China Pakistan Economic Corridor

(CPEC)

5th November, 2015

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Signing of MOU on CPEC - July 05, 2013, Beijing

Prime Minister Muhammad Nawaz Sharifs visit to China in

July 2013 his first official overseas trip since assuming office
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 MoU - CPEC

The aim of the MoU is to enable the Government to

cooperate in the planning and development of CPEC and
facilitate and intensify economic activity along the
Corridor.
The Ministry of Planning, Development & Reform
(MPD&R) is the focal Ministry for this engagement
whereas its counterpart in China is National
Development and Reform Commission (NDRC).

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 Cooperation Fields

China Pakistan Economic Corridor Long Term Plan :

Timeframe 2014 2030
Components:
I. Gwadar ( including port and city and Gwadar region socio-
economic development)
II. Energy (Coal, Hydel, Wind, Solar, LNG , Transmission)
III. Transport Infrastructure (Road, Rail, Aviation)
IV. Investment & Industrial Cooperation (Gwadar Free Zone and
other industrial parks to be finalized)
V. Any other area of interest mutually agreed

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 Institutional Framework - CPEC
Joint Cooperation Committee
(Co-Chaired by Minister PDR and Vice Chairman NDRC)

Long Term Planning Energy

Joint Working Group Joint Working Group

Transport Infrastructure Gwadar

Joint Working Group Joint Working Group

Investment & Industrial Cooperation

Joint Working Group (Being
formulated)
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 CPEC Portfolio-Projects
PROJECTS US$ Millions
Energy 33,793
Transport and Infrastructure
Roads 6,100
Rail Network 3,690
Gwadar Port 786
Others 44
Total 44,413

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 CPEC-Energy Priority Projects
Sr.
Projects MW Cost (US$ M)
No
1 Port Qasim Electric Company Coal Fired, 2X660, Sindh 1320 1,980
2 Sahiwal 2x660MW Coal-fired Power Plant, Punjab 1320 1,600
Engro thar 2x330MW Coal-fired, Thar, Sindh 660 1,000
3 Surface mine in Block II of Thar Coal field,3.8 mtpa,
860
Thar Sindh
4 Gawadar Coal Power Project, Gwadar 300 360
5 Muzaffargarh Coal Power Project, Punjab 1320 1,600
6 Rahimyar Khan Coal Power Project, Punjab 1320 1,600
SSRL Thar Coal Block 6.5mpta &CPIH Mine Mouth
7 1320 1,300
Power Plant, Thar, Sindh

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 CPEC-Energy Priority Projects
Sr.
Projects MW Cost (US$ M)
No
Quaid-e-Azam 1000MW Solar Park, Bahawalpur,
8 1000 1,350
Punjab
9 Dawood 50MW wind Farm, Bhambore, Sindh 50 125

10 UEP 100MW wind Farm, Jhimpir, Sindh 100 250

11 Sachal 50MW Wind Farm, Jhimpir, Sindh 50 134

12 Sunnec 50MW wind Farm, Jhimpir, Sindh 50 125

13 Suki Kinari Hydropower Station, KPK 870 1,802

14 Karot Hydropower Station, AJK & Punjab 720 1,420

Total (Priority) 10400 15,506

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 CPEC-Energy Actively Promoted Projects
Cost (US$
Sr. No Projects MW
M)

15 Gaddani Power Park Project

(i) 4660MW 2640 7,920

(ii) Jetty + Infrastructure 1,200

(iii) Transmission Line to Lahore and Faisalabad 3,000

16 HUBCO coal power plant, Hub Balochistan 660 970

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 CPEC-Energy Actively Promoted Projects
Sr. Cost (US$
Projects MW
No M)
Chichoki Mallian 525MW Combined-cycle Power Plant,
17 525 550
Punjab
Salt Range Mine Mouth Power Project including mining,
18 300 800
Punjab

