China Pakistan Economic Corridor (CPEC) is a major and pilot project

of the Belt and Road Initiative by Chinese President Xi Jinping. CPEC has
become the framework and platform for comprehensive and substantive
cooperation between China and Pakistan. CPEC is the important consensus
reached by the leaders of both countries. The leaders of our two countries
have attached great importance as well as rendered active promotion to the
construction of CPEC. It has also won across-board support from the political
parties and peoples of our two countries, which provided profound and solid
public support for China Pakistan Economic Corridor.

China Pakistan Economic Corridor is of great significance to the

development of China-Pakistan all-weather strategic cooperative partnership
and the building of the community of shared destiny between China and
Pakistan. CPEC will provide new opportunities, new vision as well as new
impetus to China-Pakistan relations. CPEC is facing Pakistan as a whole and
will bring benefits to Pakistani people.

It will effectively promote the economic and social development of Pakistan.

The construction of CPEC will enhance connectivity and integration of
development strategies of China and Pakistan, which is in the fundamental
interests of our two peoples. Both sides are committed to building CPEC and
completing a number of major projects with high quality and on schedule, so
as to achieve win-win results and bring benefits to people in China and
Pakistan as well as other countries in the region.
Read about the CPEC and Gawadar here

CHINA’S INVESTMENTS
In December 2013, China committed $6.5 billion for the construction of a
major nuclear power project in Karachi. In May 2014, another agreement was
signed to supplement Orange Line metro train project in Lahore
worth $1.27 billion. Also in November 2014, the two countries signed 19
agreements related to CPEC. Moreover the chinese firms started work on six
mega power projects in Gilgit-Baltistan such as Dassu, Phandar, Bashu,
Harpo, Yalbo to tackle Pakistan’s energy crisis.

QUEST FOR WARM WATERS

Mindful of the under development of its western provinces which are its soft
belly and ongoing Uighur movement, China wants speedy modernization of
Xingjiang and other under developed provinces to bring them at par with
eastern provinces. For the accomplishment of these dreams, China needs
access to warm waters in Arabian Sea through Gwadar since this route to
world markets is the shortest and the cheapest. This access was never
granted to Russia.

VISIT OF PRESIDENT XI JINPING

With this objective in view, President Xi Jinping visited Islamabad on April 20-
21, 2015 and raised the level of investment from $ 26 billion to $ 46 Billion.
He signed 51 agreements/MoUs worth $28 billion, with $17 billion in pipeline
spread over 15 years. His visit achieved the milestone of the groundbreaking
of historic 3,000 km-long strategic CPEC.

PROJECTS IN HAND
it includes $ 33 billion worth energy projects such as coal, solar, hydroelectric
power projects which will inject 10,400 MW electricity in the national grid by
2017/18, and hydro power projects. Other projects are fiber optic cable from
Xingjiang to Rawalpindi, 1240 km long Karachi-Lahore motorway, metro and
bus service in six major cities, up gradation of 1300 km long Karakorum
Highway, oil/gas pipelines to connect Kashgar to the seaport of Gwadar,
1,800-km railway line, commercial sea-lanes, special economic zones, dry
ports and other infrastructure.

TABLE OF PROJECTS:

SindhSindhSindh

“Early Harvest” Energy

Capacity Location
Project

Pakistan Port Qasim Power

1,320 MW (2 x 660 MW plants)
Project.
“Early Harvest” Energy
Capacity Location
Project

Thar-l Project 1,320 MW (4 x 330 MW plants)

Thar-ll Project and coal mine 1,320 MW (2 x 660 MW plants)

Sahiwal Coal Power Project 1,320 MW (2 x 660 MW plants) Punjab

Rahimyar Khan coal power

1,320 MW (2 x 660 MW plants) Punjab
project

Quaid-e-Azam Solar Park 1,000 MW Punjab

870 MW (expected completion Khyber

Suki Kinari Hydropower Project
in 2020) Pakhtunkhwa

720 MW (expected completion

Karot Hydropower Project Punjab
in 2020)

China Power Hub Generation

2X660 MW Balochistan
Company

Thar Engro Coal Power Project 660 MW (2 x 330 MW plants) Sindh

Gwadar coal power project 300 MW Balochistan

UEP Windfarm 100 MW Sindh

Dawood wind power project 50 MW Sindh

Sachal Windfarm 50 MW Sindh

Sunnec Windfarm 50 MW Sindh

 “Early Harvest” Energy
Capacity Location
Project

Matiari to Faisalabad
660 kilovolt Sindh and Punjab
transmission line

Matiari to Lahore Transmission

660 kilovolt Sindh and Punjab
Line

ROUTES
There was no so-called “original route” as talked by politicians. Many routes
came under discussions from time to time and looking at their feasibility and
significance, they were discussed. There is no straight road but a corridor
with multiple passages and a network of roads and railways to be built over
the years step by step looking at the importance and need.

