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China-Pakistan Economic
Corridor
Created By:
Madni Bilal
COMSATS Instiute of
information
technology Lahore
Outline
Introduction
 Why CPEC is needed?
 For Pakistan
a) Removal of Energy Crisis
b) Infrastructure development
c) Economic development
d) Balanced in south Asia
e) To cash comparative Advantage of Nature.
 For China
a) Extension of volume of Trade with Arab countries /
Global trade
b) Shorter lead times than earlier
c) Equal Development all in China
Outline
 History of Gwadar
 Historical perspective
 Why CPEC is created?
a) Job Opportunities:
 Total Area and Cost included
a) Routes Ahead For Pakistan
b) Cost Included
Outline
Advantages Disadvantages and Benefits of CPEC to Pakistan and China
 Advantages
a) Overcoming Energy crises
b) Infrastructure development
c) Economic Development
d) Removal of poverty
e) Peace and prosperity in Provinces
f) Advantages to China:
 Disadvantages:
a) Indian aggression:
b) Opposition from Baluchistan Nationalists:
c) Concerns by Gwadar Residents
d) Security concerns ( cost on security)
Introduction
WHAT IS CPEC?
 May 2013 by china President
 3000 KM Network Of Road, Rail, Pipeline and Optical Fibers.
 Linking kashgar northwest china’s Xinxiang Uyghur
autonomous region and southwest Pakistan’s gwadar port.
 Transport infrastructure
 Gwadar Port
Introduction
 Energy Projects
 Industrial Corporations
 China Is Providing $45.6 Billion
 $11.8 For Infrastructure
 $33.8 Billion For Power Projects
 Majority Of Projects Will Completed At The End of 2017
Map of CPEC Project
Road Map of CPEC
Why CPEC is needed?
IN PAKISTAN
 Major project
 Power Projects
 Transport infrastructure
 Railway Projects
 Gawadar Projects
Major Projects
Energy ($33.8 billion)
Infrastructure ($11.8
billion)
Communication ($44
Million)
Cotton biotech research
Power Projects
Zonergy Solar Power Plant
Zonergy Solar Power Plant
 Located At Bhawalpur
 World Largest solar Power Plant
 $1.5 Billion Project
 900 MV Production Expected
 Build In 3 Phases
 Complete At The end Of 2016
 By Zonergy Company
Suki Kinari Hydro Power Plant
Suki Kinari Hydro Power Plant
 It is in KPK
 870 MW Produce
 Started In 2014
 End In 2020
Karot hydro Power plant
Karot hydro Power plant
 It is on Jhelum river near to the Islamabad
 Produce 720 MW
 $1.65 Billion Project
 Complete in 2020
 By Three Goreges Corporation
Port Qasim Coal-Fired Power Plant
Port Qasim Coal-Fired Power Plant
 $2.085 Billion Project
 Complete By The End Of 2017
 Produce 1320MW
 By China Resource Limited
Other Coal Project
Proposed Coal Power Projects MW
Estimated
Coal Consumption
Sahiwal, Huaneng Shandong 1,320 5,184,168
Muzafargarh 1,320 5,184,168
Thar Engro 660 2,592,084
Thar Other 1,320 5,184,168
Port Qasim 1,320 5,184,168
Gwadar 300 1,178,220
Total 6,240 24,506,976
Wind Power Projects
Wind Power Projects
 Thatta Project (100 MW)
 Hydro China Project (50 MW)
 Sachal Project (50 MW)
Transport infrastructure
Karachi-Lahore Motorway
Karachi-Lahore Motorway
Karakorum Highway Realignment
Karakorum Highway Realignment
• Attabad Barrier Lake
• $275 million Project
• 24 KM Bypass
• 5 KM Worth Of Tunnels
• 2 Large Bridges
• 78 Small bridges
Gwadar-Ratodero Motorway
Gwadar-Ratodero Motorway
• $238 Million Project
