The China-Pakistan Economic Corridor (CPEC) is a $46 billion investment in Pakistan that involves building transportation infrastructure like roads, railways, and pipelines to connect China's Xinjiang province to Pakistan's Gwadar port. The 3000km CPEC will benefit China by providing a more direct route for oil imports from the Middle East, reducing costs and travel time. It will benefit Pakistan through new jobs, economic growth, and development especially in less developed regions. However, some see risks for Pakistan's local industries and long term dependence on China. India opposes the project because the route passes through the disputed Kashmir region.
2. MAJORDISCUSSION
• IMPORTANT SEA ROUTES IN THE WORLD
• THE CPEC AND CHINA
• OBOR PROJECT
• ADVANTAGES AND DISADVANTAGES FOR PAKISTAN
• SOUTH CHINA SEA DISPUTE
• INDIA AND CPEC
• BALOCHISTAN ISSUE
3. CPEC
• A road will be made starting from Gwadar port in Pakistan ,which will pass through the whole country and ends in
Kashgar in china, which is named as the china Pakistan economic corridor.
• The road consists of tunnels ,railways, airports etc.
• It passes through Baluchistan then enters Punjab region, then FATA region, enters Gilgit-Baltistan(POK) and
finally enters china ends at KAHSGAR.
6. Continued…….
• The 3000KM CPEC connecting Xinjiang (Kashgar) with Pakistan’s Gwadar port through POK is stated to cost $46
billion.
• The project will shorten the route for china’s energy imports from the middle east by about 12000 KM.
• This project includes building of highways, railways as well as pipelines.
• It is among the six economic corridors conceived under china’s silk road economic belt and 21st century maritime
silk road.
9. CONTINUED…….
• POLICY FRAMEWORK :- Part of OBOR initiative.
• MANDATE :-
• TO IMPROVE ENERGY & COMMUNICATION INFRASTRUCTURE PROJECTS IN PAKISTAN
• TO IMPROVE REGIONAL CONNECTIVITY
• FINANCIAL OUTLAY: $46 - 51 BILLION
• EQUALS ALL FOREIGN DIRECT INVESTMENT IN PAKISTAN SINCE 1970
• EQUIVALENT TO 17% OF PAKISTAN'S 2015 GDP
• INCREASE IN TRADE PAK-CHINA VOLUME FROM $1 BILLION IN 1998 TO $15.15 BILLION IN 2015 PROVIDES A BASIS FOR CPEC
10. OBOR
• The One Belt One Road initiative focuses on improving connectivity and cooperation among Asian countries,
Africa, China and Europe. The emphasis is on enhancing land as well as maritime routes.
• The policy is significant for China since it aims to boost domestic growth in the country.
• OBOR is also a part of China’s strategy for economic diplomacy. Considering China’s exclusion from G7, OBOR
policy might just provide China an opportunity to continue its economic development.
11. DIVIDENDS
• FOR PAKISTAN
• Communication infrastructure: improved & overhauled
• Energy deficit: reduced
• Foreign policy: relations with china enhanced & relations with regional countries improved
• Job creation: upwards of 700,000 direct jobs created between 2015–2030
• Annual economic growth: add 2 to 2.5 percentage points
12. FORCHINA
• CONNECTIVITY: WITH REGIONAL COUNTRIES & BEYOND
• ACCESS: DIRECT ACCESS TO ARABIAN SEA & PERSIAN GULF
• TRADE ROUTES: DISTANCES REDUCED
13. STARITOF HORMUZ
• It is the major sea route in the middle east –Asia as well as in the world for oil transportation(near the gulf).
• Around one third of world’s traded oil supplies pass through this strait.
• It means who would be able to control this path it can control the major part of world trade market.
• Gwadar port is near it and Pakistan does its oil import by this port,
• But now china has planned to invest and develop the Gwadar port ,WHY??
15. CEPCANDBENEFITSTO CHINA
• China, while importing crude oil from middle east passes through the strait of MALACCA ,then enters the south china sea
region which is very disputed region due to all country nearby it claims that region to be theirs, because it is full of
natural gas, oil resources which would be very helpful in coming future.
• This route is also one of the most important trade sea routes in the world, South Korea, North Korea, japan
• ,Indonesia,Phillipines,Vietnam,Taiwan etc. countries also do their trade by this root so,acquairing this south china sea is
of great importance for china.
• Chinese industries are facing problems to compete in global market due to high transportation cost and delivery time.
• China is using a longest way due to which transportation cost and time increases, which gives a competitive edge to
competitors e.g. Japan, USA
17. …..CONTINUED
• As the trade is mainly done in the eastern side of china and major cities are situated here eastern china is much
developed than the western part of china
• Only 6% of total population of the country lives in the western parts, where as 94% of the total population is in the
eastern side, this clearly indicates the difference between these 2 parts.
• Adding to it, china is not able to keep good trade relationship with middle Asia, due to lack of connectivity.
18.
19.
20. BENEFITSTO CHINA…
• Problems with south china sea can be eliminated.
• China can easily extend its western area, it's development can be done by industrialization .
• It would decrease the travel distance and cost greatly from China to Gulf.
• Even if China uses PCEC for 50% of its Oil supplies then it will save $6 Million every day, almost $2 billion every
year.
• Independent path from India and USA’s interference.
• New business market in another country.
21. BENEFITSTO PAKISTAN
• Development of Infrastructure.
• Connect all the Province.
• Development of FATA and Baluchistan.
• Job opportunities
• Strategic and economic trade routes.
• CPEC from all counts will prove a game changer
• Investments by China will boost Pakistan’s $274 billion GDP by over 15 %
• Given the solid foundations of friendship
22. THREATTO PAK
• This leads to threat for local markets and local manufacturers
• Disturb of local industries
• Difficult to compete chine’s product in market
• Dependent to China
23. INDIA’SISSUE
• The route consists of Gilgit-Baltistan (POK) which is an disputed land, if china will be able to make road through it this will
be a great threat to Indian security .So if India doesn’t want this road can’t be made .
• A major portion of the corridor passes through Baluchistan which is forcibly occupied by Pakistan and violation of human
rights is vary often noticed.
• So, if India supports Baluchistan it can also have a whole new set of equations.
• India is investing in Iran ($ 20 billion) and Afghanistan (300 million dollar) and developing chabahar port which will
provide India with free path for trade with Afghanistan and Iran.
• At the same time if china will be able to develop Gwadar port it can create troubles in these area as Gwadar port is only
72KMs away from Chabahar port.
26. BALOCHREGION
• Baluchistan is the largest province of Pakistan geographically least populated but full of natural
resources.
• 27 districts occupies 44% of total volume of Pakistan.
• Gwadar was part of sultanate of Oman and was purchased on Sep 1958 and was made part in 1977
• Economy is disturb and destroyed no development no jobs no common facilities no technical intuitions.
• Baluchistan is neglected for past 6 decades.
• No basic facilities of education communication sources and infrastructure
• It is the largest but most backward province as compared to the other provinces of Pakistan
• Injustice and no fundamental rights
• No projects and development works benefitted people of Baluchistan
27. CONCLUSION
• Natural Gateway for China
• Positive response by both countries through mutual cooperation
• Both countries are keen to enhance trade activities
• Infrastructural improvement and Development of Dams
• Stability of economy by investment in different sectors