19 Kohala Hydel Project, AJK 1100 2,397

20 Pakistan Wind Farm II (Jhampir, Thatta, Sindh) 100 150

21 Thar mine mouth oracle, Thar Sindh 1320 1,300

Total (Actively Promoted) 6645 18,287

TOTAL Energy Projects 17045 33,793

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 CPEC-Transport Infrastructure Sector Projects
Sr.
Projects Length (km) Cost (US$ M)
No

Roads

1 KKH Phase II (Raikot Islamabad Section) 440 3,500

2 Peshawar-Karachi Motorway (Multan-Sukkur Section) 392 2,600

Rail Sector Projects

1 Expansion and reconstruction of existing Line ML-1 1736 3,650

2 Havelian Dry port (450 M. Twenty-Foot Equivalent Units) 40

TOTAL 9,790
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 CPEC-Gwadar Port Related Projects
Sr.
Projects Cost (US$ M)
No
1 Eastbay Expressway 140.00

2 Gwadar International Airport 230.00

3 Construction of Breakwaters 130.00

4 Dredging of berthing areas & channels 27.00

Infrastructure for Free Zone & EPZs port related
5 35.00
industries
6 Necessary Facilities of Fresh Water Treatment and Supply 114.00

7 Hospital at Gwadar 100.00

8 Technical and Vocational Institute at Gwadar 10.00

Total Gwadar Port Projects 786.00

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 Other Projects

Sr. Cost (US$

Projects Length (km)
No M)
1 Cross Border Optical Fiber Cable 44

2 DTMB

Total 44

Total Cost of CPEC Projects 44,413

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 CPEC
Transformation

Aimed at Regional Integration for peace and

economic development

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PAKISTANS GEO-STRATEGIC GEOGRAPHIC
LOCATION

Jamu & Kashmir

Disputed Territory
BANDAR ABBAS
 The Landscape of CPEC
Khunjerab

Peshawar
Gilgit Skardu
Raikot
Havelian
Nodes of CPEC
Peshawar Islamabad Islamabad

Quetta

DI Khan
Faisalabad Lahore

Quetta DG Khan Khanewal

Lahore

Jacobabad
Gwadar
Basima
Khuzdar Sukkur

Hoshab
Sukkur

Gwadar Kotri
Hyderabad
Karachi Karachi
Gwadar and its Multiple Destinations
Envisioning
Interconnected World
of Peace & Development
by serving multiple
markets & destinations

Gwadar and its Destinations 18

CPEC - Context
Regional Connectivity
is the 7th Pillar of
Pakistan Vision 2025

Integrates/links Silk Road

Economic Belt and
21st Century Maritime
Silk Route

Serves Asias over 3 Billion population

 Significance/Potentials of CPEC
Regional Connectivity
Transport Infrastructure
Energy Hub/flows
Logistic Hub/flows
Trade & Commerce
Peace & development of region
Connectivity/Harmonnization/Integration of
civilizations

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 Significance/Potentials of CPEC

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

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FINANCIAL MUSCLE BEHIND CHINAS INITIATIVES
 CPEC OPPORTUNITY
IT PROVIDES A LINK BETWEEN CHINAS SILK
ROUTE INITIATIVES OF ROAD &MARITIME
CONNECTING EUROPE, AFRICA, WESTERN,
CENTRAL AND EAST ASIA INORDER TO:
SAVE TRAVEL TIME
SAVE TRAVEL DISTANCE
REDUCE LOGISTICAL COST
PROVIDE ALTERNATIVES FOR RISK MANAGEMENT
"The starting point of all achievement is desire." --Napoleon Hill
 VISION OF CPEC
TO IMPROVE THE LIVES OF PEOPLE OF PAKISTAN AND CHINA BY
BUILDING A 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
SPATICAL STRUCTURES, FUNCTIONAL ZONES, INDUSTRIES AND INDUSTRIAL
PARKS
AGRICULTURAL DEVELOPMENT & POVERTY ALLEVIATION
TOURISM COOPERATION & PEOPLE TO PEOPLE COMMUNICATION
COOPERATION IN LIVELIHOOD AREAS
FINANCIAL COOPERATION
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 CPEC FRAMEWORK 1+4
ENERGY COOPERATION
INFRASTRUCTURE DEVELOPMENT
GWADAR PORT
INDUSTRIAL COOPERATION

