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China–Pakistan Economic Corridor

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China–Pakistan Economic Corridor
中国-巴基斯坦经济走廊
پاک چین اقتصادی راہداری
System information
Length2,442 km (1,517 mi)

The China–Pakistan Economic Corridor (CPEC)[a] is an ongoing development megaproject which aims to connect Gwadar Port in southwestern Pakistan to China’s northwestern autonomous region of Xinjiang, via a network of highways, railways and pipelines to transport oil and gas.[1] The economic corridor is considered central to China–Pakistan relations and will run about 3,000 km from Gwadar to Kashgar. Overall construction costs are estimated at over $46 billion, with the entire project expected to be completed in several years.[2][3] The Corridor is an extension of China’s proposed 21st century Silk Road initiative.[4][5] According to a Firstpost report, "this is the biggest overseas investment by China announced yet and the corridor is expected to be operational within three years and will be a strategic gamechanger in the region, which would go a long way in making Pakistan a richer and stronger entity than ever before."[6]

Other than transport infrastructure, the economic corridor will provide Pakistan with telecommunications and energy infrastructure. The project also aims to improve intelligence sharing between the countries.[7][8] China and Pakistan hope the massive investment plan will transform Pakistan into a regional economic hub as well as further boost the growing ties between Pakistan and China.[9] The Pakistani media and government called the investments a "game and fate changer" for the region.[10][11] According to The Guardian, "The Chinese are not just offering to build much-needed infrastructure but also make Pakistan a key partner in its grand economic and strategic ambitions."[12] The project will also open trade routes for Western China and provide China direct access to the resource-rich Middle East region via the Arabian Sea, bypassing longer logistical routes currently through the Strait of Malacca.[13]

During the state visit of President of China Xi Jinping to Pakistan in April 2015, he wrote in an open editorial that "This will be my first trip to Pakistan, but I feel as if I am going to visit the home of my own brother." During his visit, Islamabad was dotted with slogans and signboards such as "Pakistan-China friendship is higher than the mountains, deeper than the oceans, sweeter than honey, and stronger than steel." [14]

In August 2015, the two countries signed 20 more agreements worth $1.6 billion to further boost the corridor.[15] In December 2015, the two countries agreed on a further $1.5 billion investment to set up an information and technology park as part of the CPEC project.[16]

History

External videos
video icon China Reaches Out to Pakistan With Massive Economic Plan.

The project was first proposed by Chinese Premier Li Keqiang and Nawaz Sharif on 22 May 2013 in Islamabad. .[17][18] The Pak-China Economic Corridor Secretariat was inaugurated in Islamabad on 27 August 2013.[19] In February 2014, Pakistani President Mamnoon Hussain visited China to discuss the plans for an economic corridor in Pakistan.[20] Two months later, Pakistan Prime Minister Nawaz Sharif met with Premier Li Kequiang in China to discuss further plans.[21] The project took shape during Sharif's tenure.[22]

In November 2014, Chinese government announced that it will finance Chinese companies to build $45.6 billion worth of energy and infrastructure projects in Pakistan as part of CPEC. Documents quoted by Reuters show that China has promised to invest around $33.8 billion in various energy projects and $11.8 billion in infrastructure projects which will be completed by 2017 at most. The deal includes $622 million for Gwadar Port. According to Reuters, under the CPEC agreement, $15.5 billion worth of coal, wind, solar and hydro energy projects will add 10,400 megawatts of energy to the national grid of Pakistan.[23]

On 20 April 2015, Pakistan and China signed an agreement to commence work on the $46 billion agreement, which is roughly 20% of Pakistan's annual GDP,[24] with approximately $28 billion in immediate projects and the rest allocated for projects in the pipeline.[25] The plan also includes projects to address climate change, joint research in cotton Biotech and marine research, cooperation between China's General Administration of Press and Publication and Pakistan's Ministry of Information and Broadcasting as well as an agreement between China Central Television, PTV and the Pakistan Television Foundation on the rebroadcasting of CCTV news and documentary programs in Pakistan.

