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CHINA PAKISTAN
ECONOMIC CORRIDOR
BIG GAME
BIG PLANS
The China Pakistan Economic Corridor (CPEC)
(Chinese: 中国-巴基斯坦经济走廊; Urdu: ‫اقتصادی‬ ‫چین‬ ‫پاكستان‬
‫)راہداری‬ is a collection of projects currently under
construction at a cost of $46 billion which is intended to
rapidly expand and upgrade Pakistani infrastructure, as
well as deepen and broaden economic links between
Pakistan and the People's Republic of China.
While economic opportunities and development
will largely benefit Pakistan,
CPEC's importance to China's geopolitical and
economic goals is reflected by the inclusion of the
project as part of China's 13th five-year development
plan.
 Should all the planned projects be implemented,
the value of those projects would be equal to all
foreign direct investment in Pakistan since 1970, and
would be equivalent to 17% of Pakistan's 2015 gross
domestic product.
Pakistan estimates the corridor project will
create some 700,000 direct jobs between 2015–
2030 and add up to 2.5 percentage points to the
country's growth rate.
infrastructure projects under the aegis of
CPEC will span the length and breadth of
Pakistan, and will eventually link the
Pakistani city of Gwadar in southwestern to
China's northwestern autonomous region of
Xinjiang via a vast network of highways and
railways. Proposed
infrastructure projects are worth
approximately $11 billion, and will be financed
by heavily-subsidized concessionary loans at an
average interest rate of 1.6% that will be
dispersed to the Government of Pakistan by the
Exim Bank of China, China Development Bank,
and the Industrial and Commercial Bank of
China.
Areas of CPEC
As part of infrastructure projects worth approximately
$11 billion, an 1,100 kilometers long motorway will be
constructed between the cities of Karachi and Lahore
 while the Karakoram Highway between Rawalpindi and
the Chinese border will be completely reconstructed and
overhauled.
The Karachi–Peshawar main railway line will also be
upgraded to allow for train travel at up to 160 kilometers
per hour by December 2019.
Pakistan's railway network will also be
extended to eventually connect to China's
Southern Xinjiang Railway in Kashgar.
 A network of pipelines to transport liquefied
natural gas and oil will also be laid as part of the
project, including a $2.5 billion pipeline
between Gawadar and Nawabshah to eventually
transport gas from Iran
Over $33 billion worth of energy infrastructure will be
constructed by private consortia to help alleviate
Pakistan's chronic energy shortages, which regularly
amount to over 4,500MW, and have shed an estimated
2-2.5% off Pakistan's annual GDP.
With approximately $33 billion expected to be
invested in energy sector projects, power generation
assumes an important role in the CPEC project.
Over 10,400MW of energy generating capacity is to be
developed between 2018 and 2020 as part of the corridor's
fast-tracked "Early Harvest" projects in conjunction with
four projects under construction prior to the
announcement of CPEC
Gawadar Port Complex
 The site will include manufacturing zones, logistics
hubs, warehouses, and display centers businesses
located in the zone would be exempt from customs
authorities as well as many provincial and federal taxes.
the project will be completed in three phases. by 2025
it is envisaged that manufacturing and
processing industries will be developed, while
further expansion of the zone is intended to be
complete by 2030.
 On 10 April 2016, talking to The Washington
Post, Zhang Baozhong, chairman of China
Overseas Port Holding Company said that his
company planned to spend $4.5 billion on roads,
power, hotels and other infrastructure for the
industrial zone, which he said would be open to
non-Chinese companies.
The company also plans to build an
international airport and power plant for
Gawadar.
Projects in Gawadar city
The city of Gawadar is further being developed by
the construction of a 300MW coal power plant, a
desalinization plant, and a new 300 bed hospital.
Plans for Gawadar city also include construction of
the East Bay Expressway – a 19 kilometers controlled-
access road that will connect Gwadar Port to the
Makran Coastal Highway.
 These additional projects are estimated to
cost $800 million, and are to be financed by 0%
interest loans extended by the Exim Bank of
China to Pakistan.
In addition to the aforementioned infrastructure
works, the Pakistani government announced in
September 2015 its intention to establish a training
institute named Pak-China Technical and
Vocational Institute at Gawadar, which is to be
developed by the Gawadar Port Authority.
