@emeraldinsight International J ournal of Economics hina Pakistan economic corridor: a gateway to sustainable economic development shazia kousar, Abdul Rehman, Mahwish Zafar, Kamran Al, Nadia Nasit, Article information: ‘To cite this document: shazia Yousar, Abdul Rehman, Malwish Zafi, Kamran Al, Nadia Nasi, ‘China Pakistan economic comidor: a gateway to sustainable economic development’, Intemational J oumal of Social Economics, hitps://doi.org/10.11 08/1) S E-02-201 7-D059 Termanent link to this document: haps /oi.ongy/ 0.11 08/ 017-0059 Downloaded on: 16 May 2018, At: 16:49 (PT) References: this document contains references to 0 other documents. 3 copy this document: permisone@emeraldinght.com ‘The fulltext of this document has been downloaded 46 times since 2018" Access to this document was granted through an Emerald subscription provided by emerald-stm 537778 [] For Authors If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. 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This study indicates that CPEC is an ambitious development project because it needs a larger restructuring of the Pakistani economy and it will be productive with suc ful blend of policy changes and participation of bi community in Pakistan, Although, this project primarily create huge amount of foreign direct investment for Pakistan but at the same time it will create greater trade opportunities to China by giving access to a new market for its trading goods. This study established that CPEC will improve the economic growth and trade, enhance regional connectivity, overcome energy crises, develop infrastructure and establish people to people contacts in both the countries whieh further help to improve tourism sector Key Word: CPEC, Economic growth, infrastructure, prosperity, trade, 1. Introduction For decades, Pakistan is striving for high and sustainable economic growth. Although Pakistan has made great progress in restoring macroeconomic stability, much more needs to be done to put Pal different development projects to accelerate the speed of growth. The China Pakistan economic tan on a solid econom growth footing. For this purpose, policy maker are designing corridor is one of them, ‘The basis of CPEC started way back in 1990 when Bush administration started a military campaign against Iraq and Afghanistan in response of 9/11 terrorist attack. After the war in © Emerald Publishing LimitedAfghanistan, USA left Pakistan alone in war on terror and pushed Pakistan into many economic problems. Moreover, when Pakistan and China signed a deal for missile and nuclear program in 1990, USA imposed strict restriction on both countries. At that time China revisited its time tested relations with Pakistan and started thinking new strategies according to this new regional and global strategie environment and finally decided to step into new Geo economical and Geo political partnership with Pakistan in the form of CPEC (Ramay, 2016). Officially this project was declared in 2003 after a meeting between President Hu Jintao and President General Pervez Musharraf at Beijing (Fmpre, 2003). In this declaration, both countri highlighted the core area of cooperation for future. Moreover, this cooperation was fortified in 2006, when Free Trade Agreement (FTA) was signed during the visit of President Hu Jintao to Islamabad. Free trade agreements expanded the trade volume from $1 billion to $15.15 billion during the period of 1998-2015 (Vandewalle, 2015). This trade cooperation further laid the foundation of China-Pakistan Economic Corridor (CPEC) and finally this project gained popularity among Pakistani officials when primer Li Kegiang introduced this project during his visit to Pakistan in 2013 (Irshad, 2015) China Pakistan Economic Corridor is a dream of prosperity which is dreamed by China and will be materialized by Pakistan and its fruits will positively be stretched to Pakistan and as well as to the whole region, Moreover, Jalil Abbas Jilani! claimed at Washington in his address that CPEC is the only way which can open the door of fortune in Pakistan as well as in the whole region (Yousar, 2013). It ensures shared economic prosperity for the participating countries through y and development of infrastructure. It is a great visionary concept that positively addres es the regional issues of poverty alleviation and development and ensures peace in the region through economic independence. The