China Pakistan Economic Corridor Overview

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


  • 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

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