• 4-Lanes Motorway
• 892 kilometers Long
• 556 kilometers have already been constructed
Railway Projects
Karachi–Peshawar main railway line
 Over Haul and Reconstruction Of Rail
 $3.65 billion Project
 train travel at up to 160 kilometers per hour
 First Stage Peshawar to Multan
 Second Stage Multan to Hyderabad
 Third Stage Hyderabad to Karachi
 expected completion by December 2019
Gwadar Projects
Gwadar International Airport
Gwadar International Airport
$230 million Project
On 3000 acres
Connects Gwadar to Karachi, Turbat and Muscat
Operational by December 2017
Gwadar City And Port
Gwadar City And Port
Gawadar Coal Power Project (360 million dollars)
construction of breakwaters (130 million dollars)
water treatment plant (114 million dollars)
state-of-the-art hospital (100 million dollars)
Free Economic Zones (35 million dollars)
technical and vocational institute (10 million dollars)
Benefits for China in CPEC
 It would decrease the travel distance and travel cost
greatly from China to Gulf states
 Independent path from Indian and USA’s interference
 It would decrease their labour cost
 New business market in another country
HISTORY OF PAK CHINA RELATIONS
HISTORY OF PAK CHINA RELATIONS
 Pakistan–China relations began in 1950.
 Strategic alliance was formed in 1972 and economic
co-operation began in 1979.
 China had invested $20 billion in various projects
 Mega infrastructural projects in Pakistan
 Gwadar Port, the Coastal-Highway linking Karachi with
Gwadar, Karakoram Highway, the Chashma nuclear
power plants, and a number of hydro-power projects.
PAK-CHINA ECONOMIC CORRIDOR
 The kkh was started in 1959 and was completed in 1979 (open to the
public since 1986)
 Length 1,300 km (Pakistan 887 km ) China 413 km
 It connects China's Xinjiang region with Pakistan's Gilgit–Baltistan and
Khyber Pakhtunkhwa regions
 Major cities Hasanabdal, Abbottabad, Thakot, Chilas, Gilgit, Aliabad, Sust,
Khunjerab Pass, Kashgar
 The importance of Karakoram Highway
 Chinese companies
 Tourism in Pakistan
 Transportations
The kkh highly contribute economic activities of both countries
export and import
Economic Gateway Gwadar
 On 8 September 1958 prince Aga khan karim purchased the
Gwadar enclave from Oman for $3 million, and gave it to
Pakistan and it officially became part of Pakistan.
 Gwadar Port is located at the mouth of the Persian Gulf.
 Gwadar is a planned free trade port.
 Gwadar Port is a strategic developed jointly by the both
countries
Economic Gateway Gwadar
 National Highway Authority (NHA) began construction of the
653 km-long Makran Coastal Highway linking Gwadar with
Karachi
 In 2004, Pakistan's NHA began construction of the 820-km
long M8 motorway linking Gwadar with Ratodero in Sindh
province Turbat, Hoshab, Awaran and Khuzdar
 In 2007 Civil Aviation Authority of Pakistan acquired 6,000
acres (17-24 km2) to construct a new greenfield airport, at
an estimated cost of Rs 7.5 billion.
GWADAR ECONOMIC ZONE
 GDA was established to promote industrial activities in
mega port city of Gwadar
 China focused on the fast-track construction of roads,
other infrastructure and public buildings
 In 2013, Gwadar Port operations were officially handed
over to China,
 To connect china with Gwadar through railway track has
already begun.
