Isik University

Thesis
Defense
Effects of CPEC (China Pakistan Economic
Corridor) on Shipment Industry of Pakistan
Presented by
GRADUATE SCHOOL OF SOCIAL SCIENCES Year 2024
Kiran Khadim
Overview
01 Aim of Study 08 Hypothesis
02 Introduction 09 Analysis
03 The Problem 10 Results
04 Research Questions 11 Conclusion
05 Literature Review
06 Theoretical
07 Framework
Methodology
 Aim of Study
 The paper discusses salient features of the China-Pakistan Economic Corridor (CPEC) and tries to
examine the possibilities and demanding situations coming alongside its way.
 By delving into the multifaceted nature of the link between CPEC and the sector, this study hopes to
provide light on the shifts, challenges, and possible benefits of CPEC's impact on the industry.
 The perspectives and experiences of those involved in the sector may be better understood via the
use of qualitative methods including in-depth interviews as well as case studies.
 This study will investigate the different ways in which CPEC has affected the marine industry.
 It is the objective of this study to observe the ways in which the competitiveness of Pakistani ports
has evolved in response to changes in trade patterns, cargo volumes, and logistics routes.
 Introduction
 The China-Pakistan Economic Corridor (CPEC) is a significant plan to enhance trade and
travel between the two countries, particularly Pakistan's maritime industry. The CPEC aims
to improve port facilities, transit systems, and power plants, leading to changes and new
opportunities in the industry. This study aims to explore the shifts, challenges, and potential
benefits of CPEC's impact on the marine industry, which plays a significant role in
international trade.
 Pakistan's location at the junction of three major economic regions—South Asia, Central
Asia, and the Middle East—has allowed for the growth of Gwadar Port and other
improvements to existing port facilities. The implementation of CPEC has also led to more
efficient trade flows and streamlined logistical operations.
 The research will examine the competitiveness of Pakistani ports in response to changes in
trade patterns, cargo volumes, and logistics routes. It will also examine the potential
economic benefits of CPEC, such as increased FDI, new job creation, and transportation
technology transfer.
 The research will be comprehensive, using both qualitative and quantitative methods.
Qualitative methods, including in-depth interviews and case studies, will provide insights into
the perspectives and experiences of those involved in the sector. Quantitative analysis will
be used to quantify and analyze the performance and changes in the shipping business.
The Problem
Time Issue: Cost Issue: International Relations:

Updated transportation foundation Research recommends that The exploration on CPEC features
can decrease travel times and transportation expenses can be its possible advantages for Pakistan
expanded efficiency. Progressions diminished in the event that greater and China, as well as its
in framework are firmly connected speculation is made in framework like international importance. New
with efficiency acquires in both the streets, extensions, and ports open doors for monetary
assembling and administration development and improvement are
areas underscored because of CPEC's
assistance of exchange and venture
between the two nations
 Research
Questions
01 02 03

What are the ● What are the ● What are the

challenges faced long-term responses of
by Pakistan while influences of other countries
implementing CPEC on Pakistan towards the
CPEC? as well as China? incorporation of
China–Pakistan
economic
corridor?
 Literarture Review
The China Pakistan Economic The CPEC's infrastructure
Corridor (CPEC) is a development will lead to The CPEC aims to improve
significant initiative aimed at increased transportation communication and
improving trade and business efficiency and decreased commerce between the two
ties between China and shipping costs. nations
Pakistan

The CPEC includes The governments of Pakistan Economic growth and

infrastructure initiatives and China are the primary International Competitiveness
such as roads, railways, participants in the project
power plants, and port
expansion
Theoretical Overview
Framework
The China-Pakistan Economic Corridor (CPEC)
can be analyzed using various economic
theories. Growth models can analyze expected
profits, costs, and risks, while development
theory helps understand the social and
environmental context. Evidence-based theory
can assess the impact on the Pakistani economy
and its people, identifying gaps in
implementation and tailoring policies to better
serve the population's needs. These models can
help policymakers maximize investments,
mitigate negative impacts, and design long-term
economic growth objectives.
 Methodology
Quantitative Method

The proposed research method is quantitative.

Thus, the data is collected via a questionnaire
that contains structured questions.

Slammet Kopling
 Hyphothesis
Research Hypothesis
H1:CPEC has a positive impact on Pakistan as it will facilitate rapid
economic growth and improve the standard of living of the people
.H2: The initiative of One Belt One Road may have severe consequences
due to the geographical location of Pakistan as well as may have
detrimental environmental impacts.
Analysis
Descriptive statistics

Mean Std Deviation N

PCIMEAN
1.6278 .43519 115
ITCMEAN
1.8904 .74657 115
TVIMEAN
1.596 .5082 115
CFDMEAN
1.9159 .85708 155
ATMEAN
1.8000 .84977 155
 Reliability analysis:
Unwavering quality examination is a factual trial to gauge the
consistency of the exploration overview device (survey). In the
event that the outcomes are exceptionally predictable under
similar conditions, the information assortment device is
dependable (Middleton, 2019).
 Regression Analysis:
Table 3.4: Multiple Regression Analysis
PCIMEAN ITCMEAN TVIMEAN CFDMEAN ATMEAN
Pearson Correlation PCIMEAN 1.000 .481 .377 .447 .475
ITCMEAN .481 1.000 .481 .778 .846
TVIMEAN .377 .481 1.000 .499 .357
CFDMEAN .447 .778 .499 1.000 .848
ATMEAN .475 .846 .357 .848 1.000
Sig. (1-tailed) PCIMEAN . .000 .000 .000 .000
ITCMEAN .000 . .000 .000 .000
TVIMEAN .000 .000 . .000 .000
CFDMEAN .000 .000 .000 . .000
ATMEAN .000 .000 .000 .000 .
N PCIMEAN 115 115 115 115 115
ITCMEAN 115 115 115 115 115
TVIMEAN 115 115 115 115 115
 Results
 Over the past decade, CPEC, as a flagship project of the BRI, has significantly impacted Pakistan.
 It attracted substantial investment, generated 236,000 direct jobs
 Led to the development of roads
 Power plants, transmission lines, and optical fiber networks.
 Conclusions
The (CPEC) aims to determine its impact on Chinese trade and import interdependencies in terms of travel
times and shipping costs. As the world's largest economy, China currently exports $2.37 trillion and imports
$1.27 trillion. The CPEC could save China around $1400 to $1500 in shipping costs per 40-foot holder when
traveling to European ports, $1800 when traveling to Central Eastern ports (Jeddah, Kuwait), and around
$2300 when traveling to Oman.

China can also obtain the cheapest crude materials from goal ports to extend trading, as lower prices help it
compete with other countries' products on cost and fortify their exchange volume. The study's main objective is
to determine how CPEC has influenced China's imports and trades.

The re-examined CPEC route appears to provide a reduction of 10,000 to 11,000 kilometers, which should
abbreviate exchange travel times and result in lower shipping costs. This decrease in shipping costs will
benefit China's imports and exports, as it reduces the cost of crude materials purchased from other countries
and allows for more affordable raw materials for manufacturing.

The CPEC could be a game-changer for the region, benefiting not only Pakistan and China but also all other
countries. The recommended route would be preferred by businesses from other countries who trade goods
and services to China due to its lower shipping costs and faster travel times.
Thank You
Kiran Khadim
Faculty of Graduate
School of Social
Sciences/2024