SHAHZAIB ASIF

BS 3RD SEM
SUBMITTED TO: SIR AHSAN

CPEC

(CHINA-PAK ECONOMIC CORRIDOR)

BACKGROUND:
China-Pakistan Economic Corridor (CPEC) is a major and pilot project of the Belt and Road Initiative
which is proposed by Chinese President Xi Jinping. CPEC has become the framework and platform for
comprehensive and substantive cooperation between China and Pakistan.

In May 2013, Chinese Premier Li Keqiang proposed the initiative of CPEC during his visit to Pakistan,
which immediately got positive response and support from the Pakistani government. In July 2013,
during Prime Minister Sharif’s visit to China, an MOU was signed to start work on CPEC.

Pakistan and China have been carrying massive investments in many development projects including
China Pakistan Economic Corridor (CPEC). CPEC is a 3000km trade route from Gwadar in Pakistan to
Kashgar city in China, which is estimated to cost $46 billion of investment.

SIGNIFICANCE OF CPEC FOR CHINA:

China imports 80% of its oil from OPEC (Organization of Petroleum Exchange Countries) countries
including Saudi Arabia, Iran, and Iraq.

The corridor will reduce sea land route distance between Europe and Western China to less than half. A
trial was conducted last year for transportation of containers from Beijing to Gwadar and Karachi
through Sea Route. Transportation through land route took almost half the time with 2 approximate
savings of Billions of Dollars per annum.

China would get remarkable benefits of loosening the USA’s and Russiangrip and tighten her relations
with Asian, European, and some African countries by accelerating its trade activities throughout the
region.

SIGNIFICANCE OF CPEC FOR PAKISTAN:

This project will help win the trust and love of angry Balochi brothers, and sustain the integrity of peace-
loving Pakistan. High volume of trade activities would encourage Balochi brothers to consider
themselves as an integral part of the Pakistani nation.

Furthermore, economically, it will create tremendous employment opportunities for the people of
Pakistan.
Pakistan would benefit through investment from China for development of requisite infrastructure and
to bridge energy shortfall.
The conservative estimates show projected possible revenues of over 100 Billion US Dollars on account
of transit revenue per annum in long term besides creating employment opportunities in hundreds of
thousands

95% of Pakistan’s trade through sea and economy heavily dependent on sea trade, development of
Gwadar Port and its connectivity is of extreme significance to reduce load on Karachi and Bin Qasim
ports.

MAJOR PROJECTS UNDER CPEC:

Road Infrastructure Projects
Railway Infrastructure Projects
Petroleum/Oil Sector Infrastructure Projects
Energy and Water Sector Projects
Development Of Mineral Potential
Human Resources Development

CONCLUSION
CPEC is a win win synergy for both the nations and the region. It is a rare opportunity for Pakistan to
realize its true strategic and economic potential. FWO in its capacity to pursuing multi sectoral initiatives
with our socio-economic imperatives. This is a colossal undertaking requiring the private sector and
financial institutions to come forward and join hands for expeditious implementation.