CPEC: (China-Pak economic corridor)

This corridor stretches from Chinese border to Pakistan’s deep water port
started in 1950 historically and in 1959 with the initiation of Koh-e-
Karakoram highway construction first purposed by Prime Minister Li
Keqiang on 22nd may 2013. On his visit to Pakistan 1959’s interest
rekindle and in 2002 china started port Gwadar which was completed in
2006 expand on 2282 akar given to China on 43years lease.
Zardari and PM Li-Keqiang inked MOU’s for long term plan.
20 April Pak-China signed an agreement to commence work on
$46,000,000,000 with approximately $28 billion for early projects.
The total worth of CPEC in 2017 was $62 billion when Xi-Jinping visited
Pakistan and signed 51 MOU’s.
Special economic zones: (SEZ)
Businesses in these zones will be free from customs or many provincial
and federal taxes. E.g. Pakistan’s income tax, sales tax, federal excise for
23years.
40years tax holiday for the imports of equipment’s material, machinery,
accessories used in Gwadar and SEZs.
CPEC linked kashgar in North West china with Gwadar port on Arabian
Sea post line in Baluchistan.
PM Nawaz Sharif visited China and finalized this project on July 5, 2013
with 200km long tunnel while CPEC is about 3000km long.
China’s investment:
$6.5 billion for nuclear power plant in Karachi, Orange line metro train
having the cost $1.2 billion. 19 agreements were signed of CPEC in 2014.
Chinese firms started works of 6mega projects (energy projects) in Gilgit
Baltistan.
China’s quest for warm waters:
Uyghur moment China wants modernization of Xinjiang. For this they
have started energy projects of $33 billion including coal, solar and hydro
of 10400 megawatt till 2017 to 2018. Optic cable from Xinjiang to
Rawalpindi 1240 km motorway from Karachi to Lahore.
Upgradation of 1300km Karakoram highway. 1800 km railway track.
Metros in 6cities and dry ports.
Routes of CPEC:
 Western route from Gwadar will pass through Turbot, Panjgur, Naag,
Suhrab, kalaat, Quetta, Zhau, Mianwali, Hassan Abdal and
Islamabad.
 Central route from Gwadar, Quetta and Deraa Ismael Khan
 Eastern route from Gwadar, Khuzdar, Sakhar, Rahim-yar-Khan,
Bahawalpur, Multan, Lahore, Faisalabad, Islamabad, Mansehra.
Importance of Gwadar:
The least developed districts of Pakistan are developing.
Strategically near Persian Gulf close to state of Hormuz through which
40% world’s oil passes.
Plan to make Gwadar with an international airport free trade zone on
model of Singapore and Hong Kong.
Gateway to CPEC is Gwadar.
Analyst view:
o Gwadar sea port turning into china’s naval base in Indian Ocean and
enables Beijing to monitor India-US naval activities so this
frustrating them.
o Modernize Pakistan navy to end Indian hegemony by giving 8
submarine of $5,000,000,000
o Greater origin in South Asia least developed countries. The fear is a
clash of geo-economic interest which would lead to unhealthy
competition.
Gains of China:
o One belt one road (OBOR) or belt and road initiative. It is Chinese
development strategy involves infrastructure development and
investment in 152 countries. International organizations of Europe,
 Asia, Middle East, Latin America, and Africa. Belt refers to overland
routes of roads and rail. Roads refers to the sea routes.
o OBOR as targeted completion date of 2049 which coincides hundred
anniversary of PRC. It was unveil Xi-Jinping in 2013 and propose it
by Li- Keqiang.
o It connects china to its markets in Asia, Africa, Europe, and Latin
America and beyond.
o Silk Road connects it to Europe through central Asia.
o Maritime silk road/route connects china to south East Asia,
Indonesia, Archipelago, India sub-continent, Arabian Peninsula,
Somalia, Egypt and Europe.
o This state route encompasses South China Sea, State of Melaka,
Indian Ocean, Gulf of Bengal, Arabian Sea, Persian sea and red sea.
o So CPEC makes link to half of the world because of CPEC China can
bypass state of Melaka through Gwadar China’s permanent navel
presents in Gulf of Oman and Arabian seas.
o Through silk roads china can influence trade v/s India and central
Asian region would capture by her.
Indian concerns about CPEC:
 Indian’s dilemma whether to connect with dying US power or with
rising china. Confused Ma-Bharat and new world trade policy with
china.
 Pakistan’s stabilization politically and economically
 China’s huge investment in Pakistan
e.g. 4 new nuclear reactors by 2023
8 submarines
Chinese help in producing plutonium at Khushab(mianwali)
reactor build by china
 US warlike behavior or China’s peaceful attitude.
Adaptation of Geo-Political environment:
Two literate would and hence from 12-20 billion dollars.
Afghan-Pak better relations because ISI and NDS inked intelligence
sharing.
Afghan-China payed no heed to Indian slogan of terrorism.
Pakistan gains:
 Pakistan is not a part of Yemen War, So Iran can be friend.
 Pakistan’s GDP is increasing and World’s opinion is changing.
Pakistan as an Asian tiger. Cino-Pak research on Agriculture sector
especially in basmati. CPEC is game changer for economy and
stability.
 By Nov 2018 GDP went up by 2.11% and 75000 people were
employed under various CPEC projects.
 1.2 Billion Jobs are expected at the culmination of CPEC projects
in 2030.
 Chinese investment would boost Pak GDP by 15%
 Out of failing terrorist state.
 US at our back
 Win-win cooperation with China and trust
 Strategic parity with India is now achievable
 Khunjerab railway 682km from Haveliyan to Lanxin railway in
kashgar
 Foreign investor destination is pakistan because of stabilization.
Scuttle efforts:
 RAW in Delhi office spends $300m to disrupt CPEC.
 NGO’s activation
 Up search of terror acts.
 ANP, Bloch nationalist objection on routes.
  China: 2018 India strongly criticized CPEC because it passes
through gilgit Baltistan and Azad Kashmir.
 Union defense ministry quoted: (India)
“The CPEC passing through Pakistan occupied Kashmir
challenges Indian sovereignty”
 US secretary of defense James mattes said that;
“CPEC threats Indian sovereignty.”
 Forbes (magazine) Nov 2018;
“Malaysia, India and IMF could spoil two of china’s mega
projects in the Indian Ocean which are CPEC and forest
city.”
 India called Chinese ambassadors and protested that china is
engulfing India strategically but china said; it is mere commercial
project/plan.
 Western media by manipulated views it as neo-imperialism.
Routes controversies with in Pakistan:
 Eastern routes benefits Punjab and Sindh 6lane motors.
 Western route is original and shortest. 1 to 2 lane road.
 Three routes story is a cover to hide changes of routes so not
transparent.
 Eastern route is unsafe because of near to Indian boarders.
Other major concerns:
“CPEC is likely to bring more development to regions that are
already developed instead of poor areas such as Baluchistan.”
Akhtar Hussain
Director Asia research Centre
London school of economics
“Development is good, China is our bade friend, this CPEC think
sounds amazing, but don’t forget that this is our land.”
(Bloch nationalist)
Because they think they are losing control over natural resources.
o CPEC could replace Pak exports by Chinese one in external markets.
o Interest of CPEC loan is very high.
o In a nutshell envisaged in mid-2013 and last in April 2015 CPEC a
set of projects under China’s belt and road initiative marks a new era
of economic ties in a bilateral relationship historically defined by
security cooperation between the two. (Pak-China)