What is CPEC?

The CPEC is an economic 'corridor' or zone between China and Pakistan started by in 2002.
CPEC will not only benefit China and Pakistan but will have positive impact on Iran, Afghanistan,
India, Central Asian Republic, and the region. The enhancement of geographical linkages having
improved road, rail and air transportation system with frequent and free exchanges of growth and
people to people contact, enhancing understanding through academic, cultural and regional
knowledge and culture, activity of higher volume of flow of trade and businesses, producing and
moving energy to have more optimal businesses.
The project was launched on April 20, 2015 when Chinese President Xi Jinping and Pakistani
Prime Minister Nawaz Sharif signed 51 agreements and Memorandums of Understanding valued
at $46 billion. The goal of CPEC is both to transform Pakistan’s economy by modernizing its
road, rail, air, and energy transportation systems and to connect the deep sea Pakistani ports of

Gwadar and Karachi to China’s Xinjiang province and beyond by overland route.
China Pakistan Economic Corridor is journey towards economic regionalization in the globalized
world. It founded peace, development, and win-win model for all of them.
China Pakistan Economic Corridor is hope of better region of the future with peace, development
and growth of economy.
CPEC will act as a bridge for the new Marine silk route that imagine linking 3 billion people in
Asia Africa and Europe.

List of projects
Total number of projects 49
o Baluchistan 16 projects
o KPK 8 projects
o Sindh 13 projects
o Punjab 12 projects

Major Projects of CPEC:

o Gwadar port
o Lahore Karachi motor way
o Peshawar Karachi motor way
o Havelian khunjerab Railway
o Hazara motorway
o Gwadar international Airport

Objectives of CPEC :
 o Increase the volume between china and Pakistan
o Pakistan and china are second partner in south Asia
o Approximately reduce 10000 km distance and it’s the shortest route
o Widen Karakorum highway and open new economic corridor from, china to Gwadar
o Expand trade with Russia by providing trade route till Gwadar port
o Development of infrastructure along Pakistan
o Chiba access tom Indian occasion with the aim of widening geopolitical influence
o Job opportunities and economni8c development in Baluchistan
o Enhanced trade among Pakistan china gulf state central Asia and Africa

What are the advantages of CPEC for China

1. One sided bids for Chinese Companies: The contracts for investments in CPEC are all
one sided, no bid contracts against Chinese companies. There are also reports that some
of the projects are awarded to black listed companies in China, and substandard
construction of Chinese Companies never sure the quality. Kanpur and Nandipur
hydroelectricity Power Plants are prime examples.

2. Preference for Chinese Workforce: China is now having huge under-utilized capacity
of industrial production and workforce. In CPEC majority of workers, goods & materials
are all Chinese. China is constructing quarters for their own work force in Pakistan. No
assurances could be given that Pakistani labor would be recruited to work. So the money
China is investing comes back to China and with interest.

3. Not Toll for Chinese: Chinese trucks are exempted from paying toll tax. As Pakistan
has very less to export to China. Under CPEC, Pakistan has to take care of maintenance
and security of the road. The expenses Govt. of Pakistan has to bear from its own pocket.
Pakistan plans to train 12,000 security personnel to protect Chinese workers on the
corridor. Presently, 8,000 Pakistani security officials are deployed for the protection of
over 8,100 Chinese workers in Pakistan. So Govt of Pakistan has to do without a single
penny worth benefit getting out of it.

4. CPEC is Plan B: In practical, China’s major manufacturing is located in her east,

bordering the South China Sea. It is crazy enough to imagine Chinese would like to ship
goods through an at heavy risk CPEC, when they can ship the same goods by sea for a
fraction of the cost, the ports being next door and the sea lanes much better secured.

5. Transfer of Coal Plants: Through CPEC China is installing Coal Based Power Plants
in Pakistan which has adverse effects on human health, do major disregard for the
 environment and utter destruction of ecological systems. In one side China is trying to
close their own coal based power plants and they are transferring same on the Pakistani
sides.

What are the advantages of CPEC for Pakistan :

1. CPEC will be a game changer for Pakistan once it is functional. China Pakistan
economic corridor worth of 55bn $ comprising on connectivity, communication,
development and industrial upheaval.

2. Pakistan which is ergonomically a washy and needs the world attention for foreign
investment so CPEC will be the cause of foreign direct investment in the country.

3. As Pakistan is suffering from energy shortage but CPEC is much more about the Energy
sector. 50% of the investment is kept for the production of electricity which is estimated
to be 16500 megawatts.

4. CPEC will bring the economic revival in country because of the Chinese investment
and various other multinational corporations are interested to invest in Pakistan. FDI
will ultimately enhance the economic activities in the country.

