CHINA PAKISTAN ECONOMIC

CORRIDOR
 Introduction
• The CPEC is one of the six corridors planned under President Xi
Jinping’s OBOR Initiative.
• CPEC, originally was proposed by the Chinese Premier, Li
Keqiang during his visit to Pakistan in May 2013
• The proposed project of linking Kashgar in northwest China
with Gwadar Port was approved on July 5, 2013 during the visit
of PM Nawaz Sharif to Beijing
• The proposed and estimated cost of this project is $62 Billion.
Three routes have been marked:-
 Conti…
MAIN COMPONENTS OF CORRIDOR:
I. Gwadar ( including port and city and Gwadar region socio-economic
development)
II. Energy (Coal, Hydel, Wind, Solar, LNG , Transmission)

III. Transport Infrastructure (Road, Rail, Aviation)

IV. Investment & Industrial Cooperation (Gwadar Free Zone and

other industrial parks to be finalized)
 Conti…
Table given below summarizes the number of projects identified so far along
with estimated cost under CPEC:
Sr. No. Sector No. of Projects Estimated Cost
(Million $)

01 ENERGY
21 33,793

TRANSPORT
02 INFRASTRUCTURE 4 9,784

GAWADAR
03 8 792.62
 Strategic Importance of Pakistan
• Links Central Asia, South Asia, West Asia
• Significance as transit economy
• Important link in the chain of Muslim Countries
• Only Muslim Country with Nuclear Capability.
• Gwadar Port with deep water
• Coastal belt of Balochistan provide outlet to western China
to Middle East
 Strategic Importance of CPEC
• Pak and China “all weathered” strategic and diplomatic
partners in South Asia
• as a bridge and linkage between the European, Asian and
African continents
• China short easy access towards the Middle East, Africa
and Europe
•  US “pivot to Asia” strategy 
India, Singapore, Malaysia, North Korea and other East-
Asian countries
• an alternative to Strait of Malacca
 Benefits For Pakistan
• Coal based power plants,Roads,Rail and Port infrastructure (22%
of total investment)

• Almost 20 lac job opportunities has been created because of this

corridor.

• include industrial parks and commercial zones

• oil rich gulf countries for the transportation of their fuel supply

• sidelines will also flourish like banking, travel services, hospitality

industry, electrical, recreational, shipyard and ship repair
 Why India is scared of CPEC?

• Economic threats for India and America

• American support to India

• Rapid Economic growth of Pakistan is a death for India

• Azad Kashmir and occupied Kashmir Issue

 Gawadar as compared to the
rest of regional ports
Importance of any port depend upon two factors
1) Depth of port
• Bandar Abbas 9 metres
• Jabal Ali 9 metres
• Damam 9 metres
• Qatar 11 metres
• Chahbahar 11 metres
• Gawadar 18
• Oman 10 metres
 Conti…
2) No of berths
• Jabal Ali 67
• Damam 39
• Doha 29
• Chahbahar 10
• Gawadar 120
• Oman 90
 Latest From CPEC
• Don’t behave like a spoilt child, Chinese media tells India ,
December 22rd, 2016
• CPEC: 7 new projects of KPK included in CPEC on: January
01, 2017
• Jan 13, 2017,Chinese Ambassador Meets General Bajwa for
CPEC Security
• Minister PD&R Ahsan Iqbal has launched the website in a
post 6th Joint Cooperation follow up meeting on 26
January,2017.
• Chinese authorities approve inclusion of 3 Sindh projects in
CPEC Dec 30, 2016
 Benefits to China

China Easy trade Between Middle east And Africa

China Direct Access To the Indian Ocean

Chinese industries are facing problems to compete in global market due to high transportation cost and delivery
time.
 Benefits to China

It would decrease 10,000 km travel distance and cost greatly from China to Gulf.

Even if China uses PCEC for 50% of its Oil supplies then it will save $6 Million every day, almost $2 billion every year.

Independent path from India and USA’s interference.

New business market in another country.

Benefits to China
 Benefits to Pakistan

Pakistan economy will Boost

Pakistan can avail great opportunities from Chinese expert in various sectors like energy ,Technology and Education
sector.

Development of Infrastructure.

Connect all the Provinces.

Development of Fata, KPK and Baluchistan.

 Benefits to Pakistan

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.
 Other Projects

China-Pakistan Joint Cotton Biotech Laboratory

China-Pak Joint Marine Research Center

Gawadar-Nawabshah LNG Terminal And Pipeline Project

Orange Train Project in Lahore

 Devil is not in the details!!
• The $57 billion is loan with an interest on it, So, who will
return this loan? It’s we and our future generations.
•  the government has added further to the foreign debt,
which has crossed $70 billion.
• the terms and conditions are shrouded in secrecy. Even the
most informed about CPEC are not clear about the exact
conditions for repayments and project execution
mechanisms.
• the energy projects will be run by private Chinese firms and
the government will be contractually obliged to buy from
them. 
 Conti..
• The political and economic elite will get their fair share by
aligning themselves with the monopolist Chinese firms. These
firms and our elite will take benefits from our pockets, since the
aid is a loan.

• the middle class will be happy with job creation, ignoring the fact
that they will be fleeced even before jobs are created

• China did not interfere much in our internal affairs before, but
would be obliged to do so in the post-CPEC scenario
 At the end,,
• CPEC should be made open to debate

• Give a fair share to all provinces specially Baluchistan

• National interest over personal greed
• The project requires timely execution, implementation and
completion of the projects to reap the fruit of the stated
pact.

• Media should critically analyze the project and raise

awareness without harming any national interest,
 LONG
LIVE
PAKISTAN !!