China Pakistan Economic Corridor
“A good relationship is, that does not only benefit the two people but the whole family”
CPEC will not only benefit China and Pakistan but will have positive impact on Iran, Afghanistan, India, Central Asian Republic and the region.
The CPEC is collection of infrastructure projects currently under construction throughout Pakistan. It is ongoing development mega project which aims to connect Gwadar Port of Pakistan to China’s northwestern region of Xinjiang, via network of highways, railways and pipelines. The economic corridor is considered central to China–Pakistan relations and will run about 2700 km from Gwadar to Kashgar. The value of CPEC projects is now worth $54 billion.On 13 November 2016, CPEC became partly operational when Chinese cargo was transported Overland to Gwadar Port for onward maritime shipping to Africa and West Asia.
CPEC Mega Projects-
As an essential part of the CPEC, China and Pakistan have joined hands to building the transportation infrastructure that includes highways and railways. Recognizing the growing energy needs of Pakistan, and to overcome the existing deficits, CPEC has allocated a major proportion of its funds to energy generation and transmission.
As part of the China-Pakistan Economic Corridor, and by extension, that of the Silk Route Initiative, Gwadar holds pivotal importance. The China-Pakistan Economic Corridor, however, plans not to limit Gwadar to a connecting port only, but enriches it as an economic hub that will cater to the local population by improving their livelihoods.
In addition to enhancing economic cooperation and connectivity across the region, the China-Pakistan Economic Corridor serves to enhance industrial cooperation between different parts of Pakistan as well. Projects aimed at engaging various regions of Pakistan into industrial cooperation through resource mobility, economic integration, and information connectivity.
Economic Impact Of Pakistan and China Relationship
The Pakistani media and government have called CPEC investments a “game and fate changer” for the region, while both China and Pakistan intend that the massive investment plan will transform Pakistan into a regional economic hub. China and Pakistan’s relationship has expanded into different provincial regions of Pakistan as well, with the Khyber Pakhtunkhwa government led by Pervez Khattak to launch projects in cooperation with Chinese state-led investment companies to the tune of $20 billion.
Pakistani officials predict that CPEC will result in creation of upwards of 2.3 million jobs between 2015-2030, and add 2 to 2.5 percent points to country’s annual economic growth.
How CPEC Can improve Pakistan and China Relationship?
CPEC is considered central to China–Pakistan relations; Although China-Pakistan relations have always been friendly, past cooperation between the two countries was mostly at the political and military level. This new phase in relations started in May 2013 with the visit of Chinese Premier Li Keqiang to Pakistan and the official proposal of the concept of the “China-Pakistan Economic Corridor.
The closeness of the relationship between the two countries can be seen from major bilateral interactions over the years.
Mr Xu Shaoshi (Chairman of National Development and Reform Commission- China) said:
The China-Pakistan Economic Corridor is closely related to the Belt and Road Initiative, and therefore requires closer cooperation and greater progress. At sea, the Initiative will focus on jointly building smooth, secure and efficient transport routes connecting major sea ports along the Belt and Road.
Developments Under CPEC
The work on the infrastructure development projects under the China Pakistan Economic Corridor (CPEC) is in full swing. The project also has a motorway between Karachi and Lahore which would be eleven hundred kilometers long. It is said that thirty six billion rupees would be spent on the section of Karachi-Hyderabad and two hundred fifty nine billion would be spent on Sukkur-Multan section.
In November 2016, China announced an additional $8.5 billion investment in Pakistan with $4.5 billion allocated to upgrade Pakistan’s main railway line from Karachi to Peshawar including tracks, speed and signaling, and $4 billion toward an LNG terminal and transmission lines to help alleviate energy shortages. On February 6, 2017, Pakistan welcomed Egypt’s proposal to join CPEC.
Official Message by Ahsan Iqbal (Minister Of Planning, Development and Reforms-Pakistan)
The China Pak Economic Corridor is a fusion of multiple developments in the global, regional, bilateral and domestic contexts. The ultimate objective is peace, prosperity and well being of the people of the two countries, the region and the world.
China-Pakistan Economic Corridor (CPEC) Pakistan’s Vision 2025 seeks to position itself from a lower middle income country to high middle income country by achieving the target per capita GDP of $4200.
The current regime is making the right move by strengthening its economic ties with China and that this is one of the most significant agreements signed between Pakistan and China till now, and it would stretch the depth of their bilateral strategic relations.