leadership of China deserves appreciation for revolutionary idea of “One Belt One Road” initiative which is beneficial for almost 26 countries. The direct and indirect benefits made this project popular among South Asia and Central Asia, and even some of the European countries. Pakistan is a key actor of this mega event and the success of this venture greatly dependent on Pakistan, Therefore, being a hub of economic activity, Pakistan surely is heading toward great welfares and regional connectivity * Pakistani Ambassador Emerald Publishing Limited‘The purpose of this study is to contribute to the literature available on positive impacts of CPEC on the Pakistan economy. Although the CPEC sat a very early stage and it is impossible to confirm at present the actual impact of the project, this study found with the help of facts and figures that in the near future Pakistan will reap the fruits of this development project. In this context, this paper presents different scenarios of the eventual impact of CPEC on Pakistan in order to promote a debate on ways and means to maximize its benefits in terms of prosperity and stability, Therefore, Pakistan is considering this project as a new source of potential synergy for development strategies which may help the country to attain new heights of success 2. CPEC, Trade and Infrastructure ‘The China Pakistan Economic Corridor - a bilateral cooperative initiative, 3,000 Km network of highways, railroads, oil pipeline and links of optical fibers of costs 51 billion - connect Kashgar- China’s northwestern autonomous region of Xinjiang- to Gwadar Port in Pakistan (Shoukat, Ahmad, & Abdullah), The Chinese government highlighted “one belt one road initiative” in their 13" five year development plan because this project will materialize the dream of Chinese government to become economic king of the whole world, “The One Belt One Road initiative” not only beneficial for China but it will also benefit 4.4 billion people of the world and enhance 29 percent of world’s total economic prosperity (Javaid & Javaid, 2016). This corridor is critical to develop rapid, extensive infrastructure in whole Pakistan, Azad Kashmir and Baluchistan, and profound economic connections to Europe, Aftica, and to the entire hemisphere with a purpose to promote trade and growth in Pakistan as well as in China, The details of road and railway routs are given in figure A and B given in appendix. Moreover, under CPEC, 1100km long motorway between Karachi and Lahore and 2700km highway from Kashgar to Gawader is proposed for construction, Moreover, up gradation of Karakoram Highway - between Rawalpindi and the Khanjrab - and Railway line ~ between Karachi and Peshawar- will complete by December 2019. This mega physical infrastructure not only improves connectivity of Pakistan with China but also extend potential connection to India, Jan and Afghanistan (Ranjan, 2015). The projects under CPEC are expected to complete into three episodes. Short term projects are estimated to be completed by 2017 while midterm are expected to be completed by 2025 and long term will prolong up to 2030 (Jawad, 2013). The © Emerald Publishing Limitedfirst phase consists on development of Gwader port and construction of international airport which will be completed in 2017. Government of Pakistan ministry of information broad casting and national heritage declared that engineers of China and Pakistan are working round the clock and accomplished almost 60% of their first phase construction of Gwader free zone and it has been estimated that by the end of 2017, Gwader free zone causes to develop light industry, stainles ee! factory that ultimately will provide considerable number of jobs for the locals in Gwader (Zubari, April 5, 2017). The detailed cost of approved projects of transport and infrastructure is given in Table B (appendix). Moreover, this extensive network of infrastructure helps the local traders of Baltistan and increases their earnings from export of cherries, apricot and apples by tremendous savings in cost of transportation, Presently, Balti fruits are being sent to China through air-cargo via Dubai but it would be faster, more fruitful and less expensive if the same volume of export could be sent by iang (Abid & Ashfag, 2015), trade causes to increase economic prosperity in Pakistan. is envisaging that this increased volume of Moreover, CPEC will enhance trade