Pak china economic corridor

1. Pak-China Economic
Corridor (PCEC)
THE FIRST STEP TOWARDS BRIGHT FUTURE.
PRESENTED BY :
M. TALHA SALEEM
NATIONAL TEXTILE UNIVERSITY FAISALABAD

2. China- Pakistan Economic Corridor
 Pakistan and china are second largest partners in south Asia, this will help
to retain partnership
 The China–Pakistan Economic Corridor (CPEC) is a ongoing
development megaproject which aims to connect Gwadar port to Xinjiang,
via a network of highways, railways and Pipeline to transport oil and gas.
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3. Historical Background OF PCEC
 The project was proposed by Chinese Premier Li Keqiang during his visit to
Pakistan in May 2013.
 The Pak-China Economic Corridor Secretariat was inaugurated in
Islamabad on 27 August 2013.
 On 20 April 2015, Pakistan and China signed an agreement to commence
work on the $46 billion on 51 Projects with approximately $28 billion in
immediate projects and the rest allocated for projects in the gas or oil
pipeline.
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4. General Information
 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

5. Meeting in China
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6. Pakistan & China Sign Agreement for
Gwadar Kashghar Link
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7. MAIN PROJECTS OF CPEC
Energy
Sector
($33.8 billion)
Infrastructure
($11.8 billion)
Communication
($44 million)
Projects to
address
climate
change
Joint research in
cotton Biotech
and marine
research
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8. Infrastructure & Energy Projects in
PCEC
Project Detail
Gwadar Port Completed, handed over to China for 40 years starting 2015.
Karachi - Lahore Motorway (KLM) Approved, Construction to begin 2015.
Havelian to Khunjrab Rail track Approved.
Hazara Motorway Under construction
Economic Corridor Support Force Completed, armed division of the army for security of workforce,
cost $250 million.
Gwadar International Airport Approved.
Cross-border fiber optic data communication system project, a
digital terrestrial multimedia broadcast pilot project at Murree
Approved.
Energy Project Approved.
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10. How PCEC plan will be executed
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Joint Group of Pakistan and China will be made.
From Pakistan Minister of Planning, and Development Reforms.
From China National Development Reforms.
Working Group will be formed.
These working group physically check the project feasibility.
All provinces will present their projects to working group.

11. Gwadar Sea Port 1

12. Historical Background Of Gwadar Port
 On 8 September 1958, Pakistan purchased the Gwadar enclave from Oman
for $1 million by Karim Aga Khan.
 In 1993, the Government of Pakistan formally conceived the plan to develop
Gwadar into a major port city
 Phase I of Gwadar Port was completed in March 2007. Gwadar Port was
inaugurated on 20 March 2007.
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13. OPERATIONAL ACTION
 The Port has officially started its operation on the 11th of May, 2015
 The first trade of it being a large export of fish(230 tons) to Dubai’s Jabal
Ali Port where it has been exported to different countries
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15. KARACHI-LAHORE MOTORWAY
 Also known as "KLM“
 A high-speed, access-controlled, 6-lane motorway that extends for
1,152 km
 Current Status: Under-construction
Divided into 4 sections:
1. Karachi-Hyderabad Motorway
2. Hyderabad-Sukkur Motorway
3. Sukkur-Multan Motorway
4. Multan-Lahore Motorway
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16. KARACHI-LAHORE MOTORWAY
 The motorway will facilitate commutes between Karachi and other cities
including Sukkur, Badin, Ghotki, Rohri, Dadu, Pano Aqil, Abro, Rahim yar
Khan, Sadiqabad, Zahir Pir, Jalalpur Peerwala Abdul Hakim, Pir Mahal,
Mamo Kajan and Nankana Sahib
 Planned Completion Date: September, 2017
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17. 136km
296km
387km
333km

18. HAZARA MOTORWAY
 E35 Expressway, 110 kilometer long controlled-access motorway which will
be a link of Punjab and KPK.
 Hassan Abdal
 Haripur
 Havelian
 Abbottabad
 Mansehra (KPK)
 The project is expected to be completed towards end of 2016 and will
reduce to travel time from Rawalpindi/Islamabad to Mansehra in an hour.
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20. 2. KHUNJERAB RAILWAY
 The Khunjerab railway or Karakoram railway is a proposed rail link via Khunjerab
Pass from Hunza Nagar District in Gilgit-Baltistan to
Kashgar.
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21. KASHGAR RAILWAY STATION

