China Pakistan Economic Corridor

History of Gwadar

Gwadar is a port city on the southwestern coast of Baluchistan, Pakistan.

The city is located on the shores of the Arabian Sea, approximately 700 km to the west of Pakistan's largest city, Karachi.

Gwadar is near the border with Iran, and is located to the east of the Persian Gulf and opposite Oman.

Gwadar

The strategic value of its location was first recognized in 1954 when it was identified as a suitable site for a deep water port by the United States Geological Survey.

Gwadar and its surrounding region were overseas possessions of the Sultanate of Muscat and Oman from 1783 until Pakistan purchased the territory September 8, 1954.

Pakistan assumed control of the territory on December 8, 1954, and the territory was later integrated into Baluchistan province on July 1, 1977, as Gwadar District.

For most of its history, Gwadar was a small to medium-sized settlement with an economy largely based on artisanal fishing. The strategic value of its location was first recognized in 1954 when it was identified as a suitable site for a deep water port by the United States Geological Survey

The area's potential to be a major deep water port remained untapped under successive Pakistani governments until 2001, when construction on the first phase of Gwadar Port was initiated. The first phase 2007 was inaugurated by General Parvez Musharraf at a total cost of $248 million. The port remained underutilized after construction for a variety of reasons, including lack of investment, security concerns, and the Government of Pakistan's failure to transfer land as promised to the port operator, Port of Singapore Authority.

In April 2015, Pakistan and China announced their intention to develop the $46 billion China–Pakistan Economic Corridor (CPEC).

Gwadar features heavily in CPEC, and is also envisaged to be the link between the One Belt, One Road and Maritime Silk Road project. $1.153 billion worth of infrastructure projects will be invested into the city as part of CPEC. With the aim of linking northern Pakistan and western China to the deep water seaport.

In addition to investments directly under the aegis of CPEC in Gwadar city, the China Overseas Port Holding Company in June 2016 began construction on the $2 billion Gwadar Special Economic Zone.

In Future CPEC will be a game changer not only for Gwadar but for Pakistan as well.

What is CPEC?

The China–Pakistan Economic Corridor is an under-construction and partly completed economic corridor aimed to

facilitate trade along an overland route that connects Kashgar and Gwadar through construction of network of

highways, railways, and pipelines worth nearly $51 billion

China-Pakistan Economic Corridor is a framework of regional connectivity. CPEC will not only benefit China and Pakistan but will have positive impact on Iran, Afghanistan, India, Central Asian Republic, and the region. The enhancement of geographical linkages having improved road, rail and air transportation system with frequent and free exchanges of growth and people to people contact, enhancing understanding through academic, cultural and regional knowledge and culture, activity of higher volume of flow of trade and businesses, producing and moving energy to have more optimal businesses and enhancement of co-operation by win-win model will result in well connected, integrated region of shared destiny, harmony and development. 

China Pakistan Economic Corridor is journey towards economic regionalization in the globalized world. It founded peace, development, and win-win model for all of them.

China Pakistan Economic Corridor is hope of better region of the future with peace, development and growth of economy.

Pakistani officials predict that the project will result in the

creation of upwards of 700,000 direct jobs between 2015–2030,

and add 2 to 2.5 percentage points to the country's annual

economic growth.  

The corridor is considered to be an extension of China's ambitious One Belt, One Road initiative, and the

importance of CPEC to China is reflected by its inclusion as part of China's 13th five-year development plan.

Why CPEC?

CPEC is important because Chinese ship have to travel for 25 days to reach Shanghai or Beijing

Traveling through Pakistan, they can reach China only in 2-3 days, shortening their route about 10000 km .

Most of the economic states and parks of china are in those areas touching Pakistani borders

Pakistan need to develop Gwadar in order to make it regional & worldwide hub.

What is in CPEC?CPEC is not only about developed infrastructure, but it also include

Energy Projects Infrastructure Projects Universities Hospitals Agricultural Projects Fiber Optic Project Railway Projects Many More

Who is Paying for it?

This project is all about infrastructure development in Pakistan, Initially all money will be loan given to Pakistan. Pakistan will use

those money to pay to China.

ButThis loan is at expensive price which touches around 20%. That's too high for country like Pakistan. Pakistan will be paying 3 times

more than India and 2 times than developed countries for electricity.

Even

Within Pakistan CPEC has been riddled by suspicion, conspiracy and bitterness. There are ongoing squabbles over the exact

route, the mounting debt and whether Punjab the most affluent province will reap all the benefits.

