The China-Pakistan Economic Corridor is a $46 billion investment in infrastructure projects between China and Pakistan, including roads, railways, pipelines for oil and gas, and upgrades to Gwadar Port. The projects aim to improve connectivity between China and Pakistan as well as Central and South Asia. China will invest in energy projects and infrastructure to benefit Pakistan's economy through job creation and GDP growth, while gaining access to the Indian Ocean through Gwadar Port. However, India objects that CPEC passes through Kashmir, which is disputed territory, and that it will decrease Indian trade and influence.

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.