The document discusses the China-Pakistan Economic Corridor (CPEC) project which involves over $60 billion in infrastructure investment between China and Pakistan. It will include upgrades to transportation networks like roads and railways to connect China to Pakistan's Gwadar Port. It is expected to significantly boost Pakistan's economic growth by resolving energy shortages and increasing GDP growth to an estimated 7% by 2018 through the energy and infrastructure projects. CPEC will also create jobs in Pakistan and improve standards of living. The document outlines some of the key early projects under CPEC like the Gwadar Port, Sahiwal Power Plant, and upgrades to the Karachi-Peshawar motorway.

1. IMPACT OF CPEC ON
PAKISTANS ECONOMY
Presented By:
Syeda Ayesha Hassan
Amna Aftab
Amna Naveed
Malik Muhammad Waqas

2. Contents
• Background,
• Introduction,
• Key cooperation areas,
• Impact of CPEC on Pakistan's Economy,
• Development of projects in CPEC,
• Analysis of CPEC,
• Recommendations,
• Conclusions.

3. BACKGROUND OF CPEC

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• CPEC is the collection of projects.
• Project was formally conceived in May 2013.
• PM Li Keqiang officially visited Pakistan on May 22, 2013.
• Later Prime Minister Nawaz Sharif made visits to China to discuss the
importance of this project.
• President Xi Jinping visited Pakistan in April 2015 and formally
announced Chinas offer of US$ 46 billion.
• Agreements were inked giving importance to energy projects.

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• CPEC is considered economically vital to Pakistan in helping it drive
economic growth.
• A collection of infrastructure projects that are currently under
construction throughout Pakistan.
• Originally valued at $46 billion, the value of CPEC projects worth $62
billion.
• CPEC is intended to rapidly modernize Pakistani infrastructure and
strengthen its economy by the construction of modern transportation
networks, numerous energy projects and special economic zones.

6. INTRODUCTION

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• China-Pakistan Economic Corridor is a framework of regional
connectivity.
• CPEC will not only benefit China and Pakistan but will have positive
impact on Iran, Afghanistan, Central Asian Republic, and the region.
• China Pakistan Economic Corridor is journey towards economic
regionalization in the globalized world.
• A vast network of highways and railways are to be built under the
aegis of CPEC that will span the length and breadth of Pakistan.

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• Inefficiencies stemming from Pakistan's mostly dilapidated
transportation network are estimated by the government to cause a loss
of 3.55% of the country's annual GDP.
• Modern transportation networks built under CPEC will link seaports
in Gwadar and Karachi with northern Pakistan, as well as points
further north in western China and Central Asia.
• A 1,100-kilometre-long motorway will be built between the cities
of Karachi and Lahore as part of CPEC.
• While the Karakoram Highway from Hasan Abdal to the Chinese
border will be completely reconstructed and overhauled.

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• The Karachi–Peshawar main railway line will also be upgraded to
allow for train travel at up to 160 km per hour by December 2019.
• Pakistan's railway network will also be extended to eventually connect
to China's Southern Xinjiang Railway in Kashgar.
• The estimated $11 billion required to modernize transportation
networks will be financed by subsidized concessionary loans.

10. CPEC VISION AND
MISSION

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• To improve the lives of people of Pakistan and China by building an
economic corridor promoting bilateral connectivity, construction,
explore potential bilateral investment, economic and trade, logistics
and people to people contact for regional connectivity.
• It includes:
 Agricultural developments,
Energy projects,
Financial cooperation's,
Integrated transportation.

12. KEY COOPERATION AREAS

13. Construction of an Integrated Transport
System
• Transport infrastructure is the basic and prerequisite condition for the
construction of the CPEC.
• It is an important field that can be relied on to guide and drive the
economic and social development of regions along the CPEC.
• Besides promoting the interconnectivity and all-round cooperation
between China and Pakistan for shared prosperity.
• In order to meet the needs of trade and personnel exchanges between
China and Pakistan for the socio-economic development of regions
along the CPEC.

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• Following initiatives have been planned to achieve the aforementioned
objectives.
o Construction and development of Kashgar-Islamabad,
o Peshawar-Islamabad Karachi,
oSukkur-Gwadar port
oDera Ismail khan-Quetta-Sohrab-Gwadar road

15. Agricultural Development
• They should promote the transition from traditional agriculture to
modern agriculture in the
• 12 regions along the CPEC to effectively boost the development of
local agricultural economy and help local people get rid of poverty and
become better off.
• Strengthen the upgrading of agricultural infrastructure in the regions
along the CPEC.
• Promote the construction of water-saving modern agricultural zones.

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• Improve post-harvest handling, storage and transportation of
agricultural products, and innovate in marketing and sales models.
• Improve water resources operation and management, strengthen
development of pastoral areas and desert, and promote application of
remote sensing technology.

