pak china economic corridor ..... impact of this in pakistan economy.......

1. PAK CHINA ECONOMIC CORRIDOR

2. PRESENTED BY:
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TANWEER
RASHID ALI
WAHEED MURAD
AMANULLAH
SHERISH HASSAN
PAK CHINA ECONOMIC CORRIDOR

3. HISTORY OF PAK CHINA
RELATIONS
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 Pakistan–China relations began in 1950
 Strategic alliance was formed in 1972 and economic cooperation began in 1979
 China has invested $20 billion in various projects
 Mega infrastructural projects in Pakistan
 Gwadar Port, the Coastal-Highway linking Karachi with Gwadar,
Karakoram Highway, the Chashma nuclear power plants, and a
number of hydro-power projects.
PAK CHINA ECONOMIC
CORRIDOR

4. PAK-CHINA ECONOMIC CORRIDOR
 The kkh was started in 1959 and was completed in 1979 (open to the
public since 1986 )
 Length 1,300 km (Pakistan 887 km ) China 413 km
 It connects China's Xinjiang region with Pakistan's Gilgit–Baltistan
and Khyber Pakhtunkhwa regions
 Major cities Hasanabdal, Abbottabad, Thakot, Chilas, Gilgit, Aliabad,
Sust, Khunjerab Pass, Kashgar
 The importance Karakoram Highway
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Chinese companies
Tourism in Pakistan
Transportations
PAK CHINA ECONOMIC CORRIDOR

5. The KKH highly contribute economic activities of both
countries export and import
PAK CHINA ECONOMIC CORRIDOR

6. *
On 8 September 1958 prince Aga khan karim purchased the Gwadar enclave from Oman for $3
million, and gave it to Pakistan and it officially became part of Pakistan
Gwadar Port is located at the mouth of the Persian Gulf
Gwadar is a planned free trade port
Gwadar Port is a strategic developed jointly by the both countries
 National
Highway Authority (NHA) began construction of the 653 km-long Makran Coastal
Highway linking Gwadar with Karachi,
 In
2004, Pakistan's NHA began construction of the 820-km long M8 motorway linking Gwadar
with Ratodero in Sindh province Turbat, Hoshab, Awaran and Khuzdar
 In 2007
Civil Aviation Authority of Pakistan acquired 6,000 acres (17-24 km2) to construct a
new greenfield airport, at an estimated cost of Rs 7.5 billion.

7. GWADAR ECONOMIC ZONE
GDA was established to promote industrial activities in
mega port city of Gwadar
China focused on the fast-track construction of
roads, other infrastructure and public buildings
In 2013, Gwadar Port operations were officially handed
over to China,
To connect china with Gwadar through railway track has
already begun
PAK CHINA ECONOMIC CORRIDOR

8. Outflow of goods from western China and Central Asia through
Gwadar
PAK CHINA ECONOMIC CORRIDOR

9. CURRENT PAK-CHINA ECONOMIC
CORRIDOR DEVELOPMENT
 Gwadar-Khunjerab-Kashgar
rail network
Gwadar-Khunjerab-Kashgar rail
network
 connecting the maximum
number of population through
a network of highways and
railways
 six-lane motorway to be built
from Karachi to Lahore. MoU’s
signed with China
PAK CHINA ECONOMIC CORRIDOR

10. OBJECTIVE OF PAK-CHINA
ECONOMIC CORRIDOR
 Increase
the volume of trade between
Pakistan and china
 Take
full advantage of preferential trade
agreement(PTA) and free trade agreement
(FTA)
 Increase
export to china, recently export to
china is $3.14 billion
PAK CHINA ECONOMIC CORRIDOR

11. OBJECTIVE OF PAK-CHINA
ECONOMIC CORRIDOR
 Pakistan
and china are second largest
partners in south Asia, this will help to retain
partnership
 Widen
Karakorum high way and open new
economic corridor from china to Gwadar
 Approximately
reduce 10000 km distance
and it is the shortest route
PAK CHINA ECONOMIC CORRIDOR

12. PAK CHINA ECONOMIC CORRIDOR

13. OBJECTIVE OF PAK-CHINA
ECONOMIC CORRIDOR
 Expand
trade with Afghanistan and it help
both countries to play their role in post-2014
Afghanistan
 Expand
trade with Russia by providing
trade route till Gwadar port
 Development
of infrastructure along
Pakistan
PAK CHINA ECONOMIC CORRIDOR

