPK and Baluchistan, Job opportunities etc.
Along with benefits it also comes with risks like Threat to Sovereignty, Baluchistan Insurgency and
Internal Conflicts, Indian Concerns, Production in Pakistan.

Introduction:
China-Pakistan Economic Corridor is a framework of regional connectivity. CPEC will not only benefit
China and Pakistan but will have positive impact on Iran, Afghanistan, India, Central Asian Republic, and
the region. CHINA-Pakistan Economic Corridor (CPEC) is a 46 billion US$ mega project of construction of
roads, railways, oil and gas pipelines and fiber optical cable network.
It will connect Kashghar city of Xinjiang province of China with Gwadar port of Pakistan.
But now this project is of cost 62 billion US$. On 8 September 1958, Pakistan purchased the Gwadar
enclave from Oman for 5.5 billion Rupees. The Karakoram Highway (also known as Friendship Highway
in China) was started in 1959 and was completed in 1979 (open to the public since 1986).
It is 1300 km national highway runs from Kashghar, a city in the Xinjiang region of China, to Abbottabad,
of Pakistan. A modern deep-seaport, Phase I of which was completed in March 2007.
The first outgoing shipment of containers carrying Chinese goods departed from Gwadar port on
November 13, 2016.  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.

Mission and Vision:

To improve the lives of people of Pakistan and China by building an economic corridor promoting
bilateral connectivity, construction, explore potential bilateral investment, economic and trade, logistics
and people to people contact for regional connectivity.

History of CPEC:
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.
In May 2001 President General Pervez Musharraf personally took up the matter with Chinese PM Zhu
Rongji during his visit to Beijing.
The letter agreed to help Pakistan in implementing the project .
October 2001It was delayed because of US led air strikes on Afghanistan in retaliation of the September

pg. 3
11 attack in the US.
Speculation was, however, rife that the Chinese pulled out of the project because of the expected use of
the area around Gwadar by the US as a logistics corridor into Afghanistan.
In March 11, 2002 a delegation led by Communications Secretary Iftikhar Rashid arrived in Beijing to sign
the agreement to re-start the work.
March 22, 2002, the groundbreaking ceremony of the project was performed by the President of
Pakistan, General Pervez Musharraf with PRC Vice-Premier Wu Bang Guo.
The first phase of the port would become functional by December 25, 2004.
Officially opened on 20 March 2007.

Phase 2 is still in progress.

A blockade of the Strait of Malacca by the United States and its allies would cut China off from Middle
East oil supplies and from its "Second Continent" Africa.
That's why China is shoring up Sri Lanka's major ports and working feverishly with Pakistan to build an
alternative route to Middle East and Africa: The China–Pakistan Economic Corridor.
The current form of the project was first proposed by Pakistan People’s Party. Asif Ali Zardari invited
heads of all the political parties to a Luncheon in honor of the Chinese Premier Li Keqiang at the Aiwan-
e-Sadr on 22 May 2013.
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
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.
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.
On 12 August 2015 in the city of Karamay, China and Pakistan signed 20 more agreements worth
$1.6 billion to further augment the scale and scope of CPEC.
The first convoy from China, carrying almost 250 containers meant for export to ports in Bangladesh, Sri
Lanka, the UAE and the EU arrived in Gwadar on November 13, 2016.In March 2017, an agreement was
signed for the projects which include: a $1.5 bn oil refinery, irrigation projects worth $2 billion, a $2
billion motorway between Chitral and DI Khan, and $7 billion worth of hydro-electric projects.
According to Pakistan Economic Survey 2014–15, the trade between Pakistan and China has increased to
$16-billion which has increased 10% from fiscal year 2009–10 to 2014–15. 

MOU’S:
Concessional Loan for Karachi-Lahore Motorway
Concessional Loan for Gwadar International Airport
MOU between NUML Pakistan and Xinjiang Normal University
Establishment of NUML International Center of education (NICE) between NUML Pakistan and Xinjiang
Normal University.
Cooperation between WAPDA and CTG.
Contract on Lahore Orange Line Metro Train Project.
Financing for Lahore Orange line Metro Train project.

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Financing for KKH up-gradation. Phase-2 (Havelian to Takot).

List of Project:
Gwadar port: phase 1 complete and phase 2 is under construction.

Gwadar-Ratodero Motorway: Under construction. 193 km out of 892 km operational

Dawood wind power project: Fully operational.
E-35 Expressway (Hazare Motorway): Under construction Funded by the Asian Development Bank, but
is considered vital to the Karakoram Highway Reconstruction project
Iran–Pakistan gas pipeline: Under construction. Iranian portion completed. Gwadar to Nawabshah
portion is to be funded by CPEC 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 completed in 2012. The 24-
kilometre-long Karakorum Highway Realignment around Attabad Lake was also completed in 2015.
Multan-Sukkur Motorway (M-5): Under construction
Karot Hydropower Project: Under construction. Financed by China's Silk Road Fund.

