CHINA PAKISTAN ECONOMIC CORRIDOR (CPEC) & PAK ARMY

PROFESSOR TUGHRAL YAMIN PHDCENTER FOR INTERNATIONAL

PEACE & STABILITY (CIPS)NATIONAL UNIVERSITY OF

SCIENCES & TECHNOLOGY (NUST)ISLAMABAD, PAKISTAN

AIM OF THIS PAPERTO HIGHLIGHT: • THE IMPORTANCE OF CPEC IN THE ECONOMIC RECOVERY OF

PAKISTAN & ITS PLACE IN CHINESE OBOR STRATEGY• THE ROLE OF PAKISTAN ARMY IN ENSURING THAT CPEC

BECOMES A REALITY

THE OBOR INITIATIVE• THE SILK ROAD ECONOMIC BELT AND THE 21ST CENTURY MARITIME

SILK ROAD, ALSO KNOWN AS THE BELT AND ROAD (B&R), ONE BELT-ONE ROAD (OBOR) OR BELT AND ROAD INITIATIVE IS A DEVELOPMENT STRATEGY AND FRAMEWORK PROPOSED BY CHINESE PRESIDENT XI JINPING

• IT FOCUSES ON CONNECTIVITY AND COOPERATION BETWEEN THE PEOPLE'S REPUBLIC OF CHINA AND THE REST OF EURASIA

• IT CONSISTS OF TWO MAIN COMPONENTS

– LAND-BASED SILK ROAD ECONOMIC BELT (SREB)

– OCEANGOING MARITIME SILK ROAD (MSR)

• SREB WAS UNVEILED IN SEPTEMBER AND MSR IN OCTOBER 2013

• IT WAS PROMOTED BY PREMIER LI KEQIANG DURING HIS STATE VISITS TO ASIA AND EUROPE IN THE SAME YEAR

CPEC & ITS IMPORTANCE • POLICY FRAMEWORK: PART OF OBOR INITIATIVE

• MANDATE– TO IMPROVE ENERGY & COMMUNICATION INFRASTRUCTURE

PROJECTS IN PAKISTAN

– TO IMPROVE REGIONAL CONNECTIVITY

• FINANCIAL OUTLAY: $46 - 51 BILLION

– EQUALS ALL FOREIGN DIRECT INVESTMENT IN PAKISTAN SINCE 1970

– EQUIVALENT TO 17% OF PAKISTAN'S 2015 GDP

– INCREASE IN TRADE PAK-CHINA VOLUME FROM $1 BILLION IN 1998 TO $15.15 BILLION IN 2015 PROVIDES A BASIS FOR CPEC

THE DIVIDENDSFOR PAKISTAN

• COMMUNICATION INFASTRUCTURE: IMPROVED & OVERHAULED

• ENERGY DEFICIT: REDUCED

• FOREIGN POLICY: RELATIONS WITH CHINA ENHANCED & RELATIONS WITH REGIONAL COUNTRIES IMPROVED

• JOB CREATION: UPWARDS OF700,000 DIRECT JOBS CREATED BETWEEN 2015–2030

• ANNUAL ECONOMIC GROWTH: ADD 2 TO 2.5 PERCENTAGE POINTS

FOR CHINA

• CONNECTIVITY: WITH REGIONAL COUNTRIES & BEYOND

• ACCESS: DIRECT ACCESS TO ARABIAN SEA & PERSIAN GULF

• TRADE ROUTES: DISTANCES REDUCED

INFRASTRUCTURE PROJECTS• FINANCING: $11 + 8 BILLION SUBSIDIZED CONCESSIONARY LOANS BEING

DISBURSED TO THE GOVERNMENT OF PAKISTAN BY THE EXIM BANK OF CHINA, CHINA DEVELOPMENT BANK, AND THE INDUSTRIAL & COMMERCIAL BANK OF CHINA

• MULTIPLE ROUTES: WILL LINK GWADAR IN SOUTHWESTERN PAKISTAN TO CHINA'S NORTHWESTERN AUTONOMOUS REGION OF XINJIANG VIA A VAST NETWORK OF HIGHWAYS AND RAILWAYS

