Pakistan-China Economic Corridor – a mutually beneficial project

China-Pakistan Economic Corridor is a strategic cooperative partnership between Pakistan and China.

It is an under-construction development program to connect Gwadar Port in southern Pakistan to China’s northwestern autonomous region of Xinjiang via highways, railways and pipelines to transport oil and gas.
The Pak-China Economic Corridor program was inaugurated in Islamabad on August 27, 2013.

Pak china economic corridor is termed as the game changer as it would usher in a new era of economic progress and prosperity for both countries.
China-Pakistan Economic Corridor has the potential to turn Pakistan into a hub of regional cooperation; it is of immense importance for the revival of its economy, resolution of energy crisis and strengthening the Federation through development and infrastructure.

Chinese government announced that it will finance Chinese companies to build $45.
6 billion worth of energy and infrastructure projects in Pakistan as part of CPEC.
China has promised to invest around $33.

8 billion in various energy projects and $11.
8 billion in infrastructure projects which will be completed by 2017 at most.
The deal includes $622 million for Gwadar port.
Under the CPEC agreement, $15.
5 billion worth of coal, wind, solar and hydro energy projects will add 10,400 megawatts of energy to the national grid of Pakistan.
According to the BMA capital analysis of impact of CPEC on national economy CPEC will increase GDP growth rate at 1.
5 per cent in next three years.
Moreover, it will also enhance the private investment due to positive environment, economic opportunities, improved infrastructure, stable economy and generation of much needed energy.
Private investment will add 0.
5 per cent to the GDP of country.
Cumulative impact of investment would be 02 per cent during 2016-2018.

Apart from the importance of CPEC for Pakistan, it also has a special significance for China and its future role as great power at global level.
Experts believe that it is not only a trade or economic initiative but also a plan for the expansion of China’s role in the world.
China is building its leading role in Asia and beyond for economic and political cooperation through “One Belt One Road”.

CPEC serves as a primary gateway for trade between China and the Middle East and Africa.

Oil from the Middle East could be offloaded at Gwadar, which is located just outside the mouth of the Persian Gulf, and transported to China through the Balochistan province in Pakistan.

Such a link would vastly cut the 12,000-kilometre route that Mideast oil supplies take to reach Chinese ports.

Even if China uses PCEC only for 50% of its current level of oil supplies, it will save around $6 million every day, almost $2 billion every year.
China will be able to make attractive financial returns from projects initiated under CPEC.

The projects would help Chinese firms and labor as machinery used in the infrastructure projects would be procured from China and the projects would also employ a large number of Chinese labor.

Because of its unique geography CPEC is not only significant for the two countries but also for the entire region; Uzbekistan Turkmenistan Tajikistan- land locked countries- will get access to international waters for Oil and Gas exports and other imports.

For Iran, CPEC will provide the country with much needed accessibility to the east and also the decades-old dream of the Iran-Pakistan gas pipeline can now be fully realized.

Many more companies in the world from various countries would be setting up their businesses to take the advantage of State of the art port the best in the region, with cheap labor and close proximity to the huge Middle East market.
UAE alone is committed to investing $30 Bn.

United States has also expressed interest in investing in CPEC projects.
According to world bank report The investment in Pakistan is expected to increase to 15.

4% of GDP by 2017 as a result of operationalization of CPEC.
Analysis of facts and figures shows that CPEC is not only critically important for both countries but also a fate changer for the entire region .

Pakistan needs it to overcome its economic, development, social and energy problems.
China needs it to expand its periphery of influence, consolidate its global presence and securing future supply routes of energy and trade goods.

It’s a win win situation for both countries.
World needs it because of its geo strategic location.
Pakistan should embrace this huge opportunity and use it wisely to be able to reap the economic benefits of this corridor and enhance its regional power and prestige.