Orange Line (Lahore Metro): Under construction

Pakistan Port Qasim Power Project: Under construction
Quaid-e-Azam Solar Park: Under construction First phase complete, generating 400 MW of electricity.
Sahiwal Coal Power Project: In operation.
Pakistan-China Fiber Optic Project: Under construction
Economic Corridor Support Force: Recruitment in progress
Main-Line 1 railway overhaul between Karachi and Peshawar: Planning studies underway
Havelian Abbottabad Dry Port: Planning studies underway
China-Pakistan Joint Cotton Bio-Tech Laboratory: Approved
Mansehra Muzaffarabad Mirpur Expressway: Approved

China-Pakistan Join Marine Research Center: Approved

Hubco coal power plant project: Approved

Hakla–Dera Ismail Khan Motorway (M-13): Under construction

Gwadar Hospital: Approved

Gwadar International Airport: Approved

Gwadar-Nawabshah LNG terminal and pipeline project: Approved

Jhimpir wind power project: Approved

Main Line 2 and 3 railway overhauls: Approved

Suki Kinari Hydropower Project: Approved

Thar Engro Coal Power Project: Approved

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Thar Block II coal power project: Approved

CPEC and other countries:

Iran. Iran wishes to be part of CPEC: Rouhani
Afghanistan. Afghanistan desires role in CPEC, says Afghan envoy.
Turkey. Erdogan urges Turkish businessmen to invest in CPEC projects.
France. France sees a huge market in Pakistan.
Saudi Arabia. Saudi Arabia eager to join CPEC.

Russia. Russia may invest $5 bln in Pakistan in next five years.

UK. Boris wants UK firms part of CPEC activities.
Germany. ‘German firms keen to join CPEC projects’.
Belarus. Pakistan, Belarus to set up economic zones.

Iran:
Iran’s backing of the project and growing interest was expressed by Iranian President, Hassan Rouhani
when he met Prime Minister, Nawaz Sharif in September 2016. He appreciated the positive bilateral
relations between the two countries and showed his willingness to join the multi-billion projects.

Saudi Arabia:
Minister for Planning, Development and Reform, Ahsan Iqbal also revealed that Saudi Arabia desires to
become part of the CPEC framework and will be cordially welcomed to promote brotherly ties between
the two countries.

Russia:
In an attempt to extend cooperation in multiple sectors and formulate a stronger bond, Russia wants to
join hands and utilize the CPEC route for trade.
The Russian decision comes as a great opportunity to encourage bilateral relations and promote trade
within the region. Pakistan has already granted Russia access to Gwadar port for its exports and hopes
to grasp further chances for cooperation.

Turkey:
 President Recep Tayyip Erdogan urged the Turkish businessmen to invest in China Pakistan Economic
Corridor (CPEC) projects of Pakistan saying that the CPEC was a game changer for the region.
He said that Pakistan and Turkey were not only brotherly countries in expression but also in reality.
The conference was attended among others by federal ministers, diplomats, business representatives of
the two countries and members of the Turkish delegation.

Afghanistan:

pg. 6
Afghanistan's Ambassador to Pakistan Dr Omer Zakhilwal on Friday said Kabul absolutely supports China
Pakistan Economic Corridor (CPEC) and wants to become a part of the project.
The Afghan envoy said by becoming a part of the project Afghanistan can recover the damages it
suffered during the decades long war.
Dr Zakhilwal, while talking to Dawn News in Islamabad, said "the CPEC was a great project that was
equally relevant to Afghanistan like Pakistan, and anything that will be good for Pakistan will be good for
the entire region."

UK:
Britain Secretary of State for Foreign and Commonwealth Affairs Boris Johnson has termed the China-
Pakistan Economic Corridor (CPEC) a wonder project and desires UK firms to participate in its various
construction activities.
“I am very excited about the CPEC idea. And I would like UK firms to participate in the construction of
this fabulous venture,” Mr. Johnson said while speaking to students and faculty of the Government
College University (GCU)

Germany:
German companies are keen to join China-Pakistan Economic Corridor (CPEC) to further improve trade
relations, said Ina Lepel, German Ambassador to Pakistan.
German Embassy said Pakistan is moving in the right direction and German firms wanted to invest in
energy generation and renewable energy and energy saving initiatives so that Pakistan can overcome
the energy crisis.
Germany is the second largest partner in trade with Pakistan in Europe 

Benefits of CPEC:
Economic and Infrastructural Enhancement.
Overcoming the Energy Crisis.
Freedom from Over-reliance on the United States.

Freedom from Reliance of other countries.

Strategic and economic trade routes.

Connect all the Province.
Development of Fata, KPK and Baluchistan.
Job opportunities
CPEC from all counts will prove a game Changer.

pg. 7
Investments by China will boost Pakistan’s $274 billion GDP by over 15 %.
Given the solid foundations of friendship

Risk:
Threat to Sovereignty?
Baluchistan Insurgency and Internal Conflicts.
Indian Concerns.
Production in Pakistan

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