14. OBJECTIVE OF PAK-CHINA
ECONOMIC CORRIDOR
 China
access to the Indian Ocean with the
aim of widening its geopolitical influence
and military presence in the region
 Job
opportunities and economic
development in Baluchistan
 Increase
Chinese investment, Pakistani
investment in china will also be
encouraged
PAK CHINA ECONOMIC CORRIDOR

15. OBJECTIVE OF PAK-CHINA
ECONOMIC CORRIDOR
 Regional
peace, prosperity and elevate the
life of poor people of south Asia
 Enhance
trade among Pakistan, China, Gulf
States, Central Asia and Africa
 China
is interested to extend the IranPakistan pipeline to its western territory
PAK CHINA ECONOMIC CORRIDOR

16. ADVANTAGES OF PAK-CHINA
ECONOMIC CORRIDOR
Can benefit new emerging regional cooperation
Save time, cost and freight charges
Facilitate trade, have Economic Zone en-route
and will allow reaping of full benefits of
development, economic and social uplift

17. ADVANTAGES OF PAK-CHINA
ECONOMIC CORRIDOR
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 Increase the economic collaboration between
both countries by connecting western china
to Gwadar
 Regional stability in Asia as well as whole
world
 Pakistan economy will Boost
PAK CHINA ECONOMIC CORRIDOR

18. ADVANTAGES OF PAK-CHINA
ECONOMIC CORRIDOR
 Pakistan
can avail great opportunities from
chine’s expert in various sectors like energy
,Technology and Education sector
 Create
new employment opportunities
 Pakistan
and china both collectively target
the half of the population of the world ,it will
provide great opportunity for both countries
to expend their market
PAK CHINA ECONOMIC
CORRIDOR

19. DISADVANTAGES:
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FTA leads to threat for local markets and local
manufacturers
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Disturb of local industries
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Difficult to compete chine’s product in market
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Increase the ratio of unemployment
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Dependent to China
PAK CHINA ECONOMIC CORRIDOR

20. Huge difference between Balance of
payment Trade deficit
Trade Deficit
Pakistan-China trade
increased by 17.6%
to a total of US$ 12.4
billion in 2012.
00
3.14
China export to
Pakistan is
9.3billion
Pakistan’s export
to china is
3.14billion
PAK CHINA ECONOMIC CORRIDOR
9.2

21. DISADVANTAGES:
Focus on import rather than
Domestic production
Threat for potential group
Due to free trade agreement
with china leads to lack of
competition.
PAK CHINA ECONOMIC CORRIDOR

22. Recommendation:

Pakistan should create stability In its terrority to
implementation on that plan
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To make positive balance of trade Pakistan should
increase exports
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Agriculture products
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Textile products
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Leather
PAK CHINA ECONOMIC CORRIDOR

23.  Maintain favorable balance of trade
Precious stone
Sports goods
Textiles products

24. RECOMMENDATION:
• Restriction on that commodities which is harmful for our
industries
• To make a frame work to use Domestic currency for trade (barter system)
• Develop auto industries rather than focusing on import parts.
PAK CHINA ECONOMIC CORRIDOR

25. Implementations
of agreements
should be
addressed
Should provide
latest technology
Think tank should
collaborate by both
countries
PAK CHINA ECONOMIC CORRIDOR

26. RECOMMENDATION:
Pakistan should
implement and
handle policies up to
the mark
Utilization of raw
material and value
added process should
be done in Pakistan
PAK CHINA ECONOMIC CORRIDOR

27. Recommendations
Make efforts to diversify market in China
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Security issues, law and order system are main
obstacles in the way of Pak-china economic
corridor
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{
Pakistan should develop the training centers
and Chinese language centers in order to make
effective communications
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PAK CHINA ECONOMIC CORRIDOR

28. CONCLUSION
Natural Gateway for China
Positive response by both countries through mutual
cooperation
Both countries are keen to enhance trade activities
PAK CHINA ECONOMIC CORRIDOR

29. Infrastructural improvement and Development of
Dams
Stability of economy by investment in different sectors
“our friendship is “higher than the mountains, deeper
than the oceans, stronger than steel, dearer than
eyesight, sweeter than honey”.
PAK CHINA ECONOMIC CORRIDOR

30. PAK CHINA ECONOMIC CORRIDOR