Total Area and Cost
 Length of the corridor: 3000km (Gwadar-Kashgar)
 Overall Construction costs: $46 billion (4.6 trillion
PKR)
 Operational Time: 3 years (For many of the
projects)
 No. of projects signed : A total of 51 MOUs signed
 Project Financiers: Chinese Government banks
Total Area and Cost
 The road network from Gwadar Port to Kashgar will be having
3 routes:
1. Western Route
2. Central Route
3. Eastern Route
The western route i.e Gwadar to D.I.K. and Peshawar is the
shortest route and will be completed first by 2016
D.I. Khan already linked with Peshawar will be further linked
with Gwadar through Quetta to complete Route 1
A More Comprehensive View
Total Area and Cost
0
5
10
15
20
25
30
35
40
45
50
Pakistan’s reserves
CPEC’s investment
Total Coast
 Pakistan’s current Foreign reserves: $ 17.7
billion
 CPEC’s investment agreement: $46 billion
 Energy: $33.8 billion
 Infrastructure: $11.8 billion
 Communication: $44 Million Energy ($33.8 billion)
Infrastructure ($11.8
billion)
Communication ($44
Million)
Advantages Disadvantages and Benefits of CPEC to
Pakistan and China
Advantages
 1.43 trillion, including an Rs.282.32 billion foreign
assistance while a total of Rs.179.85 billion has
been spent till June 30, 2016.
 129.858 billion for 38 projects in the current fiscal
year.
 500 million for financial year 2016-17
Advantages
 Can benefit new emerging regional cooperation
 Save time, cost and freight charges
 Facilitate trade, have Economic Zone en-route and will allow
reaping of full benefits of development, economic and social
uplift
Advantages
 Increase the economic collaboration between both countries
by connecting western china to Gwadar
 Regional stability in Asia awa in whole world
 Pakistan economy will Boost
Advantages
 Pakistan can avail great opportunities from chine’s expert in
various sectors like energy, Technology and Education sector
 Create new employment opportunities
 Pakistan and china both collectively target the half of the
population of the world, it will provide great opportunity for
both countries to expend their market
Disadvantages
 FTA leads to threat for local markets and local manufacturers
 Disturb of local industries
 Difficult to compete china’s product in market
 Increase the ratio of unemployment
 Dependent to China
Reference
 https://www.youtube.com/watch?v=hd_z9kf8A
eE
 http://www.slideshare.net/burjees/gwadar
 http://www.slideshare.net/dailyxminutes/china-
pakistan
 http://www.slideshare.net/search/slideshow?se
archfrom=header&q=total+area+and+cost+of+
cpec
Cpec
Cpec

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Cpec

  • 1.
  • 2. China-Pakistan Economic Corridor Created By: Madni Bilal COMSATS Instiute of information technology Lahore
  • 3. Outline Introduction  Why CPEC is needed?  For Pakistan a) Removal of Energy Crisis b) Infrastructure development c) Economic development d) Balanced in south Asia e) To cash comparative Advantage of Nature.  For China a) Extension of volume of Trade with Arab countries / Global trade b) Shorter lead times than earlier c) Equal Development all in China
  • 4. Outline  History of Gwadar  Historical perspective  Why CPEC is created? a) Job Opportunities:  Total Area and Cost included a) Routes Ahead For Pakistan b) Cost Included
  • 5. Outline Advantages Disadvantages and Benefits of CPEC to Pakistan and China  Advantages a) Overcoming Energy crises b) Infrastructure development c) Economic Development d) Removal of poverty e) Peace and prosperity in Provinces f) Advantages to China:  Disadvantages: a) Indian aggression: b) Opposition from Baluchistan Nationalists: c) Concerns by Gwadar Residents d) Security concerns ( cost on security)