opportunities by providing access to the Arabian Sea through which passes about 35% of the world’s oil consignments. It will also increase the volume of trade by saving time and reducing almost 2000 miles distance. Correspondingly, Ahsan Iqbal” said that “Gwadar provide fast track exports and import to and from the United Arab Emirates, Gulf Cooperation Council, Saudi Arabia and adjacent regions (Nation, September 12, 2016.) According to the assessment of this corridor, CPEC will change the fate of Pakistan by improving economic development, extending construction and connectivity of transportation infrastructure, increasing volume of bilateral trade in multiple areas of major projects and to establish multiple industrial parks and fiee trade areas in Pakistan. CPEC will connect three big engines of growth - south Asi ‘a and central Asian republics — and develop their harmony in trade with entire south, northem and north-western regions. Only in Pakistan it is being expecting that 70% maritime trade opportunities will open the door of affluence for its citizens. ° Federal Ministor © Emerald Publishing LimitedThe role of infrastructure in trade and economic growth of developing economies is well documented in literature (Estache, 2008; Sahoo & Dash, 2009), Literature documented that development of economic infrastructure uplift production facilities, reduces transaction cost, and provides employment opportunities in poor nations; whereas the lack of infrastructure suppress the economic growth by increasing 40 to 60% cost on trading (Limo & Venables, 2001). It has been experienced in USA that by increasing the port efficiency, they have increased the volume of bilateral trade and reduced 12 % trading cost (Clark, Dollar, & Micco, 2004). Additionally, improved infrastructure, extended regional connection cause to increase foreign direct investment and volume of trade (Edmonds & Fujimura, 2008; Fujimura & Edmonds, 2006). Moreover, another study investigated the impact of CPEC on social welfare in Pakistan and concluded that the dist , Sindh and Baluchistan, situated near or on the rout of CPEC will get ‘maximum social welfare as compare to the other districts (Haq & Farooq). During the last decades, China experienced sustained economic growth by following the essence of old Chinese proverb that massive development of physical infrastructure leads the nation toward prosperity (Straub, 2008). Consistently, Hameed and Kanwal (2009), document that development of trade in central Asian economies heavily depends on development of infrastructure and almost 8 trillion dollars of investment is required to bridge the gap of infrastructure by 2020. On the same line it is being expected that extensive network of infrastructure will affects economic growth of Pakistan directly by raising GDP and indirectly by raising factor productivity. ‘The above Pakistan and will open the door for Goddess of fortune but at the same time CPEC will enhance seu infrastructure and trade in sion indicates that CPEC causes development social and economic influence of China in this region (Qureshi, 2015) and Gwader port will serve as head quarter for chine from where it will regulate the whole region. Only accountable and transparent policies can eradicate the negative impacts of this project and can protect the interest of the country, otherwise CPEC could turned into another East India company (Sabir, 2016). East India Company was a British company which came to India for trading but later on become powerfull enough that it overthrowing the Mughals who ruled India at the time. However, government of Pakistan did not open the deal and cooperation policy with China to criticism (Small, 2015) and all this cooperation is in shadow. Furthermore, the India, Israel © Emerald Publishing Limitedand USA are unhappy with this cooperation because it will restrict the role of USA in the region, Especially, India considered this agreement as a thorn in its paw and continuously working on the strategies that can slow down the pace of this project like RAW has opened a special office in Delhi and has allocated $300 million to disrupt the CPEC (Abid & Ashfaq, 2015). Similarly CPEC is also facing serious criticism and resistance from some political parties like Awami National Party, Bloch nationalist and Pashtunkhwa Milli Awami Party. Even Pakistan Tahreek e Insaaf and Jamiat e Ulmaye Islam (Fazal ul Haq) also