1. CHINA PAKISTAN ECONOMIC
CORRIDOR (CPEC) & PAK ARMY
PROFESSOR TUGHRAL YAMIN PHD
CENTER FOR INTERNATIONAL
PEACE & STABILITY (CIPS)
NATIONAL UNIVERSITY OF
SCIENCES & TECHNOLOGY (NUST)
ISLAMABAD, PAKISTAN
2. AIM OF THIS PAPER
TO HIGHLIGHT:
• THE IMPORTANCE OF CPEC IN THE ECONOMIC RECOVERY OF
PAKISTAN & ITS PLACE IN CHINESE OBOR STRATEGY
• THE ROLE OF PAKISTAN ARMY IN ENSURING THAT CPEC
BECOMES A REALITY
3. THE OBOR INITIATIVE
• THE SILK ROAD ECONOMIC BELT AND THE 21ST CENTURY MARITIME
SILK ROAD, ALSO KNOWN AS THE BELT AND ROAD (B&R), ONE
BELT-ONE ROAD (OBOR) OR BELT AND ROAD INITIATIVE IS A
DEVELOPMENT STRATEGY AND FRAMEWORK PROPOSED BY
CHINESE PRESIDENT XI JINPING
• IT FOCUSES ON CONNECTIVITY AND COOPERATION BETWEEN
THE PEOPLE'S REPUBLIC OF CHINA AND THE REST OF EURASIA
• IT CONSISTS OF TWO MAIN COMPONENTS
– LAND-BASED SILK ROAD ECONOMIC BELT (SREB)
– OCEANGOING MARITIME SILK ROAD (MSR)
• SREB WAS UNVEILED IN SEPTEMBER AND MSR IN OCTOBER 2013
• IT WAS PROMOTED BY PREMIER LI KEQIANG DURING HIS STATE
VISITS TO ASIA AND EUROPE IN THE SAME YEAR
4.
5.
6. CPEC & ITS IMPORTANCE
• POLICY FRAMEWORK: PART OF OBOR INITIATIVE
• MANDATE
– TO IMPROVE ENERGY & COMMUNICATION INFRASTRUCTURE
PROJECTS IN PAKISTAN
– TO IMPROVE REGIONAL CONNECTIVITY
• FINANCIAL OUTLAY: $46 - 51 BILLION
– EQUALS ALL FOREIGN DIRECT INVESTMENT IN PAKISTAN
SINCE 1970
– EQUIVALENT TO 17% OF PAKISTAN'S 2015 GDP
– INCREASE IN TRADE PAK-CHINA VOLUME FROM $1 BILLION
IN 1998 TO $15.15 BILLION IN 2015 PROVIDES A BASIS FOR
CPEC
7. THE DIVIDENDS
FOR PAKISTAN
• COMMUNICATION
INFASTRUCTURE: IMPROVED &
OVERHAULED
• ENERGY DEFICIT: REDUCED
• FOREIGN POLICY: RELATIONS
WITH CHINA ENHANCED &
RELATIONS WITH REGIONAL
COUNTRIES IMPROVED
• JOB CREATION: UPWARDS OF
700,000 DIRECT JOBS CREATED
BETWEEN 2015–2030
• ANNUAL ECONOMIC GROWTH:
ADD 2 TO 2.5 PERCENTAGE
POINTS
FOR CHINA
• CONNECTIVITY: WITH
REGIONAL COUNTRIES &
BEYOND
• ACCESS: DIRECT ACCESS TO
ARABIAN SEA & PERSIAN
GULF
• TRADE ROUTES: DISTANCES
REDUCED
8.
