CPEC and its effects on the economy of Pakistan

2. PRESENTERS:
 Ayesha(17)
 Aamna Iqbal(32)
 Seerat Mustafa(29)
 Muniba Zulfiqar(35)
 Khadija(15)

4. Contents:
Introduction and Background of CPEC
Projects
Advantages to China
Advantages to Pakistan
Disadvantages
Indian concerns over CPEC
Recommendations
Conclusion

5. HISTORY OF PAK-CHINA RELATIONS
Began in 1950
Strategic Alliance was formed in 1972 & Economic Corporation
in1979
China’s investment in various projects

6. INTRODUCTION TO CPEC
CPEC is a collection of projects.
Links the Pakistani city of Gwadar Port in Southwestern to China’s
Northwestern region of Xiajing.
It was proposed by Chinese president in May 2013.
30000 Km network of Road, Rail, Pipeline & Optical Fibers.
China is providing $45.6 billion.
$11.8 for infrastructure
$33.8 for Power Projects

7. MAJOR PROJECTS UNDER CPEC
Power Projects
Transport Infrastructure
Wind Power Projects
Gwadar Port

8. POWER PROJECTS
Zonergy Solar Power Project:
 Located at Bahawalpur
 World’s largest solar power project
 $1.5 billion project
 900MW production ecpected
 Building three phases
 By Zonergy company

9.  Karot Hydro Power Plant:
Located at jehlum River
Produce 720MW energy
$1.65 billion project
Expected to be completed in 2020
By three Goregies Corporation

10.  Suki Kinari Hydro Power Plant:
Located in KPK
Produce 870MW energy
Started in 2014
Expected to be completed in 2020

11.  Port Qasim Coal Fired Power Plant:
It is located in Karachi
$2.085 billion project
Produce 1320MW energy
By China Resource Limited

12. TRANSPORT INFRASTRUCTURE
Karakorum Highway Reallignment:
 Pak-China friendship Highway
 Project costs $2715 million
 It is 1300 km long
 Construction started in 1959
 Operational since 1979

13.  Karachi-Lahore Motorway:
1152 Km long
Under construction
Limited access Motorway
Connects karachi and Lahore

14.  Gawadar Ratodero Motorway:
$238 million Project
892 Km long
556 Km have already been constructed
Inaugurated in Feb 2016
Expected to be completed in 2019

15.  Karachi-Peshawar Main Railway Line:
Reconstruction of Rail
$3.65 billion project
Train Travel upto 160 Km per hour
Stages

16.  GWADAR PROJECTS:
Gwadar International Airport
$230 million Project
On 3000 acres
Connect Gwadar to Karachi, Turbat and Mascat
Operational by Dec 2017

17. WIND PROJECTS
Thatta Project (100MW)
Hydro China Project (50MW)
Sachal Project (50MW)

18. ADVANTAGES TO PAKISTAN:
Economic Development
Job Opportunities
Removal of Poverty
Infrastructure Development
Energy Production
Facilitate Trade

19. ADVANTAGES TO CHINA:
Economic Development
Access to Alternative Routes
String to Pearls
Business with Western Countries

20. DISADVATAGES OF CPEC:
FTA leads to threat for local markets and local manufactures.
Increase ratio f unemplyment
Dependence on China
Security Concerns
Focus on import rather than Domestic production.
Money taken from old investers
Huge loan
Environmental distraction

21. MANUFACTURING SECTOR
This sector will face a high pressure due to an increase in competition
from Chinese manufacturing firms. Several Chinese brands of each
product will be floating in Pakistan market.

22. CULTURE ISSUES
Over the years Pakistan is rigid to accommodate other cultures. The
inflow of Chinese people can create friction among cultures.

23. CORRUPTION
Corruption is a big problem in Pakistan whereas in China corruption is
punishable by death. How would Chinese companies react to
corruption in Pakistan.

24. DUMPING
There is a fear in Pakistan’s production sector that Chinese firms will
start to dump the excess production in Pakistan.

25. INDIAN CONCERNS OVER CPEC:
India is not joining CPEC
It is opposing this project
Reasons for opposing
 Strategy of establishing hegemony in South Asia
 Disputed territory
 Modi’s anti Pakistan Policies
 Competitor to China

26. RECOMMENDATIONS
Pakistan should create stability in its territory to implementation on
that plan.
To make positive balance of trade Pakistan should increase its
exports.
Restriction on that commodities that are harmful for our industries.
Develop auto industry rather than focusing on import parts.
Implementations of agreements should be addressed.
Make efforts to diversify market in China.
Security issues, Law and order are the main obstacles in the Pak-
China Economic Corridor.
Pakistan should develop training centers and Chinese language
centers to make effective communications

27. CONCLUSION
This project has potential to radically alter the regional dynamics of
trade, development and politics.
Game changer for entire region.
It will uplift the lives of about 3 billion people across China, Central
Asia, South Asia and the Middle East.

28. “Our friendship is higher than the mountains,
deeper than the oceans, stronger than steel,
dearer than eyesight and sweeter than the
honey.”

29. QUESTIONS?

30. THANK YOU