Some cities have been made sister cities – Chengdu in Sichuan province and Lahore, and Zhuhai in Guangdong province and Gwadar.[26]

Key Infrastructure Projects

Energy Generation Infrastructure

Pakistan currently faces energy shortfalls of over 4,500MW on a regular basis[27] with routine power cuts of up to 12 hours per day,[28] which has shed an estimated 2-2.5% off its annual GDP.[29] Energy generation will be a major focus of the CPEC project, with over $30 billion dollars expected to be invested in this sector.[30] As part of the "Early Harvest" scheme of the CPEC, an estimate 10,400 MW of electricity are slated for generation by March 2018.[31]

Several renewable energy projects are planned to be undertaken as part of the CPEC plan, and are to be constructed by private firms, rather than by the governments of either China or Pakistan. As part of the plan, China's Zonergy Energy Limited (website) will construct the world's largest solar power plant, the 6,500 acre Quaid-e-Azam Solar Park, near the city of Bahawalpur with an estimated capacity of 900MW with a planned completion of December 2016.[32] [33] The Jhimpir Wind Power Plant, built by the Turkish company Zorlu Enerji (website) has already begun to sell 56.4 MW of electricity to the government of Pakistan,[34] though under CPEC, another 250MW of electricity are to be produced by the Chinese-Pakistan consortium United Energy Pakistan (website) and others at a cost of $659 million.[35][36] SK hydro is constructing an 870 MW hydroelectric powerplant the Kaghan Valley of Pakistan's Khyber Pakhtunkhwa province at a cost of $1.8 billion,[37] SK Hydro will construct the project with financing by China's EXIM bank,[38] and will in turn sell electricity to the government of Pakistan at a rate of 8.8 cents per kilowatt hour. The $1.6 billion 720 MW Karot Dam which is under construction is often mistakenly quoted as being part of the CPEC plan, but is in fact financed separately by China's Silk Road Fund.[39] Pakistan and China have also discussed the inclusion of the 4,500MW $14 billion Diamer-Bhasha Dam as part of the CPEC project,[40] though as of December 2015, no firm decision has been made - though Pakistani officials remain optimistic at its eventual inclusion.[41] The $2.4 billion, 1,100 MW Kohala Hydropower Project being constructed by China's Three Gorges Corporation predates the announcement of CPEC, though funding for the project will now come from CPEC fund.[42]

Despite several renewable energy projects, the bulk of energy generation projects under CPEC will be coal-based plants. A consortium of the Chinese Shanghai Electric company and Pakistan's Engro Corporation will jointly construct five coal based power plants with a combined capacity of 2,060MW.[43] Other projects to be constructed by private firms include the 1320MW, $1.98 billion Port Qasim Coal Fired power plants, two $800 million coal power plants in Sahiwal with a combined capacity of 660MW at a $1.6 billion cost, two 330MW coal power plants in Punjab Province's Salt Range, and a $970 million coal power plant at Hub, Balochistan near Karachi with a capacity of 660MW to be built by the Pakistani firm Hub Power Company. A 300MW coal power plant is also being developed in the city of Gwadar, and is being financed by a 0% interest loan.[44]

Liquified Natural Gas power plants will also be part of the CPEC project. The 1,223MW Balloki Power Plant is currently under construction near Kasur, and is being constructed by China's Harbin Electric Company with financing from the China's EXIM bank. In October 2015, Prime Minister Nawaz Sharif inaugurated construction of the 1,180MW Bhikki Powerl Plant near Sheikhupura,[45] which is to be jointly constructed by China's Harbin Electric Company and General Electric from the United States.[46] It is expected to be Pakistan's most efficient power plant, and will provide enough power for an estimated 6 million homes.[47]

In addition to the construction of power plants, the CPEC project requires the development of coal mining fields and supporting infrastructure. As part of infrastructure required for electricity distribution, the $1.5 billion in Matiari to Lahore Transmission Line, and $1.5 billion in Matiari to Faisalabad Transmission Line are also to be constructed as part of the CPEC project.[48] Mining projects announced as part of the CPEC include the $1.7 billion in Surface Mine in Block II of Thar Coalfield, and a $1.3 billion mine in SSRL Thar Coal Block.

Gwadar Port and City

Gwadar Port

Gwadar forms the crux of the CPEC project, as it is envisaged to be the link between China's ambitious One Belt, One Road project, and its Maritime Silk Road project.[49] In total, more than $1 billion worth of projects are to be developed around the port of Gwadar by December 2017.

