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CHINA PAKISTAN ECONOMIC
CORRIDOR
BACKGROUND
• CPEC is a collection of projects.
• Project was formally conceived in May 2013
• PM Li Keqiang officially visited Pak on 22 May
2013
• Later Prime Minister Nawaz Sharif made visits to
China to discuss the importance of this project.
• President Xi Jinping visited Pak in April 2015 and
formally announced China’s offer of US$ 46 billion.
• Agreements were inked giving importance to energy
projects.
INTRODUCTION
• CPEC is a series of under construction projects of
worth more than $50 billion.
• It is a 3000 km long extensive network of roads,
railways, pipelines and optical fiber cable network.
• CPEC will link Kashgar in northwest China’s Xinjiang
Uygur Autonomous Region & southwest Pakistan’s
Gawadar Port.
• CPEC is considered as a golden opportunity for Pak
to develop its infrastructure
OBJECTIVES OF CPEC
• Increase the volume of trade between China and Pak.
• Pak and China are 2nd largest partners in South Asia/ this will help to retain
partnership.
• Widen Karakoram highway and open new economic corridor from China to
Gwadar.
• Approximately reduce 10000 Km distance & is the shortest route.
• Expand trade with Russia by providing trade route till Gwadar port.
• Development of infrastructure along Pakistan.
• China’s access to Indian Ocean with the aim of widening its geopolitical
influence.
• Job opportunities and economic development in Baluchistan.
• Increase in Chinese investment.
• Regional peace, prosperity and elevate the lives of poor people in south
Asia.
• Enhance trade among Pakistan, China, Gulf States, Central Asia & Africa.
• China is interested to extend IranPakistan pipeline to its western territory.
PROJECTS IN CPEC
Total number of projects: 49
Baluchistan: 16 projects
KPK: 8 projects
Sindh: 13 projects
Punjab: 12 projects
PROJECTS ALLOCATED FOR BALUCHISTAN
1. Gwadar Power Plant
2. Khuzdar-Basima Highway (N-30)
3. Hubco Coal Power Plant
4. Gwadar New International Airport
5. Gwadar Smart Port City Master Plan
6. Gwadar Eastbay Expressway
7. Gwadar Primary School
8. Gwadar Eastbay Expressway II
9. Gwadar Hospital Upgradation
10. Gwadar-Nawabshah LNG Terminal and Pipeline
11. Gwadar Technical & Vocational College
12. Khan-Quetta Highway (N-50)
13. Wastewater Treatment Plants for Gwadar City
14. Gwadar Free Zone
15. Fresh Water Supply
16. Expansion of Multi-purpose Terminal including Breakwater & Dredging
PROJECTS ALLOCATED FOR KPK
1. Establishment of Havelian Dry Port
2. Suki Kinari Hydropower Project
3. Upgradation of ML-1
4. Optical Fiber Cable from Rawapindi to Khunjrab
5. KKH II (Havelian-Thakot)
6. Khan-Quetta Highway (N-50)
7. KKH III (Raikot-Thakot)
8. Joint Feasibility Study for Upgradation of ML1
PROJECTS ALLOCATED FOR SINDH
1. Port Qasim Power Plant
2. Matiari-Faisalabad Transmission Line
3. Dawood Wind Farm
4. Matiari-Lahore Transmission Line
5. Sachal Wind Farm
6. Jhimpir Wind Farm
7. Upgradation of ML-1
8. Thar Coal Block I & Mine Mouth Power Plant
9. Gwadar-Nawabshah LNG Terminal & Pipeline
10. China-Sunec Wind Farm
11. Karachi-Lahore Motorway (Sukkur-Multan)
12. Joint Feasibility Study for Upgradation of ML1
13. Engro Thar Power Plant & Surface Mine in Block II of Thar Coal Field
PROJECTS ALLOCATED FOR PUNJAB
1. Karachi-Lahore Motorway (Sukkur-Multan)
2. Upgradation of ML-1
3. Sahiwal Coal-Fired Power Plant
4. Rahimyar Khan Coal Power Plant
5. Lahore Orange Line Metro Train
6. Haier & Ruba Economic Zone II
7. Karot Hydro-Power Plant
8. Joint Feasibility Study for Upgradation of ML1
9. Matiari-Lahore Transmission Line
10. Optical Fiber Cable from Rawapindi to Khunjrab
11. Quaid-e-Azam Solar Park in Bahawalpur
12. Matiari-Faisalabad Transmission Line
CPEC IMPORTANCE TO CHINA
• Chinese industries are facing problem to compete in
global market due to high transportation cost and
delivery time.
• It would decrease the travel distance and cost greatly
from China to Gulf.
• Even if China uses CPEC for 50% of its oil supplies
then it will save $6 million every day.
• Independent path from USA and India’s interference.
• New business market in another country.
CPEC IMPORTANCE TO PAKISTAN
• Strategic and economic trade routes
• Development of infrastructure
• Connect all the provinces
• Development of FATA, KPK and Baluchistan
• Job opportunities
• Equalization among all provinces
• Import and export of Pakistan will increase
• The Power capacity will increase
• Gwadar Port will be upgraded
• Roads, Railways, Aviation and Data Transfer will be
upgraded.
DISADVANTAGES OF CPEC
• FTA leads to threat for local markets and local
manufactures
• Disturbance of local industries
• Difficult to compete Chine’s product in market
• Increase the ratio of unemployment
• Dependence on China
• Work stopped on 5 Chinese power projects in Punjab
that generated 6600 MW, though Pakistan’s installed
capacity is 22,800 MW to meet current demand of
19,000 MW, it produces only 12,000 MW.