The institute is to be completed by March 2016 at
the cost of 943 million rupees, and is designed to
impart to local residents the skills required to
operate and work at the expanded Gawadar Port.
The CPEC project envisages major upgrades and overhauls to
Pakistan's transportation infrastructure.
Under the CPEC project, China has announced financing for
$10.63 billion worth of transportation infrastructure so far;
$6.1 billion have been allocated for construction
 "Early Harvest" roadway projects at an interest rate of 1.6
percent. The remainder of funds will be allocated when the
Pakistani government awards contracts for construction of
road segments which are still in the planning phase.
Karakoram Highway Reconstruction
 Highlighted in red is the route of National Highway 35,
which is to be completely rebuilt and upgraded under
the CPEC agreement.
Highlighted in blue is the 175 kilometers road between
Gilgit and Skardu which is to be upgraded to a 4-lane
highway.
Eastern Alignment
The Eastern Alignment of the CPEC refers to the parts of the
corridor which were planned in 1991 under Pakistan Motorway.
 This route will provide link to both major ports of Pakistan
Karachi and Gawader as well as Major Industrial cities Lahore,
Rawalpindi, Islamabad, Faisalabad, Sialkot, Gujranwala and
Multan .
 Route will start from Burhan Interchange M1, will use already
constructed Islamabad-Lahore Motorway M2,then Roadway
infrastructure M5 to be completed as part CPEC what is known as
the Karachi–Lahore Motorway.
 M 10 will link it to Industrial cities of Sialkot and
Gujranwala. M3 & M4 will provide a short cut connect
to Multan via Faisalabad.
The M8 Motorway will eventually span the 892
kilometer distance between the city of Ratodero which
is centre point of Karachi–Lahore Motorway and
Gawadar. Ratodero will work as a Junction for roads to
both major ports
Western Alignment
The Western Alignment routes in Balochistan province are
indicated by the red line. The route consists of: N50 between
Dera Ismail Khan and Kuchlak; the N25 between Kuchlak and
Surab; the N85 between Surab and Hoshab, and the M8
between Hoshab and Gwadar.
Central Alignment
Long term plans for a "Central Alignment"
of the CPEC comprise of a network of roads
which will originate from Gwadar via Basima,
Khuzdar, Sukkur, Rajanpur, Layyah,
Muzaffargarh, Bhakkar, Mianwali, Attock and
Burhan connected to Karakoram Highway.
Energy Sector Projects
Pakistan's current energy generating capacity is
24,830 MW, though the country currently faces energy
shortfalls of over 4,500MW on a regular basis with
routine power cuts of up to 5 hours per day, which has
shed an estimated 2-2.5% off its annual GDP.
Energy generation will be a major focus of the CPEC
project, with approximately $33 billion expected to be
invested in this sector.
 As part of the "Early Harvest" scheme of the
CPEC, an estimated 10,400 MW of electricity
are slated for generation by March 2018 as
part of CPEC's "Early Harvest" projects.
China's Zonergy company will complete construction
on the world's largest solar power plant – the 6,500 acre
Quaid-e-Azam Solar Park near the city of Bahawalpur
with an estimated capacity of 1000MW is expected to
be completed in December 2016.
 The first phase of the project has been completed by
Xinjiang SunOasis, and has a generating capacity of 100
MW.
Renewable-Energy Projects
The remaining 900 MW capacity will be installed by
Zonergy under CPEC.
The Jhimpir Wind Power Plant, built by the Turkish
company Zorlu Enerji has already begun to sell 56.4
MW of electricity to the government of
Pakistan,though under CPEC, another 250MW of
electricity are to be produced by the Chinese-Pakistan
consortium United Energy Pakistan and others at a cost
of $659 million.
SK Hydro Consortium is constructing the 870 MW
Suki Kinari Hydropower Project in the is to be financed
separately by China's Silk Road Fund.
 Kaghan Valley of Pakistan's Khyber
Pakhtunkhwa province at a cost of $1.8 billion] SK
Hydro will construct the project with financing by
China's EXIM bank.