"You can't connect the dots looking forward; you can only connect
them looking backwards. So you have to trust that the dots will
somehow connect in your future. You have to trust in something--your
gut, destiny, life, karma, whatever. This approach has never let me
down, and it has made all the difference in my life." --Steve Jobs
 ROLE OF CHAMBERS OF COMMERCE AND
INDUSTRY ASSOCIATIONS IN CPEC
Need to facilitate Chinese Investors for one window operation
Identify policy gaps as compared to other countries.
Identify industries which could be shifted from China to Pakistan
Identify components of supply chain we could tap for core industries we
should establish
Help in getting local input/involvement.
Help in identifying and developing local talent/core competencies
Help in capturing the benefits of world classes logistical setups along the
Corridor for businesses
Transfer of Chinese know how and best practices
Help business in availing HBL and ICBC collaboration for financing CPEC
projects
Help in match making for successful JVs/collaborations for creating
investment opportunities

Goal: Entrepreneurship at all market segments should avail CPEC

opportunity with goal to make pilot industrial park a model for
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 WIN-WIN COOPERATIONS
We need to aim for cooperation in those sectors which
will result in a win-win scenario:-
Chinese Prospective
Products whose total cost could be reduced by shifting.
Products whose quantity sold could be increased to solve
the overcapacity problem.
Provide growth opportunities in view of domestic slow
down.
Pakistani Prospective
Reduce reliance on imports
Increase exports and improve industrialization process
Benefit from Chinese R&D
 IMPORT PROFILE OF PAKISTAN
TOTAL IMPORTS F.Y. 2014 47.5 B IMPORTS FROM CHINA $9.6B-20%
Oil $ 14.8 B Electronic equipment: $2.3 B
Machine, engine & pump $3.7 B Machine, engine, pumps: $1.4B
Electric equipment $ 3.3 B Iron and steel: $712.7 M
Iron & Steel $2.3 B Fertilizers: $551.7 M
Animal &vegie fats $2.2 B Organic chemicals: $490.8 M
Organic chemical $2.0 B Manmade filaments: $479.4M
Plastics $2.0 B Plastics: $335.8 M
Vehicles $1.3 B Manmade staple fiber:$310.9M
Fertilizers $813.3 M Iron or steel products: $292.9M
Oil Seed $780.7 M Rubber: $195.9 million
 EXPORT PROFILE OF PAKISTAN
TOTAL EXPORTS F.Y 2014
Major items of total shipments:
mineral fuels 19%
manufactured goods 19%
beverage and tobacco 13%
food and live animals 11%
crude materials 11%
chemicals 11%
machinery 8%
miscellaneous articles 8%
Main export partners were:
United States (13.6 %)
China (11 %)
United Arab Emirates (8.5%)
Saudi Arabia (8.5 %).
TOTAL EXPORTS TO CHINA $2.7 B
Cotton: $1.9 B
Cereals: $144.1 M
Ores, slag, ash: $129.2 M
Salt, S, stone, cement: $63.5 M
Raw hide$57.1 M excl furskin
Plastics: $43.1 M
Food waste, animal fodder: $37.8 M
Copper: $36.6 M
Fish: $35.8 M
Gums, resins: $29.7 M
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China became worlds largest trading country
total export & imports of goods in 2012
 OUR OBJECTIVES
We need ways to harness the positive
potential of Chinese flows to raise living
standards and shared prosperity while
mitigating the associated risks and
challenges.
The cost of being left behindfor Pakistan,
our businesses/companies, and citizensis
rising with time.
Goal: To Become An Asian Tiger
 "All our dreams can come true if we have the
courage to pursue them."

--Walt Disney
CPEC aims at regional connectivity for peace &
development where private sector has key role to
play for exploiting the potentials/environment for
the economic growth of the country
and

it would succeed with integrated efforts of all for

the better future of us & the region/the world

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Thanks

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