The China-Pakistan Economic

Corridor (CPEC)
 Outline
• Introduction
• Opportunities
• Challenges
• Analysis
• Gawader Port
• Conclusion
 Introduction

• The China-Pakistan Economic Corridor (CPEC) is

hailed by almost the entire nation as a ‘game changer’
and ‘fate changer’.
• Although, the primary purpose of the project is to
serve as a transportation network connecting Western
China to Gwadar, it includes several projects.
• Such as power plants, Economic Zones, infrastructure
development, improvement of information
technology and communications in remote areas.
 Introduction
• It certainly benefits China as the road and rail
networks circumvent the alternative maritime routes
through the South China Sea.
• It shortens the transit from China to several Middle
Eastern, African and European countries.
• The idea existed earlier and was transformed into a
Memorandum of Understanding (MoU) in 2013,
formal agreements there under finalized in 2015, and
the first trade activity took place on November 13,
2016.
 Introduction
• CPEC would have far-reaching effects not only for
Pakistan but for the whole region.
• It is a fifteen years project (2015-2030) and would be
completed in four phases, namely early harvest
(2018), short-term (2020) medium-term (2025) and
long-term (2030).
• CPEC is a fusion of multiple corridors such as
investment corridor, trade corridor, energy corridor,
transport corridor, infrastructure corridor, industrial
corridor.
 Introduction
• It is first of the six corridors that China has
embarked on under One Belt One Road
(OBOR) initiative.
• The second corridor will pass through Central
Asia to Turkey, the third through Eurasia, the
fourth Mongolia and Russia, the fifth East Asia
and the sixth corridor through India.
• OBOR will link 64 countries including Pakistan.
 Introduction
• It is equally beneficial for both the countries.
• China will have an alternate cheaper route of
less than 5000 kilometers as compared to
Strait of Malacca;
• It will develop Western China; improve its
exports through the goods exported to Middle
East as well as industries supplying material to
all the projects under CPEC.
 Introduction
• Pakistan will get trade tax, industrial zones, add
10,000 MW to national grid, thousands of job and
development of all sorts.
• It fits China’s grand ambition in the region, and
creates a fantastic opportunity for rapid economic
growth inside Pakistan, which given the state of
the domestic economy, would not be possible
otherwise.
• It is nothing more than a convergence of interests.
 Opportunities

• Some of the opportunities are as under:

1. Overcoming Energy Crisis:
2. Greater Connectivity:
3. Economic Growth:
4. Investment:
5. Strategic Significance:
 Overcoming Energy Crisis:

• Pakistan has been facing energy crisis mainly due to

poor planning, bad governance and mismanagement.
• Energy was costing economy 2 per cent to 2.5 per cent
annually in terms of GDP.
• A major chunk of the investment has been allocated for
energy for enhancing capacity to generate, and
upgrading transmission and distribution network.
• In the early harvest phase (2017-18) CPEC projects are
expected to add 10,400 MW to the Pakistan's energy
system.