PAK CHINA ECONOMIC CORRIDOR

PRESENTED BY:
 Hafiz Abdullah

PAK CHINA ECONOMIC CORRIDOR

HISTORY OF PAK CHINA
RELATIONS

 Pakistan–China relations began in 1950
 Strategic alliance was formed in 1972 and economic co-
operation began in 1979

 China has invested $20 billion in various projects

 Mega infrastructural projects in Pakistan

 Gwadar Port, the Coastal-Highway linking Karachi with Gwadar,
Karakoram Highway, the Chashma nuclear power plants, and a
number of hydro-power projects.

PAK CHINA ECONOMIC

CORRIDOR
 PAK-CHINA ECONOMIC CORRIDOR

 The kkh was started in 1959 and was completed in 1979 (open to the
public since 1986 )

 Length 1,300 km (Pakistan 887 km ) China 413 km

 It connects China's Xinjiang region with Pakistan's Gilgit–Baltistan

and Khyber Pakhtunkhwa regions

 Major cities Hasanabdal, Abbottabad, Thakot, Chilas, Gilgit, Aliabad,

Sust, Khunjerab Pass, Kashgar

 The importance Karakoram Highway

 Chinese companies
 Tourism in Pakistan
 Transportations

PAK CHINA ECONOMIC CORRIDOR

The KKH highly contribute economic activities of both
countries export and import

PAK CHINA ECONOMIC CORRIDOR

 *
On 8 September 1958 prince Aga khan karim purchased the Gwadar enclave from Oman for $3
million, and gave it to Pakistan and it officially became part of Pakistan

Gwadar Port is located at the mouth of the Persian Gulf

Gwadar is a planned free trade port

Gwadar Port is a strategic developed jointly by the both countries

 National Highway Authority (NHA) began construction of the 653 km-long Makran Coastal
Highway linking Gwadar with Karachi,

 In 2004, Pakistan's NHA began construction of the 820-km long M8 motorway linking Gwadar
with Ratodero in Sindh province Turbat, Hoshab, Awaran and Khuzdar

 In 2007 Civil Aviation Authority of Pakistan acquired 6,000 acres (17-24 km2) to construct a
new greenfield airport, at an estimated cost of Rs 7.5 billion.
 GWADAR ECONOMIC ZONE
GDA was established to promote industrial activities in
mega port city of Gwadar

China focused on the fast-track construction of roads,

other infrastructure and public buildings

In 2013, Gwadar Port operations were officially handed

over to China,

To connect china with Gwadar through railway track has

already begun
PAK CHINA ECONOMIC CORRIDOR
Outflow of goods from western China and Central Asia through
Gwadar

PAK CHINA ECONOMIC CORRIDOR

 CURRENT PAK-CHINA ECONOMIC
CORRIDOR DEVELOPMENT
Gwadar-Khunjerab-Kashgar rail
 Gwadar-Khunjerab-Kashgar network
rail network

 connecting the maximum

number of population through
a network of highways and
railways

 six-lane motorway to be built

from Karachi to Lahore. MoU’s
signed with China

PAK CHINA ECONOMIC CORRIDOR

OBJECTIVE OF PAK-CHINA
ECONOMIC CORRIDOR
 Increasethe volume of trade between Pakistan
and china

 Takefull advantage of preferential trade

agreement(PTA) and free trade agreement
(FTA)

 Increase export to china, recently export to

china is $3.14 billion

PAK CHINA ECONOMIC CORRIDOR

OBJECTIVE OF PAK-CHINA
ECONOMIC CORRIDOR
 Pakistanand china are second largest partners
in south Asia, this will help to retain partnership

 WidenKarakorum high way and open new

economic corridor from china to Gwadar

 Approximately reduce 10000 km distance and it

is the shortest route

PAK CHINA ECONOMIC CORRIDOR

PAK CHINA ECONOMIC CORRIDOR
OBJECTIVE OF PAK-CHINA
ECONOMIC CORRIDOR
 Expand trade with Afghanistan and it help both
countries to play their role in post-2014
Afghanistan

