The document outlines the China-Pakistan Economic Corridor (CPEC) project, including its background, rationale, scope, and major challenges. CPEC is a $46 billion investment between China and Pakistan that includes energy, transportation, and industrial cooperation projects. Some of the key projects include the Gwadar Port, road and railway infrastructure between China and Pakistan, and energy projects providing over 10,000 MW of electricity. The document discusses political support for CPEC but also notes challenges in areas like energy planning, security, and ensuring benefits are shared across Pakistan.

1. CHINA – PAKISTAN
ECONOMIC CORRIDOR
(CPEC)
“Issues & Challenges”
1

2. Sequence
• CPEC Background
• Rationale, Scope & Framework of CPEC
• Political consensus
• CPEC Projects
– Early Harvest Projects
--Long Term perspective
• Challenges of Energy Sector Projects
– Industrial Parks/Special Economic Zones (SEZs)
• Security Challenges to CPEC
• Conclusion
2

3. CPEC Background
1. Initial Concept in 1950s
2. Karakarom Highway Project 1959
3. Gwader deep water port construction 2002~2006
4. General Musharraf government pushed the project
5. Concrete progress during PML(N) government
6. Chinese Government announcement to
launch the $46b project in Nov 2014
7. Agreement to commence the project in April
2015
8. China included CPEC in its 13th ADP
3

4. Scope & Rationale of CPEC
4

5. 5
SCOPE OF CPEC
 China-PakistanEconomic Corridor
is a fusion of multiple corridors:
Investment Corridor
Trade Corridor
Energy Corridor
Transport Corridor
Infrastructure Corridor
Industrial Corridor

6. Rationale of CPEC
• Strengthening of bilateral Strategic Economic
Cooperation.
• Short Term Project portfolio (Gwadar, Energy,
Tranport Infrastructure, Industrial
infrastructure) US $ 46 Billion.
• Long Term Project portfolio
(Telecommunication, Agriculture, Industries,
Water, Tourism, Finance) being finalized in
October 2016.
6

7. Rationale for China
_ Safe, secure and efficient land route for trade
from Arabian Sea to Western China & vice versa
–Promote West China’s economic and social
development
–Speed up “One Belt and One Road” Initiative,
CPEC is flagship project
–Give greater role to China in the affairs of South
East Asia, Central Asia and Middle East
– Counter US growing influence
7

8. GWADAR
GATEWAY TO GLOBAL MARKET
 Connectivity - Pakistan – China – Middle East – Africa
 Mobility - Cut 13,000 Km route from Middle East to China
 Activity – Trade – Investment – Opportunities
 Gwadar Port started operations for commercial export on May 11,2015

9. Rationale for Pakistan
– Major boost to economic activity & growth in Pakistan
– Expected addition to GDP by 2.5%
– Job creation by 70,000 approximately
– Strengthen infrastructure (energy & transport)
– Shape new industry clusters / SEZs along with the
Routes
– Balance regional economic development
– Enhance domestic economic stability
9

10. CPEC - Regional Connectivity
• New International logistics network and
better industrial distribution
• Improve status of South Asia and their division
of labour within the global economy of
industrial investment
• Promote regional economic integration
through stable trade growth, international
economic and technological cooperation and
people exchanges
10

11. CPEC - Context
Serves Asia’s over 3 Billion population
Integrates/links Silk Road
Economic Belt and
21st Century Maritime
Silk Route
Regional Connectivity
is the 7th Pillar of
Pakistan Vision 2025

12. IMPLEMENTATION FRAMEWORK
12
Joint Cooperation Committee
Pakistan Minister for Planning & Development & Co-Chaired by
Chinese Minister PDR and Vice Chairman NDRC
Planning
Joint Working Group
Energy
Joint Working Group
Transport Infrastructure
Joint Working Group
Gwadar
Joint Working Group
Industrial Cooperation
Joint Working Group (To be formulated)

13. CPEC Portfolio-Projects &
Mode of Financing
13

14. CPEC Portfolio-Projects &
Mode of Financing
Projects Estimated Cost:
US$ Millions
Energy (IPP Mode financing) 34,413
Transport and Infrastructure
Roads (Government Concessional loan-
GCL financing)
6,100
Rail Network(Government Concessional
loan)
3,690
Gwadar Port (Grant/GCL/Interest free
loan)
793
Others (GCL) 44
Total 45,040
14