Infrastructure works at Gwadar Port commenced in 2002 and were completed in 2007,[50] however plans to upgrade Gwadar's airport never materialized. Under CPEC, China will grant Pakistan $230 million in order to construct a new international airport in Gwadar which is to be operational by December 2017.[51] The provincial government of Baluchistan has set aside 4000 acres for the construction of the new $230 million Gwadar International Airport which will require an estimated 30 months for construction,[52] the costs of which are to be fully funded by grants from the Chinese government which Pakistan will not be obliged to repay.[53]

The airport is being constructed in close proximity to both the seaport at Gwadar, and to a new 2,282 acre free trade area in Gwadar which is being modeled on the lines of the special economic zones of China.[54] The swathe of land was handed to the China Overseas Port Holding Company (website) in November 2015 as part of a 43-year lease.[55] The project will be completed in three phases. By 2025, it is envisaged that manufacturing and processing industries will be developed, while further expansion of the zone is intended to be complete by 2030.[50]

Gwadar Port itself is being expanded and upgraded by the addition of breakwaters, and dredging to allow for larger ships. The city of Gwadar is further being developed by the construction of a 300MW coal power plant, a desalinization plant, a new 300 bed hospital, and an expressway along Gwadar's East Bay. These additional projects are estimated to cost $800 million, and are to be financed by 0% interest loans extended by the Exim Bank of China to Pakistan.[56]

In addition to the aforementioned infrastructure works, the Pakistani government announced in September 2015 its intention to establish a training institute named Pak-China Technical and Vocational Institute at Gwadar which is to be completed by March 2016 at the cost of 943 million rupees.[50] The institute is designed to impart to local residents the skills required to operate and work at the expanded Gwadar Port.[50]

Road Infrastructure

The CPEC project envisages a major upgrade of Pakistan's transportation infrastructure. Under the CPEC project, China has announced financing for $10.63 billion worth of transportation infrastructure so far; $6.1 billion have been allocated for road construction at 1.6 percent interest rate,[57] while $1.6 billion have also been allocated for mass transit at a 2.4% interest rate.[58]

File:KKH3.png
The portion of the Karakoram Highway which is to be reconstructed and upgraded as per CPEC is depicted by the dark blue line. The 176 kilometer long Gilgit to Skardu road which is also to be upgraded is depicted by the orange line.

The Karakoram Highway, constructed with Chinese assistance between 1959 and 1979 is slated for reconstruction to enhance capacity. Plans to reconstruct the road were initially announced in February 2015, preceding the announcement of the CPEC package in April 2015,[59] but are nevertheless considered a crucial part of the CPEC project as it is a vital link in the route connecting Pakistan's deep water ports to Western China. Upgrading of the Karakoram Highway can be traced to 2013, when China began construction on a 24 kilometer bypass of Attabad Lake with a combination of 5 km worth of tunnels, 2 large bridges, and 78 small bridges to bypass the lake which had been formed after a 2010 earthquake triggered massive landslides. The resulting landslides cut off both the Indus River and Karakoram Highway resulting in the formation of the reservoir. Prior to completion of the bypass, all vehicular traffic had to be loaded onto barges in order to traverse the new reservoir. Construction of the tunnels began in 2012 and required 36 months for completion. The 24 km long series of bridges and tunnels was inaugurated on September 15, 2015 at a cost of $275 million and was hailed as a major accomplishment.[60][61]

A view of the Attabad Lake, around which a 24 kilometer series of bridges and tunnels has been constructed with Chinese assistance.

The 487 kilometer long portion of the Karakoram Highway between Islamabad and Raikot Bridge south of Gilgit will be reconstructed at a cost of $3.5 billion, with China offering concessionary loans to finance $1 billion of the total cost for Phase 2[62] (Phase 1 funding has not yet been announced) while the 175 kilometer road between Gilgit and Skardu will be upgraded to a 4-lane road at a cost of $475 million.[63] The width of the portion of the Karakoram Highway will be doubled north of Mansehra,[59] while south of Mansehra, the Karakoram Highway will be upgraded to a controlled access highway known as the E-35 expressway which will span 60 Aakilometers from Mansehra to an interchange with the existing M1 Motorway in Hasan Abdal. From there, the Karakoram Highway will continue onwards to Islamabad as part of the existing M1 Motorway. South of Islamabad, the M1 Motorway will in turn connect to the 1,152 Karachi–Lahore Motorway. In September 2015, the government of the United Kingdom announced that it would grant Pakistan $121.6 million towards construction of the E-35 project.[64]