raise objection and claimed that the government did not designed the policy to distribute the fruits of this project equally in all provinces (Bhattacharjee, 2015) 3. CPEC and Foreign Direct Investment According to economic survey 2015, it has been estimated that when CPEC project will complete in 2017, the value of these projects would be greater than inflow of foreign direct investment in Pakistan since 1970 (Hali, Shukui, & Iqbal, 2015). China committed $50 billion amount to invest in Pakistan under the umbrella of CPEC; among which $ 35 billion will be invested in energy projects and $ 15 billion in infrastructure, Gwadar development, industrial zones and mass transit schemes (Husain, 2017). However, it being expected that it will be more than $5 billion in the nest 5 year (Sender, May 2017). The entire portfolio will be completed by 2030 However, State Bank of Pakistan reported that Pakistan received $975.4 million FDI during the period 2015-2016 and the disbursement of FDI from China to Pakistan was $ 2.Ibillion and share of China in FDI grew up to $516 million in Pakistan during the period. Moreover, China has started infrastructure development plan in Pakistan worth of $46 billion (Akhtar, 2016) Finance minister, Ishaq Dar, highlighted the economic benefits of CPEC in Asian Development Bank summit conference and claimed that in near future Pakistan will be the only choice destination for foreign investors (Koguch, 2015). Moreover, Dr. Miftah Ismail claimed that different prospective investors have shown their willingness to invest almost 150 billion dollars in different business and manufacturing centers of Pakistan (Pakisatn, September 12, 2016.) CPEC - an economic cooperation between two rising power of Asia — is supposed to provide * MOS / Special Assistant to the Prime Minister/Chairman (© Emerald Publishing Limitedattractive opportunities to all businessman of the globe that worth their money and time. CPEC was launched in 2015 but now it has been entered into realization phase where many project has been completed, many are being developed on fast track and multiple business opportunities are being generated. Therefore, immense opportunities of investment in Pakistan will be available in, machined farming, electricity- operated cottage industry, and high capacity industrial unit, construction of transportation, communication, storage fa tourism, consultaney and medical sector in near future through ‘Theoretical literature argued that foreign direct investment (FDI) play significant and positive tle in the development process of developing nations (Hansen & Rand, 2006). However, empirical literature criticized the negative impacts of FDI and concluded that in some cases negative impacts overcome the pos ive spillover of FDI (Falki, 2009) . Most of the literature agreed on positive role of FDI in economic growth and studied that positive impacts of FDI are greater in host country (Lipsey, 2004). The People’s Republic of China set an example of dramatic economic growth during the last twenty years by adopting sound incentive polices for foreign technology and capital. The sound policies related to FDI caused China to become number one host of FDI among developing economies and second in the world after USA (Berthélemy & Demurger, 2000). Usually FDI contribute in economic growth of a country through technology transfer from developed to developing countries and by increasing marginal productivity of capital (Balasubramanyam, Salisu, & Sapsford, 1996). Moreover, Borensztein, De Gregorio, and Lee (1998) developed a model where he tried to established that technological progress through FDI contributes in the long run growth rate of the country. Similarly, Romer (1990) viewed the FDI as channel of technological progress and economic growth, FDI facilitate the process of diffusion of technology, if multinational companies bring advanced technology with them into the host country and will remove the difference between low tech and high tech firms. Conclusively, the goods which involve complex technology are produced by foreign owned firms and low technology goods are being produced by the domestically owned firms order to boost the process of economic growth in developing economies On the same notion study assumed that huge FDI from China to Pakistan causes a to spread prosperity among different province of Pakistan (Haq & Farooq). The conclusion that CPEC