China Pakistan Economic Corridor (CPEC)

China Pakistan Economic Corridor (CPEC)
Both Pakistan and China are termed as all-weather friends. Over the years, both countries have
developed economic ties, cooperation and bilateral trades. Gradually china has emerged as Pakistan
biggest trade partner both in imports and exports. The bilateral trade and cooperation link between the
two countries was established in 1963. Free trade agreement (FAT) in goods was established in 2006 and
in services on February 2009.
The China-Pakistan Economic Corridor, linking Gwadar Port to the Chinese province of Xinjiang, will be a
game changer not only for Baluchistan and Pakistan but also for the world trade. CPEC is a collection of
infrastructure projects that are currently under construction throughout Pakistan. Originally valued at
$46 billion, the value of CPEC projects is now worth $62 billion. CPEC is intended to rapidly modernize
Pakistani infrastructure and strengthen its economy by the construction of modern transportation
networks, numerous energy projects, and special economic zones.
China and Pakistan signed the memorandum of understanding on CPEC on July 2015.This agreement
was signed by PM Nawaz Shareef on his visit to China. In April 2015, China president Xi jiaping arrived in
Pakistan to oversee the signing of agreement aimed to establishing the corridor between Pakistan’s
southern Gwadar port on the Arabian sea and china’s western province Xinjiang.
The objective of CPEC is to
1. Transform Pakistan Economy by modernizing, developing and upgrading its Roads, Railway
System, Air transport system and Energy sectors for industries.
2. Connectivity of deep sea ports of Gwadar and Karachi to China's province Xinjiang as well Asia,
Europe and Africa. The border of Xinjiang connects the countries of Russia, Mongolia,
Kazakhstan, Tajikistan and India. These are connected with ancient silk road.
The CPEC does not mean that a single north south line of communication rather than these projects
expands the provinces and areas of Pakistan. Both countries have made it very clear that the central and
western lines of the corridor will be built in ling and midterm plans.
Benefits of CPEC
1. The China Pakistan Economic Corridor (CPEC) is a 3,218-km set-up of roads, railways and dry
ports from Gwadar Port to Kashgar and will enhance lives of about 3 billion people of this
region. It will help China through Pakistan to do trade with the half of the world countries.
2. This mega project falls into two parts: transportation and energy. An energy master plan of
power generation projects to overcome energy crises would also benefit Pakistan. It is needed
to develop and implement a reform roadmap to complete it with out any interruption and
hurdles. With the CPEC, there is hope that this project will open new business outlets for
businessmen from China, Pakistan and Iran. It will also provide a platform of cooperation in
huge agricultural sector and will boost tourism industry of Pakistan.
3. CPEC is an historic opportunity for Pakistan, to place the country on a high growth economy,
create jobs, improve & construct critical infrastructure and augment access to energy. The only
thing required is determination to develop right applications and structures; as CPEC has the
potential to be one of the biggest economic assets of the future.
Challenges:
1) The CPEC will link china’s province xinjiang to Arabian sea through Pakistan, will pass through
poor Baluchistan province, where a long running separatist insurgency had raised serious
questions about the plan’s feasibility. India has also raised its objection since the link will run
through disputed terrorist.
2) On 1st June 2015, Indian External Affairs Minister Sushma Swaraj said that India’s Prime
Minister Narendra Modi had raised the issue of CPEC during his recent visit to China (2015) and
called the mega project unacceptable for the country, which was sheer interference in the
affairs of a sovereign country. During a press conference in June 2015, Sushma Swaraj also told
reporters that the Indian government had summoned the Chinese envoy over the $46 billion
economic corridor that is to run from Gwadar in Pakistan’s west to China’s Kashghar. China’s
Foreign Office rejected India’s reservations on CPEC, and said that “India’s concerns are not right
enough and we will carry on trade ties with Pakistan.” He added that the CPEC would bring
stability and prosperity in the region. Out of desperation, India has stepped its vile acts. Arrest of
Kulbhushan Yadav bears testimony to the fact that India is involved in terror acts.
3) Pakistan must guarantee the safety of Chinese workers in the country due to poor security
problems of Pakistan. Chinese engineers have previously been kidnaped and killed. Protecting
foreign experts in the midst of military operation poses a serious challenge for the government.
Conclusion:
China Pakistan Economic Corridor will help build a robust and stable economy in Pakistan and will create
a significant opportunity for Pakistan to revive its industry and advance its economic interests. CPEC is a
game changer project which will lift millions of Pakistanis out of poverty and misery. The project
includes the construction of textile garment, industrial projects, construction of dams, the installation of
nuclear reactors and creating networks of road, railway line which will generate employment and
people will also take ownership of these projects. Fully equipped hospitals, technical training institutes,
water supply and distribution in undeveloped areas will also improve the quality of life of people.

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