15. PROJECTS
CPEC
15

16. 16
Energy
$33.7b
73%
Transport
&
Infrastruct
ure
$10.6b 23%
Others
$1.84b 4%
CHINA - PAKISTAN ECONOMIC CORRIDOR
AN INVESTMENT OF
US$ 46 BILLION
51 MoUs of commitments signed during Chinese President’s visit in April, 2015

17. CPEC Major Projects
• Gwader Port
• Gwader City
• Roadway / Motorway
• Railway Sector
• Energy Generation
• Energy Sector Transmission
• Other Sectors
17

18. Gwader Port & City Projects
• Gwader Port Complex
• Gwader Free Trade Zone
• Gwadwer International Airport
• Coal Power Project
• Eastbay Expressway
• Pak-China Technical & Vocational Training
Institute
18

19. CPEC-Gwadar Port Related Projects
Sr.
No
Projects
Estimated Cost
(US$ M)
1 Eastbay Expressway 140.60
2 Gwadar International Airport 230.00
3 Construction of Breakwaters 123.00
4 Dredging of berthing areas & channels 27.00
5
Infrastructure for Free Zone & EPZs port related
industries
32.00
6 Necessary Facilities of Fresh Water Treatment and Supply 130.00
7 Hospital at Gwadar 100.00
8 Technical and Vocational Institute at Gwadar 10.00
Total Gwadar Port Projects 793.00
19

20. Roadway / Motorway Projects
• Karakorum Highway Reconstruction
• Eastern Alignment
• Western Alignment
• Central Alignment
20

21. 21
CHINA PAKISTAN ECONOMIC
CORRIDOR

22. CPEC-Transport Infrastructure Sector Projects
Sr.
No
Projects
Length
(km)
Estimated Cost
(US$ M)
Roads
1 KKH Phase II (Raikot – Islamabad Section) 440 3,500
2 Lahore-Karachi Motorway (Multan-Sukkur Section) 392 2,600
Rail Sector Projects
1 Expansion and reconstruction of existing Line ML-1 1736 3,650
2 Havelian Dry port (450 M. Twenty-Foot Equivalent Units) 40
TOTAL 9,790
22

23. Railway Projects
• Overhaul of Main Line MI
• Overhaul of Main Line M2
• Overhaul of Main Line M3
• Orange Line Metro
• Khunjerab Railway
23

24. Energy Sector Projects
• Renewable Energy
• Coal
• Liquefied Natural Gas
24

25. CPEC-Energy Priority Projects
Sr.
No
Projects MW
Estimated Cost
(US$ M)
1 Port Qasim Electric Company Coal Fired, 2X660, Sindh 1320 1,980
2 Sahiwal 2x660MW Coal-fired Power Plant, Punjab 1320 1,600
3
Engro thar 4x330MW Coal-fired, Thar, Sindh 1320 2,000
Surface mine in Block II of Thar Coal field, 6.5 mtpa,
Thar Sindh
1470
4 Gawadar Coal Power Project, Gwadar 300 360
5 HUBCO coal power plant 1X660 MW, Hub Balochistan 660 970
6 Rahimyar Khan Coal Power Project, Punjab 1320 1,600
7
SSRL Thar Coal Block 1-6.5mpta Thar, Sindh 1,300
SSRL 2x660 MW Mine Mouth Power Plant, 1320 2,000
8 Quaid-e-Azam 1000MW Solar Park, Bahawalpur, Punjab 1000 1,350
25

26. CPEC-Energy Priority Projects
Sr.
No
Projects MW
Estimated Cost
(US$ M)
9 Dawood 50MW wind Farm, Bhambore, Sindh 50 125
10 UEP 100MW wind Farm, Jhimpir, Sindh 100 250
11 Sachal 50MW Wind Farm, Jhimpir, Sindh 50 134
12 Sunnec 50MW wind Farm, Jhimpir, Sindh 50 125
13 Suki Kinari Hydropower Station, KPK 870 1,802
14 Karot Hydropower Station, AJK & Punjab 720 1,420
15 Matiari to Lahore Transmission line 1,500
16 Matiari to Faisalabad Transmission line 1,500
Total (Priority) 10400 21,486
26

