PAKISTAN-CHINA ECONOMIC CORRIDOR, CPEC..ppt

CPEC importance and Gawader's significane

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Dr Arifa Saeed

2. China Pakistan economic corridor (CPEC) is an ongoing mega-project which aims to
connect Kashgar 
(
Northern-western region of Xinjiang province of China) and
 
Gwadar
(Baluchistan province of Pakistan) through the construction of a network of highways,
railways, optical fiber and pipelines.
Prime Minister of Pakistan Nawaz Sharif has reiterated on several occasions that the
CPEC could be a “game changer” for Pakistan and the entire region as well.
Along the same lines, Wang Yi, China’s Foreign Minister, has described the CPEC as the
“flagship project of the One Belt, One Road initiative.
‟
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3. The vision for the economic corridor stretches far back as Musharaf era.
The project was proposed by Chinese Premier Li Keqiang during his visit to
Pakistan in May, 2013.
On 20 April, 2015, Pakistan and China signed an agreement to commence work on
the $ 46 billion on 51 project.
Approximately, $ 28 billion was invested immediately for short term (2015-2020)
projects. The remaining amount will be invested in the projects of gas and oil
pipeline.
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5. WHY CHINA IS WHY CHINA IS
INTERESTED…?INTERESTED…?
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SOUTH CHINA SEASOUTH CHINA SEA

7. overview
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8. MAJOR COMPONENT OF THE MAJOR COMPONENT OF THE
PROJECTPROJECT












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CPEC
Energy Sector
Coal (73%)
Infrastructure
Wind (02%)
Railway
Solar (10%)
Roads
Hydel (15%)

9. POWER PROJECTS
Note: MW= Mega watt; GC= Generating capacity
Source: Govt: of Pakistan Press Information Department (2015).

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SR. NO COAL HYDRO SOLAR WIND
1 Port Qasim
1320 MW
Suki Kinari
870 MW
Bahawalpur
1000 MW
Jhampir+
Bhambhor
350 MW
2 Tharparker
3960 MW
Karat
720 MW
3 Gawadar
300 MW
4 Rahim Yar
Khan
1320 MW
5 Muzaffargarh
1320 MW
6 Sahiwal
1320 MW
Total GC 9540MW 1590MW 1000MW 350MW
GRAND TOTAL: 12480 MW

10. LOCATION OF THE LOCATION OF THE
POWER PROJECTSPOWER PROJECTS
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11. INFRASTRUCTUREINFRASTRUCTURE
Three major routes (Roads) are approved
Western Route: Kashgar – Khunjerab – Peshawar – Dera Ismail Khan – Zhob –
Qilla Saifullah – Queta & Gawadar.
Central Route: Kashgar – Khunjerab – Peshawar – Kohat – Dera Ismail Khan –
Dera Gazi Khan – Sukkur – Ratodero & Gawadar.
Eastern Route: Kashgar – Khunjerab – Islamabad – Lahore- Multan – Sukkur –
Hyderabad – Karachi & Gawadar.
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12. MAPS OF THE MAPS OF THE
ROUTESROUTES
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Western Route Central Route Eastern Route
24,42 Km; (Long term Alignment) 26,74km (Via Indus Highway) 27,81km(Motorway)

