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 ChinaPakistan 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?
TheChinaPakistan Economic Corridoris an underconstruction and partly completedeconomic corridoraimed to
facilitate trade along an overland route that
connectsKashgarandGwadarthrough construction of network of
highways, railways, and pipelines worth nearly $51billion

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 20152030,
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

ambitiousOne Belt, One Road initiative,and the
importance of CPEC to China is reflected by its inclusion
as part of China's 13thfive-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.

But
This 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 Pakistans 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?

Pakistans 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 Pakistans stability and security. It is a win-win situation for both.
It will greatly expand the scope for the sustainable and stable development of
Chinas economic development.
Investments by China will boost Pakistans $274 billion GDP by over 15 %.
Corresponding progress and prosperity in Pakistan and Chinas 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, Pakistans
geo-strategic security interests whenever threatened will be guarded by China.
Chinas 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 Indias 7%) and
Pakistan is much cheaper as an emerging market.
Chinas 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 AfPak 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.
Chinas 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.
Pakistans 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 12 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.
Itll be Pakistani success story of $46 billion.
A Chinese gift for people of Pakistan.