project causes economic growth based on exogenous growth model which belief that the factors © Emerald Publishing Limitedoutside the economy strongly affect the econon jc growth of the economy. It is assumed that external factors are more contributive in economic prosperity of country rather than internal factors. The exogenous growth model advocated that technological progress or capital accumulation is necessary for development process. If domestic resources are unable to provide required level of saving to increase capital accumulation then country tries to overcome the deficiency of capital through FDI or foreign debt to increase the growth rate of the economy and this increased growth rate further attract more inflow of FDI (Hansen & Rand, 2006). Therefore, Pakistan is fantasizing positive spillover of FDI stocks form China to Pakistan and visualizing ct that the impact of FDI on local economy will appear through two channels; direct and indi Direct effect is also called extension effect and it extends the intermediate goods sector through technology progress. Similarly FDI indirectly affect economic growth by reducing cost of production with the help of advanced knowledge (Berthélemy & Demurger, 2000). 4, CPEC and Energy Crises In this era of development, energy plays vital role to upgrade economic growth of developing economies and literature recognized it as important driving forces of economic growth in all economies (Pokharel, 2007). The relationship between cnergy production and economic growth is adequately investigated in the literature and majority of studies concluded that higher energy ic growth (Hou, 2009). Si production causes econon ilarly, energy is the most important factor promoting the quality of life and providing economic and social progress (Enu, 2014). Furthermore, in developing economies, energy demand is driven by economic development. Therefore, developing economies are striving to avoid short fall of energy by improving their energy services (Toman & Jemelkova, 2003) through different mutual collaborated projects. Similarly Pakistan is facing 4500 MW shortfall of energy on regular basis, During the last decades Pakistan is experiencing routine power cut of up to 5 hours per day that caused 2.5 % reduction in economic growth rate of Pakistan. Therefore, the problem of energy deficit has been addressed in CPEC on serious notes with $ 33 billion investment in this sector. Moreover, it has been estimated that 10,400 MW of electricity is going to be produced by March 2018, under the umbrella of Early Harvest projects. Although some of these early harvest projects will completed in 2020 but these projects will enhance the energy generating capacity of Pakistan up to 10, 000 MW by the end of 2018, There are certain projects like Balloki power plant, Bhakki power © Emerald Publishing Limitedplants, Neclum-Jhelum Hydropower Plant and Tarbela IV Extension Project under CPEC that will help Pakistan to realize their dream to overcome the shortage of electricity and to push the economy toward prosperity and development. Moreover, Pakistan has planned to import electricity from Tajikistan and Kyrgyzstan as part of the CASA-1000 project, which is expected to be completed in late 2018, Moreover, energy projects of early harvest are being constructed by Chinese private power producer and Exim bank of China is providing them finance at 5-6% rate of interest while government of Pakistan will purchase electricity from Chinese firm on pre- negotiated rates. Renewable-energy projects Pakistan has started different renewable energy project with the help of foreign companies. The world’s largest solar plant - The 6,500 acre Quaid-e-Azam Solar Park near the city of Bahawalpur with an estimated capacity of 1000MW — is being cor rructed by China’s Zonergy Company under CPEC and was expected to be completed in December 2016, At the completion of first phase, project was supposed to generate 100MW but unfortunately is producing 3 MW while at the completion of second phase it will be able to produce 900 MW. Moreover, Chinese- Pakistan consortium United Energy is also producing 250MW electricity at the cost of $ 659 million under CPEC. Similarly many other projects like Jhimpir wind power plant by Turkish company Zorlu Enerji, Dawood wind power project by Hydro China, Suki Kinari Hydropower Project by SK Hydro Consortium and Karot Dam are under construction