The 1,152 km long Karachi–Lahore Motorway will connect Pakistan's two largest cities by a 6-lane controlled access highway.[65] Upgrade works on the 136 kilometer long Super Highway between Karachi and Hyderabad began in March 2015, and will convert the road into a 4-lane controlled access motorway which will be completed in an estimated 30 months.[66]Construction on the first new-build portion of the Karachi Lahore Motorway project costing approximately $1.5 billion [67] was launched in November 2015 [68] as a joint venture between the China Railway Construction Corporation Limited and Pakistan's Zahir Khan and Brothers Engineers(website)[69]

Portions of the Karachi-Lahore Motorway will be funded by a $90.7 million grant from the government of the United Kingdom towards the construction of the Gojra-Shorkot on the M-4 Motorway section of the Karachi-Lahore motorway project. The 387 kilometer Multan to Sukkur portion of the motorway is estimated to cost $2.43 billion,[70] with 90% of the cost to be financed by concessionary loans from China, with the remaining 10% to be financed by the government of Pakistan.[71] The expected completion date for the project is December 2017.[72]

Additionally, the CPEC project envisages construction of 870 kilometers of secondary road in Pakistan's Baluchistan Province, of which 556 kilometers have already been constructed as of November 2015.[73] A 870 kilometer Gwadar-Ratodero Motorway is also under construction and will form a major linkage between Gwadar and northern Pakistan, as well as the construction of a two to four lane highway linking Gwadar and the capital of Baluchistan province, Quetta.[74]

Karakoram Highway at the Khunjerab Pass between China and Pakistan.

Railway Infrastructure

The CPEC project also emphasizes major upgrades to Pakistan's aging railway system. Part of the plan includes a $3.65 billion overhaul of the of Karachi–Peshawar main railway line[57] with expected completion by December 2019.[75] Overhauling of the tracks will permit train travel at up to 160 kilometers per hour, versus the average 60–80 km per hour speeds currently possible on existing rails.[76] Upgrading of the railway line is expected to cut transit times from Karachi to Peshawar by half.[76] The first stage of the project will focus on upgrading the Multan to Peshawar section, which will then be followed by the Hyderabad to Multan section, and finally by the Hyderabad to Karachi section, with works expected to be completed within two years of initiation.[77] After reconstruction and overhauling of tracks is complete, a dry port is to be set up in the city of Havelian.[78]

Procurement of and an initial 250 new passenger coaches, and reconstruction of 21 train stations are also planned as part of the project bringing the total investment in Pakistan's railway system to approximately $5 billion.[79] 180 of the coaches are to be built in Pakistan Railways Carriage Factory near Islamabad,[80] while The Government of Pakistan intends to procure an additional 800 carriage at a later date, with the intention of building 595 of those coaches in Pakistan.[81]

In addition to upgrading the Karachi-Peshwar Line, the CPEC project also calls for construction of railways to connect Gwadar Port to Pakistan's railway system at Jacobabad, with eventual construction of a railway line all the way to China's Xinjiang province 3,000 kilometers away via the proposed Khunjerab Railway.[82] A 300 million rupee study to establish feasibility of constructing the 682 kilometer rail line between Havelian and the Chinese border is already underway.[83]

The 27.1 km long $1.6 billion Orange Line of the Lahore Metro is also being constructed under the CPEC plan. Construction on the line has already begun, with planned completion by Winter 2017.[58][84]

