Downloaded 166 times
More Related Content
Similar to China Pakistan Economic Corridor (C-PEC)
China Pakistan Economic Corridor (C-PEC)
- 2. University Of Central Punjab PunjabGroup Of Colleges Kamoke International Finance Presented To: Usman Sarwar K1F14MCOM0015 Maryam Aslam K1F14MCOM0016 Sana Liaqat K1F14MCOM0017 Noor-ul-Ain K1F14MCOM0020 Firdos Muner K1F14MCOM0021 Zain Anjum K1F14MCOM0019 Haseeb Hassan K1F13MCOM0040 Iqra Zainab Presented by:
- 3.
- 4. History Pakistan–China relationsbegan 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.
- 5. Under construction $46billion mega project Infrastructure of Pakistan $11 billion loan from Bank of China (1.6%) Increase width of Pakistan Vast network of highways and railways (Gawadar to Xinjiang) An extension of China’s proposed 21st century silk road initiative Link the supply and demand sides (Eco zones) Introduction Apr’15
- 6. Prof Ahsan Iqbalhas said the China- Pakistan Economic Corridor is a long- term broad framework with multiple sectorial projects, which will be completed in different phases through bilateral agreements agreed upon by both sides as a win-win equation. Minister Planning, Development and Reform $46 billion project $35 billion would be utilized for energy $11 billion for developing the infrastructure $35 billion-energy $11.5 billion for Sindh $7.1 billion for Balochistan $6.9 billion for Punjab Rest for KPK
- 7. Estimation of LocalComponent Local Component Investment (USDbn) Domestic Share (%) Domestic Share (USDbn) Energy 33.8 Coal 7560 MW 8.8 20% 1.8 Wind 200 MW 0.5 20% 0.1 Hydel 1590 MW 4.2 50% 2.1 Solar 1000 MW 1.7 0% - Second phase 6445 MW 9.5 20% 1.9 Mining Expense 9.0 50% 4.5 Road 5.9 80% 4.7 Rail 3.7 50% 1.8 Mass Transit (Lahore) 1.6 50% 0.8 Gawadar Port 0.7 50% 0.3 Total 45.7 18.1
- 8.
- 9. Energy Projects Renewable Energy Projects Shortfall4500 MW • 900MW • 6,500 acre Quaid-E- Azam Solar Park • 870 MW • $659 million Kaghan Valley Hydro Electric Plant Diamer- Bhasha Dam To be completed in December 2016 China's Zonergy company Near Bahawalpur Financing by China's EXIM bank Sell electricity to Pakistan at 8.8 cents per KWh 4,500 MW $14 billion
- 10. Energy Projects FossilFuel Energy Projects Pakistan Port Qasim Project 1,320MW $2.08 billion Joint venture Al-Mirqab Capital (Qatar) China’s Power Construction Corporation Sahiwal Coal Power Project $1.8 billion 1,320MW Joint venture of two China’s firms Chinese Shangai Electric and Pakistan's Engro , five coal plants 2,060 MW 330MW coal power plants in Punjab 's Salt Range 300MW coal power plant at Gawadar Liquefied Natural Gas power plants: 1,223MW Baloki Plant near Kasur.
- 11. Highway Projects Karakoram Highway Re-build Cost $3.5 billion •Karakoram Highway reconstruction $1 billion • With China offering concessionary loans to finance Cost $475 million • Gilgit-Skardu road will be upgraded to a 4-lane road $1 billion • Karakoram Highway’s up gradation to a controlled excess highway
- 12. Highway Projects Karachi- Lahore Motorway •Between Karachi and Hyderabad • M9 Motorway 136 kilometer 296 kilometer • Long section • Between Sukkur and Multan 387 kilometer • Between Multan and Lahore • Via the town of Abdul Hakeem 333 kilometer Long section Between Hyderabad and Sukkur
- 13. Highway Projects Western Alignment Projects The routeconsists of: N50 between Dera Ismail Khan and Kuchlak The N25 between Kuchlak and Surab The N85 between Surab and Hoshab The M8 between Hoshab and Gawadar The N70 from Qillah Saifullah to Multan is also Red line
- 14. Railway Projects Upgrading theMultan to Peshawar section Hyderabad to Multan section Hyderabad to Karachi $3.65 billion overhaul of the of Karachi-Peshawar Railway Line: Completion by December 2019 Permit train travel at up to 160 kilometers per hour Cut transit times from Karachi to Peshawar by half
- 15. Railway Projects 250 newpassenger coaches Reconstruction of 21 train stations Total investment $5 billion Dry Port is to be set up in the city of Havelian Additional 800 coaches at a later date (595 in Pak)
- 17. CPEC -A GameChanger Chinese investments can lift FY16-18 annual GDP growth beyond 6% through direct impact. GDP-FY15 USDbn 287 Local Component of Investment USDbn 18.1 Local Component of Investment %age of GDP 6.3% Time Period Years 3 Annual Addition to GDP Growth %age of GDP 2.1% GDP to increase by 6%
- 18. Impact onElectricity Generation CPEC -A Game Changer +15,000MW power plants, 74% of existing capacity. Materialization of the entire 15,000 MW power plants will augment electricity generation by 90% even if existing inefficient capacity is shut. Total Capacity Addition under Chinese Investment (MW) 16,845 Current Capacity (MW) 22,812 % Increase 74% Incremental generation of electricity at 70% utilization (GWh) 103,294 Current Generation (GWh) 96,122 Less: Generation of inefficient plants (GWh) 16,737 Potential Generation at Project Completion (GWh) 182,678 % Increase 90%
- 19. CPEC -A GameChanger Stock Market Impact Manufacturing sector Large volumes, Demand benefit Cheaper energy supplies, Supply benefit GDP Growth Steel stock Cement stock Eliminate Energy Crisis Growth opportunities Increase in income levels
- 20. China- Equal Beneficiary Theproposed trade route of China-Pakistan economic corridor will reduce distance between China and the Persian Gulf to 2,500 km as opposed to the existing distance of 13,000 km from Beijing to the Persian Gulf and reduce shipping time from 45 days to 10 days.
- 21. China- Equal Beneficiary Beefup the country’s global economic muscle Flagship project of a broader policy Connect China to its markets in Asia, Africa, Europe and beyond Link China with Europe through Central Asia Safe passage of China’s shipping through the Indian Ocean
- 24. Advantages of CPEC Availgreat opportunities from China’s expert in various sectors Employment opportunities Target Half of the world’s population collectively….. Expand markets.
- 25. Advantages of CPEC Regionalstability in Asia as well as whole world Pakistan economy will Boost Enhance trade among Pakistan, China, Gulf States, Central Asia and Africa
- 26. Concerns of KPKover CPEC G-B has been neglected in the CPEC. China Pak Economic Corridor or China-Punjab Economic Corridor? Proposed shifting of Sust Dry Port to Havelian, it would render thousands of locals jobless.
- 27. Conclusion Game changer forthe entire region. It will uplift the lives of about 3 billion people across China, Central Asia, South Asia and the Middle East. The time and tide is not in favor of the detractors. They will die their death in the hurricane of CPEC since China is determined to make Pakistan a success story. $46 billion economic package is Chinese gift for people of Pakistan.