China Pakistan Economic Corridor
(CPEC)
5th November, 2015
1
Signing of MOU on CPEC - July 05, 2013, Beijing
Prime Minister Muhammad Nawaz Sharif’s visit to China in
July 2013 – his first official overseas trip since assuming office
2
MoU - CPEC
– The aim of the MoU is to enable the Government to
cooperate in the planning and development of CPEC and
facilitate and intensify economic activity along the
Corridor.
– The Ministry of Planning, Development & Reform
(MPD&R) is the focal Ministry for this engagement
whereas its counterpart in China is National
Development and Reform Commission (NDRC).
3
Cooperation Fields
China Pakistan Economic Corridor Long Term Plan :
Timeframe 2014 – 2030
Components:
I.
II.
III.
IV.
V.
Gwadar ( including port and city and Gwadar region socioeconomic development)
Energy (Coal, Hydel, Wind, Solar, LNG , Transmission)
Transport Infrastructure (Road, Rail, Aviation)
Investment & Industrial Cooperation (Gwadar Free Zone and
other industrial parks to be finalized)
Any other area of interest mutually agreed
4
Institutional Framework - CPEC
Joint Cooperation Committee
(Co-Chaired by Minister PDR and Vice Chairman NDRC)
Long Term Planning
Energy
Joint Working Group
Joint Working Group
Transport Infrastructure
Gwadar
Joint Working Group
Joint Working Group
Investment & Industrial Cooperation
Joint Working Group (Being
formulated)
5
CPEC Portfolio-Projects
PROJECTS
Energy
US$ Millions
33,793
Transport and Infrastructure
Roads
6,100
Rail Network
3,690
Gwadar Port
786
Others
44
Total
44,413
6
CPEC-Energy Priority Projects
Sr.
No
Projects
MW
Cost (US$ M)
1 Port Qasim Electric Company Coal Fired, 2X660, Sindh
1320
1,980
2 Sahiwal 2x660MW Coal-fired Power Plant, Punjab
1320
1,600
660
1,000
Engro thar 2x330MW Coal-fired, Thar, Sindh
3 Surface mine in Block II of Thar Coal field,3.8 mtpa,
Thar Sindh
860
4 Gawadar Coal Power Project, Gwadar
300
360
5 Muzaffargarh Coal Power Project, Punjab
1320
1,600
6 Rahimyar Khan Coal Power Project, Punjab
1320
1,600
1320
1,300
7
SSRL Thar Coal Block 6.5mpta &CPIH Mine Mouth
Power Plant, Thar, Sindh
7
CPEC-Energy Priority Projects
Sr.
No
MW
Cost (US$ M)
1000
1,350
9 Dawood 50MW wind Farm, Bhambore, Sindh
50
125
10 UEP 100MW wind Farm, Jhimpir, Sindh
100
250
11 Sachal 50MW Wind Farm, Jhimpir, Sindh
50
134
12 Sunnec 50MW wind Farm, Jhimpir, Sindh
50
125
13 Suki Kinari Hydropower Station, KPK
870
1,802
14 Karot Hydropower Station, AJK & Punjab
720
1,420
10400
15,506
8
Projects
Quaid-e-Azam 1000MW Solar Park, Bahawalpur,
Punjab
Total (Priority)
8
CPEC-Energy Actively Promoted Projects
Sr. No
15
Projects
MW
Cost (US$
M)
2640
7,920
Gaddani Power Park Project
(i) 4×660MW
(ii) Jetty + Infrastructure
1,200
(iii) Transmission Line to Lahore and Faisalabad
3,000
16
HUBCO coal power plant, Hub Balochistan
660
970
9
CPEC-Energy Actively Promoted Projects
Sr.
No
MW
Cost (US$
M)
525
550
300
800
19 Kohala Hydel Project, AJK
1100
2,397
20 Pakistan Wind Farm II (Jhampir, Thatta, Sindh)
100
150
21 Thar mine mouth oracle, Thar Sindh
1320
1,300
Total (Actively Promoted)
6645
18,287
TOTAL Energy Projects
17045
33,793
Projects
Chichoki Mallian 525MW Combined-cycle Power Plant,
Punjab
Salt Range Mine Mouth Power Project including mining,
18
Punjab
17
10
CPEC-Transport Infrastructure Sector Projects
Sr.