Liquified Natural Gas Transport

In addition to the aforementioned economic zones, transportation projects, and civil engineering works, the Chinese government has also announced its intention to build a $2.5 billion 711 kilometer long liquid natural gas pipeline from Gwadar to Nawabshah in province.[85] The pipeline is designed to be a part of the 2,775 kilometer long Iran–Pakistan gas pipeline, with the 80 kilometer portion between Gwadar and the Iranian border to be connected when sanctions against Tehran are eased; Iran has already completed a 900 kilometer long portion of the pipeline on its side of the border.[86] The Pakistani portion of the pipeline is to be constructed by the state-owned China Petroleum Pipelines Bureau.[87] It will be 42 inches in diameter, and have the capacity to transport 1 billion cubic feet of liquified natural gas every day, with an additional 500 million cubic feet of additional capacity when the planned off-shore LNG terminal is also completed[88] The project should not be confused with the $2 billion 1,100 kilometer North-South Pipeline liquified natural gas pipeline which is being constructed with Russian assistance between Karachi and Lahore with anticipated completion by 2018.[89] Nor should it be confused with the planned $7.5 billion TAPI Pipeline which is a planned project involving Turkmenistan, Afghanistan, Pakistan, and India.

Financing

Approximately $11 billion worth of infrastructure projects being developed by the Pakistani government will be financed by concessionary loans, with interest rates of 1.6%.[90][91] The loans are subsidized by the government of China, and are to be dispersed by the Exim Bank of China. For comparison, loans for previous Pakistani infrastructure projects financed by the World Bank carried an interest rate between 5% and 8.5%,[92] while interest rates on market loans approach 12%.[93]

In addition to the aforementioned concessionary loans with a 1.6% interest rate, the government of China in August 2015 announced that concessionary loans for several projects in Gwadar totaling $757,000,000 would be converted 0% interest loans.[90] The projects which are now to financed by the 0% interest loans include: the construction of the $140,000,000 Eastbay Expressway project, installation of breakwaters in Gwadar which will cost $130,000,000, a $360,000,000 coal power plant in Gwadar, a $27,000,000 project to dredge berths in Gwadar harbor, and a $100,000,000 300-bed hospital in Gwadar.[94] Pakistan will only repay the principle on these loans.

In August 2015, the government of China also announced that the $230,000,000 Gwadar International Airport project would no longer be financed by loans, but would instead be constructed by grants which the government of Pakistan will not be required to repay.[95]

The $44,000,000 Cross Border Optic Fiber Project, a 1,300 km long fiber optic wire connecting Pakistan and China, will be constructed using concessionary loans at an interest rate of 2%, rather than the 1.6% rate applied to other projects.[90] The 1,223MW Balloki Power Plant also does not fall under the concessionary loan agreement, but will still qualify for subsidized loans with an interest rate of 5%.[96] In addition, the 27.1 km long $1.6 billion Orange Line of the Lahore Metro does not qualify for the Exim Bank's 1.6% interest rate, and will instead by financed at a 2.4% interest rate[97] after China agreed to reduce interest rates from an originally planned rate of 3.4%.[98]

In September 2015, the government of the United Kingdom announced that it would grant Pakistan $121,600,000 for the construction of the 59 kilometer long E-35 expressway project.[64] In October 2015, the government of the UK announced another grant of $90,700,000 towards the construction of the Gojra-Shorkot section of the M-4 Motorway project.[99]

$15.5 billion worth of energy projects are to be constructed by joint Chinese-Pakistani firms, rather than by the governments of either China or Pakistan. The Exim Bank of China will finance those investments at 5-6% interest rates, while the government of Pakistan will be contractually obliged to purchase electricity from those firms at pre-negotiated rates.[100]

Geopolitical Impact

The move represents a shift toward greater economic cooperation between Pakistan and China, which have long had close security ties amid common disputes with neighboring India. The corridor would give China access to the Indian Ocean and lead to investments that would help ease power shortages that are hindering economic growth in Pakistan.

— Bloomberg Business on April 1, 2015, [101]

When the corridor is constructed, it will expand the number of trade routes between China, the Middle East and Africa. Energy security is a key concern for China, as it is the world's biggest oil importer,[24] and oil pipelines through Pakistan would cut out ocean travel through Southeast Asia.[102]

The Asian Development Bank terms the project as "CPEC will connect economic agents along a defined geography. It will provide connection between economic nodes or hubs, centered on urban landscapes, in which large amount of economic resources and actors are concentrated. They link the supply and demand sides of markets."[103]

According to Chinese Foreign Ministry Spokesperson Hua Chunying, the corridor will "serve as a driver for connectivity between South Asia and East Asia." Mushahid Hussain, chairman of the Pakistan-China Institute, told China Daily that the economic corridor "will play a crucial role in regional integration of the 'Greater South Asia', which includes China, Iran, Afghanistan, and stretches all the way to Myanmar."[20]

