CPECCorridor of

Stability &
Progress
Overview
The 21st century has seen the establishment of regional and global strategic environment around
the world. This strategic environment encourages geo-economical and geostrategic partnership
among countries. Both the state interests and national security are important parameters of this
partnership. States have defined their interests and have reshaped their policies because they
have realized that it is not possible for them to defend their interests with their own capacities.
High-level talks and diplomatic consultations are the hallmark of ever-growing cooperation
among states in multi-faceted fields such as industrial ventures, infrastructure and development
programmes, defense, commerce and related area of the economy.
China was regarded as a sleeping giant in earlier decades. But now, China is playing a core role
not only in the Asian region but in the entire world. Being the largest country in the world
population-wise and fast becoming economically as big as it is demographically, it has finally
succumbed to the charms of multilateral diplomacy which it had been known to ignore during the
earlier decades. The other reason behind the changes in the Chinese foreign strategy is economic
stemming from its rising energy demands.
Pak-China ties have kept growing and have strengthened ever since 1951 when their friendship
began. China has always been a key component of Pakistans foreign policy so much so that in
1970, Pakistan played a key role in arranging Nixons visit to Beijing.
Regional connectivity is one of the most important aspects of Pakistan foreign policy. Pakistan has
also been trying to cultivate good relations with its neighboring countries. Maintaining worthy and
good relationship with China has been an integral part of Pakistans foreign policy objectives, as

China is Pakistans strategic partner; it helps Pakistan in maintaining balance of power in the
region.
With the support of China, Pakistan has gained significant importance not only in the region but
the entire world. In recent years, both China and Pakistan have been making concerted efforts to
revive the historic Silk Road which is one of the oldest known trade route in the world and will
provide a route for trade from Kashgar (China) to Gwadar (Pakistan). China-Pakistan Economic
Corridor plan will help Pakistan to become one of the most strategically important countries in the
region. It will also provide an opportunity to China to build a naval base on Gwadar port that will
increase influence of China in the region and also counter US influence in the Asia-Pacific region.
The CBS News quoted some Western diplomats on Pakistan-China partnership. According to
them, Chinas increasing economic engagement with Pakistan should be seen in the context of
Beijings efforts to counter the US efforts to deepen alliances around the Asia-Pacific region

Historical perspective
The vision for an economic route between China and Pakistan stretches as far back as the
Musharraf era. This idea speculated for many years, gained traction in May 2013 when Chinese
Premier Li Keqiang emphasized the construction of the CPEC during his visit to Pakistan. He
signed the landmark CPEC agreement at that time. In the same year, Pakistani Prime Minister
Nawaz Sharif visited Beijing and signed eight agreements approximately costing $18 billion that
included building around 200 kilometers tunnels for the CPEC. Pakistans President Mamnoon
Hussain visited China in February 2014 to discuss the plans of the corridor. In the same year,
Pakistans Prime Minister Nawaz Sharif again visited China and signed 19 agreements with China.
At that time, the Chinese banks and companies pledged over US$ 45.6 billion for energy and
infrastructure projects along the corridor. The agreements proved a deepening strategic linkage
between the two countries.
Chinese President Xi Jinping visited Pakistan in April 2015. This was the second visit of a Chinese
leader in Pakistan in 21st century after Hu Jintao's visit to Pakistan in 2006. Xi was to visit
Pakistan in 2014 during his South Asia trip to Maldives, Sri Lanka and India. It was postponed due
to political unrest in Pakistan. During his visit, a total of 51 agreements were signed between
China and Pakistan having worth of $46 billion which also included the development of China
Pakistan
amount exceeds all foreign direct investment Pakistan has received in the past several years, and
is considerably more than all the aid Pakistan has received from the US since 9/11.
Gwadar port
Gwadar is actually the tail of the silk belt, which will connect Kashgar through different
communication networks. Gwadar holds central place in the project of the China Pakistan
Economic Corridor because without making the Gwadar Port fully functional, it would be difficult
to see the anticipated corridor as an energy corridor that appears as one of its main objectives
behind the construction of the CPEC. Located near the Strait of Hormuz, which channels about

