CEPEC Pakistan questions and answers

1. Introduction
The China Pakistan Economic Corridor. Which abbreviation is CPEC.it is a multiple of projects
presently under construction at a cost of $51 billion, proposed to quickly expand and
advancement of Pakistani infrastructure and develop the broaden economic links aimed
Pakistan and the People's Republic of China. The corridor is meant to be an extension of
China's ambitious One Belt, One Road initiative, It contains $ 33 billion worth of energy projects
such as solar, coal , hydroelectric power projects which will be provide 10,400 MW electricity in
the national grid by 2017 to 2018, also hydro power projects. Further projects are fiber optic
cable from Rawalpindi to Xingjiang, 1240 km long Karachi to Lahore motorway and metro and
bus services in six main cities, and up gradation of the 1300 km long Karakorum Highway,
pipelines of oil and gas will be connect from Kashgar to the seaport of Gwadar, railway line of
1800km, commercial sea lanes, dry ports, special economic zones and other infrastructure.
Question.NO 1:Outline the major projects to be completed under this corridor.
Answer : Major Projects of CPEC to be completed under corridor
1: Projects in Gwadar Port and City
Gwadar creates the root of the CPEC project, as it is imagined to be the link of between China's
determined One Belt, One Road project, and it is to Maritime Silk Road project. In overall, more
than $1 billion worth of projects will be established all over the place of the port of Gwadar by
2017 of December.
Gwadar Port complex
Opening infrastructure works at Gwadar Port started in 2002 and were finished in 2007, but
plans to improvement and expand Gwadar's port delayed. Under CPEC agreement, Gwadar Port
will primarily be expanded and upgraded to permit for docking of larger ships with total
deadweight tonnage of up to 70,000. Development plans also contain construction of a $130
million breakwater around the port, also the building of a floating liquefied natural gas (FLNG)

2. facility that will have the capacity of 500 million cubic feet of liquefied natural gas per/day and
will be connected to Gwadar and Nawabshah sector of the Iran and Pakistan gas pipeline.
Projects in Gwadar city
China will funding Pakistan a $230 million to build a new international airport at Gwadar which
will be operating by December 2017.The Baluchistan provincial government has set a place
4000 acres for the building of the new $230 million Gwadar International Airport which will be
need an estimation of 30 months for the construction, the budgets of which are to be fully
financed by donations from the Chinese government, which Pakistan is not be obliged to pay to
china.
2: Roadway projects
The CPEC project sees major upgrades and services to Pakistan's transportation infrastructure.
In the CPEC project, China has said to be financing for $10.63 billion worth of transportation
and infrastructure so far, $6.1 billion have been to be paid for construction (Early Harvest)
roadway projects at an interest rate of 1.6 percent. The remains of funds will be allocated when
the Pakistan government awards deals for constructing of road segments which are still in the
preparation phase. Three main corridors have been acknowledged for cargo transport, the
Eastern Alignment however the greatly populated provinces of Punjab and Sindh where most of
industries are situated, the Western Alignment through the less developed and more lightly
populated provinces of Balochistan and Khyber Pakhtunkhwa, and future Central Alignment
which will be pass through, Punjab, Balochistan and Khyber Pakhtunkhwa.
Karakoram Highway reconstruction
The CPEC projects which are call for renewal and upgrade works on National Highway 35 (N-
35), which is forms the Pakistani side of the Karakoram Highway (KKH). The KKH areas the 887
kilometer long distance among the China Pakistan border and town of BURHAN, near HASAN
ABDAL. At BURHAN, the current M1 motorway will be intersect to the N - 35 at the Shah
Maqsood Interchange. At there, access on to Islamabad and Lahore remains as part of the

3. current M1 and M2 motorways. BURHAN will also be at THE intersection of Western Alignment,
and the Eastern Alignment,
3: Railway projects
The CPEC project emphasizes on major upgrades for Pakistan's old railway system includes
rebuilding of the whole Main Line_1 railway between Peshawar and Karachi by 2020, this single
railway now handles 70% of the Pakistan Railways transportation. Plus to the Main Line_1
railway, modernizations and expansions are scheduled for the Main Line_2 railway, Main
Line_3 railway. The CPEC proposal also calls for the completion of a rail connection over the
4,693 meter high of Khunjerab Pass. The railway will be providing a direct access for Chinese
and East Asian products to Pakistani harbors at Gwadar and Karachi by 2030.
4: Energy sector projects
At present energy generating of Pakistan is 24,830 MW, But the country still faces energy crises
of over 4,500MW shortfall on a regular basis with regular power cuts of about to 5 hours per
day, which has lean to an estimated 2 to 2.5% off its per year GDP. Energy generating will be a
main focus of the CPEC project, with about $33 billion expected to be spent in this sector. As a
part of the "Early Harvest" scheme of a CPEC, an estimation of 10,400 MW of electricity is slate
for generation by 2018 March as part of CPEC (Early Harvest) projects. The energy projects
under the CPEC will be built by a private Independent Power Constructors instead of by the
governments of either by Pakistan or China. The Exim Bank of China will be financing these
private funds at 5 to 6 % of interest rates, although the government of Pakistan will be
purchasing electricity contractually from those companies at already negotiated rates.
5: Project financing (Loans to the Pakistani Government)
About $11 billion value of infrastructure developments which is being developed by
government of Pakistan is going to be financed by compromise loans, with compound interest

