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Summaiya Khan

Fundamental English HS-104

Mr. Rehan Saeed

15 November 2019

China Pakistan Economic Corridor

The China Pakistan economic corridor is an ambitious project that aims at changing the geo-

economic dynamics of Pak-China relations and augmenting the trading activity in the region. It

anticipates economic growth, meeting the energy shortfall requirements, employment generation,

foreign direct investment, infrastructure development, promotion of tourism and others. The multi-

billion project offers a long term investment in Pakistan involving the regional countries as well.

However, the project is being challenged by domestic controversies and external opposition. In this

scenario if these challenges are effectively tackled, it may lead to economic interdependence that

would be climacteric for peace and economic development for the region.

The vision behind CPEC is to improve the lives of people of Pakistan and China by building

economic cooperation, logistics and people to people contact for regional connectivity. Moreover, it

includes integrated transport and IT system, communication channels, agricultural developments

and poverty alleviation. Furthermore, it incorporates tourism, financial cooperation, Human

Resource Development and others.

At Present, that corridor is an under construction which estimated cost above 54 billion

dollars. The project was launched on April 20, 2015 when Chinese President Xi Jinping and

Pakistani Prime Minister Nawaz Sharif signed 51 agreements and Memo. The aims of this project

to connect Gwadar Port in South western Pakistan with Xinjiang in far -Western China. The Project
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including various infrastructure in terms of energy projects, motorways, Highways and Railways to

be built, in order to link Gwadar and Karachi with the Chinese region.

“The Current form of the project was first proposed by General Perves Musharaf, however it

was postponed owing to the political instability in the country. In February 2014, Pakistani President

Mamnoon Hussain visited China to discuss the plans for an economic corridor in Pakistan. Two

months later, Pakistan Prime Minister Nawaz Sharif met with Premier Li Kequiang in China to

discuss further plans resulting in the full scope of the project to be devised under Sharif's tenure. In

November 2014, Chinese government announced its intention to finance Chinese companies as part

of its $45.6 billion energy and infrastructure. Under the CPEC Project, major upgrades are

sanctioned to Pakistan’s transportation network. Comprise reconstruction and upgrade works on

National Highway 35 which forms the Pakistani portion of the Karakoram Highway that spans the

887 Km long. The Shanghai Electric company of China will construct two 660MW power plants as

part of the "Thar-I" project in the Thar coalfield of Sindh Province, while "Thar-ll" will be

developed by a separate consortium. The facility will be powered by locally sourced coal, and is

expected to be put into commercial use in 2018. Pakistan's National Electric Power Regulatory

Authority (NEPRA) has agreed to purchase electricity from both Thar-l and Thar-ll at a tariff of

8.50 US cents/kWh for the first 330 MW of electricity, 8.33 US cents/kWh for the next 660 MW,

and 7.99 US cents/kWh for the next 1,099 MW as further phases are developed. The Chinese

government has announced its intention to build a $2.5 billion 711 kilometer long liquid natural gas

pipeline from Gwadar to Nawabshah in province as part of CPEC”. The project will not only

provide gas exporters with access to the Pakistani market, but will also allow China to secure a route

for its own imports. Pakistan Navy and Chinese Navy ships are to jointly guard the safety and

security of the CPEC Project, as Pakistan seeks to expand the role of its maritime forces. From
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December 2016, Pakistan's Navy established a special taskforce "TF-88" to ensure there is maritime

security for corridor” (China Pakistan economic corridor).

To conclude, it may be observed that China Pakistan economic corridor is a god gifted

opportunity for Pakistan to resurrect its economy and uplift itself from the ashes to become one of

the greatest nations of the world on the basis of its potential, material resources and human capital.

However, the state must be vigilant in tackling problems associated with the project. It must make

sure that our political differences and social dimensions, our administrative impediments and greed

should not effect this golden opportunity, the Pakistani government expects that economic growth

rates will reach 7% by 2018. CPEC is hope of better region of the future with peace, development

and growth of economy.

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Works Cited

“China Pakistan Economic Corridor”. www.adamjeecoaching.blogspot.com .web 18

March 2017. Accessed 15 November 2019.