• KARACHI-LAHORE MOTORWAY: 1,100 KM LONG ROAD WILL BE CONSTRUCTED

• THE KARAKORAM HIGHWAY (KKH): COMPLETELY RECONSTRUCTED AND OVERHAULED

• KARACHI–PESHAWAR MAIN RAILWAY LINE: UPGRADED TO ALLOW TRAIN TRAVEL AT UP TO 160 KMPH BY DECEMBER 2019

• PAKISTAN'S RAILWAY NETWORK: EXTENDED TO CHINA'S SOUTHERN XINJIANG RAILWAY IN KASHGAR

ENERGY PROJECTS• BUDGET: OVER $33 BILLION WORTH OF ENERGY INFRASTRUCTURE

WILL BE CONSTRUCTED BY PRIVATE CONSORTIA • ENERGY DEFICIT: PAKISTAN'S ENERGY DEFICIT REGULARLY

AMOUNTS TO ABOUT 6000MW AND COSTS AN ESTIMATED 7% OF ANNUAL GDP IN 2015

• ENERGY GENERATION: OVER 10,400MW OF ENERGY GENERATING CAPACITY WILL BE DEVELOPED BETWEEN 2018-2020 AS PART OF THE FAST-TRACKED EARLY HARVEST PROJECTS IN CONJUNCTION WITH FOUR PROJECTS UNDER CONSTRUCTION PRIOR TO THE ANNOUNCEMENT OF CPEC

• SOURCES OF ENERGY: ELECTRICITY WILL BE GENERATED THROUGH COAL, LNG, HYDEL, WIND & SOLAR PROJECTS

• TRANSMISSION LINE: NEW LINE WILL CARRY ELECTRICITY FROM NEW POWER GENERATION UNITS IN SINDH TO LOAD CENTERS IN PUNJAB

• PIPELINE NETWORK: TO TRANSPORT LIQUEFIED NATURAL GAS AND OIL INCLUDING A $2.5 BILLION PIPELINE BETWEEN GWADAR AND NAWABSHAH TO EVENTUALLY TRANSPORT GAS FROM IRAN

THREATS TO CPEC

EXTERNAL THREATS

INTERNAL THREATS

PROPOGANDA, SABOTAGE, UNREST

CONSTITUTIONAL MANDATE OF PAKISTAN ARMY

ARTICLE 245 (FUNCTIONS OF ARMED FORCES)

THE ARMED FORCES SHALL, UNDER THE DIRECTIONS OF THE FEDERAL GOVERNMENT, DEFEND PAKISTAN AGAINST EXTERNAL AGGRESSION OR THREAT OF WAR, AND, SUBJECT TO LAW, ACT IN AID OF CIVIL POWER WHEN CALLED UPON TO DO SO

ROLE OF PAKISTAN ARMY IN NATION BUILDING & NATIONAL SUPPORT TASKS

• INFRASTRUCTURE DEVELOPMENT E.G. KKH

• EMERGENCY SERVICES IN NATURAL DISASTERS LIKE FLOODS, EARTHQUAKES, FAMINE, PESTILENCE ETC

• TASKS OF NATIONAL IMPORTANCE LIKE CONDUCTING CENSUS, HOLDING ELECTIONS ETC

• SUPPORTING GOVERNMENT AGENCIES IN COLLECTION OF ELECTRICITY BILLS, DREDGING CANALS, BUILDING SCHOOLS ETC

PAKISTAN ARMY’S ROLE IN CPEC

• SECURITY: TWO ARMY DIVISIONS HAVE BEEN RAISED TO PROTECT THE ROUTES & PROJECTS WITHIN THE CORRIDOR

• PACE OF CONSTRUCTION: FWO (THE MILITARY ROAD CONSTRUCTION ORGANIZATION) HAS BEEN PRESSED INTO SERVICE TO INCREASE THE TEMPO OF WORK

• STRATEGIC DIRECTION: MAJ GEN (RETD) DR ZAHIR SHAH IS THE PROJECTOR DIRECTOR/COORDINATOR CPEC AT MINISTRY OF PLANNING, DEVELOPMENT & REFORM, ISLAMABAD

INAUGURATION OF GAWADAR-TURBAT-HOSHAB MOTORWAY

FEBRUARY 2016

CPEC SECURITY FORCE

THANK YOU FOR YOUR ATTENTION