and supposed to contribute to eliminate energy shortfall. The major financer of CPEC projects are Exim bank and China’s Silk Road Fund. Similarly, a mega project, Kohala hydropower project ~ its capacity is 1100 MW at the cost of $ 24 billion - was being constructed by China's Three Gorges Corporation before announcement of CPEC but now it is funded by CPEC fund. Moreover, Diamer Bhasha Dam is supposed to produce 4500MW at the cost of $ 14 billion and Pakistan is. willing to complete this project under the roof of CPEC, For this purpose a meeting of Pakistan and China officials was held in December 2015 but still clear verdict is absent (Wolf, 2016). Along with several renewable energy projects, it has been decided to enhance the capacity of new energy generation under CPEC by using coal resources. A coal based power projects worth of $58 billion are expected to be completed by early 2019 as part of the CPEC’s “Early Harvest” projects, the details of early harvest projects are given in Table A in appendix. Similarly “Thar 1 © Emerald Publishing Limitedproject” — initiated by Shanghai Electric Company - decided to construct two 660MW power plants in the coalfield of Sindh province by utilizing locally sourced coal and it is expected to be put into commercial use in 2018, Similarly “Thar-lI Project” ~ initiated by China Machinery Engineering Corporation in conjunction with Pakistan's Engro Corporation - will construct two 330 MW power plants and a coal mine near “Thar 1 project”. In the first phase of “Thar-Il Project” coal mine is supposed to capable of producing 3.8 million tons of coal per year and expected to be completed by early 2019, at a cost of $1.95 billion. Moreover, subsequent phases of this project will eventually generate an additional 3,960MW of electricity over the course of ten years, Therefore, till now almost 21 projects on energy production- including gas, coal and solar energy - has been signed and if all these agreement accomplish on time then 10,400 MW energy will be available by march 2018. 6. CPEC and Employment Applied Economic Research Centre has estimated that at the completion of mid to long term plan of CPEC will produce 700,000 direct jobs during the period of 2015-2030 and 1.4 million rect jobs will be originated in supply chain and services sector (Rabbi, 2017). Official data revealed that by the end of june 2017, almost 30,000 Pakistani engineers and doctors are being directly employed in early harvest CPEC projects (Times, June 12, 2017). Description of Employment in different sectors and projects © Emerald Publishing Limited Name of project Pakistani workers Employability Farly harvest project 30, 000. Energy sector 16,000 Port Qasim power plant 5,000 Sahiwal solar power project 3,000 ‘Quaide e Azam solar power project 3,000‘Transport Sector 13,000 Free zone Project in Gwader 25,00 Source: https://tribune.com.pk/story/1429 13 | /epec-provides-jobs-30000-pakistanis/ Moreover, many other indirect jobs will also arises in sector ranging from personal services to housing and transportation (Ahmed). The International Labour Organization has estimated 400,000 jobs in results of CPEC projects while Planning commission declared that CPEC project will generate 800,000 jobs over the next 15 years (ILO, 2016; Nation, December 26, 2016). Chinese Ambassador, Sun Weidong, promised in summit conference to complete CPEC as early as possible and forecast that this project will help to overcome the problem of unemployment and lack of health and education fa in Pakistan (Express, 2017). The deputy general, He Shiyou, of Port Qasim Coal-Fired Power Project claimed that already 2000 Pakistan is working in CPEC project and more 100 are expecting to join within next few months (Abrar, December 5, 2016). In the second phase of recruitment, company is willing to hire 300 technicians and trainees. The project will continue to generate opportunities to local talents and after hiring they will able to get training so that they can realize the maximum operation locally. He further added that these employees will participate in the key technical works of the contra 1g and operation and management works of the Port Qasim power project. Therefore, port Qasim project is creating 3000 job opportunities directly and annually will add 500 job opportunities and training for Pakistanis during its operation period, Economists and researchers are anticipating that