13. BIRD’S VIEW OF BEAUTIFUL BIRD’S VIEW OF BEAUTIFUL
ROADSROADS


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14. GAWADAR’S GAWADAR’S
MODALMODAL
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15. Problems, Chinese market is facing due to the high transportation cost and time
delivery through South China sea will be decreased.
China can easily exports her products to Gulf, Central Asia, Middle east, Europe
and many other parts of the world. It will help, to compete her competitors like;
USA and Japan in international market.
Even if China uses CPEC for 50% of its oil supplies then it will save $ 6 million
everyday, almost $ 2 billion in a year.
It will be independent path, without the interference of USA and India.
New business market in another country.
Chinese dominance in Arabian ocean.
Rural areas of western China will be developed.
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16. Chronic problem of energy shortage will be solved for ever.
Development of infrastructure.
Rapid economic growth.
Development of Baluchistan, KPK and Fata.
Equalization among provinces.
Strategic importance will be more increased.
Secure Afghan Boarder and Baluchistan.
Attract foreign investors.
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17. objectives
•Increase the volume of trade between China and Pak.
•Pak and China are 2
nd
largest partners in South Asia/ this will help to
retain partnership.
•Widen Karakoram highway and open new economic corridor from China
to Gwadar.
•Approximately reduce 10000 Km distance & is the shortest route.
•Expand trade with Russia by providing trade route till Gwadar port.
•Development of infrastructure along Pakistan.
•China’s access to Indian Ocean with the aim of widening its geopolitical
influence.
•Job opportunities and economic development in Baluchistan.
•Increase in Chinese investment.
•Regional peace, prosperity and elevate the lives of poor people in south
Asia.
•Enhance trade among Pakistan, China, Gulf States, Central Asia & Africa.
•China is interested to extend Iran-Pakistan pipeline to its western territory.
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20. Projects
•Total number of projects: 49 Baluchistan: 16
projects
•KPK: 8 projects
•Sindh: 13 projects
•Punjab: 12 projects
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21. Projects for Baluchistan
1.Gwadar Power Plant
2.Khuzdar-Basima Highway (N-30)
3.Hubco Coal Power Plant
4.Gwadar New International Airport
5.Gwadar Smart Port City Master Plan
6.Gwadar Eastbay Expressway
7.Gwadar Primary School
8.Gwadar Eastbay Expressway II
9.Gwadar Hospital Upgradation
10.Gwadar-Nawabshah LNG Terminal and Pipeline
11.Gwadar Technical & Vocational College
12.Khan-Quetta Highway (N-50)
13.Wastewater Treatment Plants for Gwadar City
14.Gwadar Free Zone
15.Fresh Water Supply
16.Expansion of Multi-purpose Terminal including Breakwater & Dredging
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22. GWADAR INTERNATIONAL AIRPORT

23. KPK projects
1.Establishment of Havelian Dry Port
2.Suki Kinari Hydropower Project
3.Upgradation of ML-1
4.Optical Fiber Cable from Rawapindi to Khunjrab
5.KKH II (Havelian-Thakot)
6.Khan-Quetta Highway (N-50)
7.KKH III (Raikot-Thakot)
8.Joint Feasibility Study for Upgradation of ML1
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24. SUKI KINARI HYDRO POWER
PLANT

25. Sindh Projects
1.Port Qasim Power Plant
2.Matiari-Faisalabad Transmission Line
3.Dawood Wind Farm
4.Matiari-Lahore Transmission Line
5.Sachal Wind Farm
6.Jhimpir Wind Farm
7.Upgradation of ML-1
8.Thar Coal Block I & Mine Mouth Power Plant
9.Gwadar-Nawabshah LNG Terminal & Pipeline
10.China-Sunec Wind Farm
11.Karachi-Lahore Motorway (Sukkur-Multan)
12.Joint Feasibility Study for Upgradation of ML1
13.Engro Thar Power Plant & Surface Mine in Block II of
Thar Coal Field
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26. KARACHI - LAHORE
MOTORWAY
•Motorway

27. Projets allocated for Punjab
1.Karachi-Lahore Motorway (Sukkur-Multan)
2.Upgradation of ML-1
3.Sahiwal Coal-Fired Power Plant
4.Rahimyar Khan Coal Power Plant
5.Lahore Orange Line Metro Train
6.Haier & Ruba Economic Zone II
7.Karot Hydro-Power Plant
8.Joint Feasibility Study for Upgradation of ML1
9.Matiari-Lahore Transmission Line
10.Optical Fiber Cable from Rawapindi to Khunjrab
11.Quaid-e-Azam Solar Park in Bahawalpur
12.Matiari-Faisalabad Transmission Line
13.Faisalabad Khanewal motorway M-4
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28. FAISALABD - KHANEWAL
MOTORWAY

