China-Pakistan Economic Corridor


China-Pakistan Economic Corridor

Establishment of China-Pakistan Economic Corridor was first proposed by Chinese Premier Li-Keqiang during his first visit to Pakistan.  The proposed project of linkage Kashgar in North West China with Gawadar Port in Arabian sea coastline in Baluchistan was approved on July 5-2013 during the visit of Prime Minister Nawaz Sharif to Beijing which includes construction of 200km long tunnel.

China Investments

In December 2013 China committed US$46 billion for the construction of major nuclear power project in Karachi.  In May 2014, another agreement was signed to supplement Orange Line Metro Train Project in Lahore worth US$ 1.72 billion.  In November 2014 countries signed 14 agreements related to CPEC.

Visit of President Xi-Jinping

With the objective in view President Xi-Jinping visited Islamabad on April 20-21, 2015 and raised the level of Investment from US$ 26 billion to US$ 46 billion.  His visit achieved the milestone of the ground breaking of historic 300km long strategic CPEC.

Projects in Hand

It includes US$ 33 billion worth energy projects such as coal solar hydro electric power projects which will inject 10,400 MW electricity in the national grid by 2017-2018 and hydro power projects, 1240km long Karachi-Lahore motorway, metro & bus service in six major cities.  Up graduation of 1300 km long Karakorum highway, oil and gas pipeline to connect Kashgar to sea port of Gawadar 1800 km railway line, special economic zones, dry ports and other infrastructures.

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There routes have been marked:

  1. Western route originating from Gawadar pass through Turbat, Kalat, Quetta, Mianwalli, Islamabad
  2. Central Route will originate from Gawadar, Quetta, Khuzdar, Sukkur, Rajanpur, Liya and Dera Ismail Khan
  • Eastern Route will include Gawadar, Lahore, Sukkur, Faisalabad and Islamabad

Gains of China

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While the CPEC may be “monumental” for Pakistan.  For China it is a part of more ambitious planes to beef up the country’s global economic muscle.  “One Belt, One Road” which seeks to economically and physically connect China to its markets in Asia, Africa and Europe, CPEC will link China with nearly half of population of the World.  With the development of Gawadar China sustain its permanent naval presence in the Gulf of Oman & Arabian Sea.

Pakistan Expected Gains

  1. CPEC has opened vista of great opportunity for Pakistan and will greatly help in overcoming power, unemployment, inequities of smaller provinces and help Pakistan becoming the next Asian Tiger.
  2. CPEC from all accounts will prove a game changer and will make China a real stakeholder in Pakistan’s stability & Security. It is a win-win situation for both.
  3. Investment by China will boost Pakistan’s US$ 274billion by over 15%.
  4. Pakistan seems to have found a savior in China which has promised to stand by country in its dark hour. Once Pak-China connectivity strike route, Pakistan’s geo strategic security interests whenever threatened will be guarded by China.
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CPEC connected to Gawadar has the potential to radically after the regional dynamics of trade development and politics.  CPEC is a game changer for entire region.

It will uplift the lives of about 3 billion people across China Central Asia, South Asia and Middle East.

The time & tie is not in favour of detractors, they will die their death in hurricane of CPEC.  Since China is determined to make Pakistan a successful story.  US$46 billion economic package is Chinese gift for the people of Pakistan.

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