 The $1.6 billion 720 MW Karot Dam which is
under construction is part of the CPEC plan, but
Coal
Despite several renewable energy projects, the bulk
of new energy generation capacity under CPEC will be
coal-based plants, with $5.8 billion worth of coal
power projects expected to be completed by early 2019
as part of the CPEC's "Early Harvest" projects
Early Harvest" Energy Projects
Early Harvest"
Energy Project Capacity Location
Pakistan Port
Qasim Power
Project.
1,320 MW (2 x 660
MW plants)
Sindh
Sahiwal Coal Power
Project
1,320 MW (2 x 660
MW plants)
Punjab
Rahimyar Khan
coal power project
1,320 MW (2 x 660
MW plants)
Punjab
Thar SSRL coal
power project and
mine
1,320 MW (2 x 660
MW plants)
Sindh
Quaid-e-Azam Solar Park 1,000 MW Punjab
Suki Kinari Hydropower
Project
870 MW (expected
completion in 2020)[174] Khyber Pakhtunkhwa
Karot Hydropower Project
720 MW (expected
completion in 2020)[175] Punjab
HUBCO coal power project 660 MW Balochistan
Thar Engro Coal Power
Project
660 MW (2 x 330 MW plants) Sindh
Gwadar coal power project 300 MW Balochistan
UEP Windfarm 100 MW Sindh
Dawood Windfarm 50 MW Sindh
Sachal Windfarm 50 MW Sindh
Sunnec Windfarm 50 MW Sindh
Matiari to Faisalabad
transmission line
660 kilovolt Sindh and Punjab
Matiari to Lahore
Transmission Line
660 kilovolt Sindh and Punjab
Project financing Loans to the
Pakistani Government
Approximately $11 billion worth of infrastructure
projects being developed by the Pakistani government
will be financed by concessionary loans, with composite
interest rates of 1.6%,after Pakistan successfully lobbied
the Chinese government to reduce interest rates from an
initial 3%.
The loans are subsidized by the government of
China, and are to be dispersed by the Exim Bank of
China and the China Development Bank.
 For comparison, loans for previous Pakistani
infrastructure projects financed by the World Bank
carried an interest rate between 5% and 8.5%, while
interest rates on market loans approach 12%.
Security
 China has expressed concern that some separatist
groups in Xinjiang may be collaborating with insurgents
in Pakistan, and has expressed a desire to strengthen
security ties.
 The outlawed terrorist organization Tehrik-i-Taliban
has claimed responsibility for past attacks on some
Chinese nationals, and Chinese commentators have
raised concerns that construction workers could be
kidnapped and ransomed.
 The express Tribune reports that Pakistan
plans to train 12,000 security personnel to
protect Chinese workers on the corridor.
Presently, 8,000 Pakistani security officials are
deployed for the protection of over 8,100 Chinese
workers in Pakistan.
 Other terrorist organizations operate in
Balochistan, including the Balochistan
Liberation Army and Jundallah, which have
carried out various bombings. The terror groups
are reportedly backed by India.
The route of the Economic Corridor passes though
Gilgit Baltistan, one of the regions that has been
contested in the Kashmir conflict between India and
Pakistan, and border guards have occasionally
exchanged fire.
Chinese intelligence agencies also shared information
with Pakistani authorities regarding "foreign hostile
agencies" who could support anti-state elements to
sabotage the project, a reference mainly to the Indian
intelligence agency,
Research and Analysis Wing Pakistan has
responded that it will vigorously guard
itself and its allies from Indian-backed
militants.
Geopolitical impact
Is China a Mad
Country?????
CPEC to circumvent the Straits of Malacca and South
China Sea
Map showing territorial claims in South China Sea. A
high percentage of Chinese energy imports pass
through this disputed region, rendering much of
China's energy imports vulnerable to conflict.
The Straits of Malacca provide China with its
shortest maritime access to Europe, Africa, and the
Middle East.
Approximately 80% pass of its Middle Eastern
energy imports also pass through the Straits of
Malacca. As the world's biggest oil importer,[energy
security is a key concern for China.
 Current sea routes used to import Middle Eastern
oil are frequently patrolled by the United States'
Navy.
In the event that China were to face hostile
actions from a state or non-state actor, energy
imports through the Straits of Malacca could be
cut, which in turn would paralyse the Chinese
economy in a scenario that is
frequently referred to as the "Malacca Dilemma." In
addition vulnerabilities faced in the Straits of
Malacca region,
China is heavily dependent upon sea-routes that
pass through the South China Sea, near the disputed
Spratly Islands and Paracel Islands, which are
currently a source of tension between China, Taiwan,
Vietnam, the Philippines, and the United States.