17. Energy Related Fields
• China and Pakistan should strengthen cooperation in the fields of oil
and gas, electricity and power grids, and focus on promoting the
construction of major projects of thermal power.
• Optimize the sourcing and use of coal, and research on development
and utilization of Pakistan's own coal for power plant and developing
technologies for surface coal gasification, expansion and augmentation
of coal mining sector.
• Actively promote river planning and
preparatory work of major projects to
accelerate the hydropower development process.

18. IMPACT OF CPEC ON PAKISTAN’S
ECONOMY

19. GDP GROWTH
• The CPEC is a landmark project in the annals of history of Pakistan.
• It is the largest investment Pakistan has attracted since independence
and largest by China in any foreign country.
• CPEC is considered economically vital to Pakistan in helping it drive
economic growth.
• The Pakistani media and government have called CPEC investments a
"game and fate changer" for the region while both China and Pakistan
intend that the massive investment plan will transform Pakistan into a
regional economic hub and further boost the deepening ties between
the two countries.

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• Pakistan's large textile industry has also been negatively affected by
several-hour long power cuts, with almost 20% of textile factories in
the city of Faisalabad shutting down on account of power shortages.
• The CPEC's "Early Harvest" projects are expected to resolve
shortages in power generation by 2018 by increasing Pakistan's power
generation capacity by over 10,000 megawatts.
• As a result of improved infrastructure
and energy supplies, the Pakistani government
expects that economic growth rates will
reach 7% by 2018.

21. ENERGY GENERATION
• Pakistan as late as early 2017 faced energy shortfalls of over 4,500
MW on a regular basis with routine power cuts of up to 12 hours per
day, which has shed an estimated 2–2.5% off its annual GDP.
• The Financial Times noted that Pakistan's electricity shortages are a
major hindrance to foreign investment, and that Chinese investments
in Pakistani infrastructure and power projects will lead to a "virtuous
cycle" that will make the country more attractive for foreign
investment in a variety of sectors.

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• The impact of Chinese investments in Energy sector was soon visible
as in December 2017, Pakistan succeeded in producing surplus
electricity.
• Pakistani Federal Minister for Power Division, Awais Leghari
announced a complete end to power cuts in 5,297 feeders out of total
8,600 and claimed that the country's current electricity production had
gone up to 16,477 Megawatts which was 2700 megawatts more than
the demand.

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• Access to electricity for the rural population increased from 90.3% in
2015 to 98.8% in 2016.
• Transmission and Distribution Losses went down to 16.5% in 2017
from 19% in 2015 (Ministry of Finance).
• Bill recoveries increased from 16% in 2015 to 19% in 2017 (Ministry
of Finance).
• Installed capacity of electricity is 29,573 MW
in 2018, which was 22,812 MW in 2013.
• Electricity generation increased from
96,496 GW/h to 117,326 GW/h.

24. Job Creation
• Early harvest projects of CPEC have created 30,000 direct jobs for
Pakistanis (ACCA Global and PCI).
• 800,000 direct jobs estimated in the next 15 years. (Ministry of
Planning and Development).
• Construction of ML-1 projects will further create 10,000 to 15,000
direct jobs this year (Ministry of Planning and Development).
• CPEC will reduce unemployment by 2.32 million by end of 2018
(Global Times).

25. DEVELOPING
PROJECTS OF CPEC

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• Following are the projects of CPEC which are started:
oGwadar Port,
oRashakai SEZ,
oSahiwal Power Plant,
oPeshawar-Karachi motorway(pkm) 392 KM Sukkur-Multan Section.

27. Gwadar Port
• The Gwadar City Port CPEC situated on the Arabian
Sea at Gwadar in Balochistan province of Pakistan and is under the
administrative control of the Maritime Secretary of Pakistan and
operational control of the China Overseas Port Holding Company.
• The port features prominently in the (CPEC) plan, and is considered
to be a link between the Belt and Road Initiative and the Maritime Silk
Road projects.
• It is about 120 kilometers (75 mi) southwest of Turbat, and 170
kilometers (110 mi) to the east of Chabahar Port.

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• In 2015, it was announced that the city and port would be further
developed under CPEC at a cost of $1.62 billion, with the aim of
linking northern Pakistan and western China to the deep water seaport.
• The port will also be the site of a floating liquefied natural gas facility
that will be built as part of the larger $2.5 billion Gwadar-Nawab shah
segment of the Iran–Pakistan gas pipeline project.
• Construction began in June 2016 on the Gwadar Special Economic
Zone, which is being built on 2,292-acre site adjacent to Gwadar's
port.

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• Gwadar Port became formally operational on 14 November 2016,
when it was inaugurated by Pakistan's Prime Minister Muhammad
Nawaz Sharif the first convoy was seen off by the then
Pakistan's Chief of Army Staff, General Raheel Sharif.
• On 14 January 2020, Pakistan operationalized Gwadar Port for Afghan
transit trade.
• On 31 May 2021 Gwadar Port become fully
operational, along with the availability
of online booking for the delivery of goods.