China plans to build oil storage facilities and a refinery at Gwadar Port, with oil transported to its Xinjiang Uighur Autonomous Region via road and pipeline. This will let it move energy and goods to inland China without going through the Strait of Malacca, which could be blocked by the U.S. or India should hostilities break out in the region. The project will also lead to development in western China, where tensions are simmering from activities by radical separatists.[104][105] Iran has also responded positively over the proposal to link the Iran–Pakistan gas pipeline with China, with the Iranian ambassador to China describing it as a "common interest" between the three countries.[106]

CPEC is considered economically vital to Pakistan in helping it drive economic growth.[107] Moody's Investors Service has described the project as a "credit positive" for Pakistan. In 2015, the agency acknowledged that much of the project's key benefits would not materialise until 2017, but stated that it believes at least some of the benefits from the economic corridor would likely begin accruing even before then.[108] A study by the Pew Research Center in 2014 found that 78% of Pakistanis have a positive view of China.[109][110]

in 2014, the Chinese government committed to spending $45.6 billion over the next six years to build the China–Pakistan Economic Corridor, which will include the construction of highways, railways, and natural gas and oil pipelines connecting China to the Middle East. China’s stake in Gwadar will also allow it to expand its influence in the Indian Ocean, a vital route for oil transportation between the Atlantic and the Pacific. Another advantage to China is that it will be able to bypass the Strait of Malacca. As of now, 60 percent of China's imported oil comes from the Middle East, and 80 percent of that is transported to China through this strait, the dangerous, piracy-rife maritime route through the South China, East China, and Yellow Seas.

Council on Foreign Relations[13]

Security

China has expressed concern that some separatist groups in Xinjiang may be collaborating with insurgents in Pakistan, and has expressed a desire to strengthen security ties.[24] The outlawed Tehrik-i-Taliban has claimed responsibility for past attacks on some Chinese nationals,[111] and Chinese commentators have raised concerns that construction workers could be kidnapped and ransomed.[112] The Express Tribune reports that Pakistan plans to train 12,000 security personnel to protect Chinese workers on the corridor.[113][114][115] Presently, 8,000 Pakistani security officials are deployed for the protection of over 8,100 Chinese workers in Pakistan.[116]

Some militant separatist groups operate in Balochistan, including the Balochistan Liberation Army and Jundallah, which have carried out bombings. The terror groups are reportedly backed by India.[117][118]

The route of the Economic Corridor passes though Azad Kashmir, one of the regions that has been contested in the Kashmir conflict between India and Pakistan, and border guards have occasionally exchanged fire.[119][120] Chinese intelligence agencies also shared information with Pakistani authorities regarding "foreign hostile agencies" who could support anti-state elements to sabotage the project, a reference mainly to the Indian intelligence agency, Research and Analysis Wing.[121] Pakistan has responded that it will vigorously guard itself and its allies from Indian-backed militants.[122]

List of Major Projects

Project Details
Gwadar Port Completed, handed over to China for 40 years starting 2015[123]
Upgrading of Karachi–Peshawar Main Line Feasibility study underway[124]
Khunjerab Railway Feasibility study underway[125]
Karachi - Lahore Motorway (KLM) Approved, Under construction 2015.[125] Project is expected to be completed by end of 2017. The network of Pakistan motorways will be connected to Karakorum Highway near Rawalpindi/ Islamabad. Hazara Motorway will be connected to M-1 and M-2 near the capital.
Havelian to Khunjrab Rail track Approved[126]
Hazara Motorway (Also known as E35expressway) Under construction. Connect with M-1 and M-2 at Burhan, near Islamabad/ Rawalpindi. ad. The project is expected to be completed before end of 2016[125]
Iran–Pakistan gas pipeline Under construction, Iran's part of the pipeline is complete.[125]
Gwadar-Ratodero Motorway Under construction, approx. 820-km long, expected completion Dec, 2015[125]
Economic Corridor Support Force Completed, armed division of the army for security of workforce, cost $250 million[127]
Havelian Dry Port Feasibility study underway for the container port
Orange Line (Lahore Metro) Approved.[125] The work has been started. The project is expected to be completed towards end of 2017
Upgrading of Gwadar International Airport Approved.[125] Work has been started and project is expected to be completed by December 2017
China-Pakistan Joint Cotton Bio-Tech Laboratory Approved[125]
Gwadar-Nawabshah LNG Terminal and Pipeline Project Approved[125]
700 MW Hydro-Electric Suki Kinari Hydropower Project Approved[125]
Port Qasim 2x660MW Coal-fired Power Plants Approved[125]
720MW Karot Hydropower Project Approved[125]
Zonergy 9x100 MW solar project in Punjab Approved[125]
Jhimpir wind Power project Approved[125]
Thar Block II 3.8Mt/a mining Project Approved[125]
Thar Block II 2x330MW Coal Fired Power project Approved[125]
Development of Private Hydro Power Projects Approved[125]
Dawood Wind Power Project Approved[125]
Hubco Coal-fired Power Plant Project Approved[125]
Cross-border fibre optic data communication system project, a digital terrestrial multimedia broadcast pilot project at Murree Approved[125]