29. CPEC importance for China
•Chinese industries are facing problem to compete in
global market due to high transportation cost and
delivery time.
•It would decrease the travel distance and cost
greatly from China to Gulf.
•Even if China uses CPEC for 50% of its oil supplies
then it will save $6 million every day.
•Independent path from USA and India’s interference.
•New business market in another country.
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30. Importance for Pakistan
•Strategic and economic trade routes
•Development of infrastructure
•Connect all the provinces
•Development of FATA, KPK and Baluchistan
•Job opportunities
•Equalization among all provinces
•Import and export of Pakistan will increase
•The Power capacity will increase
•Gwadar Port will be upgraded
•Roads, Railways, Aviation and Data Transfer will be
upgraded.
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31. Disadvantages for CPEC
•FTA leads to threat for local markets and local
manufactures
•Disturbance of local industries
•Difficult to compete Chine’s product in market
•Increase the ratio of unemployment
•Dependence on China
•Work stopped on 5 Chinese power projects in
Punjab that generated 6600 MW, though Pakistan’s
installed capacity is 22,800 MW to meet current
demand of
•19,000 MW, it produces only 12,000 MW.
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32. CPEC ROUTE MAP

33. Challenges
•The corridor is not free from the external as well as internal challenges.
External Challenges:
1)India’s frustration:
•To encounter the Gawadar port, India is investing $ 5million in Iran to built
Chabahar port and $ 1 billion in Afghanistan to construct multi-projects.
•India have three options;
1)Not to accept the corridor and spark against it on international forum,
2)Try to violate in Baluchistan and AJK
3)To join CPEC
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34. India on CPEC
•The fact that the route passes through the disputed Kashmir region
seems to have worried India, which has about half a million troops
stationed in its part of the territory to quell more than two decades
of armed rebellion.
•"China is using Indian land area illegally occupied by Pakistan," said
Seshadri Chari, a national executive member of the ruling Hindu
nationalist Bhartiya Janata Party.
•Beijing has been willing to address India's concerns, though. Hua
Chunking,
 China's foreign ministry spokeswoman, 
told 
the media
that Beijing is committed to developing friendly and cooperative
relations with others and that CPEC would not affect China's position
on Kashmir.
 
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35. 2) Afghanistan’s interference:

Although Afghanistan is not clear in her stance but it is reported that Afghan’s
agents are involved in violent activities in Baluchistan and Peshawar.
For a stabile Afghanistan, Pakistan is trying to involve her in the corridor.
Pakistan pledged to construct 265 km long Peshawar to Kabul motorway in order
to link up Afghanistan with CPEC.
3) United Arab Emirates:
Another country that seems unhappy with the idea of CPEC is UAE. The fact is
that, once the Gwadar port becomes fully operational it will directly affect Dubai
port, which can lose some 70% of its business.
Relation between UAE and Pakistan became more worst when Pakistan refused
to send her forces to fight against Huthi rebels in Yemen.
These factors prompted UAE to search for new strategic partners to work against
Pakistan – India seems to be an apparent option.
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36. Security issues, law and order situation is the main obstacle in the way of CPEC.

Dominance of one province.
Most of the political elites are politicizing the corridor.
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Internal Challenges:
Baluchistan Sind KPK Punjab
Land 50% 30% 10% 10%
Port 70% 30% -- --
Sea 90% 10% -- --
Minerals 60% 20% 10% 10%
Coal 30% 60% 05% 05%
Gas 35% 50% 09% 06%
28.6
Billion
1 Billion4.68
Billion
1.8 Billion13 Billion

37. RECOMMENDATIONSRECOMMENDATIONS
Pakistan should have to stay away from Islamic military alliance (34 Muslim
countries’ army collection).
Should adopt defensive foreign policy specially in Indian context.
Uniform policy must be adopted against terrorist or banned organizations.
 A comprehensive policy should be design regarding the deportation of Afghan
refuges.
Reservations of the small provinces must be resolved through sincerity.
Every province must be given equal and due share.
Limited number of Chinese should be allowed and they must be restricted to the
particular region or project.
To make positive balance of trade Pakistan should increase exports.
To make a framework to use Domestic currency for trade (Barter system).
Develop auto industry rather than focusing on import parts.
Utilization of raw materials and value added process should be done in Pakistan.
Make efforts to diversify market in China.

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38. Thank You
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Thank You
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