The CPEC project will allow Chinese energy
imports to circumvent these contentious
areas, and thereby decrease the possibility of
confrontation between the United States and
China.
Improved access to western China
 The CPEC will improve connectivity to restive Xinjiang, thereby
increasing the region's potential to attract public and private
investment.
 CPEC is considered central to China–Pakistan relations; its central
importance is reflected by China's inclusion of the project as part of
its 13th five-year development plan.
The CPEC projects will also complement China's Western
Development plan, which includes not only Xinjiang, but also the
neighboring regions of Tibet and Qinghai.
Sea of Malacca and South China Sea routes,
CPEC will provide China an alternative and shorter
route for energy imports from the Middle East, thereby
reducing shipping costs and transit times.
The currently available sea-route to China is roughly
12,000 kilometers long, while the distance from
Gawadar Port to Xinjiang province is approximately
3,000 kilometers, with another 3,500 kilometers from
Xinjiang to China's eastern coast.
As a result of CPEC, Chinese imports and
exports to the Middle East, Africa, and Europe
would require much shorter shipment times and
distances.
Is Pakistan a mad
country???
A stimulus for economic growth in Pakistan
[CPEC] will be a strategic
gamechanger in the
region, which would go a
long way in making
Pakistan a richer and
stronger entity than ever
before.
”
Firstpost (India) April 22, 2015
 CPEC is considered economically vital to Pakistan in
helping it drive economic growth.
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
 Approximately 1 year after the announcement of
CPEC, Zhang Baozhong, chairman of China
Overseas his company planned to spend an
additional $4.5 billion on roads, power, hotels and
other infrastructure for Gawadar's industrial zone,
which would be one of the largest ever sums of
foreign direct investment into Pakistan. Port
Holding Company told the The Washington Post
that
Pakistan currently faces energy shortfalls of over
4,500MW on a regular basis with routine power cuts of up
to 12 hours per day, which has shed an estimated 2-2.5%
off its annual GDP.
The Financial Times notes that Pakistan's electricity
shortages are a major hindrance to foreign investment,
and that Chinese investments in
 Pakistani infrastructure and power
projects will lead to a "virtuous cycle" that
will make the country more attractive for
foreign investment in a variety of sectors
 Poor availability of electricity is
considered by the World Bank to be a main
constraint to both economic growth and
investment in Pakistan
Pakistan's large textile industry has also been
negatively effected by several-hour long power cuts,
with almost 20% of textile factories in the city of
Faisalabad shutting down on account of power
shortages.
 The CPEC's "Early Harvest" projects are expected to
resolve shortages in power generation by 2018 by
increasing Pakistan's power generation capacity by over
10,000 megawatts.
 As a result of improved infrastructure and energy supplies, the
Pakistani government expects that economic growth rates will
reach 7% by 2018.
 According to Chinese Foreign Ministry Spokesperson Hua
Chunying, the corridor will "serve as a driver for connectivity
between South Asia and East Asia." Mushahid Hussain, chairman
of the Pakistan-China Institute, told China Daily that the
economic corridor "will play a crucial role in regional integration
of the 'Greater South Asia', which includes China,
Iran, Afghanistan, and stretches all the way to
Myanmar. When fully built, the corridor is expected
to generate significant revenue from transit fees levied
on Chinese goods – to the tune of several billion
dollars per annum.
According to The Guardian, "The Chinese are not
just offering to build much-needed infrastructure but
also make Pakistan a key partner in its grand
economic and strategic ambitions.
Moody's Investors Service has described the project as
a "credit positive" for Pakistan.
In 2015, the agency acknowledged that much of the
project's key benefits would not materialize until 2017,
but stated that it believes at least some of the benefits
from the economic corridor would likely begin accruing
even before
 The Asian Development Bank stated "CPEC
will connect economic agents along a defined
geography. It will provide connection between
economic nodes or hubs, centered on urban
landscapes, in which large amount of economic
resources and actors are concentrated. They link
the supply and demand sides of markets."