Controversy

Some planning aspects and technicalities associated with the route have been criticized on political forums and the media for varying reasons. The Provincial Assembly of Khyber Pakhtunkhwa province adopted a resolution[128] against the alleged decision of the central government to change the multibillion route of the proposed project by diverting the northwestern province of Khyber Pakhtunkhwa. The provincial assembly advised the central government to stick to the same route as agreed upon between the governments of Pakistan and China, and passed a resolution stating that a change in the route not incorporating Khyber Pakhtunkhwa would disadvantage the economic interests of the people of the war-torn province. The federal Minister of Planning Development and Reform Ahsan Iqbal formally denied any change in the alignment.[22][129][130] In addition, some local Baloch nationalists have expressed dismay at the project, noting the difficult economic conditions of Gwadar residents and saying any such development would deny locals control over their native resources. Other Baloch nationalists view it as a "conspiracy" that would stimulate migration of people from other provinces and make the Baloch a "minority" in their homeland.[131]

According to Dr Ahmad Rashid Malik, Senior Research Fellow at the Institute of Strategic Studies Islamabad (ISSi), the route controversy is "baseless and an unfounded reality...".[132]

Wu Zhaoli, an assistant research fellow at the National Institute of International Strategy, Chinese Academy of Social Sciences, in his article published in Global Times, argued that "security concerns are a critical cause which helps to determine the path of this corridor.[112]
On May 28, 2015 the prime minister of Pakistan called on all parliamentary parties and all parties assured their support for the projects.The All Parties conference agreed that the western route of the corridor (which pass through Khyber Pakhtunkhwa and North Balochistan) would be completed first which would be built from Attock District (Hasan Abdal) to Gwadar, passing through Mianwali District, Dera Ismail Khan and Zhob.[133]

Strategic implications

According to experts, the completion of Gwadar would make it the economic hub of Balochistan and create a strategic nexus between Pakistan, China and Central Asia, generating billions in revenue and providing shorter land routes.[107] It would provide links from the Caspian Sea to the Strait of Hormuz, and enable Gwadar to compete with Persian Gulf ports.[131] The United States, wary of Chinese strategic access to the Arabian Sea and its presence in the region, has reportedly tried several times to persuade Pakistan against involving China in the development. According to one official, the US had played an instrumental role in promoting the Port Authority of Singapore for control of the port previously.[131]

India, which maintains tense relations with Pakistan, has viewed the project with objections, particularly as it crosses through the Pakistani-administered side of Kashmir, a region contested between the two countries. According to the Indian foreign affairs ministry, Prime Minister Narendra Modi during his visit to China raised his objections over the corridor.[134] However, Chinese President Xi Jinping dismissed the concerns, describing CPEC as a "commercial project."[135] India may also have apprehensions over China's access to the sea,[105] and has invested significantly in the nearby Port of Chabahar in neighbouring Iran. The development of Chabahar, which lies 170 km to the west of Gwadar, is part of India's efforts for access to landlocked Afghanistan and Central Asia while bypassing rival Pakistan.[131]

See also

Notes

  1. ^ Chinese: 中国-巴基斯坦经济走廊; Urdu: پاک چین اقتصادی راہداری

References

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