CHINA-PAKISTAN

ECONOMIC
CORRIDOR
2016-CIV-01 Farwa Khalid
2016-CIV-07 Janita Siddiqui
Contents
1. Introduction
2. Vision and Mission
3. CPEC Projects
4. Why is CPEC Important?
5. Impacts
6. Criticism
7. Conclusion

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1.Introduction

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• China-Pakistan Economic Corridor is a
framework of regional connectivity. CPEC will
not only benefit China and Pakistan but will
have positive impact on Iran, Afghanistan,
India, Central Asian Republic, and the region.

• China Pakistan Economic Corridor is journey

towards economic regionalization in the
globalized world. It founded peace,
development, and win-win model for all.

• China Pakistan Economic Corridor is hope of

better future with peace, development and
growth of economy.
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2.Vision and
Mission

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To improve the lives of people of Pakistan and China
by building an economic corridor promoting
bilateral connectivity, and people to people contact
for regional connectivity. It includes:

• Integrated Transport & IT systems

• Functional Zones, Industries and Industrial Parks
• Agricultural Development
• Socio-Economic Development
• Energy Cooperation
• Tourism Cooperation
• Financial Cooperation

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3.CPEC Projects

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Energy
Proposed Special
Economic Zones

Infrastructure Rail Based Mass

Transit Projects
Social Sector
Development Projects

New Provincial
Gwadar Projects
Public Sector
Development Projects
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4.Why is CPEC Important?

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For Pakistan
CPEC is intended to rapidly
upgrade Pakistan's required
infrastructure and strengthen its
economy by the construction of
modern transportation networks,
numerous energy projects, and
special economic zones.

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For China
China is the second biggest economy in
the world and almost 40% of its trade in
2016 is transported through the South
China Sea. China needs a small, secure,
and low-cost path to trade with Europe
and the Middle East and China-Pakistan
Economic Corridor (CPEC) is a feasible
solution to this requirement.

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Existing Route Roadway and Seaway
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New CPEC Route Roadway and Seaway
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5.Impacts

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• Positive Impacts
• CPEC gives China an alternate shorter route
for transportation of oil and gas from West
Asia and Middle East and for trade to and
from West Asia, Middle East, Africa and
Europe. A large oil/gas depot will also be • Negative Impacts
constructed for storage and further
transportation to China through pipelines. • FTA leads to threat for local markets
• Strategic and economic gate route • Disturb of local industries
• Development of infrastructure • Dependent to china
• Job opportunities • Difficult to complete chine’s product in
• It will boosts Pakistan GDP by 15% market
• Solid foundation for friendship • Cutting of trees for Karakorum highway
Environmental
Impacts
Pakistan has also assured the International
Union for Conservation of Nature (IUNC)
that Pakistan and their Chinese Partner will
work on (CPEC) with undertaking
“environmentally and economically
sustainable”. Environmentalists argue that
cutting of trees, and impact on the
shrinking mass of glaciers in northern
Pakistan, in constructing vast road
networks for a trade highway to connect
the Gwadar port of Pakistan with western
China, will have significant environmental
costs.
Impact on Economy of Pakistan
• The CPEC is a landmark project in the annals of history of
Pakistan. It is the largest investment Pakistan has attracted
since independence and largest by China in any foreign
country. 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 and further boost the deepening ties between
the two countries.
• As a result of improved infrastructure and energy supplies,
the Pakistani government expects that economic growth
rates will reach 7% by 2018.
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6.Critisicsm

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 KP Provincial Assembly
 Some planning aspects and technicalities associated with the route
have been criticised in political forums and by the
media. The Provincial Assembly of Khyber Pakhtunkhwa province
adopted a resolution against the alleged decision of the central
government to change the multibillion route of the proposed project
by diverting it away from Khyber Pakhtunkhwa province.
 Finances
 In addition to the aforementioned issues, some sources have
suggested that the interest rate for CPEC related loans would be
high, with India's Daily News and Analysis paper suggesting that
Pakistan had unwittingly accepted loans that would "be offered at
very high rates of interest", although the actual interest rates were
negotiated prior to acceptance, and for most projects will be 1.6%.

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• Trade imbalance
• Chinese exports through the Karakoram Highway have entered the
domestic Pakistani market, and are cheaper due to the relatively
higher cost of production in Pakistan. It has also been speculated that
the CPEC will replace Pakistani exports by Chinese ones in external
markets.
• Baloch Nationalists
• Some Baloch nationalists have opposed the large-scale development
projects envisioned by CPEC, fearing that such developments in the
province would eventually result in local residents "losing control" over
natural resources. Others have alleged that CPEC is a "conspiracy"
meant to stimulate the settlement of migrants from other regions of
Pakistan in order to render ethnic Baloch a minority in the province.

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7.Conclusion

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• Natural gateway for china
• Positive response by both countries through mutual
co operation
• Enhance trade activities
• infrastructure development and dam construction
• Stability of economy

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ThankYou 

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