CPEC ROUTE MAP
CPEC

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CPEC

  • 2. BACKGROUND • CPEC is a collection of projects. • Project was formally conceived in May 2013 • PM Li Keqiang officially visited Pak on 22 May 2013 • Later Prime Minister Nawaz Sharif made visits to China to discuss the importance of this project. • President Xi Jinping visited Pak in April 2015 and formally announced China’s offer of US$ 46 billion. • Agreements were inked giving importance to energy projects.
  • 3. INTRODUCTION • CPEC is a series of under construction projects of worth more than $50 billion. • It is a 3000 km long extensive network of roads, railways, pipelines and optical fiber cable network. • CPEC will link Kashgar in northwest China’s Xinjiang Uygur Autonomous Region & southwest Pakistan’s Gawadar Port. • CPEC is considered as a golden opportunity for Pak to develop its infrastructure
  • 4. OBJECTIVES OF CPEC • Increase the volume of trade between China and Pak. • Pak and China are 2nd largest partners in South Asia/ this will help to retain partnership. • Widen Karakoram highway and open new economic corridor from China to Gwadar. • Approximately reduce 10000 Km distance & is the shortest route. • Expand trade with Russia by providing trade route till Gwadar port. • Development of infrastructure along Pakistan. • China’s access to Indian Ocean with the aim of widening its geopolitical influence. • Job opportunities and economic development in Baluchistan. • Increase in Chinese investment. • Regional peace, prosperity and elevate the lives of poor people in south Asia. • Enhance trade among Pakistan, China, Gulf States, Central Asia & Africa. • China is interested to extend IranPakistan pipeline to its western territory.
  • 5. PROJECTS IN CPEC Total number of projects: 49 Baluchistan: 16 projects KPK: 8 projects Sindh: 13 projects Punjab: 12 projects
  • 6. PROJECTS ALLOCATED FOR BALUCHISTAN 1. Gwadar Power Plant 2. Khuzdar-Basima Highway (N-30) 3. Hubco Coal Power Plant 4. Gwadar New International Airport 5. Gwadar Smart Port City Master Plan 6. Gwadar Eastbay Expressway 7. Gwadar Primary School 8. Gwadar Eastbay Expressway II 9. Gwadar Hospital Upgradation 10. Gwadar-Nawabshah LNG Terminal and Pipeline 11. Gwadar Technical & Vocational College 12. Khan-Quetta Highway (N-50) 13. Wastewater Treatment Plants for Gwadar City 14. Gwadar Free Zone 15. Fresh Water Supply 16. Expansion of Multi-purpose Terminal including Breakwater & Dredging
  • 7. PROJECTS ALLOCATED FOR KPK 1. Establishment of Havelian Dry Port 2. Suki Kinari Hydropower Project 3. Upgradation of ML-1 4. Optical Fiber Cable from Rawapindi to Khunjrab 5. KKH II (Havelian-Thakot) 6. Khan-Quetta Highway (N-50) 7. KKH III (Raikot-Thakot) 8. Joint Feasibility Study for Upgradation of ML1
  • 8. PROJECTS ALLOCATED FOR SINDH 1. Port Qasim Power Plant 2. Matiari-Faisalabad Transmission Line 3. Dawood Wind Farm 4. Matiari-Lahore Transmission Line 5. Sachal Wind Farm 6. Jhimpir Wind Farm 7. Upgradation of ML-1 8. Thar Coal Block I & Mine Mouth Power Plant 9. Gwadar-Nawabshah LNG Terminal & Pipeline 10. China-Sunec Wind Farm 11. Karachi-Lahore Motorway (Sukkur-Multan) 12. Joint Feasibility Study for Upgradation of ML1 13. Engro Thar Power Plant & Surface Mine in Block II of Thar Coal Field
  • 9. PROJECTS ALLOCATED FOR PUNJAB 1. Karachi-Lahore Motorway (Sukkur-Multan) 2. Upgradation of ML-1 3. Sahiwal Coal-Fired Power Plant 4. Rahimyar Khan Coal Power Plant 5. Lahore Orange Line Metro Train 6. Haier & Ruba Economic Zone II 7. Karot Hydro-Power Plant 8. Joint Feasibility Study for Upgradation of ML1 9. Matiari-Lahore Transmission Line 10. Optical Fiber Cable from Rawapindi to Khunjrab 11. Quaid-e-Azam Solar Park in Bahawalpur 12. Matiari-Faisalabad Transmission Line
  • 10. CPEC IMPORTANCE TO CHINA • Chinese industries are facing problem to compete in global market due to high transportation cost and delivery time. • It would decrease the travel distance and cost greatly from China to Gulf. • Even if China uses CPEC for 50% of its oil supplies then it will save $6 million every day. • Independent path from USA and India’s interference. • New business market in another country.
  • 11. CPEC IMPORTANCE TO PAKISTAN • Strategic and economic trade routes • Development of infrastructure • Connect all the provinces • Development of FATA, KPK and Baluchistan • Job opportunities • Equalization among all provinces • Import and export of Pakistan will increase • The Power capacity will increase • Gwadar Port will be upgraded • Roads, Railways, Aviation and Data Transfer will be upgraded.
  • 12. DISADVANTAGES OF CPEC • FTA leads to threat for local markets and local manufactures • Disturbance of local industries • Difficult to compete Chine’s product in market • Increase the ratio of unemployment • Dependence on China • Work stopped on 5 Chinese power projects in Punjab that generated 6600 MW, though Pakistan’s installed capacity is 22,800 MW to meet current demand of 19,000 MW, it produces only 12,000 MW.