Compile By Ubaid Ur Rehman

OVERVIEW OF “CPEC” AS A PART OF ONE BELT ONE ROAD PROJECT

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Grand Silk Route Economic One Belt One Road Project Introduction

The OBOR blueprint encompasses over 60 countries, which account for 60% of the world’s population and a collective GDP equivalent to 33% of the world’s wealth.Six economic corridors are proposed as the framework of the OBOR initiative outside China:1. New Eurasian Land Bridge2. China - Mongolia - Russia Corridor3. China - Central Asia - West Asia Corridor4. China - Indochina Peninsula Corridor5. China - Pakistan Corridor6. Bangladesh - China - India - Myanmar Corridor

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Gwadar port forms the heart of the CPEC project, as it is planned to be the link between China's ambitious One Belt, One Road project, and its Maritime Silk Road project. The Silk Road Economic Belt and the 21st-Century Maritime Silk Road. Basically, the 'belt' includes countries situated on the original Silk Road through Central Asia, West Asia, the Middle East, and Europe. China estimates $890bn of investment in the ‘New Silk Road’ strategy.

Purpose The “Southern Corridor” begins from Guangzhou, city of

China in South Central China. This route moves towards western parts of China and connects Kashgar with Pakistan at Kunjarab – a point from where China wants to link to Gwadar port in the Arabian Sea.

The “Central Corridor” that starts from Shanghai and links the country to Tashkent, Tehran and onwards to Bandar Imam Khomeini Port of Iran on the Persian Gulf. One of its branches goes up towards Europe but it was a longer route.

The “Northern Corridor” that starts from Tianjin & Beijing (China) passes through Moscow (Russia), and links it to European cities of Berlin (Germany) and Rotterdam (Netherland).

Benefits China wants to remake the global financial and economic

structure.” With its wealth and markets. The construction of roads, railways and other infrastructure

will help create a market in Eurasia for its goods. China-Pakistan Economic Corridor (CPEC )and 'One Belt, One

Road (OBOR)will help in overcoming poverty and unemployment in less developed areas of Pakistan particularly and for whole region generally .

China’s sea trade dependency on the narrow sea channel of the Strait of Malacca (Malaysia)will finish as Pakistan would provide an alternative land route for Chinese trade.

The travel time will reduce between China (Xinjiang province) and Middle East, through Pakistani port city of Gwadar.

CPEC as a Part of Grand Silk Route Economic One Belt One Road Project

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Grand Silk Route Economic One Belt One Road Project Pakistan in Focus

According to a global economic survey carried out jointly by ACCA (Association of “Chartered Certified Accountants) and IMA (Institute Management Accountant) Conditions do not appear quite as healthy across the border in Pakistan. Businesses have benefited from a series of aggressive rate cuts since late 2014, and stand to gain from the eventual implementation of the China–Pakistan Economic Corridor, a bilateral project that will involve hefty Chinese investment into Pakistan’s infrastructure network”. Total 51 memorandums of understanding (“MoUs”) were signed during the visit of the Chinese president to Pakistan on 20 April 2015. Out of Total $46 billion Chinese investment, $33.79 billion has been apportioned for energy related projects, $5.90 billion are allocated to build roads, $3.69 billion are for railway Tracks, $0.66 billion are for Gwadar Port, $1.64 billion will spend on CP Fiber Optics and now with a $5.5 billion concessional loan to upgrade and modernize the Karachi-Lahore main railway line called ML-1 the size of the China-Pakistan Economic Corridor (CPEC) has been increased to more than $51.3 billion .

Economic outlookIn 2016 Pakistan’s economy gain the volume up to $290 billion, immerge as the 2nd largest economy in South Asia. Economic expansion will be underpinned by private consumption and investment. However, growth of 5.1% means that the economy is expanding below potential, reflecting ongoing venerable security situation, and water and electricity shortages will weigh on economic activity. (According to “The Economist Intelligence Unit”)

Infrastructure outlookReducing electricity shortfalls ranks among the government’s priorities and it has repeatedly vowed to address the country’s energy crisis before the next parliamentary election in 2018. To meet its goals, the administration is investing heavily in energy infrastructure, but rapidly rising electricity demand will soak up capacity additions. The ambitious program is backed up by investments worth $51.3 billion under the China-Pakistan Economic Corridor (CPEC). This will benefit growth through improved road, port and energy infrastructure. However, owing to operational, political and regulatory challenges, realizing the investment in full will prove challenging.