Pak china economic corridor

The final agreement between the planning MINISTERS of both countries
In the presence of PRESEDENTS of PAK(MAMNOON HUSSAIN) and
CHINA (Xi Jinping )

 China and Pakistan have developed strong bilateral
trade and economic ties and cooperation over the
years. China has gradually emerged as Pakistan’s
major trading partner both in terms of exports and
imports. Bilateral trade and commercial links between
the two countries were established in January 1963
when both signed the first bilateral long-term trade
agreement .
 According to statistics provided in Pakistan Economic
Survey 2013-2014, the volume of trade between
Pakistan and China has increased from US$ 4.1 billion
in the year 2006-07 to US$ 9.2 billion in 2012-13,
representing an increase of 124 percent. While China’s
exports to Pakistan increased by one percent during
this period, Pakistan’s exports increased by 400 percent
from around $600 million in 2006-07 to $2.6 billion in
2012-13. As a result, China’s share in Pakistan’s total
exports has gradually picked up from four percent in
2008-09 to 10 percent during the fiscal year 2013-14.2
INTRODUCTION

 The China-Pakistan Economic Corridor (CPEC) is expected
to further strengthen trade and economic cooperation
between the two countries. Chinese Premier Li Keqiang
emphasized the construction of the CPEC during his May
2013 visit to Pakistan. The incumbent Pakistani government
has also shown much enthusiasm for the project since then.
The corridor will connect Gwadar Port in Balochistan
(Pakistan) to Kashgar in north-western China, which will
make Gwadar not only fully operational but also a
significant deep sea port in the region. Opened for
operations in 2007, the control of Gwadar Port was
transferred to China’s state-owned China Overseas Ports
Holding in February 2013. Since then, Gwadar is
undergoing a major expansion to turn it into a full-fledged,
deep-water commercial port (South China Morning Post,
2014). The corridor is expected to cut the 12,000-kilometre
route that Middle East oil supplies must now take to reach
Chinese ports .

Meeting between pak and china delegation in
china

 Besides meeting China’s needs in energy and developing its
far west region and upgrading Pakistan’s economy, the
CPEC is expected to benefit the people of countries in South
Asia, contributing towards maintaining regional stability as
well as economic integration.
 As cited earlier, the CPEC is a comprehensive development
program that entails the linking of Gwadar Port to China’s
northwestern region of Xinjiang through highways,
railways, oil and gas pipelines, and an optical fiber link.
 Major physical infrastructure to be built includes 2,700-
kilometre highway stretching from Kashgar to Gwadar
through Khunjrab, railways links for freight trains between
Gwadar and Khunjrab linking to China and having possible
regional connectivity with Afghanistan, Iran and India, and
the Karachi-Lahore motorway.
 Besides the aforesaid physical links connecting Pakistan
and China, the project also envisages establishing several
economic zones along the corridor. Also, an Energy
Planning Working Group of the CPEC has been established
that will undertake fast-track implementation of power
projects related to the CPEC. Those projects of 21,690 MW
power productions will be undertaken with the assistance of
China under the CPEC plan

 Pakistan can provide the required funds and facilities for the CPEC project over a longer
period of time, if there is no major political conflict and no economic meltdown. The
government has already allocated over Rs73 billion as the budget for the Public Sector
Development Program (PSDP) to execute development projects under the CPEC during
the current fiscal year. Most of it this will be spent on the construction of Karachi-Lahore
motorway and connecting roads and for land acquisition and relocation of utilities
(Zafar, 2014). But in the case of a prolonged political crisis and economic meltdown
gripping the country, such yearly and periodic allocations for the project could be
disturbed causing delays to the project outcomes beyond the set targets.
 The China-Pakistan Economic Corridor project needs about $32 billion of investment
and loans for the project are expected to come mainly from Chinese banks and
corporations. For that purpose, the Federal Minister of Planning, Development and
Reform Ahsan Iqbal and the Punjab Chief Minister Shahbaz Sharif held several meetings
on their three-day visit to China in July 2014 with the Chinese National Development
and Reform Commission, National Energy Administration, China Development Bank,
Industrial and Commercial Bank of China, Exim Bank, and heads of the Chinese
corporate sector .
 Secondly, the corridor will be largely built on BOT (build-operate-transfer) basis. As a
result of Chinese financing loans, the project will be completed by Chinese companies,
especially state-owned enterprises in China. It is expected that the project will be
financially viable for these companies because the revenues generated by the project
through BOT-related facilities would cover its cost and provide sufficient return on
investment. Under BOT arrangements, Chinese companies will also receive concessions
from the government to finance, design, construct, and operate the designed projects as
agreed in the concession contract, or BOT. The government may also provide support for
the project in form of provision of the land.

 *Terrorism.
 *NRO(nationalist rebellion organazation)
 *Foreign Interference.
 *corruption.
 *Technical and Skillfull Labour.

NRO(nationalist rebellion organization)
Chinese authorities have cautioned local authorities of a possible
terror attack aimed at making the project a failure by Indian
intelligence agency RAW.
According to them, insurgents in Balochistan have prompted security
fears for the 3,000-kilometre-long route in the province,

many foreign hostile intelligence agencies could also extend their support
to the militants to sabotage some key projects particularly on the eastern
alignment — Gwadar to Quetta — where work has already started.

In CPEC the corruption is also the main constrainst for the
construction.because in present time there are lot of corruption in
pakistan in every sector which cross the danger zone.which will bring
a lots of threats in this mega project.

 Economy growth.
 Development of economic zone.
 Reduction of poverty.
 Uplift of living standard of people.
 Capcity Building.
 Development of tourism.
 Introduction of new technologies.
 Reduction of energy crisis.

 Gwadar PortCompleted, handed over
to China for 40 years starting
2015[42]Upgrading of Karachi–
Peshawar Main LineFeasibility study
underway[43]Khunjerab
RailwayFeasibility study
underway[41]Karachi - Lahore
Motorway (KLM)Approved, Under
construction 2015.[41] Project is
expected to be completed by end of
2017. After project is completed,
Karachi will be connected with
Sukkhar, Multan, Lahore, Faisalabad,
Rawalpindi, Islamabad, Peshawar by a
high speed, controlled access 6 lane
highway where commuters can travel
at 120 km/hr. The network of Pakistan
motorways will be connected to
Karakorum Highway near
Rawalpindi/ Islamabad. Hazara
Motorway will be connected to M-1
and M-2 near the capita

 Approved[41]Gwadar-
Nawabshah LNG
Terminal and Pipeline.
 ProjectApproved[41]700
MW Hydro-Electric Suki
Kinari
 HydropowerProjectAppro
ved[41]Port Qasim
2x660MW Coal-fired
Power
 PlantsApproved[41]720M
W Karot Hydropower
ProjectApproved[41]Zoner
gy 9x100 MW solar project
in
 PunjabApproved[41]Jhimpi
r wind Power project

Pak china economic corridor

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