Neither the China is mad
country nor the Pakistan
but they are supporting
each other to support
themselves…!!!!
For more
Click the
links below
https://www.slideshare.net/MubshirHussain/presentation-of-copper
https://www.slideshare.net/MubshirHussain/weapon-technoloies

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China Pakistan Economic Corridor

  • 4. The China Pakistan Economic Corridor (CPEC) (Chinese: 中国-巴基斯坦经济走廊; Urdu: ‫اقتصادی‬ ‫چین‬ ‫پاكستان‬ ‫)راہداری‬ is a collection of projects currently under construction at a cost of $46 billion which is intended to rapidly expand and upgrade Pakistani infrastructure, as well as deepen and broaden economic links between Pakistan and the People's Republic of China.
  • 5. While economic opportunities and development will largely benefit Pakistan, CPEC's importance to China's geopolitical and economic goals is reflected by the inclusion of the project as part of China's 13th five-year development plan.  Should all the planned projects be implemented, the value of those projects would be equal to all foreign direct investment in Pakistan since 1970, and would be equivalent to 17% of Pakistan's 2015 gross domestic product.
  • 6. Pakistan estimates the corridor project will create some 700,000 direct jobs between 2015– 2030 and add up to 2.5 percentage points to the country's growth rate. infrastructure projects under the aegis of CPEC will span the length and breadth of Pakistan, and will eventually link the Pakistani city of Gwadar in southwestern to China's northwestern autonomous region of Xinjiang via a vast network of highways and railways. Proposed
  • 7. infrastructure projects are worth approximately $11 billion, and will be financed by heavily-subsidized concessionary loans at an average interest rate of 1.6% that will be dispersed to the Government of Pakistan by the Exim Bank of China, China Development Bank, and the Industrial and Commercial Bank of China.
  • 9. As part of infrastructure projects worth approximately $11 billion, an 1,100 kilometers long motorway will be constructed between the cities of Karachi and Lahore  while the Karakoram Highway between Rawalpindi and the Chinese border will be completely reconstructed and overhauled. The Karachi–Peshawar main railway line will also be upgraded to allow for train travel at up to 160 kilometers per hour by December 2019.
  • 10. Pakistan's railway network will also be extended to eventually connect to China's Southern Xinjiang Railway in Kashgar.  A network of pipelines to transport liquefied natural gas and oil will also be laid as part of the project, including a $2.5 billion pipeline between Gawadar and Nawabshah to eventually transport gas from Iran
  • 11. Over $33 billion worth of energy infrastructure will be constructed by private consortia to help alleviate Pakistan's chronic energy shortages, which regularly amount to over 4,500MW, and have shed an estimated 2-2.5% off Pakistan's annual GDP. With approximately $33 billion expected to be invested in energy sector projects, power generation assumes an important role in the CPEC project.
  • 12. Over 10,400MW of energy generating capacity is to be developed between 2018 and 2020 as part of the corridor's fast-tracked "Early Harvest" projects in conjunction with four projects under construction prior to the announcement of CPEC
  • 14.  The site will include manufacturing zones, logistics hubs, warehouses, and display centers businesses located in the zone would be exempt from customs authorities as well as many provincial and federal taxes. the project will be completed in three phases. by 2025
  • 15. it is envisaged that manufacturing and processing industries will be developed, while further expansion of the zone is intended to be complete by 2030.  On 10 April 2016, talking to The Washington Post, Zhang Baozhong, chairman of China Overseas Port Holding Company said that his company planned to spend $4.5 billion on roads, power, hotels and other infrastructure for the industrial zone, which he said would be open to non-Chinese companies.
  • 16. The company also plans to build an international airport and power plant for Gawadar.
  • 18. The city of Gawadar is further being developed by the construction of a 300MW coal power plant, a desalinization plant, and a new 300 bed hospital. Plans for Gawadar city also include construction of the East Bay Expressway – a 19 kilometers controlled- access road that will connect Gwadar Port to the Makran Coastal Highway.
  • 19.  These additional projects are estimated to cost $800 million, and are to be financed by 0% interest loans extended by the Exim Bank of China to Pakistan.