9. INFRASTRUCTURE PROJECTS
• FINANCING: $11 + 8 BILLION SUBSIDIZED CONCESSIONARY LOANS BEING
DISBURSED TO THE GOVERNMENT OF PAKISTAN BY THE EXIM BANK OF
CHINA, CHINA DEVELOPMENT BANK, AND THE INDUSTRIAL &
COMMERCIAL BANK OF CHINA
• MULTIPLE ROUTES: WILL LINK GWADAR IN SOUTHWESTERN PAKISTAN TO
CHINA'S NORTHWESTERN AUTONOMOUS REGION OF XINJIANG VIA A
VAST NETWORK OF HIGHWAYS AND RAILWAYS
• KARACHI-LAHORE MOTORWAY: 1,100 KM LONG ROAD WILL BE
CONSTRUCTED
• THE KARAKORAM HIGHWAY (KKH): COMPLETELY RECONSTRUCTED AND
OVERHAULED
• KARACHI–PESHAWAR MAIN RAILWAY LINE: UPGRADED TO ALLOW TRAIN
TRAVEL AT UP TO 160 KMPH BY DECEMBER 2019
• PAKISTAN'S RAILWAY NETWORK: EXTENDED TO CHINA'S SOUTHERN
XINJIANG RAILWAY IN KASHGAR
10.
11. ENERGY PROJECTS
• BUDGET: OVER $33 BILLION WORTH OF ENERGY INFRASTRUCTURE
WILL BE CONSTRUCTED BY PRIVATE CONSORTIA
• ENERGY DEFICIT: PAKISTAN'S ENERGY DEFICIT REGULARLY
AMOUNTS TO ABOUT 6000MW AND COSTS AN ESTIMATED 7% OF
ANNUAL GDP IN 2015
• ENERGY GENERATION: OVER 10,400MW OF ENERGY GENERATING
CAPACITY WILL BE DEVELOPED BETWEEN 2018-2020 AS PART OF
THE FAST-TRACKED EARLY HARVEST PROJECTS IN CONJUNCTION
WITH FOUR PROJECTS UNDER CONSTRUCTION PRIOR TO THE
ANNOUNCEMENT OF CPEC
• SOURCES OF ENERGY: ELECTRICITY WILL BE GENERATED THROUGH
COAL, LNG, HYDEL, WIND & SOLAR PROJECTS
• TRANSMISSION LINE: NEW LINE WILL CARRY ELECTRICITY FROM
NEW POWER GENERATION UNITS IN SINDH TO LOAD CENTERS IN
PUNJAB
• PIPELINE NETWORK: TO TRANSPORT LIQUEFIED NATURAL GAS AND
OIL INCLUDING A $2.5 BILLION PIPELINE BETWEEN GWADAR
AND NAWABSHAH TO EVENTUALLY TRANSPORT GAS FROM IRAN
17. CONSTITUTIONAL MANDATE OF
PAKISTAN ARMY
ARTICLE 245 (FUNCTIONS OF ARMED FORCES)
THE ARMED FORCES SHALL, UNDER THE
DIRECTIONS OF THE FEDERAL GOVERNMENT,
DEFEND PAKISTAN AGAINST EXTERNAL
AGGRESSION OR THREAT OF WAR, AND,
SUBJECT TO LAW, ACT IN AID OF CIVIL POWER
WHEN CALLED UPON TO DO SO
18. ROLE OF PAKISTAN ARMY IN NATION
BUILDING & NATIONAL SUPPORT TASKS
• INFRASTRUCTURE DEVELOPMENT E.G. KKH
• EMERGENCY SERVICES IN NATURAL DISASTERS
LIKE FLOODS, EARTHQUAKES, FAMINE,
PESTILENCE ETC
• TASKS OF NATIONAL IMPORTANCE LIKE
CONDUCTING CENSUS, HOLDING ELECTIONS ETC
• SUPPORTING GOVERNMENT AGENCIES IN
COLLECTION OF ELECTRICITY BILLS, DREDGING
CANALS, BUILDING SCHOOLS ETC
19. PAKISTAN ARMY’S ROLE IN CPEC
• SECURITY: TWO ARMY DIVISIONS HAVE BEEN
RAISED TO PROTECT THE ROUTES & PROJECTS
WITHIN THE CORRIDOR
• PACE OF CONSTRUCTION: FWO (THE MILITARY
ROAD CONSTRUCTION ORGANIZATION) HAS
BEEN PRESSED INTO SERVICE TO INCREASE THE
TEMPO OF WORK
• STRATEGIC DIRECTION: MAJ GEN (RETD)
DR ZAHIR SHAH IS THE PROJECTOR DIRECTOR
/COORDINATOR CPEC AT MINISTRY OF
PLANNING, DEVELOPMENT & REFORM,
ISLAMABAD