  • 6. Introduction WHAT IS CPEC?  May 2013 by china President  3000 KM Network Of Road, Rail, Pipeline and Optical Fibers.  Linking kashgar northwest china’s Xinxiang Uyghur autonomous region and southwest Pakistan’s gwadar port.  Transport infrastructure  Gwadar Port
  • 7. Introduction  Energy Projects  Industrial Corporations  China Is Providing $45.6 Billion  $11.8 For Infrastructure  $33.8 Billion For Power Projects  Majority Of Projects Will Completed At The End of 2017
  • 8. Map of CPEC Project
  • 9. Road Map of CPEC
  • 10. Why CPEC is needed? IN PAKISTAN  Major project  Power Projects  Transport infrastructure  Railway Projects  Gawadar Projects
  • 11. Major Projects Energy ($33.8 billion) Infrastructure ($11.8 billion) Communication ($44 Million) Cotton biotech research
  • 14. Zonergy Solar Power Plant  Located At Bhawalpur  World Largest solar Power Plant  $1.5 Billion Project  900 MV Production Expected  Build In 3 Phases  Complete At The end Of 2016  By Zonergy Company
  • 15. Suki Kinari Hydro Power Plant
  • 16. Suki Kinari Hydro Power Plant  It is in KPK  870 MW Produce  Started In 2014  End In 2020
  • 18. Karot hydro Power plant  It is on Jhelum river near to the Islamabad  Produce 720 MW  $1.65 Billion Project  Complete in 2020  By Three Goreges Corporation
  • 19. Port Qasim Coal-Fired Power Plant
  • 20. Port Qasim Coal-Fired Power Plant  $2.085 Billion Project  Complete By The End Of 2017  Produce 1320MW  By China Resource Limited
  • 21. Other Coal Project Proposed Coal Power Projects MW Estimated Coal Consumption Sahiwal, Huaneng Shandong 1,320 5,184,168 Muzafargarh 1,320 5,184,168 Thar Engro 660 2,592,084 Thar Other 1,320 5,184,168 Port Qasim 1,320 5,184,168 Gwadar 300 1,178,220 Total 6,240 24,506,976
  • 23. Wind Power Projects  Thatta Project (100 MW)  Hydro China Project (50 MW)  Sachal Project (50 MW)
  • 28. Karakorum Highway Realignment • Attabad Barrier Lake • $275 million Project • 24 KM Bypass • 5 KM Worth Of Tunnels • 2 Large Bridges • 78 Small bridges
  • 30. Gwadar-Ratodero Motorway • $238 Million Project • 4-Lanes Motorway • 892 kilometers Long • 556 kilometers have already been constructed
  • 31.
  • 33.
  • 34. Karachi–Peshawar main railway line  Over Haul and Reconstruction Of Rail  $3.65 billion Project  train travel at up to 160 kilometers per hour  First Stage Peshawar to Multan  Second Stage Multan to Hyderabad  Third Stage Hyderabad to Karachi  expected completion by December 2019
  • 36.
  • 38. Gwadar International Airport $230 million Project On 3000 acres Connects Gwadar to Karachi, Turbat and Muscat Operational by December 2017
  • 40. Gwadar City And Port Gawadar Coal Power Project (360 million dollars) construction of breakwaters (130 million dollars) water treatment plant (114 million dollars) state-of-the-art hospital (100 million dollars) Free Economic Zones (35 million dollars) technical and vocational institute (10 million dollars)
  • 41.
  • 42. Benefits for China in CPEC  It would decrease the travel distance and travel cost greatly from China to Gulf states  Independent path from Indian and USA’s interference  It would decrease their labour cost  New business market in another country
  • 43. HISTORY OF PAK CHINA RELATIONS
  • 44. HISTORY OF PAK CHINA RELATIONS  Pakistan–China relations began in 1950.  Strategic alliance was formed in 1972 and economic co-operation began in 1979.  China had invested $20 billion in various projects  Mega infrastructural projects in Pakistan  Gwadar Port, the Coastal-Highway linking Karachi with Gwadar, Karakoram Highway, the Chashma nuclear power plants, and a number of hydro-power projects.
