Scribd
Upload
26 views

Assignment # 4: China-Pakistan Economic Corridor

This document is an assignment on computing fundamentals submitted by Arslan Maqbool to Mr. Mudassar Hameed at the University of Engineering and Technology in Lahore, Pakistan. It discusses the historical background of Pakistan-China relations and the China-Pakistan Economic Corridor (CPEC) project. CPEC is a long-term investment in infrastructure that aims to connect China and Pakistan. The assignment analyzes the estimated local investment component in CPEC and its potential impact on Pakistan's GDP growth. It also examines the debate around which route (central, eastern, or western) CPEC should take.

Uploaded by

Arsal Maqbool
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
26 views

Assignment # 4: China-Pakistan Economic Corridor

This document is an assignment on computing fundamentals submitted by Arslan Maqbool to Mr. Mudassar Hameed at the University of Engineering and Technology in Lahore, Pakistan. It discusses the historical background of Pakistan-China relations and the China-Pakistan Economic Corridor (CPEC) project. CPEC is a long-term investment in infrastructure that aims to connect China and Pakistan. The assignment analyzes the estimated local investment component in CPEC and its potential impact on Pakistan's GDP growth. It also examines the debate around which route (central, eastern, or western) CPEC should take.

Uploaded by

Arsal Maqbool
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 7

Assignment # 4

Subject: Computing Fundamentals

Department: Chemical Engineering

(1st semester)

Reg # 2016-CH-434

Submitted to: Mr. Mudassar Hameed

Submitted by: Arslan Maqbool

University of Engineering and Technology, Lahore


(Faisalabad Campus)

China-Pakistan Economic Corridor


Computing Fundamentals | 2016

Introduction
Sustainable growth and development in China during the last
four decades has assigned the country a special status in the
world economy. The financial crisis of 2007-08 not only
strengthened the Chinese economy but also enhanced its role
and say in global governance. Though China has started re

defining its role in the 1990s, war on terror gave it an ample


time to think and devise its strategies in accordance with the
new world scenario. China has now started working more
closely with Pakistan in areas of new investments and
partnerships. The process started way back in the 1990s;
however, a joint declaration in this regard was the concrete

outcome after a meeting between President Hu Jintao and


President Gen. Pervez Musharraf in 2003 at Beijing (FMPRC,
2003). The declaration highlighted the areas of cooperation for

1
Computing Fundamentals | 2016
future. A joint statement in 2006 further strengthened the
cooperation when Free Trade Agreement (FTA) was signed
during the visit of President Hu Jintao to Islamabad in 2006.

Historical Background of Pak-China


Relations
Pakistan and China have been enjoying cordial and friendly
relations since 1950. The first decade of relations was not as
smooth as it were after 1960 especially after the China-India
war, and Pakistan. India war.Relations between the two
countries later strengthened after the devaluation of Indian
currency in 1949 which impacted Pakistan’s economy badly.
Pakistan was importing coal for its nascent industry, but the
devaluation halted the trade leaving Pakistan with no choice
except to enter into an agreement with China on barter trade
of coal for cotton. Relations further enhanced after the two
countries signed a trade agreement in 1953 (Dixit, 1987).From
1970s onwards, the relations between Pakistan and China
strengthened more in all sectors. China has generously
supported. As a result of this long-standing friendship, we see

2
Computing Fundamentals | 2016
a big achievement in the form China-Pakistan Economic
Corridor (CPEC).

China Emergence as Global


Leader
China has been working since decades to restore its lost glory.
Since Mao’s time, China has devised a policy of
cosmopolitanism and made it the most important pillar of its all
policies. First, China worked with group of Non-Allying
countries and gradually enhanced its role. Bandung
Conference as launching pad and strengthened its relations
with many developing countries. China also remained neutral
in international affairs and focused gradually on the economic
development and building economic relations with the
world.International media, academicians, many western
countries and India believe that CPEC is a strategic corridor,
which covers the trade and development needs of Pakistan. It
has become one of the highly-debated issues within the
country and internationally.

3
Computing Fundamentals | 2016

Estimation of Local Component in CPEC:

Investment Domestic Domestic


(US$ BN) Share Share
(US$ BN)
Energy (Breakup is 33.8
given below)
Coal 7560 MW 8.8 20 1.8
Wind 200 MW 0.5 50 0.1
Hydal 1590 MW 4.2 80 2.1
Solar 1000 MW 1.7 50 0
Second Phase 6445 MW 9.5 20 1.9
Mining Expenditure 9 50 4.5
Road 5.9 80 4.7
Rail 3.7 50 1.8
Mass transit in Lahore 1.6 50 0.8
Gwadar Port 0.7 0 0.3
China Pak Fiber Optics 0 0
Total 45.7 18.1
Second, they analyzed the potential impact of investment on
national GDP. According to a study, for one unit incremental
growth in GDP, there is need for 3.6 units of incremental

4
Computing Fundamentals | 2016
investment. CPEC will increase GDP growth rate at 1.5 per cent
in next three years. Moreover, it will also enhance the private
investment due to positive environment, economic
opportunities.

Private investment will add 0.5 per cent to the GDP of country
(Table-). Cumulative impact of investment would be 02 per cent
during 2016-2018. It is expected that growth rate during that
period would be beyond 6 per cent (Naseem , 2015)per year1.

Budgetary allocations were/are contrary to the government


claims for giving the priority to western route. Allocation shows
that the government is focusing more on Eastern route and is
giving less preference to the Western route. DrQasir, tried to
sum up the debate and presented rationale for action on any
route. He did an analysis on basis of land, population and
production factors (Table-). He also included the central route in
the debate. According to him, the first presentation on the
subject in 2005 only contained the central route.

President Xi’s visit to Saudi Arabia and Egypt (and Iran will be
final destination) is another step to enhance the periphery of
friend, on the lines defined in foreign policy.
Routes of CPEC:

5
Computing Fundamentals | 2016

Central Eastern Western


Route Route Route
Average Population 156 264 98
Density
Total Area under 5829 10322 2933
cultivation (000 ha)
Production of four 13754 30928 7430
major crops (000 tons)

Analysis of facts and figures shows that CPEC is critically


important for both countries. Pakistan needs it to overcome its
economic, development, social and energy problems. China
needs it to expand its periphery of influence, consolidate its
global presence and securing future supply routes of energy
and trade goods. However, important point to note here is that
concept was developed by China, as part of its policy “Go
Global 2001”. Pakistan is one of the beneficiaries of Chinese
dream. Therefore, it is advisable for Pakistan to remain
focused on development of the country rather than wasting
time on petty issues. Provincialism should not be given the
chance to hijack the development agenda by any stakeholder,
including the federal government.

You might also like