China Pakistan economic corridor
China Pakistan economic corridor
CPEC (China Pakistan economic corridor)
What Corridor stands for
Before we explain China Pakistan economic corridor one should know what corridor is meant for Corridor or economic corridor is a network of pathways, roads, railway lines and tracks in defined geographical areas for boosting economic activities. Corridor may be linked with industrial cities and mega factories, and economic zones are also established at their nodes and centers. The major objective of corridor is to facilitate economic activities and to ensure speedy supply of goods, raw material and manufactured items to their clients.
CPEC (China Pakistan Economic Corridor)
CPEC (China Pakistan economic corridor) is one of the biggest investment ever made by the China in Pakistani region. Approximately its length is five hundred and thirty three kilometers from Karachi. From Iranian border its span is one hundred and twenty kilometers. It will connect major industrial cities and ports of Pakistan including Gwadar port. It will lessen the path of Chinese supplies to Europe and Africa. New railway line of 107km long will be built having fifty bridges from Karakoram area. Each country will complete its construction work within their premises. Pakistan have to construct Karachi-Lahore motorway having bridges over River Indus, Sutlej and Ravi.
This sixlane motorway of length of one thousand one hundred and sixty kilometer will link Karachi, Hyderabad,
Dadu, Sukkur, Rohri, Pannu Aqil, Ghotki,Obara, Rahim Yar Khan, Sadiqabad and Multan.
There are several other projects which are to be constructed in this pathway.
Infrastructure Schemes Roads and pathways
The infrastructure schemes scheduled are summarized as under:-
Karakorum Highway (KKH) Phase II (Raikot-Islamabad).
Karachi-Lahore Motorway (KLM) – (Multan-Sukkur Section).
Expansion & Reconstruction of existing Mail Railway Line (ML-1).
Peshawar to Karachi. Construction of Havelian Dry Port.
Orange Line Project at Lahore.
Cross Border Optical Fiber Cable system project.
Energy Development projects
Here is summary of energy generation projects which are developed along-with CPEC:-
Port Qasim Electric Power Company (2X660) 1320 megawatts.
Engro Thar Coal-fired Power Plant 660 megawatts.
Sindh Sino Resources Power Plant of Thar Coal (Block-1) 1320 megawatts.
Gwadar Coal Power Project 300 megawatts.
Rahimyar Khan Coal Power 1320 megawatts.
Muzaffargarh Coal Power 1320 megawatts.
Sahiwal Power Plant 1320 megawatts.
Suki Kinari Power Project 870 megawatts.
Karot Hydro Power Station 720 megawatts.
UEP Wind Power Project 100 megawatts.
Sunec Wind Power Project 50 megawatts.
Sachal Wind Power Project 50 megawatts.
Dawood Wind Power Project 50 megawatts.
Quaid-e-Azam Solar 900 megawatts.
Quaid-e-Azam Solar 100 megawatts.
Advantages for Pakistan and region
Pakistan neighbors are not much happy with above mentioned CPEC projects. Although China
has announced $20 billion of Chinese investment in neighborhood over the next five years, whereas its trade and investment with Pakistan will reached to and over $42 billion. On the other hand China has also increased its investment with its Southeast Asian neighboring countries of Vietnam, Philippines, Myanmar, Singapore and Malaysia to share balance of world economy and power in this region.
CPEC Importance for Pakistan
CPEC is one of the most significant project in the history of Pakistan and one of the biggest investment
ever made by the Chinese in this country. CPEC energyprojects will surely meet the energy shortage in
power sector which will alive hundreds of dead industrial units due to shortage of power in Pakistan.
Economic zones and activities at Gwadar port will boost economic development in the region.
Agreements and MOUs made between two Nations
More than 22 agreements and MOUs have been signed between Pakistan and China which
amounts to US$34 billion. Here some of main agreements are summarized as under:-
Bilateral agreements for Economic and Technical Cooperation.
Government’s Concessional Loan Agreement for Construction of Cross Border Optical Fibre
Cable System between China and Pakistan.
Signing of Minutes of the 3rd JCC Meeting of CPEC.
Signing of MOU on the Outline of Long Term Plan of CPEC.
Signing of MOU on Capacity Building for Development of CPEC.
Framework Agreement for Construction of Cross-border Optical Fibre Cable System between
China and Pakistan. MOU on Cooperation of Textile Garment Industrial Park Projects in Pakistan.
Main agreements made for power sector are summarized as under:-
MOU on Surface Mine in Block-II of Thar Coal Mine and the Engro Thar 2X330 MW Coal Fired Power Plant between
Sindh Engro Coal Mining Company and China Development Bank Corporation have been signed.
Thermal Power Assets for Pakistan,
HUBCO Power Company Limited (2 x 660MW including Jetty).
Memorandum of Facilitation between Port Qasim Electric Power Company Private
Limited and Government of Pakistan (2X660).
Memorandum of Facilitation Agreement between Govt. of Punjab and M/s Huaneng Shandong Rui
Group, China for Development of 1320 (2×660) MW Coal Fired Power Project at Qadirabad and Sahiwal.
MOUs for Framework Facility Agreement on Sukhi-Kinari Hydro Power Project.
Memorandum of Facilitation Agreement between Govt. of Punjab and M/s China Machinery Engineering Corporation China (CMEC) for 1×660 MW Coal Fired Power Plant at Muzaffargarh.
Agreement for construction of Gwadar New International Airport, Gwadar Eastbay
Expressway, Hospital at Gwadar, Technical & Vocational Training Institute,
Water Supply and Distribution, and infrastructural development.
When CPEC will be completed
It is planned to complete this in 2020.
Strategic Importance for People Republic of China
CPEC will enhance the trade and investment span of China as China will also develop New
Kashgar Economic Zone. Basic and necessary infrastructure and development will be made in the city of Kashgar to act as a dry port as well as economic hub.
CPEC will turn into a main entrance for trade between China and the Middle East and Africa.
This linkage will cut 12000 Km path of Middle East oil supplies to China. By CPEC this oil will be supplied through port of Gwadar (Balochistan Pakistan) to China. This will be a safe and speedy gateway for Chinese trade and supplies.
It will make china economic route independent from the influence of India and US.
In long run this project will change the fate of countries and will provide new employment facilities,
economic activities, trade and infrastructural development, will coup power and raw material shortage to industries, safe and free pathway for trade and economic supplies.