The economic corridor

1. CHINA PAKISTAN ECONOMIC
CORRIDDOR: ISSUES &
CONFRONTATION
By: Siddhartha Singh

3. INTRODUCTION
 The China–Pakistan Economic Corridor
often referred to by the acronym CPEC, is
a collection of projects currently under
construction at a cost of $46 billion.
 The corridor is considered to be an
extension of China's ambitious One Belt,
One Road initiative.
 CPEC to China is reflected by its inclusion
as part of China's 13th five year
development plan.

4. INVESTMENT PROPOSALS
 Chinese govt. will be investing $15 billion in
energy projects like coal, gas , wind and
solar.
 $44 million of investment in optical fiber
cable between china and Pakistan.
 Gwadar port will be upgraded to allow the
docking of larger ships.
 China will grant Pakistan $230 million to
construct a new international airport in
Gwadar which is to be operational by
December 2017.

5. ROADWAY PROJECT
 3000 KM trade route which will provide
direct access to Indian ocean.
 It will start from Kashgar in china and will
end at Gwadar port in Pakistan.
 Chinese govt. want to have access of
Indian ocean and for that they joined
hands with Pakistan as India is not being
supportive to them.

6. RAILWAY PROJECT
 China is also investing in railway lines.
 Main line 1 connects from Karachi to
Peshawar and it will cost around$3.65
billion.
 Main line 2 connects between Kotri in
Sindh province and Attock in northern
Punjab.
 Main line 3 connects Bostan near
Afghanistan to Kotla jam near city of
Dera.

7. PIPELINE FOR LIQUIFIED
NATURAL GAS
 The Chinese government has announced its
intention to build a $2.5 billion 711 km long
liquid natural gas pipeline from Gwadar to
Nawabshah in province as part of CPEC.
 The Pakistani portion of the pipeline is to be
constructed by the state owned China
Petroleum Pipelines Bureau.
 It will be 42 inches in diameter, and have the
capacity to transport 1 billion cubic feet of
liquefied natural gas every day.

8. ECONOMIC DEVELOPMENT in
PAKISTAN
 Opportunity for Pakistan to revive its
industry.
 More FDI in Pakistan
 CPEC is a game changer project which will
lift millions of Pakistanis out of poverty
and misery.
 Functioning of Gwadar port will bring an
economic revolution in Pakistan.

9. PAKISTAN’s BENEFIT
 Infrastructure will improve through the
investments from China.
 The railways of Pakistan will get
upgraded.
 Different kinds of energy projects will be
initiated and it will add an estimated1.5-2
percent to Pakistan’s GDP growth.
 Pakistan will get 8 submarines from China
through this deal.

10. • $46 Billion
Chinese
Investment
• 1.5 % additional
GDP Growth
Direct Impact
• Rise in GDP
Potential
• Incremental
Private Sector
Investment
Indirect Impact
• Baseline 4-5 %
• GDP Growth
rate rises above
6-7% in
medium term
Overall Impact

11. Growth- related : Jobs created through improved
services and lower costs to existing businesses
(electricity supply, access to infrastructure)
Induced: Increased consumption through new job
creation spurs employment in providers of goods
and services
Indirect : Jobs created through backward and
forward linkages in the supply chain
Direct: Jobs created directly in the energy and
infrastructure sector

12. CHINA’S BENEFIT
 China will get access through Gwadar port
and will be able to expand its influence
across central and south Asia.
 Gwadar port will give direct access of Indian
ocean to China.
 After completion of the corridor, it will
function as a primary gateway for trade
between China and Africa and the middle
East.
 China also want to decline American influence
in Pakistan.

13. Trade route- CPEC
Europe- Western China
Distance will be reduced by 50%
Cost of transportation will be
lowered by 50-65%
Time cut by 50%
Middle East- Western China
Distance will be reduced by over 80%
Cost of transportation will be lowered
over 75%
Time cut by over 85%

14. INDIAS OBJECTIONS
 The CPEC will be passing through Pakistan
Occupied Kashmir over which India has
full legal rights.
 Many acquisitions were made against
RAW for disrupting various CPEC projects.
 Indian trade in middle East and Europe is
going to decrease because of Chinese
presence at Gwadar port.
 China will provide naval submarine and
fighter planes to Pakistan.