The development projects are also putting huge environmental pressures on Pakistan’s scare resources. The focus on dirty coal power in a country already so vulnerable to climate change has seen protests in the streets and tin he courts across the country.

What Pakistan will get?

Pakistan’s Expected Gains CPEC has opened vista of great opportunities for Pakistan and will greatly help in

overcoming poverty, unemployment, inequities of smaller provinces and help Pakistan in becoming the next Asian tiger.

CPEC from all counts will prove a game changer and will make China a real stakeholder in Pakistan’s stability and security. It is a win-win situation for both. It will greatly expand the scope for the sustainable and stable development of China’s economic development.

Investments by China will boost Pakistan’s $274 billion GDP by over 15 %. Corresponding progress and prosperity in Pakistan and China’s patronage will help

Pakistan in getting rid of the decade old labels of ‘epicenter of terrorism’, ‘most dangerous country’ and a ‘failing state’.

Given the solid foundations of friendship at the people-to-people level between China and Pakistan, Chinese influence in Pakistan is destined to endure the test of time.

Pakistan seems to have found a savior in China, which has promised to stand by the country in its dark hour. Once Pak-China connectivity strike roots, Pakistan’s geo-strategic security interests whenever threatened will be guarded by China.

China’s investment surpasses all foreign investments in Pakistan in the past. Win-win cooperation is based on trust, confidence and convergence of interests. The Chinese influence in Pakistan has touched an unprecedented high level and it has surpassed the US which has remained the most preferred ally since 1954.

The US which has repeatedly betrayed Pakistan and is widely disliked by the public will have to negotiate with Pakistan harder than ever from now onward. The elites under the magic spell of the US are also inclined to change their western oriented mindset and change their orientation.

Pakistan enjoys a more favorable fiscal budget situation compared to India by reducing its budget deficit to 4.7% of GDP in 2014 (as against India’s 7%) and Pakistan is much cheaper as an emerging market.

China’s economic and military assistance will help Pakistan a great deal in narrowing its ever widening gap in economic-military-nuclear fields with India and in bettering its defence potential.

Keeping strategic parity with India has now become an achievable goal for Pakistan. Revival of economy in the coming period is bound to make Pakistan an attractive

destination for foreign investors and will greatly help in removing socio-economic inequities of smaller provinces and in squeezing the space for anti-Pakistan elements.

The success of the Sino-Pak partnership is critically linked to the success of stabilization of the Afghan situation. China and Pakistan have a shared interest in the stabilization of Afghanistan, because the main threat to the realization of the “Belt and Road” projects in Pakistan come from the terrorist groups operating out of the Af-Pak region.

Pakistan is far more comfortable with China as a facilitator of the Afghan peace talks than it is with the US, whose intentions are highly suspect.

China’s investment in Pakistan has conveyed a big message to the other South Asian countries such as Sri Lanka, Bangladesh, Nepal to hurry and climb on board the Chinese “Belt and Road Initiative” to derive growth benefits.

Pakistan’s gravitation in the direction of China and Russia at this juncture underscores a strategic realignment in the making.

China is uniquely placed to pull the key regional states – Russia, Iran, Central Asian states to its side

China Will Save About 20+ Million Expenses On Long Routes And Taxes In Different Countries

Strengthened International Relations Between China And Pakistan Greater Inflow Of Forex Higher GDP Exponential Economic Output Decreased Unemployment Empowered Military Fewer Security Concerns Gwadar Would Come Into Existence Lesser Taxes Greater Exploration Of The Province Of Baluchistan In Terms Of Its

Natural Resources

Controversies Raised over CPEC Punjab and Sindh are gaining Eastern route benefits and bypasses major portion

of Baluchistan and KP. In their view, Western Route is original route, conceived in 2006 and is shortest. CPEC not transparent and many thing are being kept under wraps. Three-route theory is a cover story to hide change of route. Eastern route is six-lane motorway. Western route is smaller as compered to Eastern Route, Western Route is just 1-2

lane roads. Orange Line Train project is from CPEC allocations. Inequitably Distributed Special Economic Zones are also making controversies. Indian border is near to Eastern route which making this route unsafe being close

to border.

The CPEC connection to Gwadar has the potential to alter the regional dynamics of trade, development and

politics. CPEC is a game changer for the entire region. It will alter the state of life of about 3-4 billion people

across the borders of China, Central Asia, Southern Asia. It’ll be Pakistani success story of $46 billion.

A Chinese gift for people of Pakistan.