CPEC(China-Pakistan Economic Corridor) • Pakistan and China has great economic relation since the starting day. • China Pakistan Economic corridor is a framework of regional . connectivity. • The project was officially initiated in the Xi jinping Government. Purpose Of CPEC • The nearest port in China is about 4500 km away from Sinkiang, however, Gwadar is 2500 km away. • China can save money and time, if Pakistan is willing to provide him way to one of its Port • China has always showed a great interest in Gwadar Port. CPEC will be way to it. • The role of Pakistan is to just provide the gawader port and access to it and in return China is assisting the Pakistan in many Projects. Major Projects Of CPEC Infrastructure Projects Estimated Cost Status Gwadar Port 300 US $ million Partially Completed Gwadar-Turbat-Hoshab (M-8) (193 km) Rs. 13 billion Completed Surab-Hoshab (N-85) (449 km) Rs. 17.97 Billion Completed Zhob - Quetta (Kuchlak) (N-50) (305 km) Rs. 66.8 Billion Under Construction Reconstruction of the Karakoram Highway Phase II (Thakot -Havelian Section) (118 km) 1,315 US $ million Completed Multan-Sukkur Motorway (M-5) (392 km) 2,889 US $ million Completed Abdul Hakeem-Lahore Motorway (M-3) (230 km) Completed Hakla D.I Khan Motorway (285 km) Rs. 122.2 billion Completed Khuzdar-Basima Road N-30 (110 Km) 19.19 Billion Rupee Under Construction Orange Line (Lahore Metro) 1,626 US $ million Completed Expansion and reconstruction of existing Karachi–Peshawar Line ML-1 (1872 Km) 6,808 US $ million In Planning Infrastructure Projects Estimatd Cost Status Havelian Abbottabad Dry Port (450 M. Twenty-Foot Equivalent Units) 65 US $ million In Planning Gwadar East Bay Expressway (19 Km) 179 US $ million Completed Pak China Friendship Hospital 100 US $ million Under Construction New Gwadar International Airport 230 US $ million Under Construction Pakistan-China Fiber Optic Project 37.4 US $ million Completed Pak-China Technical And Vocational Institute At Gwadar 10 US $ million Completed Energy Projects Estimated Cost Status Kohala Hydropower Project, AJK (1100 MW) 2,400 US $ million Under Construction Azad Pattan Hydropower Project, AJK (701 MW) 1,600 US $ million Under Construction Dawood wind power project (50 MW) 112.65 US $ million Completed Karot Hydropower Project (720 MW) 1,698 US $ million 90% Completed Pakistan Port Qasim Power Project (1320 MW) 1,912 US $ million Completed Quaid-e-Azam Solar Park (1000 MW) 1,301 US $ million Partially Completed How it get started? • Chinese interest in Pakistan's deep-water harbor at Gwadar had been rekindled by in 2002 • Expansion of Gwadar port then ceased thereafter owing to political instability in Pakistan following the fall of General Pervez Musharraf and Subsequent conflict between the Pakistani state and Taliban militants • In Feb 2014, President Mamnoon Hussain visited China and discuss the plans for economic corridor in Pakistan. • Two months later, Pakistan Prime Minister Nawaz Sharif met with Premier Li Kequiang in China to discuss further plans. • In November 2014, Chinese government announced its intention to finance Chinese companies as part of its $45.6 billion energy and infrastructure projects in Pakistan as part of CPEC Financing Of CPEC • Initial $46 Billion • $34 Billion, Foreign direct investment • $12 Billion, Gov-Gov • Concessional loan • Government to Government infrastructure projects • Energy Development projects (10,400MW) Challenges For CPEC • India Concerns • Pakistan Own political parties • CPEC and Balochistan Factor • CPEC and KPK Factor • Security Concerns • CPEC and Ecnonmic Facto • CPEC and Tax and Power Tariff Issues India Concerns • Concerned about China huge investment in Pakistan. • Pakistan may become trade hub after completion of Gwadar. • Narendra Modi pressed the president of China during his visit to Beijing to drop the plan of developing the corridor. • There have long been reports that Delhi is fuelling insurgency in Balochistan • Experts believe the India-UAE nexus will try to fail the Gwadar Port development project • Accusing Pakistan that he has providing way China to invade India. CPEC and Balochistan Factor • This province has been dogged for over a decade by a bloody separatist insurgency. • Baloch insurgents have blown up numerous gas pipelines and trains and have attacked