The Government decided to build the Western route on priority basis to

bring about the socio-economic change. Politicizing of roads and its network
is not in the interest of Pakistan. Politicians must avoid this controversy. They
should patiently wait to see the benefits of the China Pakistan Economic
Corridor projects reaching down to common masses. It is like a chicken-egg
policy. It goes step by step.
Three routes have been marked up till now which are given below:-

CENTRAL ROUTE :
1) Central route will originate from Gwadar, Quetta, and reach DIK via
Basima, Khuzdar, Sukkar, Rajanpur, Liya, Muzaffargarh, Bhakkar, DIK.

EASTERN ROUTE:

Eastern route will include the following cities

1) Gwadar
2) Basima
3) Khuzdar
4) Sukkar
5) RYK
6) Bahawalpur
7) Multan
8) Lahore/Faisalabad
9) Islamabad
10) Mansehra.

WESTERN ROUTE:

Western route originating from Gwadar will pass through

1) Turbat
2) Panjgur
3) Basima
4) Kalat
5) Quetta
6) Zhob DIK
7) Mianwali
8) Hasanabdal
9) Islamabad

IMPORTANCE OF GWADAR
Gwadar is one of the least developed districts in Baluchistan province. It sits
strategically near the Persian Gulf and close to the Strait of Hormuz, through
which 40 per cent of the world’s oil passes. Work on Gwadar deep-seaport
had started in 2002 with China’s investment. In 2013, management of the
seaport which was in the sloppy hands of Singapore PSA International was
handed over to China’s Port Holdings. It is planned to develop Gwadar into
free trade zone with a modern airport on the model of Singapore or Hong
Kong and a gateway to China Pakistan Economic Corridor. It will be largest,
deep seaport, overshadowing Chahbahar and Dubai seaports.

VIEWS OF ANALYSTS
Some analysts perceive Gwadar seaport turning into China’s naval base in
the Indian Ocean, enabling Beijing to monitor Indian and American naval
activities and thus frustrating their ambition to convert the ocean into
exclusive Indian lake. Modernization of Pak Navy by China is seen as a step in
that direction.
Analysts say the projects conceived under China Pakistan Economic
Corridor will ease Pakistan’s energy shortages and make a substantial
difference in the long term.
Some experts opine this initiative can bring greater cohesion in South Asia,
one of the world’s least economically integrated regions. It is also feared that
clashing geo-economic interests may lead to unhealthy competition.
GAINS FOR CHINA:
While the CPEC may be ‘monumental’ for Pakistan, for China it is part of more
ambitious plans to beef up the country’s global economic muscle. Chinese
officials describe the corridor as the “flagship project” of a broader policy —
“One Belt, One Road” — which seeks to physically connect China to its
markets in Asia, Africa, Europe and beyond. The New Silk Road will link China
with Europe through Central Asia and the Maritime Silk Road to ensure a safe
passage of China’s shipping through the Indian Ocean and the South China
Sea. China Pakistan Economic Corridor will link China with nearly half of
the population of the world.

Access to Indian Ocean via Gwadar will enable China’s naval warships and
merchant ships to bypass Malacca Strait and overcome its “Malacca
Dilemma”.
Development of Gwadar seaport and improvement of the infrastructure in
the hinterland would help China sustain its permanent naval presence in the
Gulf of Oman and the Arabian Sea.
At the same time, the new silk roads are bound to intensify ongoing
competition between India and China –and to a lesser extent between China
and the US – to invest in and cultivate influence in the broader Central Asian
region.