27. CPEC-Energy Actively Promoted Projects
Sr. No Projects MW
Estimated Cost
(US$ M)
17 Gaddani Power Park Project
(i) 2×660MW 1320 3,960
(ii) Jetty + Infrastructure 1,200
18 HUBCO coal power plant 1X660 MW, Hub Balochistan 660 970
27

28. CPEC-Energy Actively Promoted Projects
Sr.
No
Projects MW
Estimated Cost
(US$ M)
19
Salt Range Mine Mouth Power Project including mining,
Punjab
300 800
20 Kohala Hydel Project, AJK 1100 2,397
21 Pakistan Wind Farm II 2X50 MW(Jhampir, Thatta, Sindh) 100 150
22 Thar mine mouth oracle, Thar Sindh 1320 1,300
23 Muzaffargarh Coal Power Project, Punjab 1320 1,600
24 Gas Power Plant 525 MW 525 550
Total (Actively Promoted) 6645 12,927
TOTAL Energy Projects 17045 34,413
28

29. 29
Projects Capacity Location
Pakistan Port Qasim Power Project 1320MWs (660X2) Sindh
Thar -1 Project 1320 MWs (4x330) Sindh
Thar -2 Project 1320 MWs (2x660) Sindh
Thar Engro Coal Power Project 660 MWs (330x2) Sindh
UEP Windfarm 10MWs Sindh
Dawood Windpower Project 50MWs Sindh
Sachal Windfarm 50MWs Sindh
Sunnec Eindfarm 50 MWs Sindh
Sahiwal Coal Power Project 1320 MWs (2x660) Punjab
Rahim Yar Khan Coal power Project 1320 MWs (2x660) Punjab
Quaid e Azam Solar Power Project 1000 MWs Punjab
Karot Hydro Power Project 72MWs (2020) Punjab
Suki Kinari Hydropower Project 870MWs (2020) KPK
HUBCO Coal Power Project 660MWs Balochistan
Gwader Coal Power Project 300 MWs Balochistan
Mitiari to Faisalabad transmission Line 660 KWs Sindh & Punjab
Mitiari to Lahore Transmission Line 660 KWs Sindh & Punjab
EARLY HARVEST PROJECTS

30. Other Projects
Sr.
No
Projects Length (km)
Estimated
Cost (US$ M)
1 Cross Border Optical Fiber Cable 44
2 DTMB
Total 44
Total Cost of CPEC Projects 45,040
30

31. Industrial Cooperation
• Textile Industry
• Household appliances (assembly to production)
• Cement (export to China, Europe and Middle
East)
• Mineral Exploitation(Balochistan & KP)
31

32. Mid/Long Term Perspective (2025/30)
• Highways/Railways networks
• Energy
• Gwadar
• industrial Parks
• Telecommunications
• Oil & Gas pipelines
• Trade, investment, industry, agriculture
• Tourism, Services
• Maritime
• Water Resources
• Finance 32

33. Issues relating to CPEC &
Its Implementation Status
33

34. Political Consensus
• All Parties Conference
• Parliamentary Committee on CPEC
• Provincial representation / input at all
important CPEC events
• CPEC Summit on 29th August, 2016 was
attended by all Chief Ministers/representative
of provinces
34

35. Implementation Issues
• Professionalism
• Capacity of Institutions
• Human Resource Development
• Security
• Synergy of efforts
• Coordination / Creating better environment
35

36. Challenges of Energy Projects
• National / Master plan of Energy
• Integrated implementation plan
• Boosting of green energy
• Promoting indigenous coal based energy - Thar
• Problem of Hydel Energy
• Solar / Wind Energy
• Transmission of Energy
• Distribution of Energy
• Reducing losses
• Cost of Energy
36

37. Security Challenges of Economic
Corridor
• External Environment
• Internal Environment
• Cost of security
• Coordination of security
• Deployment of Special Security Division (SSD)
•
37

38. Benefits & Impact – Economic,
Social & Political
• Economy 2.5% GDP
• Socio – Economic Development
• Peace and stability
• Revenue bottle neck in Energy and Transport
Infrastructure
• Employment through Industrial / Investment
Cooperation
38

39. Benefits & Impact – Economic,
Social & Political - 2
• Inclusive Development
• Regional Integration
• Jobs Creation
• Energy Security
• Trade & Commerce
39

40. CPEC Framework 1+4
• Energy Cooperation
• Infrastructure Development
• Gwadar
• Industrial Cooperation