  • 20. In addition to the aforementioned infrastructure works, the Pakistani government announced in September 2015 its intention to establish a training institute named Pak-China Technical and Vocational Institute at Gawadar, which is to be developed by the Gawadar Port Authority. The institute is to be completed by March 2016 at the cost of 943 million rupees, and is designed to impart to local residents the skills required to operate and work at the expanded Gawadar Port.
  • 21. The CPEC project envisages major upgrades and overhauls to Pakistan's transportation infrastructure. Under the CPEC project, China has announced financing for $10.63 billion worth of transportation infrastructure so far; $6.1 billion have been allocated for construction  "Early Harvest" roadway projects at an interest rate of 1.6 percent. The remainder of funds will be allocated when the Pakistani government awards contracts for construction of road segments which are still in the planning phase.
  • 22. Karakoram Highway Reconstruction  Highlighted in red is the route of National Highway 35, which is to be completely rebuilt and upgraded under the CPEC agreement. Highlighted in blue is the 175 kilometers road between Gilgit and Skardu which is to be upgraded to a 4-lane highway.
  • 23. Eastern Alignment The Eastern Alignment of the CPEC refers to the parts of the corridor which were planned in 1991 under Pakistan Motorway.  This route will provide link to both major ports of Pakistan Karachi and Gawader as well as Major Industrial cities Lahore, Rawalpindi, Islamabad, Faisalabad, Sialkot, Gujranwala and Multan .  Route will start from Burhan Interchange M1, will use already constructed Islamabad-Lahore Motorway M2,then Roadway infrastructure M5 to be completed as part CPEC what is known as the Karachi–Lahore Motorway.
  • 24.  M 10 will link it to Industrial cities of Sialkot and Gujranwala. M3 & M4 will provide a short cut connect to Multan via Faisalabad. The M8 Motorway will eventually span the 892 kilometer distance between the city of Ratodero which is centre point of Karachi–Lahore Motorway and Gawadar. Ratodero will work as a Junction for roads to both major ports
  • 25. Western Alignment The Western Alignment routes in Balochistan province are indicated by the red line. The route consists of: N50 between Dera Ismail Khan and Kuchlak; the N25 between Kuchlak and Surab; the N85 between Surab and Hoshab, and the M8 between Hoshab and Gwadar.
  • 26. Central Alignment Long term plans for a "Central Alignment" of the CPEC comprise of a network of roads which will originate from Gwadar via Basima, Khuzdar, Sukkur, Rajanpur, Layyah, Muzaffargarh, Bhakkar, Mianwali, Attock and Burhan connected to Karakoram Highway.
  • 27. Energy Sector Projects Pakistan's current energy generating capacity is 24,830 MW, though the country currently faces energy shortfalls of over 4,500MW on a regular basis with routine power cuts of up to 5 hours per day, which has shed an estimated 2-2.5% off its annual GDP. Energy generation will be a major focus of the CPEC project, with approximately $33 billion expected to be invested in this sector.
  • 28.  As part of the "Early Harvest" scheme of the CPEC, an estimated 10,400 MW of electricity are slated for generation by March 2018 as part of CPEC's "Early Harvest" projects.
  • 29. China's Zonergy company will complete construction on the world's largest solar power plant – the 6,500 acre Quaid-e-Azam Solar Park near the city of Bahawalpur with an estimated capacity of 1000MW is expected to be completed in December 2016.  The first phase of the project has been completed by Xinjiang SunOasis, and has a generating capacity of 100 MW. Renewable-Energy Projects
  • 30. The remaining 900 MW capacity will be installed by Zonergy under CPEC. The Jhimpir Wind Power Plant, built by the Turkish company Zorlu Enerji has already begun to sell 56.4 MW of electricity to the government of
  • 31. Pakistan,though under CPEC, another 250MW of electricity are to be produced by the Chinese-Pakistan consortium United Energy Pakistan and others at a cost of $659 million. SK Hydro Consortium is constructing the 870 MW Suki Kinari Hydropower Project in the is to be financed separately by China's Silk Road Fund.