4. rates of 1.6%, after Pakistan successfully urged the Chinese government to reduce interest
rates of an initial 3%. Loans are funded by China government, and are to be distributed by the
Exim Bank of China and the development bank of china. As compare to loans for previous
Pakistani infrastructure projects funded by World Bank gave an interest rate of between 5% to
8.5%, though interest rates in the market loans reach 12%.
Question: Outline a clear list by mentioning all its projects, costs, expected
completion times, beneficiary regions, and benefits.
Answer: Following are the list of its projects, costs, expected completion times, beneficiary
regions, and benefits.
Projects
names
cost expected
completio
n times
beneficiary regions Benefits.
Projects in
Gwadar Port
$1 billion 2017 to
2025
Gawadar port and Gwadar
city
Belt, One Road
project
Projects in
Gwadar city
.
More than $1
billion.
Further $4.5
billion
expectation
2017 Gwadar main city Construction of
a new
international
airport in
Gwadar.
300MW coal
power plant.
Hospitals.
Construction of

5. the East Bay
Expressway.
Makran Coastal
Highway
Roads
Karakoram
Highway
reconstructio
n
$1.946 billion 42 months
from 2016
E-35 Expressway between
M1 Motorway and
Havelian.
Havelian to Shinkiari.
Shinkiari to Raikot.
Gilgit to Skardu.
The Western
Alignment is
lined by special
economic zones
with its route,
with a
minimum of
seven special
economic zones
will be
established in
Khyber
Pakhtunkhwa.
Roads
Eastern
Alignment
$6.6 billion 2018 Sindh,
Punjab,sukkur,multan,abdu
l hakeem town, towns of
Matiari, Nawabshah, and
Khairpur,
A part of the
Eastern
Alignment, a
1,152 km long
motorway is
going to
connect
Pakistan's with
two largest
cities, Lahore
and Karachi .

6. Roads
Western
Alignment
$1.05 billion by mid of
2018
provinces of Balochistan,
Khyber Pakhtunkhwa,
It will enlarge
and upgraded
roads networks
in provencies of
Balochistan,
Khyber
Pakhtunkhwa.
Railway
projects
8.2
billion
Phase 1
December
2017.
Phase 2,
2021
Between Karachi and
Peshawar It will cut
transportation times from
Karachi to Peshawar by
half.
Pakistani
railways are
expected to
carrying 20% of
the country's
freight traffic by
2025 .
Railway
Projects
Orange Line
Metro
$1.6 billion 2017 Lahore city The project will
have the size to
transport
250,000
travelers per
day, with plans
to increase
volume to
500,000
travelers per
day by year of
2025.
Railway $2.1 billion 36-42
months
from Matiari, Sindh, to
Nankana Sahib District near
It will help
transmit 4,000

7. Projects
Matiari to
Lahore
Transmission
Line
from 2015 Lahore, Pakistan MW of
generated
electricity from
new coal power
plants Port
Qasim, Hub,
and Thar, to
northern
Pakistan
Railway
Project
Khunjerab
Railway
$12 billion 2030 the city of Havelian, to the
Khunjerab Pass on the
Chinese border
Connecting
Pakistan and
Chine between
smooth
transporting
systems .
Energy
Project
Quaid-e-Azam
Solar Park
$150 million
(phase I)
End of
2016
Bahawalpur, Punjab,
Pakistan
It will have the
capacity to
generate 1,000
MW, which is
environmentall
y friendly.
Energy
Project
Jhimpir Wind
Power Plant
$ 143 million completed Jhimpir in Thatta District of
Sindh province in Pakistan
Economically
and
environmentall
y friendly,
producing 56.4
MW to
Pakistani

8. national power.
Energy
Project
Dawood wind
power project
$115 million 2016 Approximately at 80
kilometers east of Karachi
It will going to
generate 50
MW of
electricity.
Energy
Project
Coal power
plants
$5.8
billion
Early 2019 Quetta Pakistan Pakistan can
produce cheap
electricity from
owned
resources such
as coal .
Energy
Project
Suki Kinari
Hydropower
Project
$1.31
4 billion
2022 Kunhar river of Kaghan,
valley at Mansehra District,
Khyber Pakhtunkhwa
Pakistan
government will
buy electricity
from SK Hydro
at cost of RS 8.8
per kilowatt
hour for the 30
years
Energy
Project
Liquefied
natural gas
$2.5 billion 2018 Gwadar to Nawabshah in
province as part of CPEC
It is projected
to be Pakistan's
most efficient
power plant,
and will be
provide enough
power to an