 Expand trade with Russia by providing trade

route till Gwadar port

 Development of infrastructure along Pakistan

PAK CHINA ECONOMIC CORRIDOR

OBJECTIVE OF PAK-CHINA
ECONOMIC CORRIDOR
 China access to the Indian Ocean with the aim
of widening its geopolitical influence and
military presence in the region

 Jobopportunities and economic development in

Baluchistan

 Increase
Chinese investment, Pakistani
investment in china will also be encouraged

PAK CHINA ECONOMIC CORRIDOR

OBJECTIVE OF PAK-CHINA
ECONOMIC CORRIDOR
 Regionalpeace, prosperity and elevate the life
of poor people of south Asia

 Enhance trade among Pakistan, China, Gulf

States, Central Asia and Africa

 China is interested to extend the Iran-Pakistan

pipeline to its western territory

PAK CHINA ECONOMIC CORRIDOR

ADVANTAGES OF PAK-CHINA
ECONOMIC CORRIDOR
Can benefit new emerging regional cooperation

Save time, cost and freight charges

Facilitate trade, have Economic Zone en-route

and will allow reaping of full benefits of
development, economic and social uplift
 ADVANTAGES OF PAK-CHINA
ECONOMIC CORRIDOR

 Increase the economic collaboration between
both countries by connecting western china
to Gwadar

 Regional stability in Asia as well as whole

world

 Pakistan economy will Boost

PAK CHINA ECONOMIC CORRIDOR
 ADVANTAGES OF PAK-CHINA ECONOMIC
CORRIDOR
 Pakistancan avail great opportunities from
chine’s expert in various sectors like energy
,Technology and Education sector

 Create new employment opportunities

 Pakistan and china both collectively target

the half of the population of the world ,it will
provide great opportunity for both countries
to expend their market

PAK CHINA ECONOMIC

CORRIDOR
 DISADVANTAGES:

 FTA leads to threat for local markets and local

manufacturers

 Disturb of local industries

 Difficult to compete chine’s product in market

 Dependent to China

PAK CHINA ECONOMIC CORRIDOR

Huge difference between Balance of
payment Trade deficit

Pakistan-China trade Trade Deficit

increased by 17.6% to a
total of US$ 12.4 billion
in 2012.

3.14

China export to
Pakistan is
9.3billion

9.2
Pakistan’s export to
china is 3.14billion
PAK CHINA ECONOMIC CORRIDOR
DISADVANTAGES:

Focus on import rather than

Domestic production

Threat for potential group

Due to free trade agreement with

china leads to lack of competition.

PAK CHINA ECONOMIC CORRIDOR

 Recommendation:

 Pakistan should create stability In its terrority to implementation

on that plan

 To make positive balance of trade Pakistan should increase

exports

 Agriculture products
 Textile products
 Leather

PAK CHINA ECONOMIC CORRIDOR

 Maintain favorable balance of trade

Precious stone

Sports goods

Textiles products
 RECOMMENDATION:
• Restriction on that commodities which is harmful for our
industries

• To make a frame work to use Domestic currency for trade (barter system)

• Develop auto industries rather than focusing on import parts.

PAK CHINA ECONOMIC CORRIDOR

 Implementations
Should provide of agreements
latest technology should be
addressed

Think tank should

collaborate by both
countries

PAK CHINA ECONOMIC CORRIDOR

RECOMMENDATION:

Pakistan should Utilization of raw

implement and handle material and value
policies up to the added process should
mark be done in Pakistan

PAK CHINA ECONOMIC CORRIDOR

 Recommendations
 Make efforts to diversify market in China

Security issues, law and order system are main

{
obstacles in the way of Pak-china economic
corridor

Pakistan should develop the training centers

and Chinese language centers in order to make
effective communications
PAK CHINA ECONOMIC CORRIDOR
 CONCLUSION
Natural Gateway for China

Positive response by both countries through mutual

cooperation

Both countries are keen to enhance trade activities

PAK CHINA ECONOMIC CORRIDOR

 Infrastructural improvement and Development of
Dams

Stability of economy by investment in different sectors

“our friendship is “higher than the mountains, deeper

than the oceans, stronger than steel, dearer than
eyesight, sweeter than honey”.

PAK CHINA ECONOMIC CORRIDOR

PAK CHINA ECONOMIC CORRIDOR