THE ACCESS ACADEMY OKARA

CHINA-PAKISTAN ECONOMIC CORRIDOR (CPEC)

Outline

1. Introduction
i. A mega project based on OBOR for regional cooperation
ii. Improvement of the infrastructure, economy and standard of living
2. Background
i. Proposed by Pervez Musharaf
ii. Shifting of control from Singapore to China in PPP rule
iii. Became operational in 2016
3. Opportunities and benefits
i. Massive investments by China in infrastructure and energy sectors
ii. Construction of roads for transit trade
iii. Sufficient production in power sector
iv. Improvement in the field of industrialization
v. Massive production of employment opportunities
4. Conclusion
i. Uplift of Pakistan’s economy
ii. A game changer for Central Asia
iii. A hope for the troubled region

As a Chinese proverb asserts, “You cannot live in a castle made of glass while your

neighbour lives in the stone ages”.

The Chinese mega project, CPEC based on “One Belt, One Road” (OBOR) initiative, worth

approximately $900 billion, is a plan of regional connectivity and cooperation. It is a win-win

situation for both China and Pakistan. It aims to improve infrastructure in these countries and

enhance the movement of goods and people, promoting trade and exchange, generating more

economic activities and employment opportunities for the whole region. This will definitely better

the standard of living for people in the region. Moreover, it will provide safe and shortest route to

the fastest growing Chinese economy.

The CPEC was under consideration since long. Ex-president Pervaz Musharaf proposed this

project during his tenure. During PPP’s government, the contract of Gwadar Port was cancelled

with Singapore and was signed with China. In 2013, Chinese Premier Xi Jin Ping visited

Resource Person: MUHAMMAD MUSSAWAR (M.A English; M.A TEFL) 0303-2461219

 THE ACCESS ACADEMY OKARA
Pakistan and Gawdar port’s development and operations were handed over to China. On 13

November 2016, CPEC became partly operational.

“CPEC will be a strategic game changer 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)

There are huge opportunities for Pakistan in the CPEC. The Chinese are making massive

investments in infrastructure, energy and others sectors. As per the plans, nearly 3000

kilometres of roads will be constructed for transit trade.

Among the 51 projects signed during the visit of Chinese President Xi Jin Ping, priority was

given to power projects. Some of these power projects have been completed and have begun

adding power to the National Grid. However, several of the mega projects will take some time to

complete. Upon completion of these projects, it is expected that Pakistan will have sufficient

power, and there will be no more shortage of power.

The next stage of CPEC is under planning, also referred to as the “industrialisation” phase.

Pakistan is planning industrial parks, special economic zones and science parks to facilitate the

flourishing of the Chinese industry in Pakistan. After overcoming the power shortage, the shifting

of Chinese industries into Pakistan will be accelerated.

CPEC will directly or indirectly generate around two million jobs. In the beginning, Chinese

workforce will be hired in Pakistan, but gradually Pakistanis will replace the workforce. Chinese

industry will increase our productivity, reduce our imports, and enhance our exports. It will also

improve the security situation in Pakistan as well as in the whole region.

In the end, CPEC is an extraordinary project for Pakistan and China. It will uplift the economy of

Pakistan and cut down the distance for China from 13,000 Kms to 3,000 Kms. Moreover, it will

be a game changer for the entire region. The landlocked Afghanistan and Central Asian States

will get easy access to Gwadar port for trade purposes. Thus, CPEC is a testimony for China-

Pakistan relations that are described as “sweeter than honey, higher than Himalayas and

deeper than oceans.” It is also a hope for the troubled region. (Words (excluding outline): 514)

Resource Person: MUHAMMAD MUSSAWAR (M.A English; M.A TEFL) 0303-2461219