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China- Pakistan Economic Corridor
(C-PEC)
INTRODUCTION
o C-PEC
o Preliminaries
C-PEC
• Acronym C-PEC
• Elements of C-PEC
• Agents Involve
• General Observation
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
• Pakistan’s Prime Minister discuss C-PEC with China’
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
China-Pak Relations
o Past
o Current
o Future
Past
Neighbour
Disputed Border
Support in Wars
Economic Aids
Current
Issue of Kashmir
International platforms
Military Collaboration
Major Trading Partner
Future
Mutual Trading
Blog
International
Stage
Economic
Corridor
Objectives
o Why
o For Whom
Why
Establish a trading hub
Enhance Infrastructure
Develop Industrial Sector
Initiate free trade
For Whom
Pakistan Need’s
Internationa
l Support
Financial
Support
Technologic
al Support
China Need’s
Allies
Economic
Blog
Trading
Routes
Projects
o Energy Sector projects
o Energy Sector Projects
(COAL)
o Gwadar Port And City
o Roadway Projects
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
Energy Sector Projects
• THAR 1 & 11
• Pakistan Port Qasim Power
Project (1320 MW)
• Sahiwal Coal Power
Project(1320 MW)
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
Gwadar Port And City
• Gwadar International Airport
• 300MW coal power plant
• A New Hospital
• construction of the East Bay
Expressway – a 19 kilometer
Roadway Projects
• Reconstruction of the
Karakoram Highway
• Karachi to Lahore
Motorway (M5)
• Brahma Bahtar-Yarik
Motorway
Railway Projects
• Karachi–Peshawar main railway
line
• Orange Line Metro
• Khunjerab Railway
• Main Line 3 Railway
Reason for C-PEC
o China Interest
o Pakistan Interest
China Interest
Significance for China
• 13thFive Year Plan which proves its importance for China.
• invested 46 billion dollars
Strategic interest
• String of Pearls Policy.
• Naval bases in Indian Ocean.
China Interest
Economic interest for China
• Wide coverage.
• Reduce distance
• Containerized traffic costs
China Interest
Strait of Hormuz
• Cost of imports
• Regular supply.
• Multiple sources
Pakistan's Interest
Gains 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
Pakistan's Interest
Indian concerns
• Rivalry
• Support of China
• Diplomatic problems between China and India
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 .
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 Pakistan’s $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 India’s 7%).
Bright Future Ahead
• China’s investment surpasses all foreign investments in Pakistan in
the past. Win-win cooperation is based on trust, confidence and
convergence of interests.
• China’s 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.
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.
Loopholes
• Political instability is the greatest impediment to any project. In
September 2014, Chinese President Xi Jinping’s 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.
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.
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.

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China-Pakistan Economic Corridor: A Game Changer for the Region

  • 1. China- Pakistan Economic Corridor (C-PEC)
  • 3. C-PEC • Acronym C-PEC • Elements of C-PEC • Agents Involve • General Observation
  • 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 • Pakistan’s Prime Minister discuss C-PEC with China’ 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
  • 5. China-Pak Relations o Past o Current o Future
  • 7. Current Issue of Kashmir International platforms Military Collaboration Major Trading Partner
  • 10. Why Establish a trading hub Enhance Infrastructure Develop Industrial Sector Initiate free trade
  • 11. For Whom Pakistan Need’s Internationa l Support Financial Support Technologic al Support China Need’s Allies Economic Blog Trading Routes
  • 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 – a 19 kilometer
  • 17. Roadway Projects • Reconstruction of the Karakoram Highway • Karachi to Lahore Motorway (M5) • Brahma Bahtar-Yarik Motorway
  • 18. Railway Projects • Karachi–Peshawar main railway line • Orange Line Metro • Khunjerab Railway • Main Line 3 Railway
  • 19. Reason for C-PEC o China Interest o Pakistan Interest
  • 20. China Interest Significance for China • 13thFive Year Plan which proves its importance for China. • invested 46 billion dollars Strategic interest • String of Pearls Policy. • Naval bases in Indian Ocean.
  • 21. China Interest Economic interest for China • Wide coverage. • Reduce distance • Containerized traffic costs
  • 22. China Interest Strait of Hormuz • Cost of imports • Regular supply. • Multiple sources
  • 23. Pakistan's Interest Gains 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
  • 24. Pakistan's Interest Indian concerns • Rivalry • Support of China • Diplomatic problems between China and India
  • 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 Pakistan’s $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 India’s 7%).
  • 27. Bright Future Ahead • China’s investment surpasses all foreign investments in Pakistan in the past. Win-win cooperation is based on trust, confidence and convergence of interests. • China’s 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 Jinping’s 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.