WHAT IS CPEC??
A ROAD WILL BE MADE STARTING FROM GWADAR
PORT IN PAKISTAN ,WHICH WILL PASS THROUGH
THE WHOLE COUNTRY AND ENDS IN KASHGAR IN
CHINA,WHICH IS NAMED AS THE CHINA PAKISTAN
The road consists of tunnels ,railways,airpots etc.
It passes through Balochistan then enters Punjab
region,then FATA region, enters gilgit-Baltistan(POK) and
finally enters china ends at KAHSGAR.
The 3000KM CPEC connecting Xinjiang (Kashgar) with
Pakistan’s Gwadar port through POK is stated to cost $46
The project will shorten the route for china’s energy
imports from the middle east by about 12000 KM.
This project includes building of highways, railways as well
It is among the six economic corridors conceived under
china’s silk road economic belt and 21st century maritime
POLICY FRAMEWORK :- Part of OBOR initiative.
TO IMPROVE ENERGY & COMMUNICATION INFRASTRUCTURE PROJECTS IN
TO IMPROVE REGIONAL CONNECTIVITY
• FINANCIAL OUTLAY: $46 - 51 BILLION
• EQUALS ALL FOREIGN DIRECT INVESTMENT IN PAKISTAN SINCE
• EQUIVALENT TO 17% OF PAKISTAN'S 2015 GDP
• INCREASE IN TRADE PAK-CHINA VOLUME FROM $1 BILLION IN
1998 TO $15.15 BILLION IN 2015 PROVIDES A BASIS FOR CPEC
INFASTRUCTURE: IMPROVED &
• ENERGY DEFICIT: REDUCED
• FOREIGN POLICY: RELATIONS
WITH CHINA ENHANCED &
RELATIONS WITH REGIONAL
• JOB CREATION: UPWARDS OF
700,000 DIRECT JOBS CREATED
• ANNUAL ECONOMIC GROWTH:
ADD 2 TO 2.5 PERCENTAGE POINTS
• CONNECTIVITY: WITH
REGIONAL COUNTRIES &
• ACCESS: DIRECT ACCESS TO
ARABIAN SEA & PERSIAN
• TRADE ROUTES: DISTANCES
STRAIT OF HORMUZ
It is the major sea route in the middle east –asia as well as
in the world for oil transportation(near the gulf).
Around one third of world’s traded oil supplies pass
through this strait.
It means who would be able to control this path it can
control the major part of world trade market.
Gwadar port is near it and Pakistan does its oil import by
But now china has planned to invest and develop the
Gwadar port ,WHY??
WHY CPEC AND ITS BENEFITS TO CHINA
China, while importing crude oil from middle east passes
through the strait of MALACCA ,then enters the south
china sea region which is very disputed region due to all
country nearby it claims that region to be theirs, because it
is full of natural gas,oil resources which would be very
helpful in coming future.
This route is also one of the most important trade sea
routes in the world, South korea,North korea,japan
,Indonesia,Phillipines,Vietnam,Taiwan etc. countries also do
their trade by this root so,acquairing this south china sea is
of great impotance for china.
As the trade is mainly done in the eastern side of china and
major cities are situated here eastern china is much
developed than the western part of china
Only 6% of total population of the country lives in the
western parts,where as 94% of the total population is in the
eastern side,this clearly indicates the difference between
these 2 parts.
Adding to it,china is not able to keep good trade
rrelationship with middle asia,due to lack of connectivity.
• Chinese industries are facing problems to compete in global
market due to high transportation cost and delivery time.
• China is using a longest way due to which transportation
cost and time increases, which gives a competitive edge to
competitors e.g. Japan, USA
BENEFITS TO CHINA
Problems with south china sea can be eliminated.
China can easily extend its western area,it’s development can
be done by industrialisation .
It would decrease the 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 PAKISTAN
Development of Infrastructure.
Connect all the Province.
Development of FATA and Balochistan.
Strategic and economic trade routes.
CPEC from all counts will prove a game changer
Investments by China will boost Pakistan’s $274 billion
GDP by over 15 %
Given the solid foundations of friendship
DISADVANTAGES FOR PAKISTAN
• This leads to threat for local markets and local
• Disturb of local industries
• Difficult to compete chine’s product in market
• Dependent to China
ISSUES REGARDING INDIA
The route consists of Gilgit-Baltistan (POK) which is an
disputed land, if china will be able to make road through it
,this will be a great threat to Indian security .
So if India doesn’t want this road can’t be made .
A major portion of the corridor passes through Balochistan
,which is forcibly occupied by Pakistan and violation of
human rights is vary often noticed.
So, if India supports Balochistan it can also have a
whole new set of equations.
India is investing in iran ($ 20 billion) and Afghanistan
(300 million dollar) and developing chabahar port which
will provide india with free path for trade with
Afghanistan and Iran
At the same time if china will be albe to develop Gwadar
port it can create troubles in these area as Gwadar port
is only 72KMs away from chabahar port
Balochistan is the largest province of pakistan geographically.
Least populated but full of natural resources.
27 districts occupies 44% of total volume of Pakistan.
At time of line of creation of balochistan it was divided into 2 parts
Gawadar was part of sultanate of oman and was purchased on Sep
1958 and was made part in 1977
Balochistan province came into being on jul 1st 1970
• Economy is disturb and destroyed no development no jobs no
common facilities no technical instutions.
• Balochistan is neglected for past 6 decades.
• No basic facilities of education communication sources and
• It is the largest but most backward province as compared to
the other provinces of Pakistan
• Injustice and no fundamental rights
• No projects and development works benefitted people of
• unique cultural identity
• No representation given to baloch culture
• Balochs and pashtoons have strong tradition and culture
• Baloch do not want to loose their culture
THE CURRENT SITUATION IN BALOCHISTAN IS WORSE
THE CONFLICT BETWEEN SECURITY FORCES AND BALOCH
THE KILLING OF NAWAB AKBAR BUGTI
• Natural Gateway for China
• Positive response by both countries through mutual
• Both countries are keen to enhance trade activities
• Infrastructural improvement and Development of Dams
• Stability of economy by investment in different sectors
THANK YOU FOR
Ashish Kumar Gouda