5. Transportation business will be at boom with the CPEC, it is estimated about the
requirement of 1 lac new Cargo trucks for transportation of Goods and Chinese oil from
kashgar to Gwadar. All these mega developments will change the lifestyle of masses of
Pakistan.

6. Telecommunication field is expected to grow once the fiber optics will be laid from
china to Gwadar and people of Baluchistan will be getting much out of this.

7. Military usage of CPEC, as the Port city Gwadar does provide the strategic importance
to Pakistan. Gwadar do have the potential to act as a naval base for joint venture of
Pakistan and Chinese navies.

Drawbacks of CPEC for Pakistan

Following are the disadvantages that might be faced by Pakistan:-
Manufacturing sectors
The sector will face a high pressure due to an increase in the competition from Chinese
manufacturing firms. Several Chinese brand of each product will be floating in the Pakistan
market.

Cost Structure
The economic activity is going to increase in Pakistan and jobs will be increased. The increase
in demand will increase the labor costs in Pakistan. The local production will become costly due
to high labor and electricity cost. The exports of Pakistan will become non competitive in the
international market.

Culture issues
Over the years, Pakistani culture is rigid to accommodate other cultures. The inflow of Chinese
people can create friction among cultures.

Corruption
Corruption is a big problem in Pakistan whereas in china corruption is punishable by death.

Dumping
There is a fear in Pakistan’s production sector that Chinese firms will start to dump excess
production in Pakistan

International Pressure

There are few countries who oppose China-Pakistan Economic Corridor (CPEC). Pakistan is
the country who have world best geographic location and most of the world take interest in this
great Project due to Pakistan geostrategic location. The CPEC is 46 billion US dollar project which
will definitely change the future of Pakistan and the entire region.

When China start this great project with Pakistan many countries predicts that this project
will fail and it is not a feasible project but Pakistan-China proves that this project is feasible and it
will connect China to the entire world. Here is the list of those countries who are against CPEC
because these countries did not want to see a stable Pakistan.
1: India:
India is the first country who openly work against CPEC and creates hurdles for the China,
Pakistan. India openly spreading terrorism by promoting insurgency in Baluchistan. As
Baluchistan is the center point of CPEC Project. India did not want to see a safe and financially
sound Pakistan.

2: USA:
The USA is also adopted double standards. As India is backed by the USA to contain China in
the region. It is very much interesting that many US companies willing to participate in China
Pakistan Economic Corridor but these companies face restraints by US Government. The US will
never support such activity which will give strength to China. The US wants to maintain financial
instability in Pakistan.

3: UAE:
UAE policy about Pakistan-China economic corridor is not clear. It creates so many doubts
about UAE. The UAE main concern about CPEC is that if Gwadar becomes duty-free port then it
will effect the UAE ports. They also have fears that if Gwadar becomes international deep sea port
then it will become the hub of international sea trade. To secure their own ports and trade they
hiddenly oppose CPEC.

4: Iran:
It is very unfortunate that our friendly brother Iran hiddenly oppose CPEC. Actually Iran has
no conflict over CPEC with Pakistan. Its India who instigate Iran against Pakistan. As India have
heavy interest in Iran and it is constructing Chahbahar port. It is a good step that someone put
their share in someone country progress but it should not be used to use against other countries.
CPEC is a great Project which is supported by 100 plus countries and it is an open project for
every country

Business opportunity link with CPEC for Pakistan

CPEC offers a number of opportunities, the first of which is economic development. The
large influx of investments will work as a strong economic incentive for Pakistan’s government
and social sectors to improve the business environment and enhance commercial arachnids for
more foreign investments, which will not only benefit Chinese investors engaged in CPEC, but
will also benefit all foreign investors in Pakistan, including the United States.
 Industrialization in Pakistan will also help to create jobs for the country’s large, under‐
employed populations , turning a social and fiscal burden into an economic and developmental
driver. A second opportunity that CPEC could provide is stabilization on and improved security.
With planned infrastructure, energy, and manufacturing investments, CPEC will create more
private‐sector opportunities and offer a realis pathway out of poverty for Pakistan’s people,
especially those extremely poor who otherwise may be tempted to fight as mercenaries for the
Taliban or ISIS.

Economic development will help to maintain domestic stability and enhance security in
Pakistan for the medium to long term. Combined with strengthened governance and improved
capacity,

Pakistan will have greater political willingness and capability to fulfill its security
commitment and responsibilities for global counterterrorism.

Finally, CPEC could contribute to the further integrations of South Asia. The core vision of
CPEC is to improve infrastructure to facilitate interconnectivity. The project is expected to connect
China, Pakistan, Iran, Afghanistan, and Central Asian countries together, integrations a market of
two billion people and stabilizing the region. CPEC will empower South Asia to enjoy the full
benefits of region‐wide trade, stretching from Iran to China.