  • 32.  Kaghan Valley of Pakistan's Khyber Pakhtunkhwa province at a cost of $1.8 billion] SK Hydro will construct the project with financing by China's EXIM bank.  The $1.6 billion 720 MW Karot Dam which is under construction is part of the CPEC plan, but
  • 33. Coal Despite several renewable energy projects, the bulk of new energy generation capacity under CPEC will be coal-based plants, with $5.8 billion worth of coal power projects expected to be completed by early 2019 as part of the CPEC's "Early Harvest" projects
  • 34. Early Harvest" Energy Projects Early Harvest" Energy Project Capacity Location Pakistan Port Qasim Power Project. 1,320 MW (2 x 660 MW plants) Sindh Sahiwal Coal Power Project 1,320 MW (2 x 660 MW plants) Punjab Rahimyar Khan coal power project 1,320 MW (2 x 660 MW plants) Punjab Thar SSRL coal power project and mine 1,320 MW (2 x 660 MW plants) Sindh
  • 35. Quaid-e-Azam Solar Park 1,000 MW Punjab Suki Kinari Hydropower Project 870 MW (expected completion in 2020)[174] Khyber Pakhtunkhwa Karot Hydropower Project 720 MW (expected completion in 2020)[175] Punjab HUBCO coal power project 660 MW Balochistan Thar Engro Coal Power Project 660 MW (2 x 330 MW plants) Sindh Gwadar coal power project 300 MW Balochistan UEP Windfarm 100 MW Sindh Dawood Windfarm 50 MW Sindh Sachal Windfarm 50 MW Sindh Sunnec Windfarm 50 MW Sindh Matiari to Faisalabad transmission line 660 kilovolt Sindh and Punjab Matiari to Lahore Transmission Line 660 kilovolt Sindh and Punjab
  • 36. Project financing Loans to the Pakistani Government Approximately $11 billion worth of infrastructure projects being developed by the Pakistani government will be financed by concessionary loans, with composite interest rates of 1.6%,after Pakistan successfully lobbied the Chinese government to reduce interest rates from an initial 3%.
  • 37. The loans are subsidized by the government of China, and are to be dispersed by the Exim Bank of China and the China Development Bank.  For comparison, loans for previous Pakistani infrastructure projects financed by the World Bank carried an interest rate between 5% and 8.5%, while interest rates on market loans approach 12%.
  • 38. Security  China has expressed concern that some separatist groups in Xinjiang may be collaborating with insurgents in Pakistan, and has expressed a desire to strengthen security ties.  The outlawed terrorist organization Tehrik-i-Taliban has claimed responsibility for past attacks on some Chinese nationals, and Chinese commentators have raised concerns that construction workers could be kidnapped and ransomed.
  • 39.  The express Tribune reports that Pakistan plans to train 12,000 security personnel to protect Chinese workers on the corridor. Presently, 8,000 Pakistani security officials are deployed for the protection of over 8,100 Chinese workers in Pakistan.  Other terrorist organizations operate in Balochistan, including the Balochistan Liberation Army and Jundallah, which have carried out various bombings. The terror groups are reportedly backed by India.
  • 40. The route of the Economic Corridor passes though Gilgit Baltistan, one of the regions that has been contested in the Kashmir conflict between India and Pakistan, and border guards have occasionally exchanged fire. Chinese intelligence agencies also shared information with Pakistani authorities regarding "foreign hostile agencies" who could support anti-state elements to sabotage the project, a reference mainly to the Indian intelligence agency,
  • 41. Research and Analysis Wing Pakistan has responded that it will vigorously guard itself and its allies from Indian-backed militants.
  • 42. Geopolitical impact Is China a Mad Country?????
  • 43. CPEC to circumvent the Straits of Malacca and South China Sea Map showing territorial claims in South China Sea. A high percentage of Chinese energy imports pass through this disputed region, rendering much of China's energy imports vulnerable to conflict.
  • 44. The Straits of Malacca provide China with its shortest maritime access to Europe, Africa, and the Middle East. Approximately 80% pass of its Middle Eastern energy imports also pass through the Straits of Malacca. As the world's biggest oil importer,[energy security is a key concern for China.  Current sea routes used to import Middle Eastern oil are frequently patrolled by the United States' Navy.
  • 45. In the event that China were to face hostile actions from a state or non-state actor, energy imports through the Straits of Malacca could be cut, which in turn would paralyse the Chinese economy in a scenario that is
  • 46. frequently referred to as the "Malacca Dilemma." In addition vulnerabilities faced in the Straits of Malacca region, China is heavily dependent upon sea-routes that pass through the South China Sea, near the disputed Spratly Islands and Paracel Islands, which are currently a source of tension between China, Taiwan, Vietnam, the Philippines, and the United States.
