China Pakistan Economic Corridor (CPEC)

Introduction:— The China—Pakistan Economic Corridor (CPEC) is an economic investment plan between China and Pakistan which originally involved investments totalling $46 billion dollars,[2][3] but which as of 2017, amounts to a total of $54 billion dollars.[2][4] In Pakistani currency this translates to over Rs. 5.7 trillion Rupees.[4] Chinese president Xi Xinping announced the deal on April 20th, 2015,[2] when he visited Pakistan to cement the agreement, calling the relationship between the two an "Iron Brotherhood".[2][n. 1] The significance was not lost on Pakistan, the nation launched eight JF-17's which were used to protect the Chinese plane carrying him as he entered Pakistani airspace.[2] It represented a significant moment for Pakistan, as US influence over the country virtually turned to dust overnight. Pakistan also reciprocated in kind by signing a $4 billion—$5 billion dollar[5] deal of 8 Yuan-Class S20 nuclear[n. 2] armed submarines.[6] The initial announcement was said to have covered 1,800 miles;[2] from the tip of Pakistan to the southern, outermost gates of the Gwader Port. The opportunity represents significant inroads for Pakistan and China, in that Pakistan gains a lot of foreign investment (larger than the combined foreign direct investment made in the country between 2008 and 2015), and perhaps more tantamount, access to the lucrative markets of the Middle-east for China.[2] It dwarfed the $5 billion dollar US-deal from 2010.[2] Total investment is expected to exceed $75 billion dollars up to 2020.[1]

Importance:— The advantages for China are immensely significant for it's geopolitical aims. The economy of China relies heavily on the straits of Malacca for 80% of it's energy needs, which covers a distance of 16,000 km with cargo taking two to three months to arrive at Shanghai.[1] Such a choke point has threatened China ever since the US initiated their "pivot to Asia".[7][n. 3]China likely feels threatened by the US (and also by extension India), which are attempting to contain[n. 4] it's influence.[8] Oil taken through the CPEC corridor will cut the road journey from 12,000 km to only 2,395 km, "act[ing] as a bridge for the new Maritime Silk Route".[1] Similarly the economic benefits to Pakistan will give them increasingly optimised access to Chinese markets and the central Asian states. Additionally 700,000 jobs will be created between 2015 and 2030,[1] with CPEC also expected to add 2.5% to the Pakistani economy every year[1](which currently stands at a non-CPEC level of some 4%).[9] Additionally China's concentration on energy projects will feed the voracious Pakistani appetite for energy, which the nation has regularly been starved of (a problem it's ally the US has never adequately helped with despite Pakistan also losing more than 80,000 people for it's so-called "war on terror",[10][n. 5] it having cost the economy more than $118.3 billion dollars).[11] Approximately 10,400 MW of energy projects are expected to be completed by the end of 2020 (energy shortages currently amount to a shortfall of 4,500 MW—6,000 MW).[1][n. 6]

Energy Projects:— The Gaddani Power Park (1,320 MW) is the most expensive project costing $3.96 billion dollars (with additional costs of $1.2 billion dollars).[12] The others are the Kohala Hydel (1,100 MW; $2.4 billion dollars), the Engro Thar (1,320 MW; $2.0 billion dollars), the SSRL (1,320 MW; $2.0 billion dollars), PQEC (1,320 MW; $1.98 billion dollars), Suki Kinari Hydro (870 MW; $1.80 billion dollars), Sahiwal (1,320 MW; $1.6 billion dollars), the Rahimyar Khan (1,320 MW; $1.6 billion dollars), Muzaffargarh (1,320 MW; $1.6 billion dollars), Karot Hydro (720 MW; $1.42 billion dollars), Quaid-e-Azam Solar Park (1,000 MW; $1.35 billion dollars), the Thar Mine Mouth Oracle (1,320 MW; $1.3 billion dollars), HUBCO Coal Power Plant I (660 MW; $0.97 billion dollars), HUBCO Coal Power Plant II (660 MW; $0.97 billion dollars), Gwadar Coal/LNG/Oil (300 MW; $0.60 billion dollars), Gas Power (525 MW; $0.55 billion dollars), UEP Wind Farm (100 MW; $0.25 billion dollars), Pakistan Wind Farm II (100 MW; $0.15 billion dollars), Sachal Wind Farm (50 MW; $0.134 billion dollars), and the Dawood Wind Farm (50 MW; $0.125 billion dollars).[12] Additionally, several transmission lines for transporting electricity are also in active construction, which are the Matiari—Lahore ($1.5 billion dollars) and the Matiari—Faisalabad ($1.5 billion dollars).[12] Projects which have an unknown generation capacity are the SSRL Thar Coal Plant Block I ($1.3 billion dollars) and the the Surface Mine Thar Coal Plant ($1.47 billion dollars).[12]

Other Projects:— A grand total of 21 energy projects, worth $33.8 billion dollars will form the majority of CPEC, followed by transport infrastructure ($9.78 billion dollars), and the Gwadar Port itself will be the focus of eight Chinese investment projects, worth $793 million dollars.[13] The four infrastructure projects will cover a total distance of 2,246 km (1,395.6 miles), and will cost in total $7.84 billion dollars.[14] Broken down by each construction plan, it consists of the KKH Phase II section which will cover a road from Thakot to Havelian (118 km), costing $1.31 billion dollars and the Peshawar—Karachi Motorway covering roads between Multan and Sukkur Section (392 km), costing $2.85 billion dollars.[14] The last two are rail projects which will consist of expanding and reconstructing the aged ML-1 line, which covers a distance of 1,736 km and which will cost $3.65 billion dollars and the Havelian Dry Port which will cost $40 million dollars (and cover an unknown amount of distance).[14] There's also a $44 million dollar fibre optic cable line, that will stretch a total distance of 820 km (2.2% of it will be laid in the capital Islamabad, 56.7% in Gilgit-Baltistan, 35.1% in Khyber-Pakhtunkhwa and 5.8% in the Punjab) from Khunjrab to Rawalpindi (with an additional project dubbed Digital Terrestrial Multimedia Broadcast (or DTMB), costing an unknown amount of money and covering an unknown amount of distance).[15] Outside of CPEC, there are also other massive infrastructure projects being built.[16]





source: http://materiaislamica.com/index.php/China_Pakistan_Economic_Corridor_(CPEC)

💑if you like this post, share it!💑





Pakistan's economy most underrated in world 🇵🇰

click READ MORE