Chinese engineers. • fear that if Balochistan develops then outsiders would move in. • kidnappings and killings of Chinese workers • Baloch thinks that they will lost their culture by this CPEC. • Brahamdagh Bugti is one of the Baloch leader who openly oppose it. CPEC and KPK Factor • Stereotype is being produced that it will benefit only Punjab. • The Western route as the original route would be followed by building a road from Khunjerab to Gwadar via Mianwali, Dera Ismail Khan, Dera Ghazi Khan, Khuzdar and Turbat. However China is more interested to work on eastern route due to security concerns • Sikander Sherpao resolution that change in original plan of the project will be sheer injustice with the people of KPK. • security situation in these provinces is another impediment Security Concerns • Parties Like BLA,TTP,ETIM,LEJ didn’t have enmity with china but used to attack on china interests as to deal with Pakistani state. • The support of American CIA, Israeli Mossad and Indian RAW has continuously been assisting the militant groups. So till now many Chinese engineers and workers have been kidnaped and killed. • Special Security Division, will comprise nine army battalion and six wings of paramilitary forces to cover security problems. CPEC and Economic Factor • the greatest challenge comes from competitors • India intends to invest significantly ($85 million) in the development of Chabahar • Chabahar will effectively way energy imports coming from the Gulf region and Afghanistan and Central Asia. • Gateway to middle east and Euorpe • Pakistan refuses to allow India access of transit to Afghanistan,So India choose Iran as next option. • If Pakistan extends transit facilities to India, and then India may not be interested in building up Chabaha CPEC and • China has raised concerns over the issue of tax. • Acc. to the agreement, under CPEC, the imported equipment would be exempt from sales tax and . However, approval procedure from FBR is proving timeconsuming, which is negatively impacting on project construction timelines. Issues CPEC and • Overcoming Energy crises • Infrastructure development • Economic Development • Balanced environment in South Asia • Removal of poverty • Peace and prosperity in Provinces for Pakistan Overcoming Energy crises • CPEC is the ideal project which will help rid country of the energy crises • In the energy sector, project totaling 10,400 megawatts had been included in the early harvest (first priority) programme. • These projects would be based on wind, solar, coal and hydropower generation of 16,400 MW • Name and Details have been discussed at the start of Slides. Infrastructure development • Infrastructure development – including the development of roads, ports and highways is another important segment of CPEC. • After the complementation of this Project, Pakistan will become modernize • CPEC route would be utilized for the creation of economic and industrial free zones. • areas adjacent to the corridor would become attractive locations for manufacturing, agricultural and services industries. • Name and details are provided at start Economic Development • China Pakistan Economic Corridor will help build a robust and stable economy in Pakistan and will create a significant opportunity. • This project will go beyond regional ambits to bring about enormous changes not only to the national economies of the benefiting states but also to the economics of the people at the grassroots level. Balanced environment in South Asia • CPEC is the crown jewel in the new Pakistan economic paradigm because Pakistan has the opportunity to act independently of the western influence especially the US influence as it has proved of late, an irritant factor • CPEC Project will also bring an opportunity to Pakistan for normalization of ties with India, Iran and Afghanistan which will keep balance, strengthen prospects of peace and improve socio-economic status of the people of the region. • CPEC is a game changer project which will lift millions of Pakistanis out of poverty and misery • The project embraces the construction of textile garment, industrial park projects, construction of dams, the installation of nuclear reactors and creating networks of road, railway line which will generate employment and people will also take ownership of these projects.
