Belt and Road Explained: South Asia

Bangladesh, Pakistan and Sri Lanka are CHINA

The Beltalready realising the economic beneÿts

PAKISTAN BANGLADESHof the Belt and Road

(B&R) initiative P a c i f i c O c e a n

South Asian markets are set to play a crucial role in the B&R. Already,

VIETNAMmajor B&R infrastructure projects are underway. Whether power,

SRI LANKA MALAYSIA transport, oil or SEZs1, they are bridging infrastructure gaps and SINGAPORE

improving competitiveness. I n d i a nThe Road INDONESIAO c e a n

Bridging infrastructure gaps in three markets

China-Pakistan Bangladesh China IndiaKashgar INDIAEconomic Corridor CHINA Myanmar-Economic Corridor

CHINA

Kohala INDIA hydropower project

Islamabad Sylhet KunmingAFGHANISTAN Jessore

Lahore SRI LANKA DhakaIRAN PAKISTAN Multan KolkataColombo

Sukkur Mandalay INDIA MYANMAR Gwadar Karachi BANGLADESHHambantota PortArabian Sea

Pakistan’s development of power Sri Lanka’s new ports will link it to Bangladesh’s new power plants are stations will alleviate electricity B&R’s key shipping lanes, while real improving its electricity supply, while shortages. New transport infrastructure, estate projects and special economic new transport links will ease capacity as well as new special economic zones, zones should boost growth. constraints on the crucial garment will also boost growth. export sector.

History of burgeoning relationships Relationships between China and these South Asia markets pre-date the ofÿcial B&R launch. Present in all three markets for more than 100 years, Standard Chartered has long facilitated trade and investment across such investments.

Timeline 1858 1863 1905 1951 1975 1957 1986–89 1999 2001

Bangladesh China helps build frst

Bangladesh-China friendship bridge

‘Kunming Initiative’, precursor to BCIM2 ,

frst proposed

Pakistan First joint agreement

to develop Gwadar Port

Sri Lanka

Key

Landmark visit by Economic

BCIM Xi Jingping leads to

Standard Chartered USD$21.5bn worth of Corridor Route of establishes presence infrastructure deals launched China CPEC3 agreed in market launches

B&R Hambantota Port leased First phase of

Elections lead to to China Merchants change of government;

Relations with Hambantota Port Port Holdings in China established development complete

some B&R debt-for-equity swap projects reviewed

2010 2013 2015 2016 2017

Sources: Standard Chartered, local press, Nomura, World Bank, UN Comtrade.

SEZs: special economic zones 2 BCIM: Bangladesh-China-India-Myanmar 3 CPEC: China-Pakistan Economic Corridor 1