“SUPPLY CHAIN MANAGEMENT”

China-Pakistan Economic Corridor

BY
MAHNOOR CHISHTY
MUHAMMAD HASSAM HANIF ARAIN
SYED SAAD
 What CPEC is all about?

China-Pakistan Economic Corridor is a framework of regional connectivity. Which means,

CPEC is a $62 billion network project laid down to stretch from the western Chinese city of
Kashgar to Pakistan’s Arabian Sea port of Gwadar, located near Iran and Persian Gulf shipping
lanes. It is a major component of Beijing's broader Belt and Road Initiative.

China Pakistan Economic Corridor is hope of better region of the future with peace, development
and growth of economy.

A MEGA PROJECT:

It plans to improve the lives of people of Pakistan and China by building an economic corridor
promoting bilateral connectivity, construction, explore potential bilateral investment, economic
and trade, logistics and people to people contact for regional connectivity.
It includes:
 Integrated Transport & IT systems including Road, Rail, Port, Air and Data
Communication Channels
 Energy cooperation
 Spatial layout, functional zones, industries and industrial parks
 Agricultural development & poverty alleviation
 Tourism cooperation & people to people communication
 Cooperation in livelihood areas
 Financial cooperation
SIGNIFICANCE:
China-Pakistan Economic Corridor has Significance for the development of the region
Potential areas of cooperation/development include:
 Regional Connectivity
 Transport Infrastructure
 Energy Hub/flows
 Logistic Hub/flows
 Trade & Commerce
 Peace & development of region
 Connectivity/Harmonization/Integration of civilizations
 Diverse Investment opportunities
 Industrial Cooperation
 Financial Cooperation
 Agricultural Cooperation
 Tourism
 Educational linkage
 Human resource development
 Health Care
 People to people contact
 Increase in livelihood opportunities
 Enhance Security and stability of the region
.
 ADVANTAGES & DISADVANTAGES OF CPEC:
Advantages:

 Can benefit new emerging regional cooperation.

 Save time, cost & freight charges.
 Facilitate trade, have Economic Zone en-route & will allow reaping of full benefits of
development, economic & social uplift.
 Create new employment opportunities.
 Pakistan can avail great opportunities from China’s expert in various sectors like energy,
technology & education sector.
 Pakistan & China both collectively target the half of the population of the world, it will
provide great opportunity for both the countries to expand their markets.
 Pakistan’s economy will boost.
 Regional stability in Asia as well as in the whole world.
 Increase the economic collaboration between both countries by connecting Western China
to Gwadar.

Disadvantages:

 FTA leads to threat to local markets & local manufactures.

 Disturbance of local industries.
 Increase the ratio of unemployment.
 Dependence on China.
 Work stopped on 5 China 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.
 Focus on imports rather than domestic production.
 Threat for potential group.
 IMPACT ON SUPPLY CHAIN INDUSTRY OF
PAKISTAN
1. The CPEC is anticipated as a game-changer not only in Pakistan-China economic context
but it would also complement the economies of the entire neighborhood, especially the
ECO region.
2. CPEC has a bigger number of advantages to supply chain industry than some other
particularly in the initial 12 years.
3. CPEC has its fundamental means is to interface courses which itself is a piece of a supply
chain arrange.
4. Logistics companies will operate a large storage and transportation system for agrarian
produce.
5. This is understandable given that Pakistan is transitioning from a low-growth to higher
growth phase, and is addressing supply-side bottlenecks in energy and infrastructure.
6. The CPEC could go a long way towards alleviating Pakistan’s long-standing supply-side
bottlenecks, lifting its long-term potential output and improving power supply for
exports.
7. In transport and storage, the recently unveiled China’s One Belt One Road (OBOR) plan
aims to build a nationwide logistics network, and enlarge the warehousing and
distribution network between major cities of Pakistan with a focus on grains, vegetables
and fruits. Storage bases will be built first in Islamabad and Gwadar in the first phase,
then Karachi, Lahore and another in Gwadar in the second phase, and between 2026-
2030, Karachi, Lahore and Peshawar will each see another storage base.
8. CPEC has made a significant impact in Pakistan to revolutionize things. With a number
of projects on-going and pending, heavy vehicles requirement is crucial. To meet these
requirements, companies like NLC prefer to use imported trucks due to their high quality.
9. There is little doubt that Pakistan direly needs massive investment in energy and transport
infrastructure projects to cut blackouts, boost growth and create jobs. One of the reasons
why the initial cost of the project swelled from $46 billion to $57 billion is because of the
inclusion of Chinese financing for Pakistan Railways and transport projects in the
provincial capitals of Sindh, Khyber-Pakhtunkhwa and Balochistan.
10. The plan also recommends that Pakistan develop auto and auto parts assembly industry
due to the proximity of Karachi and its ports. Due to the introduction of CPEC in
Pakistan, the demand of heavy vehicles is expected to grow quickly and manufacturers
are flocking to Pakistan to capitalize on this.