CPEC: Restyling The Economy

By   March 19, 2016

Innovation benefits the owner and upgrades the economy strength. Establishment of China-Pakistan Economic Corridor (CPEC) was first anticipated by Chinese Premier Li Keqiang during his visit to Pakistan in May 2013 and was approved on July 5, 2013 during the visit of PM Nawaz Sharif to Beijing. The Economic-Corridor aims to cover various major projects which included construction of 200 km long tunnel to America that will take a whole day to get there (a railway route from Beijing to America via Russia).

CPEC the China Pakistan Economic Corridor is 46 billion$ project, that is going to cover the areas, mainly from Gawadar (Pakistan) to Kashgar (the China high way starting point) city in north-western China’s Xinjiang Uygur autonomous region. Ahsan iqbal the minister of planning gave a briefing before signing the contract. He illustrated that this project will be a road map that will transit from four provinces joining Gawadar and Kashgar, the major regions.

A pristine map:

It includes $33 billion energy projects. The source of energy would be coal, solar, hydroelectric power projects. These projects which will inject 10,400mw electricity in national web by 2018 and which also include 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 and 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.

In the form of CPEC Pakistan will acquire the new assets in terms of infrastructure, highways, railways and pipelines for the transportation of oil, gas and trading. Itdoes not imply the construction of   a single road; it’s a network that will enhance the development of industrial zones by vaccinating them through energy plants. Baluchistan seems to be the primary beneficiary from CPEC. There will be the employment generation and the gap between the people of two states will be lower.

Bridging the gap between two provinces:

The project will encircle the western (Baluchistan) and the eastern (Khyber Pakhtunkhwa) routes of Pakistan. The government has started to work on western routes while eastern routes are on consideration. The western route of china Pakistan economic corridor will connect the port city Gawadar with Quetta and it will be completed by 2018.

Freedom in trading for China:

As 40% of the world oil is extracted from Gulf region and for the transportation Persian Gulf is being used, so China will use the terminal of Gawadar port for the transportation of her products and to import oil. Everyday china spend around 11 million$ on import of 6.3 million barrels of oil by covering the distance of 9912 miles. With the help of CPEC, this cost will significantly turn down to one third as new distance will be 3626 miles to central china and only 2295 miles to west china. It saves around 6 million$ of china every day and 2 billion$ every year. China will also look over the activities of India and America by Indus Ocean.  C hina being the investor is mainly responsible for assigning the location for routes so the money that is invested reliably, will be gain profit for both countries.

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Author: Umme e Aimen | aimen.eco@gmail.com | Student @ FC College Lahore