  • 45. PAK-CHINA ECONOMIC CORRIDOR  The kkh was started in 1959 and was completed in 1979 (open to the public since 1986)  Length 1,300 km (Pakistan 887 km ) China 413 km  It connects China's Xinjiang region with Pakistan's Gilgit–Baltistan and Khyber Pakhtunkhwa regions  Major cities Hasanabdal, Abbottabad, Thakot, Chilas, Gilgit, Aliabad, Sust, Khunjerab Pass, Kashgar  The importance of Karakoram Highway  Chinese companies  Tourism in Pakistan  Transportations
  • 46. The kkh highly contribute economic activities of both countries export and import
  • 47. Economic Gateway Gwadar  On 8 September 1958 prince Aga khan karim purchased the Gwadar enclave from Oman for $3 million, and gave it to Pakistan and it officially became part of Pakistan.  Gwadar Port is located at the mouth of the Persian Gulf.  Gwadar is a planned free trade port.  Gwadar Port is a strategic developed jointly by the both countries
  • 48. Economic Gateway Gwadar  National Highway Authority (NHA) began construction of the 653 km-long Makran Coastal Highway linking Gwadar with Karachi  In 2004, Pakistan's NHA began construction of the 820-km long M8 motorway linking Gwadar with Ratodero in Sindh province Turbat, Hoshab, Awaran and Khuzdar  In 2007 Civil Aviation Authority of Pakistan acquired 6,000 acres (17-24 km2) to construct a new greenfield airport, at an estimated cost of Rs 7.5 billion.
  • 49. GWADAR ECONOMIC ZONE  GDA was established to promote industrial activities in mega port city of Gwadar  China focused on the fast-track construction of roads, other infrastructure and public buildings  In 2013, Gwadar Port operations were officially handed over to China,  To connect china with Gwadar through railway track has already begun.
  • 50. Total Area and Cost  Length of the corridor: 3000km (Gwadar-Kashgar)  Overall Construction costs: $46 billion (4.6 trillion PKR)  Operational Time: 3 years (For many of the projects)  No. of projects signed : A total of 51 MOUs signed  Project Financiers: Chinese Government banks
  • 51. Total Area and Cost  The road network from Gwadar Port to Kashgar will be having 3 routes: 1. Western Route 2. Central Route 3. Eastern Route The western route i.e Gwadar to D.I.K. and Peshawar is the shortest route and will be completed first by 2016 D.I. Khan already linked with Peshawar will be further linked with Gwadar through Quetta to complete Route 1
  • 53. Total Area and Cost 0 5 10 15 20 25 30 35 40 45 50 Pakistan’s reserves CPEC’s investment
  • 54. Total Coast  Pakistan’s current Foreign reserves: $ 17.7 billion  CPEC’s investment agreement: $46 billion  Energy: $33.8 billion  Infrastructure: $11.8 billion  Communication: $44 Million Energy ($33.8 billion) Infrastructure ($11.8 billion) Communication ($44 Million)
  • 55. Advantages Disadvantages and Benefits of CPEC to Pakistan and China
  • 56. Advantages  1.43 trillion, including an Rs.282.32 billion foreign assistance while a total of Rs.179.85 billion has been spent till June 30, 2016.  129.858 billion for 38 projects in the current fiscal year.  500 million for financial year 2016-17
  • 57. Advantages  Can benefit new emerging regional cooperation  Save time, cost and freight charges  Facilitate trade, have Economic Zone en-route and will allow reaping of full benefits of development, economic and social uplift
  • 58. Advantages  Increase the economic collaboration between both countries by connecting western china to Gwadar  Regional stability in Asia awa in whole world  Pakistan economy will Boost
  • 59. Advantages  Pakistan can avail great opportunities from chine’s expert in various sectors like energy, Technology and Education sector  Create new employment opportunities  Pakistan and china both collectively target the half of the population of the world, it will provide great opportunity for both countries to expend their market
  • 60. Disadvantages  FTA leads to threat for local markets and local manufacturers  Disturb of local industries  Difficult to compete china’s product in market  Increase the ratio of unemployment  Dependent to China
  • 61. Reference  https://www.youtube.com/watch?v=hd_z9kf8A eE  http://www.slideshare.net/burjees/gwadar  http://www.slideshare.net/dailyxminutes/china- pakistan  http://www.slideshare.net/search/slideshow?se archfrom=header&q=total+area+and+cost+of+ cpec