China Pakistan Economic Corridor

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4.  China Pakistan economic corridor (CPEC) is an ongoing mega-project which aims to
connect Kashgar (Northern-western region of Xinjiang province of China) and Gwadar
(Baluchistan province of Pakistan) through the construction of a network of highways,
railways, optical fiber and pipelines.
 Prime Minister of Pakistan Nawaz Sharif has reiterated on several occasions that the
CPEC could be a “game changer” for Pakistan and the entire region as well.
 Along the same lines, Wang Yi, China’s Foreign Minister, has described the CPEC as
the “flagship project of the One Belt, One Road initiative.‟
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5.  The vision for the economic corridor stretches far back as Musharaf era.
 The project was proposed by Chinese Premier Li Keqiang during his visit to
Pakistan in May, 2013.
 On 20 April, 2015, Pakistan and China signed an agreement to commence work on
the $ 46 billion on 51 project.
 Approximately, $ 28 billion was invested immediately for short term (2015-2020)
projects. The remaining amount will be invested in the projects of gas and oil
pipeline.
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WHY CHINA ISWHY CHINA IS
INTERESTED…?INTERESTED…?

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SOUTH CHINA SEASOUTH CHINA SEA

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CPEC
Energy Sector
Coal (73%)
Infrastructure
MAJOR COMPONENT OF THEMAJOR COMPONENT OF THE
PROJECTPROJECT
Wind (02%)
Railway
Solar (10%)
Roads
Hydel (15%)

11. POWER PROJECTS
Note: MW= Mega watt; GC= Generating capacity
Source: Govt: of Pakistan Press Information Department (2015).
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SR. NO COAL HYDRO SOLAR WIND
1 Port Qasim
1320 MW
Suki Kinari
870 MW
Bahawalpur
1000 MW
Jhampir+
Bhambhor
350 MW
2 Tharparker
3960 MW
Karat
720 MW
3 Gawadar
300 MW
4 Rahim Yar
Khan
1320 MW
5 Muzaffargarh
1320 MW
6 Sahiwal
1320 MW
Total GC 9540MW 1590MW 1000MW 350MW
GRAND TOTAL: 12480 MW

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LOCATION OF THE POWER PROJECTSLOCATION OF THE POWER PROJECTS

13. Three major routes (Roads) are approved
 Western Route: Kashgar – Khunjerab – Peshawar – Dera Ismail Khan – Zhob –
Qilla Saifullah – Queta & Gawadar.
 Central Route: Kashgar – Khunjerab – Peshawar – Kohat – Dera Ismail Khan –
Dera Gazi Khan – Sukkur – Ratodero & Gawadar.
 Eastern Route: Kashgar – Khunjerab – Islamabad – Lahore- Multan – Sukkur –
Hyderabad – Karachi & Gawadar.
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INFRASTRUCTUREINFRASTRUCTURE

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MAPS OF THEMAPS OF THE
ROUTESROUTES
Western Route Central Route Eastern Route
24,42 Km; (Long term Alignment) 26,74km (Via Indus Highway) 27,81km(Motorway)

15. BIRD’S VIEW OF BEAUTIFULBIRD’S VIEW OF BEAUTIFUL
ROADSROADS
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GAWADAR’SGAWADAR’S
MODALMODAL

17.  Problems, Chinese market is facing due to the high transportation cost and time
delivery through South China sea will be decreased.
 China can easily exports her products to Gulf, Central Asia, Middle east, Europe
and many other parts of the world. It will help, to compete her competitors like;
USA and Japan in international market.
 Even if China uses CPEC for 50% of its oil supplies then it will save $ 6 million
everyday, almost $ 2 billion in a year.
 It will be independent path, without the interference of USA and India.
 New business market in another country.
 Chinese dominance in Arabian ocean.
 Rural areas of western China will be developed.
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18.  Chronic problem of energy shortage will be solved for ever.
 Development of infrastructure.
 Rapid economic growth.
 Development of Baluchistan, KPK and Fata.
 Equalization among provinces.
 Strategic importance will be more increased.
 Secure Afghan Boarder and Baluchistan.
 Attract foreign investors.
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Source: Developed by the researcher

20. CHALLENGESCHALLENGES
• The corridor is not free from the external as well as internal challenges.
 External Challenges:
1) India’s frustration:
• To encounter the Gawadar port, India is investing $ 5million in Iran to built
Chabahar port and $ 1 billion in Afghanistan to construct multi-projects.
• India have three options;
1) Not to accept the corridor and spark against it on international forum,
2) Try to violate in Baluchistan and AJK
3) To join CPEC
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21. 2) Afghanistan’s interference:
 Although Afghanistan is not clear in her stance but it is reported that Afghan’s
agents are involved in violent activities in Baluchistan and Peshawar.
 For a stabile Afghanistan, Pakistan is trying to involve her in the corridor. Pakistan
pledged to construct 265 km long Peshawar to Kabul motorway in order to link up
Afghanistan with CPEC.
3) United Arab Emirates:
 Another country that seems unhappy with the idea of CPEC is UAE. The fact is
that, once the Gwadar port becomes fully operational it will directly affect Dubai
port, which can lose some 70% of its business.
 Relation between UAE and Pakistan became more worst when Pakistan refused to
send her forces to fight against Huthi rebels in Yemen.
 These factors prompted UAE to search for new strategic partners to work against
Pakistan – India seems to be an apparent option.
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 Security issues, law and order situation is the main obstacle in the way of CPEC.
 Dominance of one province.
 Most of the political elites are politicizing the corridor.
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Internal Challenges:
Baluchistan Sind KPK Punjab
Land 50% 30% 10% 10%
Port 70% 30% -- --
Sea 90% 10% -- --
Minerals 60% 20% 10% 10%
Coal 30% 60% 05% 05%
Gas 35% 50% 09% 06%
28.6
Billion
1 Billion 4.68 Billion 1.8 Billion 13 Billion

23. RECOMMENDATIONSRECOMMENDATIONS
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 Pakistan should have to stay away from Islamic military alliance (34 Muslim
countries’ army collection).
 Should adopt defensive foreign policy specially in Indian context.
 Uniform policy must be adopted against terrorist or banned organizations.
 A comprehensive policy should be design regarding the deportation of Afghan
refuges.
 Reservations of the small provinces must be resolved through sincerity.
 Every province must be given equal and due share.
 Limited number of Chinese should be allowed and they must be restricted to the
particular region or project.
 To make positive balance of trade Pakistan should increase exports.
 To make a framework to use Domestic currency for trade (Barter system).
 Develop auto industry rather than focusing on import parts.
 Utilization of raw materials and value added process should be done in Pakistan.
 Make efforts to diversify market in China.
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24. Thank You
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Thank
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