Pakistan and China have had economic relations since 1950, with a strategic alliance formed in 1972 and major investments by China in infrastructure projects in Pakistan since 2000. The China-Pakistan Economic Corridor project aims to connect China to the Gwadar Port in Pakistan through transport links like highways and rail to increase bilateral trade. Key projects include the Gwadar Port, Karakoram Highway connecting Pakistan and Western China, and energy projects. The economic corridor intends to benefit both countries through regional connectivity and stability as well as economic development opportunities.

1. 
 Pakistan–China relations began in 1950
 Strategic alliance was formed in 1972 and economic co-
operation began in 1979
 China has 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
HISTORY OF PAK CHINA
RELATIONS

2. PAK-CHINA ECONOMIC CORRIDOR
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 Karakoram Highway
 Chinese companies
 Tourism in Pakistan
 Transportations

3. The KKH highly contribute economic activities of both
countries export and import
PAK CHINA ECONOMIC CORRIDOR

4. *
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
 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.

5. 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
PAK CHINA ECONOMIC CORRIDOR

6. Outflow of goods from western China and Central Asia through
Gwadar
PAK CHINA ECONOMIC CORRIDOR

7. CURRENT PAK-CHINA ECONOMIC
CORRIDOR DEVELOPMENT
Gwadar-Khunjerab-Kashgar rail
network
 Gwadar-Khunjerab-Kashgar
rail network
 connecting the maximum
number of population through
a network of highways and
railways
 six-lane motorway to be built
from Karachi to Lahore. MoU’s
signed with China
PAK CHINA ECONOMIC CORRIDOR

8. OBJECTIVE OF PAK-CHINA
ECONOMIC CORRIDOR
 Increase the volume of trade between
Pakistan and china
 Take full advantage of preferential trade
agreement(PTA) and free trade agreement
(FTA)
 Increase export to china, recently export to
china is $3.14 billion
PAK CHINA ECONOMIC CORRIDOR

9. OBJECTIVE OF PAK-CHINA
ECONOMIC CORRIDOR
 Pakistan and china are second largest
partners in south Asia, this will help to retain
partnership
 Widen Karakorum high way and open new
economic corridor from china to Gwadar
 Approximately reduce 10000 km distance
and it is the shortest route
PAK CHINA ECONOMIC CORRIDOR

10. PAK CHINA ECONOMIC CORRIDOR

11. OBJECTIVE OF PAK-CHINA
ECONOMIC CORRIDOR
 Expand trade with Afghanistan and it help
both countries to play their role in post-2014
Afghanistan
 Expand trade with Russia by providing
trade route till Gwadar port
 Development of infrastructure along
Pakistan
PAK CHINA ECONOMIC CORRIDOR

12. OBJECTIVE OF PAK-CHINA
ECONOMIC CORRIDOR
 China access to the Indian Ocean with the
aim of widening its geopolitical influence
and military presence in the region
 Job opportunities and economic
development in Baluchistan
 Increase Chinese investment, Pakistani
investment in china will also be
encouraged
PAK CHINA ECONOMIC CORRIDOR

13. OBJECTIVE OF PAK-CHINA
ECONOMIC CORRIDOR
 Regional peace, prosperity and elevate the
life of poor people of south Asia
 Enhance trade among Pakistan, China, Gulf
States, Central Asia and Africa
 China is interested to extend the Iran-
Pakistan pipeline to its western territory
PAK CHINA ECONOMIC CORRIDOR

14. ADVANTAGES OF PAK-CHINA
ECONOMIC CORRIDOR
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

15. 
 Increase the economic collaboration between
both countries by connecting western china
to Gwadar
 Regional stability in Asia as well as whole
world
 Pakistan economy will Boost
PAK CHINA ECONOMIC CORRIDOR
ADVANTAGES OF PAK-CHINA
ECONOMIC CORRIDOR

16. ADVANTAGES OF PAK-CHINA ECONOMIC
CORRIDOR
 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
PAK CHINA ECONOMIC
CORRIDOR

17. PAK CHINA ECONOMIC CORRIDOR
 FTA leads to threat for local markets and local
manufacturers
 Disturb of local industries
 Difficult to compete chine’s product in market
 Increase the ratio of unemployment
 Dependent to China
DISADVANTAGES:

18. Huge difference between Balance of
payment Trade deficit
PAK CHINA ECONOMIC CORRIDOR
Pakistan-China trade
increased by 17.6%
to a total of US$ 12.4
billion in 2012.
China export to
Pakistan is
9.3billion
Pakistan’s export
to china is
3.14billion
9.2
3.14
Trade Deficit

19. DISADVANTAGES:
PAK CHINA ECONOMIC CORRIDOR
Focus on import rather than
Domestic production
Threat for potential group
Due to free trade agreement
with china leads to lack of
competition.

20. Recommendation:
PAK CHINA ECONOMIC CORRIDOR
 Pakistan should create stability In its terrority to
implementation on that plan
 To make positive balance of trade Pakistan should
increase exports
 Agriculture products
 Textile products
 Leather

21. Precious stone
Sports goods
Textiles products
 Maintain favorable balance of trade

22. RECOMMENDATION:
PAK CHINA ECONOMIC CORRIDOR
• Restriction on that commodities which is harmful for our
industries
• To make a frame work to use Domestic currency for trade (barter system)
• Develop auto industries rather than focusing on import parts.

23. PAK CHINA ECONOMIC CORRIDOR
Should provide
latest technology
Think tank should
collaborate by both
countries
Implementations
of agreements
should be
addressed

24. RECOMMENDATION:
Pakistan should
implement and
handle policies up to
the mark
Utilization of raw
material and value
added process should
be done in Pakistan
PAK CHINA ECONOMIC CORRIDOR

25. {
Recommendations
Make efforts to diversify market in China
Security issues, law and order system are main
obstacles in the way of Pak-china economic
corridor
Pakistan should develop the training centers
and Chinese language centers in order to make
effective communications
PAK CHINA ECONOMIC CORRIDOR

26. CONCLUSION
Natural Gateway for China
Positive response by both countries through mutual
cooperation
Both countries are keen to enhance trade activities
PAK CHINA ECONOMIC CORRIDOR

27. PAK CHINA ECONOMIC CORRIDOR
Infrastructural improvement and Development of
Dams
Stability of economy by investment in different sectors
“our friendship is “higher than the mountains, deeper
than the oceans, stronger than steel, dearer than
eyesight, sweeter than honey”.

28. PAK CHINA ECONOMIC CORRIDOR