Economices and Business

1. China Pakistan
Economic
Corridor
Prepared by:
Touseef Ahmad

2. Contents to Discuss
• Introduction to CPEC.
• History
• Vision and Mission
• CPEC Projects
• Progress Updates
• Public Reviews
• Advantages and Disadvantages

3. Introduction
• China-Pakistan Economic Corridor is a framework of regional connectivity.
• CPEC will not only benefit China and Pakistan but will have positive impact on Iran,
Afghanistan, India, Central Asian Republic, and the region.
• The enhancement of geographical linkages having improved road, rail and air
transportation system with frequent and free exchanges of growth and people to
people contact, enhancing understanding through academic, cultural and regional
knowledge and culture, activity of higher volume of flow of trade and businesses,
producing and moving energy to have more optimal businesses and enhancement of
co-operation by win-win model will result in well connected, integrated region of
shared destiny, harmony and development.

4. History
• Plans for a corridor stretching from the Chinese border to Pakistan's deep water ports on
the Arabian Sea date back to the 1950s, and motivated construction of the Karakoram
Highway beginning in 1959.
• The current form of the project was first proposed by General Pervez Musharraf, however it was
postponed owing to the political instability in the country that followed Musharraf's step down.
• In February 2014, Pakistani President Mamnoon Hussain visited China to discuss the plans for
an economic corridor in Pakistan.
• In November 2014, Chinese government announced its intention to finance Chinese companies
as part of its $45.6 billion energy and infrastructure projects in Pakistan as part of CPEC.

5. History
• During the state visit of Xi Jinping to Pakistan in April 2015, he wrote in an open editorial
stating: "This will be my first trip to Pakistan, but I feel as if I am going to visit the home of my
own brother." On 20 April 2015, Pakistan and China signed an agreement to commence work on
the $46 billion agreement, which is roughly 20% of Pakistan's annual GDP, with approximately
$28 billion worth of fast-tracked "Early Harvest" projects to be developed by the end of 2018.
• As a gesture of friendship, the Pakistani capital at that time was dotted with slogans and
signboards such as "Pakistan-China friendship is higher than the mountains, deeper than the
oceans, sweeter than honey, and stronger than steel" – an oft repeated phrase coined by the
Chinese to describe their deep ties to Pakistan.

6. Vision and Missions (contd’)
To improve the lives of people of Pakistan and China by building an 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
• Spatial layout, functional zones, industries and industrial parks

7. Vision and Missions (contd’)
• Agricultural development & poverty alleviation
• Tourism cooperation & people to people communication
• Cooperation in livelihood areas
• Financial cooperation
• Human Resource Development

8. CPEC Projects
CPEC projects includes:
• Energy Projects
• Infrastructure
• Gwadar Port
• Other Projects

9. Energy Projects
SR# Project Name MW Cost Province
1 Port Qasim Electric Company Coal Fired 1320 1980$ sindh
2 Sahiwal 2x660MW Coal-fired Power Plant 1320 1600$ punjab
3 Engro thar 4x330MW Coal-fired 1320 2000$ sindh
4 Gwadar Coal /LNG / Oil Power Project 300 600$ Queeta, Gawadar
5 HUBCO coal power plant 660 970$ Balochistan
6 Rahimyar Khan Coal Power Project 1320 1600$ Punjab
7 Quaid-e-Azam 1000MW Solar Park 1000 1350$ Punjab
8 Suki Kinari Hydro power Station 870 1802$ KPK
9 Karot Hydropower Station 720 1420$ AJK & Punjab

10. Actively promoted Projects
Sr Project name MW Cost Province
1 HUBCO coal power plant 660 970 Balochistan
2 Kohala Hydel Project 1100 2,397 AJK
3 Pakistan Wind Farm II 100 150 Sindh
4 Thar mine mouth oracle 1320 1,300 Sindh
5 Gas Power Plant 525 550

11. Infrastructure Projects
SR# Project Name L-KM Cost Type
1 KKH Phase II (Thakot -Havelian Section) 118 1,305 Road
2 Peshawar-Karachi Motorway (Multan-Sukkur
Section)
392 2,846 Road
3 Expansion and reconstruction of existing Line
ML-1
1736 3,650 Rail Sector
4 Havelian Dry port (450 M. Twenty-Foot
Equivalent Units)
Not
Defines
40 Rail Sector

12. Gawadar Projects
SR# Project Name Cost Place
1 East-Bay Expressway - 140.60 Gawadar
2 Gwadar International Airport - 230.00 Gawadar
3 Construction of Breakwaters - 123.00 Gawadar
4 Dredging of berthing areas & channels - 27.00 Gawadar
5 Infrastructure for Free Zone & EPZs port related industries - 32.00 Gawadar
6 Necessary Facilities of Fresh Water Treatment and Supply - 130.00 Gawadar
7 Hospital at Gwadar - 100.00 Gawadar
8 Technical and Vocational Institute at Gwadar - 10.00 Gawadar

13. Other Projects
SR# Project Name - Cost Type
1 Cross Border Optical Fiber Cable - 44 Communication
2 Digital Terrestrial Multimedia Broadcast (DTMB) - Communication

14. CPEC Progress Update
Project Name Progress Update
Port Qasim Electric Company Coal Fired, 2x660, Sindh Financial Closed (FC) achieved.
Civil work on site started in January 2016.
Mechanical structure work started in March 2016.
Expected Commercial Operation Date (COD) first quarter 2018.
HUBCO coal power plant 1X660 MW, Hub Balochistan Financial Close Expected by December, 2016
Commercial Operation Date (COD) expected 2018/2019
Rahimyar Khan Coal Power Project, Punjab Feasibility in process
SSRL Thar Coal Block 1 - 6.5 metric ton per annum(mpta) Thar,
Sindh
Commercial Operation Date (COD) expected 2018 / 2019
Quaid-e-Azam 1000MW Solar Park, Bahawalpur, Punjab COD of 1st 100MW achieved
2nd and 3rd 100 MW under testing
Suki Kinari Hydro power Station, KPK Supplemental Agreement Approved.
Land acquisition in process
Commercial Operation Date (COD) 2020
Matiari to Lahore Transmission line Tariff Finalized
Commercial Operation Date (COD) expected in 2018 / 2019
Thar mine mouth oracle, Thar Sindh Feasibility in Process by Sponsors
Cross Border Optical Fiber Cable Ground breaking ceremony performed by the Prime Minister
Work commenced
Completion of Project December, 2017

15. Benefits & Risks
Benefits Risks
• Threat to Sovereignty?
• Balochistan Insurgency and
Internal Conflicts.
• Indian Concerns
• Production in Pakistan
• Economic and Infrastructural
Enhancement
• Overcoming the Energy Crisis
• Freedom From Over-reliance on
the United States
• Freedom from Reliance of other
countries