The document summarizes China-Pakistan Economic Corridor (CPEC), a multi-billion dollar infrastructure project between China and Pakistan. CPEC aims to improve connectivity between China and the Middle East through Pakistan. It involves numerous energy and transportation projects, including roads, railways, and pipelines. CPEC is expected to bring significant economic benefits to both countries by reducing costs, boosting trade, and improving infrastructure development in Pakistan. Some challenges to CPEC include security threats, political instability, and concerns about equitable regional development within Pakistan.
4. Preliminaries
2002
⢠Pervez Musharraf introduced the proposal of a collaboration
2006
⢠China shows interest in the proposal
2013
⢠Mutual consensus on the need for C-PEC
2014
⢠Pakistanâs Prime Minister discuss C-PEC with Chinaâ
2015
⢠China announces its approval with initial investment of 45.6 billion
2016
⢠Further projects worth 1.6 billion are signed related to rail networks
12. Projects
o Energy Sector projects
o Energy Sector Projects
(COAL)
o Gwadar Port And City
o Roadway Projects
13. Energy Sector projects
o Quaid-e-Azam Solar Park (1000MW)
o Jhimpir Wind Power Plant (250 MW)
o Dawood wind power project (50MW)
o Kohala Hydropower Project (1100 MW)
o Karot Dam
o Diamer-Bhasha Dam
14. Energy Sector Projects
⢠THAR 1 & 11
⢠Pakistan Port Qasim Power
Project (1320 MW)
⢠Sahiwal Coal Power
Project(1320 MW)
15. Gwadar Port And City
⢠Port will be upgraded for larger
ships deadweight tonnage of up
to 70,000.
⢠construction of a $130 million
breakwater around the port
⢠2,282 acre free trade area in
Gwadar
16. Gwadar Port And City
⢠Gwadar International Airport
⢠300MW coal power plant
⢠A New Hospital
⢠construction of the East Bay
Expressway â a 19 kilometer
20. China Interest
ďąSignificance for China
⢠13thFive Year Plan which proves its importance for China.
⢠invested 46 billion dollars
ďąStrategic interest
⢠String of Pearls Policy.
⢠Naval bases in Indian Ocean.
23. Pakistan's Interest
ďąGains for Pakistan
⢠Increased Revenue
collected from Taxes.
⢠Fall in unemployment
⢠Equitable distribution of
income
Political
⢠GDP rise
⢠Decrease in budget
deficit.
⢠Cheaper raw material
available and low
transport cost.
⢠Export to other countries
via deep sea port.
Economy
⢠Better relations with
China
⢠Reduced dependency on
US aid
⢠Improvement in Pak-
afghan relations.
⢠Improvement for
Baluchistan
relations
25. Afghanistan and CPEC
⢠Pakistan has faced serious retaliation from Afghanistan due to
afghan-baloch war .
⢠CPEC helps bridge the gap as it interlinks Pakistan with the
previously neglected Baluchistan.
⢠Involvement of China will lead to better negotiations between
Pakistan and Afghanistan .
26. Economic benefits for Pakistan
⢠CPEC has opened vista of great opportunities for Pakistan and will
greatly help in overcoming poverty, unemployment and inequities
of smaller provinces.
⢠Investments by China will boost Pakistanâs $274 billion GDP by
over 15%.
⢠Pakistan enjoys a more favorable fiscal budget situation compared
to India by reducing its budget deficit to 4.7% of GDP in 2014 (as
against Indiaâs 7%).
27. Bright Future Ahead
⢠Chinaâs investment surpasses all foreign investments in Pakistan in
the past. Win-win cooperation is based on trust, confidence and
convergence of interests.
⢠Chinaâs economic and military assistance will help Pakistan a great
deal in narrowing its ever widening gap in economic-military-
nuclear fields with India and in bettering its defense potential.
⢠Revival of economy in the coming period is bound to make
Pakistan an attractive destination for foreign investors.
28. Economic Benefits for China
⢠Currently oil is transported by ship from the Strait of Malacca to
Shanghai, a distance of more than 16,000 km,But once Gwadar
begins operating, the distance would be reduced to less than 5,000
km.
⢠Not only time saving but also less costly.
⢠It help China sustain its permanent naval presence in the Gulf of
Oman and the Arabian Sea.
29. Loopholes
⢠Political instability is the greatest impediment to any project. In
September 2014, Chinese President Xi Jinpingâs visit to Pakistan
was cancelled in light of the sit-ins in Islamabad led by an
opposition party.
⢠Security threats because of groups like Taliban's and Baluchistan
Liberation Army (BLA) may intend to attack to damage the
infrastructure and economy.
30. Controversies Raised in CPEC
⢠Eastern route benefits Punjab and Sindh and bypasses major
portion of Baluchistan and KP.
⢠Eastern route is unsafe being close to Indian border.
⢠Orange Line Train project is from CPEC allocations.
⢠Successive govts will have to remain focused and committed to
completion of projects in hand.
31. Conclusion
⢠This is a golden opportunity for Pakistan as China itself is investing
46 billion dollars in Pakistan.
⢠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.