China Pakistan Economic Corridor Overview
Following is the China Pakistan Economic Corridor Overview: –
- Historical background of Gwadar
- Introduction to CPEC
- History of Pak china Relations
- Investment in Pakistan
- Project proposed
- MOU
- Major projects
- Benefits for Pakistan and China
- Conclusion
Historical background of Gwadar
- Port city on the southwestern coast of Pakistan’s Balochistan province.
- Pakistan purchased it from Oman.
- Gwadar Port is a strategic warm-water deep-sea port.
- Officially opened on 20 March 2007
Introduction to CPEC
- The karakoram highway(kkh) was started in 1959 and was completed in 1979 (open to the public since 1986 )
- It connects China’s Xinjiang region with Pakistan’s Gilgit-Baltistan and Khyber Pakhtunkhwa regions
- China Pakistan Economic Corridor is a collection of projects.
- Link the Pakistani city of Gwadar Port in southwestern to China’s northwestern autonomous region of Xinjiang
History Of Pakistan China Relations
- 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
MOU signed for CPEC
- Concessional Loan for Karachi-Lahore Motorway
- Concessional Loan for Gwadar International Airport
- MOU between NUML Pakistan and Xinjiang
- Establishment of NUML International Center of education (NICE) between NUML Pakistan and Xinjiang Normal University
- Cooperation between WAPDA and CTG
- Contract on Lahore Orange Line Metro Train Project
- financing for Lahore Orange line Metro Train project
- financing for KKH up-gradation Phase-2 (Havelian to Takot)
Major CPEC Projects
- 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 9×100 MW solar project in Punjab
- Hydro Power Plant
- 720MW Karot Hydropower Project
- Development of Private Hydro Power Projects
- Gwadar Port up gradation
- Lahore Karachi Motorway
- Peshawar Karachi Motorway
- Havelian-Khujerab Railway
- Hazara Motorway
- Gwadar Ratodero Motorway
- Gwadar International Airport
- Lahore Orange Lane Metro Train
CPEC Benefits to China
- Chinese industries are facing problems to compete in global market due to high transportation cost and delivery time.
- China is using a longest way due to which transportation cost and time increases, which gives a competitive edge to competitors e.g. Japan, USA
- It would decrease the travel distance and cost greatly from China to Gulf.
- Even if China uses PCEC for 50% of its Oil supplies then it will save $6 Million every day, almost $2 billion every year.
- Independent path from India and USA’s interference.
- New business market in another country.
CPEC Benefits to Pakistan
- Strategic and economic trade routes.
- Development of Infrastructure.
- Connect all the Province.
- Development of Fata, KPK and Baluchistan.
- Job opportunities
- CPEC from all counts will prove a game changer
- Investments by China will boost Pakistan’s $274 billion GDP by over 15 %
- Given the solid foundations of friendship
Disadvantages of CPEC
- 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
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