INDIAN CONCERNS:
Modi is at the horns of dilemma; whether to bow to RSS agenda of Hindutva
and remain captive to entrenched interest groups and lobbies in India with
hardened mindset who are doggedly resisting any paradigm shift in relations
with rising China and cling to the myth of Mahabharat. The dice of
connectivity loaded by China has left India confused and bewildered,
whether to remain tied to the aprons of declining super power which is not
in a position to make big investments, or to hitch the bandwagon of
ascending power which promises a lot.

Modi’s position will become more vulnerable when Pakistan starts politically
stabilizing and economically shining and Lahore turning into a regional
capital and he unable to fulfill the development agenda.

CONCERNS ABOUT INVESTMENT

India is also concerned about China’s huge investment in Pakistan,

particularly its recent decision to fund a new batch of nuclear reactors.
Pakistan plans to add four new nuclear plants by 2023, funded by China, with
four more reactors in the pipeline (adding up to a total power capacity of
7,930 MW by 2030). China is helping Pakistan in producing plutonium at
Chinese built Khushab reactor and will also sell 8 submarines worth $5
billion, which will give a quantum jump to Pak Navy’s sea capability.

Possibility of India making another somersault after finding the dicey US

Asia-Pacific pivot less attractive and China’s policy of peace and friendship
more beneficial cannot be ruled out. However, this strategic shift will take
place only when China agrees to give preference to India over Pakistan (as
had happened in 1990 when the US ditched Pakistan and befriended India).
Amazing Facts about Pakistan: The land of pure

PAKISTAN’S TRAVAILS
Pakistan has remained under a dark star for a long period. It has bravely
sailed past the period of trials and tribulations but at a very heavy cost.
Pakistan has acted as the front line state against the Soviets and against
global terrorism and suffered enormously, but in the process it allowed
China 35 free years to develop and prosper unobtrusively.

CHANGING GEO-POLITICAL ENVIRONMENT

Geo-political scenario is fast changing and things are brightening up for
Pakistan after its long rocky journey. China has entered into a new era of
geo-economic relationship with Pakistan and plan to boost two-way trade
from current $12 billion to $20 billion. Pak-Afghan relations have dramatically
improved. ISI and NDS have inked intelligence sharing agreement.
Afghanistan and China no more listen to India’s song of terrorism emanating
out of Pakistan.

Pakistan wisely deciding not to take part in Yemen war has helped in
improving Pak-Iran relations. Possibility of revival of IPL project and its
extension up to China has brightened up after gradual lifting of US sanctions
on Iran. Russia is warming up to Pakistan and establishing military ties with
it. China and Russia are strategic partners and boosting their respective
strategic ties with Iran.

IMPROVEMENTS IN PAKISTANI INDICATORS

Internally, Pakistan economic indicators and GDP are improving; foreign

exchange reserves are rising and inflation is down. Railway has gone in profit
for first time. Energy crisis is being tackled earnestly. The leaders and the led
are on one page to deal with scourge of terrorism on war footing. The world
is fast changing its negative opinion about Pakistan and it is now being
looked at with respect. Pakistan flags are being routinely hoisted in occupied
Kashmir; IDPs are returning to South and North Waziristan, and so are
Afghan refugees.

China has risked investing so much of amount in Pakistan since it is

convinced of the genuineness of the Pakistani claim of a paradigm shift in its
approach to terrorist groups. This change has come as a consequence to
across the board Operation Zarb-e-Azb in FATA and spectacular successes
achieved against terrorists of all hues including the Uyghur.

The Silk Road Economic Belt will not only connect and develop China and
Pakistan but also the regional countries for the first time and promote peace.
This phenomenon will be against India’s aggressive chemistry.

PAKISTAN’S EXPECTED GAINS

a. China Pakistan Economic Corridor has opened vista of great

opportunities for Pakistan and will greatly help in overcoming poverty,
unemployment, inequities of smaller provinces and help Pakistan in
becoming the next Asian tiger.

b. CPEC(China Pakistan Economic Corridor) from all counts will prove a

game changer and will make China a real stakeholder in Pakistan’s stability
and security. It is a win-win situation for both. It will greatly expand the scope
for the sustainable and stable development of China’s economic
development.
c. Investments by China will boost Pakistan’s $274 billion GDP by over 15 %.

d. Corresponding progress and prosperity in Pakistan and China’s patronage

will help Pakistan in getting rid of the decade old labels of ‘epicenter of
terrorism’, ‘most dangerous country’ and a ‘failing state’.