No
Projects
Length (km) Cost (US$ M)
Roads
1 KKH Phase II (Raikot – Islamabad Section)
440
3,500
2 Peshawar-Karachi Motorway (Multan-Sukkur Section)
392
2,600
1736
3,650
Rail Sector Projects
1 Expansion and reconstruction of existing Line ML-1
2 Havelian Dry port (450 M. Twenty-Foot Equivalent Units)
TOTAL
40
9,790
11
CPEC-Gwadar Port Related Projects
Sr.
No
Projects
Cost (US$ M)
1 Eastbay Expressway
140.00
2 Gwadar International Airport
230.00
3 Construction of Breakwaters
130.00
4 Dredging of berthing areas & channels
5
Infrastructure for Free Zone & EPZs port related
industries
27.00
35.00
6 Necessary Facilities of Fresh Water Treatment and Supply
114.00
7 Hospital at Gwadar
100.00
8 Technical and Vocational Institute at Gwadar
Total Gwadar Port Projects
10.00
786.00
12
Other Projects
Sr.
No
Projects
1 Cross Border Optical Fiber Cable
Length (km)
Cost (US$
M)
44
2 DTMB
Total
44
Total Cost of CPEC Projects
44,413
13
CPEC
Transformation
Aimed at Regional Integration for peace and
economic development
14
PAKISTAN’S GEO-STRATEGIC GEOGRAPHIC
LOCATION
Jamu & Kashmir
Disputed Territory
BANDAR ABBAS
The Landscape of CPEC
Khunjerab
Peshawar
Gilgit
Skardu
Raikot
Havelian
Nodes of CPEC
Peshawar
Islamabad
Islamabad
Quetta
DI Khan
Faisalabad
Quetta
Lahore
Khanewal
DG Khan
Lahore
Jacobabad
Gwadar
Basima
Khuzdar
Sukkur
Hoshab
Gwadar
Sukkur
Kotri
Karachi
Hyderabad
Karachi
Gwadar and its Multiple Destinations
Envisioning
Interconnected World
of Peace & Development
by serving multiple
markets & destinations
Gwadar and its Destinations
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CPEC - Context
Regional Connectivity
is the 7th Pillar of
Pakistan Vision 2025
Integrates/links Silk Road
Economic Belt and
21st Century Maritime
Silk Route
Serves Asia’s over 3 Billion population
Significance/Potentials of CPEC
• Regional Connectivity
– Transport Infrastructure
– Energy Hub/flows
– Logistic Hub/flows
– Trade & Commerce
– Peace & development of region
– Connectivity/Harmonnization/Integration of
civilizations
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Significance/Potentials of CPEC
•
•
•
•
•
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•
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•
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Diverse Investment opportunities
Industrial Cooperation
Financial Cooperation
Agricultural Cooperation
Tourism
Educational linkage
Human resource development
Health Care
People to people contact
Increase in livelihood opportunities
Enhance Security and stability of the region
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FINANCIAL MUSCLE BEHIND CHINA’S INITIATIVES
CPEC OPPORTUNITY
• IT PROVIDES A LINK BETWEEN CHINA’S SILK
ROUTE INITIATIVES OF ROAD &MARITIME
CONNECTING EUROPE, AFRICA, WESTERN,
CENTRAL AND EAST ASIA INORDER TO:
– SAVE TRAVEL TIME
– SAVE TRAVEL DISTANCE
– REDUCE LOGISTICAL COST
– PROVIDE ALTERNATIVES FOR RISK MANAGEMENT
"The starting point of all achievement is desire." --Napoleon Hill
VISION OF CPEC
TO IMPROVE THE LIVES OF PEOPLE OF PAKISTAN AND CHINA BY
BUILDING A ECONOMIC CORRIDOR PROMOTING BILATERAL
CONNECTIVITY CONSTRUCTION, EXPLORE POTENTIAL BILATERAL
INVESTMENT, ECONOMIC AND TRADE, LOGISTICS AND PEOPLE TO
PEOPLE CONTACT FOR REGIONAL CONNECTIVITY.