9. estimated of 6
million homes.
Energy
project
Thar Engro
Coal Power
Project
$1.95 billion 2019 Tharparkar District, Sindh Pakistan can
Producing
cheap
electricity
Projects in
Sindh
Thar-I and 2
Project
$2.1 billion Early 2019 Sindh province (NEPRA) has
agreed to
purchase
electricity from
both, Thar 1
and Thar 2 at a
tariff of 8.50
Rs/kWh for the
first 330 MW of
electricity
Projects in
Punjab
Sahiwal Coal
Power Project
$1.8 billion 2018 Punjab Sahiwal Pakistan will
purchase
electricity from
the group at a
tariff of 8.36
Rs/kWh .
Pakistan Port
Qasim Power
$2.09 billion 42 months
from 2015
1,320 megawatt
of electric is
going to

10. Project provide self-
sufficient
electricity to
Port Qasim .
Projects in
Baluchistan
coal power
plant at Hub
near Karachi
$ 970 Million 2018 Hub near Karachi Project to produce
1,320MW of
electricity from
coal power
plants
Q No: 2. How is CPEC going to ensure Pakistani interest in the region?
Answer: If we take a look at Pakistan economic signs and Gross Domestic Products are boosting.
Foreign exchange capitals are increasing and inflation rate is decreasing. Energy crisis is being
handled intensely. Railway is going on in profit for the first time, the leaders are united to deal
with problem of terrorism on war stability. The world is changing fast about its negative view
about Pakistan and it is now being count and looked at with the respect. CPEC has opened
landscape of great new opportunities for Pakistan and it will greatly going to help in sweep
away unemployment, poverty, inequities of the smaller outlying areas and is helping Pakistan in
developing the next economic uprising.
• By china investment Pakistan is going to boost $274 billion GDP by more than 15%
• From every aspect CPEC will show a game changer and it will make the China a real
stakeholder and participant in Pakistan’s security and stability. It is for both a win win situation.

11. Also, greatly expanding the range for the stable and sustainable development of Pakistan’s
development.
• Investment of China exceeds all foreign investments in the regions of Pakistan in the
past. Win win collaboration is based on the trust, sureness and union of interests. The influence
of Chinese in Pakistan has reached a record high level and it has exceeded the USA which has
been stayed most of the preferred ally and supporters from the year of 1954.
• Pakistan is getting a more positive fiscal budget condition as compare to India which is
by decreasing its budget deficit at 4.7% of GDP in 2014 as compared to India’s 7% and Pakistan
is getting an emerging and much cheaper market.
Question. No3:Will Pakistan make the most out of CPEC or China? Give a list of
arguments.
Answer: There are win win situation for both (Pakistan and China) in CPEC. Pakistan seems to
have found a savior in China, from every aspect CPEC will show a game changer and it will make
the China a real stakeholder and participant in Pakistan’s security and stability. It is for both a
win win situation. Also, greatly expanding the range for the stable and sustainable development
of Pakistan’s development. On the other hand For China it is going to provide an alternative
safe route to import Energy and catch new markets for its services and goods. The CPEC is
going to open gates to huge economic openings not only to Pakistan but it will physically going
to connect China to Markets in Asia and beyond Europe. Nearly 80% of the China’s oil, which is
now transported from Channel of Malacca to Shanghai, (the distance is about 16,000 km and it
takes 2 to 3 months), when Gwadar become operational, the distance will be reduce to less
than 5,000 km. If all projects go well and on time, of the 21 agreements on energy including
coal, gas and solar energy it will be able to provide up to 10,400 megawatts (MW) of energy to
Pakistan by March 2018.

12. Q. No 4: Is CPEC deficient in any respect? Give a list of arguments.
Answer:
• Financial controls could delay the progress of China Pakistan Economic Corridor (CPEC)
related projects, on time completion and transparency in funds and money difficulties continue
to risk main stakeholders.
• Political Leadership of China said concerns over the problems being faced in
implementing (CPEC) related projects. Furthermore, it has arisen that the Chinese are worrying
at the slow speed of working on the liquefied natural gas pipeline (LNG) in Gwadar, where
Pakistan is continues to delay on giving and releasing funds for it.
• There are some conflicts within Pakistan through CPEC routs and industrial
developments, Special Economic areas and zones are unevenly and inequitably distributed.
Eastern route which is benefits to Sindh and Punjab and bypasses major portion of KPK and
Baluchistan.
• Eastern route is consisting of six lane motorway.
• Western route is consisting of 1 to 2 lane roads.
• Orange metro Line Train project is from CPEC allocations, which has nothing to do with
CPEC and is only providing benefits to a limited area of local Lahore City.