30. Rashakai SEZ
• Spread over the area of 1000 acres, Rashakai prioritized Special
Economic Zone (pSEZ) is a flagship project under the industrial
cooperation of China Pakistan Economic Corridor (CPEC) framework
that serves as CPEC Special Economic Zone.
• The 1000 acres pSEZ will be developed by CRBC in joint venture
with KPEZDMC. An SPV Company of these two firms named
Rashakai Special Economic Zone Development and Operations
Company (RSEZDOC) has been setup for implementation of this
agreement.

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• Located on Motorway (M1) near CPEC route, it is 60 km away from
Peshawar to the west and 90 km away from Islamabad to the east.
• Distancing 800 km from Khunjerab Pass in the north, 111.6 km from
Torkham Border, and 39.6 km from Azakhel Dry Port, which gives
Rashakai a unique strategic advantage to serve the consumer markets
of Khyber Pakhtunkhwa, Punjab, Southwest China, Afghanistan, and
Central Asia.
• Enabling a business-friendly environment for attracting foreign direct
investment.

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• The Importance of this village is totally Changed after the
Construction of Motor Way and Rashakai Inter Change.
• Rashakai SEZ occupies 1000 acres, locating on M1(Kernel Sher Khan
interchange), Nowshera district, KP Province and links CPEC through
Burhan Interchange, which is 60km, 120km to Peshawar, Islamabad
respectively.

33. Sahiwal Power Plant
• The Sahiwal Coal Power Project is a coal power plant project located
in the province of Punjab in Pakistan.
• The power plant is located about (12 mi) from Sahiwal and (9.3 mi)
from Okara cantonment, just north of the road which connects the two
towns, in Pakistan's Punjab Province.
• The power plant is Pakistan's first supercritical coal power plant, and
consists of two 660-megawatt (890,000 hp) plants for a combined
capacity of 1,320 MW.

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• This is the first phase, and may be followed by a possible second
phase which will include two 1,000-megawatt (1,300,000 hp) plants.
• Though the plant is now considered to be part of the (CPEC) which
was announced in April 2015, the symbolic ground breaking for the
project actually preceded the announcement of CPEC and took place
in May 2014.

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• As the government of Punjab in March 2014 invited bids for the
construction of two 660MW power plants in order to help alleviate
Pakistan's energy shortfalls.

36. Peshawar-Karachi Motorway(Pkm) 392
Km Sukkur-Multan Section
• Karachi – Peshawar Motorway envisages construction/development of
a 6-Lane access-controlled Motorway having a total length of 1,100
Km.
• It shall originate from Karachi through Motorway M-9 (136 Km) up
to Hyderabad.
• From Hyderabad onwards, the proposed alignment shall follow a
virgin alignment for 345 Km up to Sukkur.

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• The Sukkur Multan section, 392 Km essentially follows the Left Bank
of River Indus.

38. ANALYSIS OF
THE CPEC

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• Pakistan and China have long-established diplomatic and military ties
and are now entering an epoch of developing an economic relationship
with the China-Pakistan Economic Corridor (CPEC).
• Their partnership has established an example for the world of how
states with geographical proximity but differing political, social,
economic, and ideological values can establish a cooperative bilateral
relationship.

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• The financing and the operation of the Gwadar Port is a clear
indication of how necessary it is to integrate Pakistan and China
economically.
• Every emerging or growing country faces challenges when it is in the
transition phase of economic development.
• China and Pakistan have the opportunity to create connections, which
if worked as planned and without any disruptions, will strengthen the
Asian economy as a whole.

41. RECOMMENDATIONS

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• Our results indicate that economic activities related to CPEC increase
energy consumption by approximately 48% and 57% by 2030 relative
to 2013 levels in the moderate and advanced scenarios, respectively.
• The sector analysis showed that, in the baseline scenario, energy
consumption in the industrial and commercial sector will increase by
2030 more than 136% and 414% to their values in 2013.

43. CONCLUSION

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• CPEC will provide South Asia an opportunity to access inaccessible
marketplaces and bigger financing resulting in industrial development
and growth of less-developed regions in Pakistan and China.
• It will generate extensive employment opportunities to provide people
with appropriate jobs.
• CPEC has the potential to boost Pakistan's economy, making the
country a regional economic hub.

45. Contribution chart
REGISTRATION
NO
NAMES CONTRIBUTION
BAF193012 Syeda Ayesha Hassan Background, introduction, compiling and
editing.
BAF213502 Amna Aftab Key cooperation areas and impact of CPEC
on Pakistan's economy.
BAF213501 Amna Naveed Development of projects in CPEC and
Analysis of CPEC.
BAF193037 Malik Muhammad
Waqas
References and conclusion.