IT INCLUDES:
• INTEGRATED TRANSPORT & IT SYSTEMS INCLUDING ROAD, RAIL, PORT , AIR
AND DATA COMMUNICATION CHANNELS
• ENERGY COOPERATION
• SPATICAL STRUCTURES, FUNCTIONAL ZONES, INDUSTRIES AND INDUSTRIAL
PARKS
• AGRICULTURAL DEVELOPMENT & POVERTY ALLEVIATION
• TOURISM COOPERATION & PEOPLE TO PEOPLE COMMUNICATION
• COOPERATION IN LIVELIHOOD AREAS
• FINANCIAL COOPERATION
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CPEC FRAMEWORK 1+4
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•
•
•
ENERGY COOPERATION
INFRASTRUCTURE DEVELOPMENT
GWADAR PORT
INDUSTRIAL COOPERATION
"You can't connect the dots looking forward; you can only connect
them looking backwards. So you have to trust that the dots will
somehow connect in your future. You have to trust in something--your
gut, destiny, life, karma, whatever. This approach has never let me
down, and it has made all the difference in my life." --Steve Jobs
ROLE OF CHAMBERS OF COMMERCE AND
INDUSTRY ASSOCIATIONS IN CPEC
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Need to facilitate Chinese Investors for one window operation
Identify policy gaps as compared to other countries.
Identify industries which could be shifted from China to Pakistan
Identify components of supply chain we could tap for core industries we
should establish
Help in getting local input/involvement.
Help in identifying and developing local talent/core competencies
Help in capturing the benefits of world classes logistical setups along the
Corridor for businesses
Transfer of Chinese know how and best practices
Help business in availing HBL and ICBC collaboration for financing CPEC
projects
Help in match making for successful JVs/collaborations for creating
investment opportunities
Goal: Entrepreneurship at all market segments should avail CPEC
opportunity with goal to make pilot industrial park a model for
26
WIN-WIN COOPERATIONS
We need to aim for cooperation in those sectors which
will result in a win-win scenario:• Chinese Prospective
– Products whose total cost could be reduced by shifting.
– Products whose quantity sold could be increased to solve
the overcapacity problem.
– Provide growth opportunities in view of domestic slow
down.
• Pakistani Prospective
– Reduce reliance on imports
– Increase exports and improve industrialization process
– Benefit from Chinese R&D
IMPORT PROFILE OF PAKISTAN
TOTAL IMPORTS F.Y. 2014 47.5 B
IMPORTS FROM CHINA $9.6B-20%
• Electronic equipment: $2.3 B
• Oil $ 14.8 B
• Machine, engine & pump $3.7 B • Machine, engine, pumps: $1.4B
• Iron and steel: $712.7 M
• Electric equipment $ 3.3 B
• Fertilizers: $551.7 M
• Iron & Steel $2.3 B
• Organic chemicals: $490.8 M
• Animal &vegie fats $2.2 B
• Manmade filaments: $479.4M
• Organic chemical $2.0 B
• Plastics: $335.8 M
• Plastics $2.0 B
• Manmade staple fiber:$310.9M
• Vehicles $1.3 B
• Iron or steel products: $292.9M
• Fertilizers $813.3 M
• Rubber: $195.9 million
• Oil Seed $780.7 M
EXPORT PROFILE OF PAKISTAN
TOTAL EXPORTS F.Y 2014
Major items of total shipments:
•
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mineral fuels 19%
manufactured goods 19%
beverage and tobacco 13%
food and live animals 11%
crude materials 11%
chemicals 11%
machinery 8%
miscellaneous articles 8%
TOTAL EXPORTS TO CHINA $2.7 B
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Cotton: $1.9 B
Cereals: $144.1 M
Ores, slag, ash: $129.2 M
Salt, S, stone, cement: $63.5 M
Raw hide$57.1 M excl furskin
Plastics: $43.1 M
Food waste, animal fodder: $37.8 M
Copper: $36.6 M
Fish: $35.8 M
Gums, resins: $29.7 M
Main export partners were:
•
•
•
•
United States (13.6 %)
China (11 %)
United Arab Emirates (8.5%)
Saudi Arabia (8.5 %).
29
China became world’s largest trading country
total export & imports of goods in 2012
OUR OBJECTIVES
• We need ways to harness the positive
potential of Chinese flows to raise living
standards and shared prosperity while
mitigating the associated risks and
challenges.
• The cost of being left behind—for Pakistan,
our businesses/companies, and citizens—is
rising with time.
Goal: To Become An Asian Tiger
"All our dreams can come true if we have the
courage to pursue them."
--Walt Disney
CPEC aims at regional connectivity for peace &
development where private sector has key role to
play for exploiting the potentials/environment for
the economic growth of the country
and
it would succeed with integrated efforts of all for
the better future of us & the region/the world
33
Thanks
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