one third of the world's oil trade, Gwadar could play a key role in ensuring China's energy security
as it provides a much shorter route than the current 12,900km route from the Persian Gulf
through the Strait of Malacca to China's eastern seaboard.It has been said that Gwadar will also
put China and Pakistan in a strategically advantageous position along the Arabian Sea
compounding the existing Indian concerns that stem from China's involvement in nearby ports
such as Hambantota in Sri Lanka, Sittwe in Myanmar and Chittagong in Bangladesh.
The operational control of the port will enable Chinas access to the Indian Ocean, which is
strategically important for China as it expands its influence across the region. Gwadar port will be
connected with Chinas western province of Xingjiang through rail and road links. China eastern
seaboards are 3,500 km away from the city of Kashgar in western China while the distance from
Kashgar to Gwadar port is only 1500 km.
Major Routes
The Highways and Motorways would follow two
routes
Eastern route that would start from Gwadar
and connect to KKH through: Khuzdar, Ratodero,
Sukkur, Multan, Lahore, Islamabad and Havelian.
Western route from Gawadar to KKH via Turbat,
Panjgur, Kalat, Mastung, Quetta, Qilla Saifullah,
Zhob, Dera Ismail Khan, Mianwali, Hasan Abdal,
Abbotabad and Gilgit.
The total distance from Gwadar to Khunjerab
would be 2653km. The existing 800 km
Karakoram Highway would also be upgraded.

Infrastructure Development

Infrastructure development including

the development of roads, ports and
highways is another important
segment of CPEC. This project
basically will improve Pakistans
infrastructure connection with all sub
regions in Asia, and between Europe
Asia and Africa step by step and will
remove all investment and trade
barriers for the creation of a sound
business environment within the
region and in all related countries.56 After the complementation of this Project, Pakistan will
become modernize and then by spreading out markets for manufactured good. The areas
adjacent to the corridor would become attractive locations for manufacturing, agricultural and
services industries, Small and medium enterprises would be special beneficiaries. Employment
and economic growth expand significantly. It will also attract whole world for economic and trade
assistances. under which the Karakoram Highway had been identified for the first phase and
Khunjerab-HavelianIslamabad section of the road was expected to be completed in three years,
moreover, CPEC route would be utilized for the creation of economic and industrial free zones, for
which a fresh economic zone working group would be created soon after the upcoming visit to
link all the four provinces, AJK, Fata and Gilgit-Baltistan to expand benefits of the initiative across
the country.

The projects proposed under the CPEC fall into two main categories

Energy

Motorways & Highways, Railways, Oil Pipelines, Optic fiber backbone etc.

Energy projects would add almost 10,000 MW of power easing the lingering problem of
electricity outages and load shedding.
Thar coal fired project would use the locally mined coal while other projects at Port Qasim,
Sahiwal, Qadirabad, Muzaffargarh, Rahim Yar Khan and Gwadar would be based on
imported coal.
Hydropower projects would be developed at Sukki Karnai and Karot. Solar and Wind power
projects are also included in this portfolio.

Economic Development

China Pakistan Economic Corridor will help build a robust and stable economy in Pakistan and will
create a significant opportunity for Pakistan to revive its industry and advance its economic
interests. It will also help in overcoming the psychological barriers to flows of foreign investment
from other sources. Despite its restrictive economic regime, over 150 private equity funds,
foreign and domestic, are active in India. Only three or four such funds are dedicated to investing
government, with the participation of the private sector, to encourage foreign direct investment
in Pakistan is indispensable.59Finance Minister Ishaq Dar said war phobia can also be defeated
through economic development. Peace and prosperity can be achieved with economic
advancement. This project will go beyond regional ambits to bring about enormous changes not
only to the national economies of the benefiting states but also to the economics of the people at
the grassroots level.

Balanced environment in South Asia

CPEC is the crown jewel in the new Pakistan economic paradigm because Pakistan has the
opportunity to act independently of the western influence especially the US influence as it has
proved of late, an irritant factor. CPEC Project will also bring an opportunity to Pakistan for
normalization of ties with India, Iran and Afghanistan which will keep balance, strengthen
prospects of peace and improve socio-economic status of the people of the region.

Removal of poverty
CPEC is a game changer project which will lift millions of Pakistanis out of poverty and misery.
The project embraces the construction of textile garment, industrial park projects, construction of
dams, the installation of nuclear reactors and creating networks of road, railway line which will
generate employment and people will also take ownership of these projects. 61Fully equipped
hospitals, technical and vocational training institutes, water supply and distribution in
undeveloped areas will also improve the quality of life of people.
Conclusion
China Pakistan Economic Corridor is the game changer project which will incorporate a 2,000kilometer transport link between Kashgar in northwestern China to the Gwadar port on the
Arabian Sea near the border with Iran. When this corridor will be completed, oil from the Middle
East could be off loaded at Gwadar, which is located just outside the mouth of the Gulf, and
transported to China through Balochistan and over the Karakoram Mountain. There are many
challenges for Pakistan in implementing this project. At the same time, Pakistan will have many
benefits from this corridor.