e. Given the solid foundations of friendship at the people-to-people level

between China and Pakistan, Chinese influence in Pakistan is destined to
endure the test of time.

f. Pakistan seems to have found a savior in China, which has promised to

stand by the country in its dark hour. Once Pak-China connectivity strike
roots, Pakistan’s geo-strategic security interests whenever threatened will be
guarded by China.

g. The US which has repeatedly betrayed Pakistan and is widely disliked by

the public will have to negotiate with Pakistan harder than ever from now
onward. The elites under the magic spell of the US are also inclined to
change their western oriented mindset and change their orientation.

h. Pakistan enjoys a more favorable fiscal budget situation compared to India

by reducing its budget deficit to 4.7% of GDP in 2014 (as against India’s 7%)
and Pakistan is much cheaper as an emerging market.

EFFORTS TO SCUTTLE CHINA PAKISTAN

ECONOMIC CORRIDOR
Strategic economic moment for Pakistan has arrived and interesting part is
that Pakistan has assumed the position of economic pivot for the whole
region. This paradigm shift in circumstances is a cause of great worry for the
enemies of Pakistan both within and outside. India, Iran, UAE, Gulf States,
Israel, US are unhappy. For India, CPEC is a thorn in its paw.
They have put their heads together to work out new strategies how to block
the forward march. RAW has open a special office in Delhi and is sanctioned
$300 million to disrupt CPEC. Already one can notice sudden upsurge in acts
of terror in the three restive regions and activation of certain NGOs and think
tanks all trying to air misgivings and create fear psychosis.

ANP, Baloch nationalists, PKMAP put forward serious objections on the

routes of China Pakistan Economic Corridor. Even PTI and JUI-F showed
inclinations to climb the bandwagon of anti-CPEC forces.

CONTROVERSIES RAISED IN CPEC

Eastern route benefits Punjab and Sindh and bypasses major portion of
Baluchistan and KP.

In their view, western route is original route and is shortest.

CPEC not transparent and kept under wraps.

Three-route theory is a cover story to hide change of route.

Eastern route is six-lane motorway.

Western route is 1-2 lane roads.

Orange Line Train project is from CPEC allocations.

Eastern route is unsafe being close to Indian border.

GOVERNMENT’S STANCE
No original route in existence before 2013.
China Pakistan Economic Corridor project director Maj Gen Zahir Shah
stated that no document is in existence showing original route; hence
changing of original route doesn’t arise.

 Western route will be develop as motorway by extending Kashgar-Karakorum

Highway.
 Work on three routes has started simultaneously.
 15 year project has short/mid/long term projects.
 Government and China wished to first develop eastern route due to factors of
security, better
 Infrastructure and early completion.
 Western route will be a long term project since it is uninhabited, insecure,
time consuming.
 Provincial capitals will be nodes of China Pakistan Economic Corridor.
 Orange Line project is an idea by Punjab government.
 Proposed 16 industrial zones not yet finalized.
 Development of backward provinces is high priority of govt.
 Power projects are more in KP than Punjab and Baluchistan respectively.

RAMIFICATIONS
Political consensus, security and law and order are pre-requisites for early
completion of China Pakistan Economic Corridor.
China has other options to exercise if Pakistan fails to deliver.
Pakistan cannot afford to lose this golden opportunity.
Successive governments will have to remain focused and committed to
completion of projects in hand.
Provinces should focus on industrial parks, energy projects instead of routes.
Trade routes will be develope on basis of ethnicity but on basis of
convenience and requirements.
There is skepticism that administrative, technical and operational capacity of
workforce and staff of Pakistan employed in China Pakistan Economic
Corridor may not match the Chinese efficiency/commitment, and also fail to
absorb huge investment productively.

CONCLUSION:
The China Pakistan Economic Corridor connected to Gwadar has the
potential to radically alter the regional dynamics of trade, development and
politics. China Pakistan Economic Corridor is a game changer for the entire
region. It will uplift the lives of about 3 billion people across China, Central
Asia, South Asia and the Middle East.
The time and tide is not in favor of the detractors. They will die their death in
the hurricane of CPEC. Since China is struggling to make Pakistan a success
story. $62 billion economic package is Chinese gift for people of Pakistan.