  • 47. The CPEC project will allow Chinese energy imports to circumvent these contentious areas, and thereby decrease the possibility of confrontation between the United States and China.
  • 48. Improved access to western China  The CPEC will improve connectivity to restive Xinjiang, thereby increasing the region's potential to attract public and private investment.  CPEC is considered central to China–Pakistan relations; its central importance is reflected by China's inclusion of the project as part of its 13th five-year development plan. The CPEC projects will also complement China's Western Development plan, which includes not only Xinjiang, but also the neighboring regions of Tibet and Qinghai.
  • 49. Sea of Malacca and South China Sea routes, CPEC will provide China an alternative and shorter route for energy imports from the Middle East, thereby reducing shipping costs and transit times. The currently available sea-route to China is roughly 12,000 kilometers long, while the distance from Gawadar Port to Xinjiang province is approximately 3,000 kilometers, with another 3,500 kilometers from Xinjiang to China's eastern coast.
  • 50. As a result of CPEC, Chinese imports and exports to the Middle East, Africa, and Europe would require much shorter shipment times and distances.
  • 51. Is Pakistan a mad country???
  • 52. A stimulus for economic growth in Pakistan [CPEC] will be a strategic gamechanger in the region, which would go a long way in making Pakistan a richer and stronger entity than ever before. ” Firstpost (India) April 22, 2015
  • 53.  CPEC is considered economically vital to Pakistan in helping it drive economic growth. 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
  • 54.  Approximately 1 year after the announcement of CPEC, Zhang Baozhong, chairman of China Overseas his company planned to spend an additional $4.5 billion on roads, power, hotels and other infrastructure for Gawadar's industrial zone, which would be one of the largest ever sums of foreign direct investment into Pakistan. Port Holding Company told the The Washington Post that
  • 55. Pakistan currently faces energy shortfalls of over 4,500MW on a regular basis with routine power cuts of up to 12 hours per day, which has shed an estimated 2-2.5% off its annual GDP. The Financial Times notes that Pakistan's electricity shortages are a major hindrance to foreign investment, and that Chinese investments in
  • 56.  Pakistani infrastructure and power projects will lead to a "virtuous cycle" that will make the country more attractive for foreign investment in a variety of sectors  Poor availability of electricity is considered by the World Bank to be a main constraint to both economic growth and investment in Pakistan
  • 57. Pakistan's large textile industry has also been negatively effected by several-hour long power cuts, with almost 20% of textile factories in the city of Faisalabad shutting down on account of power shortages.  The CPEC's "Early Harvest" projects are expected to resolve shortages in power generation by 2018 by increasing Pakistan's power generation capacity by over 10,000 megawatts.
  • 58.  As a result of improved infrastructure and energy supplies, the Pakistani government expects that economic growth rates will reach 7% by 2018.  According to Chinese Foreign Ministry Spokesperson Hua Chunying, the corridor will "serve as a driver for connectivity between South Asia and East Asia." Mushahid Hussain, chairman of the Pakistan-China Institute, told China Daily that the economic corridor "will play a crucial role in regional integration
  • 59. of the 'Greater South Asia', which includes China, Iran, Afghanistan, and stretches all the way to Myanmar. When fully built, the corridor is expected to generate significant revenue from transit fees levied on Chinese goods – to the tune of several billion dollars per annum. According to The Guardian, "The Chinese are not just offering to build much-needed infrastructure but also make Pakistan a key partner in its grand economic and strategic ambitions.
  • 60. Moody's Investors Service has described the project as a "credit positive" for Pakistan. In 2015, the agency acknowledged that much of the project's key benefits would not materialize until 2017, but stated that it believes at least some of the benefits from the economic corridor would likely begin accruing even before
  • 61.  The Asian Development Bank stated "CPEC will connect economic agents along a defined geography. It will provide connection between economic nodes or hubs, centered on urban landscapes, in which large amount of economic resources and actors are concentrated. They link the supply and demand sides of markets."
  • 62. Neither the China is mad country nor the Pakistan but they are supporting each other to support themselves…!!!!
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