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CPEC - China Pakistan Economic Corridor

The China-Pakistan Economic Corridor (CPEC) is a major infrastructure project that was proposed in 2013 involving over $46 billion of investment from China. The project aims to connect China's western province of Xinjiang to Pakistan's Gwadar Port through a network of roads, railways and pipelines to transport oil and gas. CPEC is seen as China's flagship project under its larger "One Belt, One Road" initiative to connect China to markets in Asia, Africa, Europe and beyond. The project will significantly upgrade infrastructure and energy projects in Pakistan, and is envisioned to be completed over several phases from 2018 to 2030.

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287 views3 pages

CPEC - China Pakistan Economic Corridor

The China-Pakistan Economic Corridor (CPEC) is a major infrastructure project that was proposed in 2013 involving over $46 billion of investment from China. The project aims to connect China's western province of Xinjiang to Pakistan's Gwadar Port through a network of roads, railways and pipelines to transport oil and gas. CPEC is seen as China's flagship project under its larger "One Belt, One Road" initiative to connect China to markets in Asia, Africa, Europe and beyond. The project will significantly upgrade infrastructure and energy projects in Pakistan, and is envisioned to be completed over several phases from 2018 to 2030.

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umar
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CPEC China Pakistan Economic Corridor

Establishment of China-Pakistan Economic Corridor (CPEC) was first proposed by Chinese


Premier Li Keqiang during his visit to Pakistan in May 2013. The proposed project of linking
Kashgar in northwest China with Gwadar Port on Arabian Sea coastline in Baluchistan was
approved on July 5, 2013 during the visit of PM Nawaz Sharif to Beijing, which included
construction of 200 km long tunnel.

Chinas Investments:
In December 2013, China committed $6.5 billion for the construction of a major nuclear power
project in Karachi. In May 2014, another agreement was signed to supplement Orange Line
metro train project in Lahore worth $1.27 billion. In November 2014, the two countries signed
19 agreements related to CPEC. In addition, Chinese firms started work on six mega power
projects in Gilgit-Baltistan such as Dassu, Phandar, Bashu, Harpo, Yalbo to tackle Pakistans
energy crisis.

Quest for Warm Waters:


Mindful of the under development of its western provinces which are its soft belly and ongoing
Uighur movement, China wants speedy modernization of Xingjiang and other under developed
provinces to bring them at par with eastern provinces. For the accomplishment of these dreams,
China needs access to warm waters in Arabian Sea through Gwadar since this route to world
markets is the shortest and the cheapest. This access was never granted to Russia.

Visit of President Xi Jinping:


With this objective in view, President Xi Jinping visited Islamabad on April 20-21, 2015 and
raised the level of investment from $ 26 billion to $ 46 Billion. He signed 51 agreements/MoUs
worth $28 billion, with $17 billion in pipeline spread over 15 years. His visit achieved the
milestone of the groundbreaking of historic 3,000 km-long strategic CPEC.

Projects in Hand:
It includes $ 33 billion worth energy projects such as coal, solar, hydroelectric power projects
which will inject 10,400 MW electricity in the national grid by 2017/18, and hydro power
projects. Other projects are fiber optic cable from Xingjiang to Rawalpindi, 1240 km long
Karachi-Lahore motorway, metro and bus service in six major cities, up gradation of 1300 km
long Karakorum Highway, oil/gas pipelines to connect Kashgar to the seaport of Gwadar,
1,800-km railway line, commercial sea-lanes, special economic zones, dry ports and other
infrastructure.

Phases of CPEC
China-Pakistan Economic Corridor is a 15-year plan and will be completed in four phases:

2018 Early Harvest ($46 billion, Energy & Infrastructure)


2020 Short Term
2025 Medium Term
2030 Long Term

Routes:
Three routes have been marked: -

I. Western route originating from Gwadar will pass through Turbat, Panjgur, Naag,
Basima, Sohrab, Kalat, Quetta, Qila Saifullah, Zhob DIK, Mianwali, Hasanabdal, Isbd.
II. Central route will originate from Gwadar, Quetta, and reach DIK via Basima,
Khuzdar, Sukkar, Rajanpur, Liya, Muzaffargarh, Bhakkar, DIK.
III. Eastern route will include Gwadar, Basima, Khuzdar, Sukkar, RYK, Bwp, Multan,
Lahore/Fsbd, Isbd, Mansehra.

Fig: Highway Network of China - Pakistan Economic Corridor

Importance of Gwadar:
Gwadar is one of the least developed districts in Baluchistan province. It sits strategically near
the Persian Gulf and close to the Strait of Hormuz, through which 40 per cent of the worlds
oil passes. Work on Gwadar deep-seaport had started in 2002 with Chinas investment. In 2013,
management of the seaport which was in the sloppy hands of Singapore PSA International was
handed over to Chinas Port Holdings. It is planned to develop Gwadar into free trade zone
with a modern airport on the model of Singapore or Hong Kong and a gateway to CPEC. It will
be largest, deep seaport, overshadowing Chahbahar and Dubai seaports.
Gains for China:
While the CPEC may be monumental for Pakistan, for China it is part of more ambitious
plans to beef up the countrys global economic muscle. Chinese officials describe the corridor
as the flagship project of a broader policy One Belt, One Road which seeks to
physically connect China to its markets in Asia, Africa, Europe and beyond. The New Silk
Road will link China with Europe through Central Asia and the Maritime Silk Road to ensure
a safe passage of Chinas shipping through the Indian Ocean and the South China Sea. CPEC
will link China with nearly half of the population of the world.

Development of Gwadar seaport and improvement of the infrastructure in the hinterland would
help China sustain its permanent naval presence in the Gulf of Oman and the Arabian Sea.

At the same time, the new silk roads are bound to intensify ongoing competition between India
and China and to a lesser extent between China and the US to invest in and cultivate
influence in the broader Central Asian region.

Conclusion:
The CPEC connected to Gwadar has the potential to radically alter the regional dynamics of
trade, development and politics. CPEC is a game changer for the entire region. It will uplift the
lives of about 3 billion people across China, Central Asia, South Asia and the Middle East.

The time and tide is not in favor of the detractors. They will die their death in the hurricane of
CPEC since China is determined to make Pakistan a success story. $46 billion economic
package is Chinese gift for people of Pakistan.

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