Detaileformation and advantages of Cpec

2. Presentation Topic :
China Pakistan Economic Corridor

3. History of CPEC
China first proposed the corridor
project in May 2013.
Chinese President Xi Jinping then
visited Pakistan in April 2015, and
both sides agreed to a partnership.
During Xi’s visit, the two
countries signed fifty-one
agreements at an estimated value of
$46 billion.

4. CPEC Objectives
This $46 billion deal, known as the China-Pakistan
Economic Corridor (CPEC), is essentially a package of
major projects that fall into two domains: transportation
and energy.
On the transport side, there are about $12 billion in plans
to build, among other things, a rail link connecting
Gwadar, a Chinese-built deep-sea commercial port on
Pakistan’s southern coast, to the western Chinese city of
Kashgar, some 2,000 miles to the north.
Other projects include widening the treacherous
Karakoram highway, itself previously built with Chinese
help; upgrading Gwadar airport; building a 125-mile
tunnel linking the two countries; and upgrading a number
of existing highways, including the critical Karachi-Lahore
section.

5. Benefits to CHINA
Pakistan serves as a crucial bridge
between China and Central Asia,
South Asia, and the Middle East.
Security and stability in Pakistan will
make it possible for China to exercise
greater influence in these regions and
to ensure security at home.
This is why China is willing to pour
vast amounts of resources into the
economic corridor—based on the logic
of improving security through
economic development.

6. The CPEC deal grants the Chinese
40-year operation rights to the port.
This is hugely significant for
Beijing.
Accordingly, with a transport route
some 6,000 miles shorter, China
will be able to save billions in
transport costs and saved time.
At the moment, Gwadar is being
developed as a commercial port
and not as a facility for the Chinese
Navy—yet it could potentially be
made into one in the future
Benefits to CHINA

7. By 2050, according to
a report by Price waterhouse
Coopers, China is projected to
become the world's largest
economy, with a GDP of $58.5
trillion, up from $5.7 trillion in
2010. The country's GDP
growth rate has declined in
recent years, however, from 7.3
percent in 2014 to 6.7 percent in
2016.
Benefits to CHINA

8. Benefits to Pakistan
Economy of Pakistan will
Increase
Pakistan aims to advance from being a
lower-middle-income nation to an upper-
middle-income nation by 2025 which is not
possible without CPEC.
For Pakistan, the combined value of the
CPEC's infrastructure projects would be
equivalent to 17 percent of Pakistan's
GDP in 2015
Pakistan's GDP will reach $4.2 trillion by
2050 from the current $988bn

9. The 3,200km-long corridor is
intended to connect the world's
second largest economy, China,
with the Middle East and Central
Asia, reducing the alternative sea
route distance - via the Malacca
Strait - by 10,000km.
Benefits to Pakistan

10. Benefits to Pakistan
• The corridor would create some
700,000 direct jobs between 2015
and 2030, and add up to 2.5
percent to the country's growth
rate.

11. In a move that will strengthen the
defense of Gwadar, Pakistan is
negotiating with China the purchase
of eight diesel-powered,
conventionally armed attack
submarines.
Pakistan’s possession of such
submarines, which are very quiet and
lethal, would seriously complicate
any Indian attempt in blockading
Karachi or Gwadar.
Strengthening Security

12. Challenges
Gwadar is located, and
the other is the continued
presence of the Taliban
and their allies in the
country’s northwest.

13. Challenges
• The second security challenge, the semi-
autonomous Federally Administered Tribal
Areas.
• (FATA) in the northwest along the border with
Afghanistan, will be even more difficult to
address because of the number of disparate
actors present and their differing political
agendas.
• There are three broad groups hiding in that
frontier region: the Afghan Taliban, the Pakistani
Taliban, and all the non-locals.

14. India's Concerns
• India do not want to see Pakistan
growing due to China.
• India doesn't want to internationalise the
Kashmir issue, but with Pakistan, China,
and CPEC coming in, it happens.
• India do not like
growing influence of China in the
Indian Ocean.

15. Conclusion
• CPEC is game changer
• It will boost economies of both countries.
• Employment opportunities will incease.
• Both countries will become more secure and prosperous.

16. THANKS