CPEC: China-Pakistan Economic corridor - Part 1

The China–Pakistan Economic Corridor (CPEC) is a ongoing development megaproject which aims to connect Gwadar Port in south-western Pakistan to China’s north-western autonomous region of Xinjiang. It will connect these two ports via a network of highways, railways and pipelines to transport oil and gas. It will run for 3000 KMs and is very important for the relations between China and Pakistan.

It is an extension to the 21st Century Silk Road initiative.  It is the highest FDI investment Pakistan has received since 2008. and more than what US has provided to Pakistan since 2002. Most of the Projects will come to completion in 1-3 years and other infrastructure projects might take 10-15 years. Also, it is a combination of transport and energy projects  and development of a major Sea port which gives China direct access to the Indian Ocean and beyond. This deal is worth 20% of Pakistan's annual GDP.

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 A Brief History and Details:

The project was proposed by Chinese Premier Li Keqiang during his visit to Pakistan in May 2013. The Pak-China Economic Corridor Secretariat was inaugurated in Islamabad on 27 August 2013. In February 2014, Pakistani President Mamnoon Hussain visited China to discuss the plans for an economic corridor in Pakistan. Two months later, Pakistan Prime Minister Nawaz Sharif met with Premier Li Kequiang in China to discuss further plans. The project might implemented at Sharif's time but it has been planned from the Musharraf Era.

In November 2014, the plan was set by China to invest $33.8 million in various energy projects and $11.8 billion in Infrastructure projects. The deal also include $15.5 billion worth of cola, wind and solar projects which will provide Pakistan 10,400MW of electricity supply. This deal also include $622 million for formation of Gwadar port.

Apart from these the deal also include formation of Karakorum Highway (Havelian in the Abbottabad District to Thakot), Karachi-Lahore Motorway (Multan to Sukur), The Gwadar Port East Bay Expressway Project, Gwadar International Airport.

It also includes programs to address climate change, joint research in cotton Biotech and Marine research between China's General administration of Press and Publication and Pakistan's Ministry of Information and Broadcasting as well as an agreement between China Central Television, PTV and the Pakistan Television Foundation on the rebroadcasting of CCTV news and documentary programs in Pakistan.

Some cities have been made sister cities – Chengdu in Sichuan province and Lahore, and Zhuhai in Guangdong province and Gwadar

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Strategic Importance:

China is the biggest oil importer in the world and oil pipelines through Pakistan will cut out the Ocean travel through the Southeast Asia. China plans to build oil storage facilities and refinery at the at the Gwadar port, with oil transported to its Xinjiang Uighur Autonomous Region via road and pipeline. This will allow china to import energy and goods to mainland of China without going to the 'The strait of Malacca' which could be blocked by the US and the India at the times of War. This will also develop western parts of China where separatists have active now a days. Iran has also responded positively to the proposed Iran-Pakistan gas pipeline link with China.

Not only this but it will China access to Middle east and Africa, where thousands of Chinese firms employing tens and thousands of Chinese workers are involved in development work. It will also create many job opportunities  in the remote region of Xinjiang which is one of the under-developed regions of China.

  

The CPEC is considered vital to Pakistan as it will help Pakistan to grow Economically. Moody's Investor service has described the project as 'Credit positive' for Pakistan. It will not only create such high energy projects but also jobs for Pakistan which has been regarded as a failed state in terms of economic policies and has been regarded as a War trodden state since a few decades. Many experts in Pakistan believe that it is the only chance for Pakistan to come back on the Track of Economic development.
the story is still long as we need to see how the project would be implemented and how would it take wings. What would be the problems that one can encounter and what are the ways in which it would be dealt. Keep reading for more information.

Click here for CPEC: China-Pakistan Economic corridor - Part 2 

About the Author:  Pranav Nikam is an Electrical and Electronics engineer who is working in a renowned MNC in Chennai. He likes to work out in gym, do photography and play badminton. Through his articles he wants to spread awareness among other defence aspirants.