fully operational Gwader will become fruitful for whole central Asia and provide wider economic development opportunities to Pakistan Right now the employment trends in Pakistan are not stable and Pakistan is adopting policy to invest in various segment of the economy to create demand for labor in order to reduce unemployment level, Therefore, it is being documented that CPEC project will create job real estate, construction, agriculture, fisheries, cottage industry and in tourism opportunit sector (Xie et al.). Similarly Mujaddad, Chaudhry, and Director (2016), conducted “Sufficiency Analysis of Local Production Capacity in Punjab for the requirement of CPEC” and found steel, cement and stone crushing sectors are operating at less than their potential level, so when CPEC © Emerald Publishing Limitedprojects encourage these sector to produce at their potential level and causes to improve economic and employment aspect of the economy. Similarly, Abid and Ashfag (2015) advocated that CPEC will increase, employment level, quality of life of people and causes to lower the poverty in Pakistan Although right now CPEC project is with doubts but the people of Pakistan and politicians are optimistic and dreaming that in the near future Gwader port will definitely provide opportunities for the provincial governments to develop industrial estates along the route and convert the agrarian Pakistan into an industrialized economy. No doubt, development of industrial estate and lower taxation on locally produced goods enable Pakistan to compete with India and China in the international market. Moreover, the goverment will also generate revenue from taxes and d from traded goods. Therefore, an individual think that the things will goes on as has been portrayed and common man would be benefited 7. CPEC and Tourism Over the past several decades, the researchers are continuously investigating the association among tourism and economic development and concluded that tourism causes to improve economic growth and economic growth causes to flourish tourism sector (Dwyer, Forsyth, & Spurr, 2004). Therefore, developing countries are spending heavily on tourism sector in order to accelerate the speed of growth in their economies. According to the Budeanu (2007), the impact of Travel & Tourism sector is getting prominent place among world's largest industries by providing 225 million jobs and leaving impressive impacts on economic growth of the world by contributing 9% in global GDP. Researchers are anticipating that by the end of 2022, this industry will produce 328 million jobs and 1 in every 10 jobs on the planet (Seetanah, 2011). Over the next ten years, this industry is expecting to grow by an average of 4% annually. This will bring it to 10% of global GDP, or about USS10 willion (Chou, 2013). In Pakistan, tourism is not performing up to the level. CPEC is generating opportunities to eam money from tourism and It is projecting that CPEC will boost tourism in the 73000 square Km region and causes to clevate the eaming from tourism. The region of Baltistan is considered as a mountaineer's paradise because it is home of five mountains that have 8,000 meter high peaks and SO © Emerald Publishing Limited‘mountains are having 7,000 meters height. K2, Second highest mountain on earth after Mount Everest and Nanga Parbat graces the beauty of Gilgit-Baltistan region of Pakistan, Major Conclusion and Policy Implications: © CPEC is a life-time development opportunity for Pakistan, The government and the people of both countries believe that the smooth implementation and sustainable operation of CPEC projects will increase trade and energy cooperation between China and Pakistan and it will benefit over three billion people of China, South Asia and Middle East. * CPEC will solve Pakistan's problem of energy crisis by connecting Pakistan with its neighbours on three sides, the east, north and the west. © For Pakistan it provides opportunity to revive Pakistan's economic structure, particularly through the development of its energy sector and by fostering a greater connectivity through network of infrastructure, © Pakistan's leadership believes that although CPEC will change the fate of Pakistan and the whole region but its realization of this project greatly dependent on continuous determination of both countries © Successfill completion of project needs, the implementation of all memorandums of understanding in their true spirit, strict scrutiny of the performance and quality of work on different projects and safeguards are needed against corruption, * Moreover, security to the engineers, technicians and labour who are engaged in CPEC guaranteed the on time completion of projects which will cause to boost the process of prosperity in Pakistan. © The CPEC project will transform Pakistan’s geographic location into an asset. 