22. NEW GWADAR INTERNATIONAL
AIRPORT
 New airport to be built in Gwadar
 Present capacity of Gwadar Airport:
 A 3000 acres of land 26 km northeast of the existing airport has been
reserved by CAA
 Expected cost $250 million dollars
 Will be given international status with flight destinations greatly increased
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23. Project Information Of Orange Line
Current Status Initial stages
Estimated completion time 27 months
Completion Date March 2018
Project Cost $1.6 billion
When completed it will connect Raiwind, Multan Road, Mcleod Road, Lahore
Junction Railway station and the Grand Trunk Road
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24. Energy Projects in PCEC
 Wind Energy
 Jhimpir wind Power project
 Dawood Wind Power Project
 Coal Power Plant
 Hubco Coal-fired Power Plant Project
 Development of Private Hydro Power Projects
 Nuclear Power Plant
 Kanupp-II, Kanupp-III.
 Coal Power Plant
 Zonergy 9x100 MW solar project in Punjab
 Hydro Power Plant
 720MW Karot Hydropower Project
 Sukhi Kinari Hydropower Project
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25. Power Project Details
As you know that Pakistan is suffering from
energy crises. The PCEC will help us to get
out from this energy crises. The power
projects with respect to provinces are.
• Baluchistan 5000+MW
• Punjab 5000+MW
• Sindh 10000+MW
• KPK 10000+MW
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26. Pakistan’s energy demand
 Electricity – total installed capacity: 22,797 MW
 Electricity – Sources
 fossil fuel – 14,635 MW – 64.2% of total(oil-35.2% + gas-29%)
 hydro – 6,611 MW – 29% of total
 nuclear – 1,322 MW – 5.8% of total
 average demand-17,000 MW
 shortfall-between 4,000 MW and 5,000 MW
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27. Sukhi Kinari Hydropower Project
 The project is located in the Kaghan Valley in Mansehra District and is
easily accessible through a paved road.
 Power Generation: 840 MW
 expected to increase Pakistan’s existing available power generation
capacity by more than 5%

28. 720-MW Karot Hydroelectric Project
 Located on Jhelum River
 Powerhouse to be located in the province of Punjab and the Karot Dam a
gravity dam, will be built on Jhelum River
 Power Generation Capacity: 720MW

29. DAWOOD WIND-POWER PROJECT
 Location : Gharo (60 km east of Karachi)
 Power Generation capacity: 50 MW
 To be build by A Chinese company HydroChina International Engineering
Company
 Cost: $120 million

30. QUAID-E-AZAM SOLAR PARK
 Located in Bahawalpur, Punjab
 Status: Under-construction (First 100 MW completed)
 40,000 solar panels to be installed
 Completion Date: By the end of 2016 (will generate 1000 MW since)
 Cost: $131 million

33. Benefits for Pakistan in PCEC
 The relationship between China and Pakistan will be more strong.
 It helps to stable the economy of Pakistan.
 The Import and export of Pakistan will increase.
 The Power capacity will be increase.
 Direct Investment will come in Pakistan.
 New business and industry come in Pakistan.
 The rate of unemployment will be decrease.
 The Gwadar port will be upgraded.
 Roads, Railway, Aviation and Data Transfer will be upgraded.
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34. ECONOMIC BENEFITS OF PCEC
 Pakistan’s current Foreign reserves: $ 17.7 billion
 CPEC’s investment agreement: $46 billion
17.7
46
0
5
10
15
20
25
30
35
40
45
50
Pakistan’s reserves
CPEC’s investment
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35. Benefits Of PCEC For PAKISTAN
 Encouragement for foreign countries
 GDP growth of Pakistan likely to increase enormously (Presently being 4.1)
 Tax income from the porting and deporting of Chinese ships through
Gwadar
 Loan-free investment (Pakistan doesn’t have to pay any penny for most of
the projects as it’s all being invested by Chinese banks yet will gain
percentage share from the toll taxes and profits once the operation starts)
 Expand trade with Russia by providing trade route till Gwadar port
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36. SECURITY FOR CHINESE ENGINEERS
 About 12,000 security personnel to protect Chinese workers on the
corridor
 8000 security officials already deployed for the protection of 8,100 Chinese
workers
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37. Benefits for China in CPEC
 It would decrease the travel distance and travel cost greatly from China to
Gulf states
 Independent path from Indian and USA’s interference
 It would decrease their labour cost
 New business market in another country
 Increase international trade
 Increase import export
 Save time, cost and freight charges
 it will provide great opportunity for both countries to expend their market
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38. PAKCHINAECONOMICCORRIDOR
Outflow of goods from western China and Central Asia
through Gwadar
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42. PAKCHINAECONOMICCORRIDOR
 FTA leads to threat for local markets and local manufacturers
 Disturb of local industries
 Difficult to compete chine’s product in market
 Dependent to China
DISADVANTAGES:
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43. Huge difference between Balance of payment
Trade deficit
PAKCHINAECONOMICCORRIDOR
Pakistan-China trade
increased by 17.6% to
a total of US$ 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
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44. Recommendation:
PAKCHINAECONOMICCORRIDOR
 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
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45. Precious stone
Sports goods
Textiles products
 Maintain favorable balance of trade
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46. Recommendation:
PAKCHINAECONOMICCORRIDOR
 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.
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47. PAKCHINAECONOMICCORRIDOR
ns
Should provide
latest technology
Think tank should
collaborate by both
countries
Implementations of
agreements should
be addressed
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48. RECOMMENDATION:
Pakistan should implement
and handle policies up to
the mark
Utilization of raw material
and value added process
should be done in Pakistan
PAKCHINAECONOMICCORRIDOR
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49. 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
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50. Conclusion
NATURAL GATEWAY FOR CHINA
POSITIVE RESPONSE BY BOTH COUNTRIES THROUGH MUTUAL
COOPERATION
BOTH COUNTRIES ARE KEEN TO ENHANCE TRADE ACTIVITIES
INFRASTRUCTURAL IMPROVEMENT AND DEVELOPMENT OF DAMS
STABILITY OF ECONOMY BY INVESTMENT IN DIFFERENT SECTORS
PAKCHINAECONOMICCORRIDOR
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51. Thank You
ANY QUESTION?
ANY
?