sh document

1. Pakistan-China Economic
Corridor
A Mega Project of Infrastructure
By
Muhammad Shahzeb Khan Mbag143009
Rana Sohail

2. Problem Identification
• Chinese industries are facing problems to compete in global market
due to high transportation cost and delivery time.
• China is using the longest way of transportation due to which the
transportation cost and delivery time increases which gives
competitive edge to the competitors e.g. Japan, United States of
America etc.

5. Planning Phase
To make an alternative road that minimize the transportation cost as
well as the delivery time which can be a road from cutting a corridor
directly from Kashgar to Gwadar.

9. Financing Section of Pak-China Corridor
• According to South China Morning Post, Beijing does not plan to use either
the Asian Infrastructure Investment Bank or its Silk Road Fund to finance
the US$46 billion Pakistan-China economic corridor, with money to come
from both countries instead:
• Several different facets will be utilized for the financing of these projects.
Both sides will increase cooperation, to jointly provide financing
support.......As to whether the AIIB or the Silk Road Fund will be used, at
present these [projects] are being looked into, or are in the planning
stages. So at the moment we are not considering using these mechanisms
or platforms or financial organizations to provide financing
—Liu Jianchao, assistant Foreign Minister of China

10. Ministry of Planning
• Pakistan and China today set in motion roll out of $45 billion portfolio
agreed under CPEC.
• Both signed agreements worth $28 billion to immediately kick-start
early harvest projects, while projects worth $17 billion, which are in
pipeline, will follow as soon as required.

11. For more visit : http://pkpolitics.com/2015/04/20/details-of-projects-signed-today-
with-china/
• 1000 MW Solar Power Park, 870 MW Suki Kanari KPK Hydro Power Project,
720 MW Karot AJK Hydro Power, three projects of wind power at Thatta of
50 MW, 100 MW UEP and 50 MW, Chinese governmental concessional
loans for the second phase upgradation of Karakorum Highway (Havelian to
Thakot), Karachi-Lahore Motorway (Multan to Sukur), Gwadar Port East
Bay Expressway Project and Gwadar International Airport, provision of
material for Tackling Climate Change, Pro Bono Projects in the Port of
Gwadar Region, establishment of China-Pakistan Joint Cotton Bio-Tech
Laboratory, establishment of China-Pakistan Joint Marine Research Center,
cooperation between the State Administration of Press, Publication, Radio,
Films and Television of china and Ministry of Information, Broadcasting and
National Heritage of Pakistan, Triple Party Agreement between China
Central Television and PTV and Pakistan Television Foundation on the
rebroadcasting of CCTV-NEWS/CCTV -9

12. Payback of $45 billion
• Even if China were to use PCEC only for 50% of its current level of oil
supplies, it will save around $6 million every day, almost $2 billion
every year. Only by this we can get the payback period accounted as
22.5 Years.
• And if the PCEC uses 100% of its current level of oil supplies, it will
save around $12 million every day, almost $4 billion every year. No by
these figures we can get the payback period accounted as 11.25
years.