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Project Name mw | ation) [a C7 Sp 9 er Fre ec 1 | Port Qasim Electric Company Coal Fired, 2x660, Sindh 1320] 1,980 2_ | Sahiwal 2x660MW Coal-fired Power Plant, Punjab 1320/ 1,600 3. | Engro thar 4x330MW Coal-fred, Thar, Sindh 7320 [2,000 1 Surface mine in Block! of Thar Coa field, 6.5 metricton per annum Ta (tpa), Thar Sindh 4 | Gwadar Coal /ING /Oil Power Project, Gwadar 300 600 5_| HUBCO coal power plant 1X60 MW, Hub Balochistan 660 370 6 | Rahimyar Khan Coal Power Project, Punjab 1320[ 1,600 7 | SERL Thar Coal Block 1- 65 metric ton per annum(mpta) Thar, Sindh 1,300 9. | SSRL 2660 MW Mine Mouth Power Plant,Sindh 3320/ 2,000 @_| Quaid-e-Azam 1000MW Solar Park, Bahawalpur, Punjab 1000| 1,350 3 | Dawood SOMW wind Farm, Bhambore, Sindh 50 125 10 | UEP 100MW wind Farm, Jhimpir, Sindh 100 250 Ti | Sachal SOMW Wind Farm, Jhimpir, Sindh 50 134 12 | Suki Kinari Hydro power Station, KPK 70 | 1,802 13 | Karot Hydropower Station, AIK & Punjab 720 [4420 Emerald Publishing Limited14 | Matiari to Lahore Transmission line 1500 15 | Matiari to Faisalabad Transmission line 1,500 16 |Saddan Power Park Project (2x650MW) 1320] 3,960 Gaddani Power Park Project (letty + Infrastructure) 1,200 17 | HUBCO coal power plant 1X660 MW, Hub Balochistan 660 970 18 | Kohala Hydel Project, AIK 1100| 2,397 19 | Pakistan Wind Farm ll 2x50 Mw(hampir, Thatta, Sindh) 100 150 20 | Thar mine mouth oracle, Thar Sindh 7320/ _-1,300 21 | Muzaffargarh Coal Power Project, Punjab 1320[ 1,600 22 | Gas Power Plant 525 MW 525) 550 Source: http://epec.gov.pk/energy B: Transportation Infrastructure Projects Sr. | Project Name MW | Cost (§ Million) 1. | KKH Phase II (Thakot -Havelian Section} 118 1,305 2 | Peshawar-Karachi Motorway (Multan-Sukkur Section) | 392 2,846 3 | Expansion and reconstruction of existing Line ML-1 1736 3650 Havelian Dry port (450 M. Twenty-Foot Equivalent Units) 40 Source: http://cpec.gov.pk/infrastructure C: Gwader Port City Projects Sr. | Project Name Cost ($ Million) 1 | East-Bay Expressway 740.60 2 _ | Gwadar International Airport 230.00 3 | Construction of Breakwaters 123.00 | Dredging of berthing areas & channels 27.00 5 | infrastructure for Free Zone & EPZs port related industries 32.00 6 _ | Necessary Facilities of Fresh Water Treatment and Supply 130.00 7 | Hospital at Gwadar 100.00 8 | Technical and Vocational institute at Gwadar 10.00 Source: http://cpec.gov.pk/gwader industrial Cooperation Projects Project Name Status Progress Gwadar-Nawabshah LNG Terminal and Pipeline, 700 km | To be inaugurated 40% oem Id Publishing Limited2. | Haier & Ruba Economic Zone Phasell Feasibility stage 15% 3_ | Optical Fiber Cable from Rawapindi to Khunjrab Under construction’ 50% 4__| DTMB Demonstration Project Government MOU Si 5% 5_ | Lahore Orange Line Metro Train Under construction 60% 6 | Promotion of TO-LTE commercialization in Pakistan Feasibility stage 15% : Regional Distribution of Project of CPEC Source: cpecinfo.com Major Projects of the China-Pakistan Economic Corridor* roner @ COL OH!” ION A wo © Emerald Publishing Limited Source: Rafi, Khan and Aslam (2016)CPEC Road Routes Silk Roads China plans to spend bilions on infrastructure in Pakistan that would help open new trade routes. ‘Spending on projects Z ‘SECTOR febcLons |— Proposed road network rake Energy '$9379 | ENERGY PROJECTS + Road 590_| @ Coal mining! fal eset: ‘Mass transit in Lahore 1.60 Ohivsr0 AFGHANISTAN ae {in Pakistan since 2009, Energy $2 ‘nigation of I milion acres of Gwadar {farmland by 2016, bulding or ‘rehabilitating over 620 mies of ‘oads and highways, ulding OF ‘rehabilitating more than 950 Arabian Sea Peery “Pgs dor 68 up te atl eto rounding, ‘ Sources: Goverent of Pabistay USAID yt ‘THE WAL STREET JOURNAL Source: Published in Wall Street Journal, adopted fromVandewalle (2015) © Emerald Publishing LimitedRailway Routes of CPEC Railways Network of CPEC Source: http://mww.cpec.gov.pk/map-single/2 © Emerald Publishing Limited