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CHINA PAKISTAN ECONOMIC CORRIDER (CPEC)

MAJOR DISCUSSIONS

IMPORTANT SEA ROUTES IN THE WORLDTHE CPEC AND CHINAADVANTAGES AND DISADVANTAGES FOR PAKISTANSOUTH CHINA SEA DISPUTEINDIA AND CPECBALOCHISTAN ISSUE

WORLD POLITICAL MAP

IMPORTANT PORTS OF ASIA-MIDDLE EAST

OIL IMPORTING ROUTE FOR CHINA

WHAT IS CPEC??

A ROAD WILL BE MADE STARTING FROM GWADAR PORT IN PAKISTAN ,WHICH WILL PASS THROUGH THE WHOLE COUNTRY AND ENDS IN KASHGAR IN CHINA,WHICH IS NAMED AS THE CHINA PAKISTAN ECONOMIC CORRIDOR.

The road consists of tunnels ,railways,airpots etc.It passes through Balochistan then enters Punjab

region,then FATA region, enters gilgit-Baltistan(POK) and finally enters china ends at KAHSGAR.

ROUTE MAP OF CPEC

STARTS FROM GWADAR ENDS IN

KASHGAR

The 3000KM CPEC connecting Xinjiang (Kashgar) with Pakistan’s Gwadar port through POK is stated to cost $46 billion.

The project will shorten the route for china’s energy imports from the middle east by about 12000 KM.

This project includes building of highways, railways as well as pipelines.

It is among the six economic corridors conceived under china’s silk road economic belt and 21st century maritime silk road.

POLICY FRAMEWORK :- Part of OBOR initiative.MANDATE :-TO IMPROVE ENERGY & COMMUNICATION INFRASTRUCTURE PROJECTS IN PAKISTANTO IMPROVE REGIONAL CONNECTIVITY

• FINANCIAL OUTLAY: $46 - 51 BILLION• EQUALS ALL FOREIGN DIRECT INVESTMENT IN PAKISTAN

SINCE 1970• EQUIVALENT TO 17% OF PAKISTAN'S 2015 GDP• INCREASE IN TRADE PAK-CHINA VOLUME FROM $1 BILLION IN 1998

TO $15.15 BILLION IN 2015 PROVIDES A BASIS FOR CPEC

THE DIVIDENDS FOR PAKISTAN

• COMMUNICATION INFASTRUCTURE: IMPROVED & OVERHAULED

• ENERGY DEFICIT: REDUCED• FOREIGN POLICY: RELATIONS WITH CHINA

ENHANCED & RELATIONS WITH REGIONAL COUNTRIES IMPROVED

• JOB CREATION: UPWARDS OF 700,000 DIRECT JOBS CREATED BETWEEN 2015–2030

• ANNUAL ECONOMIC GROWTH: ADD 2 TO 2.5 PERCENTAGE POINTS

FOR CHINA

• CONNECTIVITY: WITH REGIONAL COUNTRIES & BEYOND

• ACCESS: DIRECT ACCESS TO ARABIAN SEA & PERSIAN GULF

• TRADE ROUTES: DISTANCES REDUCED

ROUTE MAP

INVESTMENT IN PAKISTAN BY CHINA

STRAIT OF HORMUZIt is the major sea route in the middle east –asia as

well as in the world for oil transportation(near the gulf).Around one third of world’s traded oil supplies pass

through this strait.It means who would be able to control this path it can

control the major part of world trade market.Gwadar port is near it and Pakistan does its oil import

by this port,But now china has planned to invest and develop the

Gwadar port ,WHY??

OIL EXPORTING THROUGH STRAIT OF HORMUZ

WHY CPEC AND ITS BENEFITS TO CHINAChina, while importing crude oil from middle east

passes through the strait of MALACCA ,then enters the south china sea region which is very disputed region due to all country nearby it claims that region to be theirs, because it is full of natural gas,oil resources which would be very helpful in coming future.

This route is also one of the most important trade sea routes in the world, South korea,North korea,japan ,Indonesia,Phillipines,Vietnam,Taiwan etc. countries also do their trade by this root so,acquairing this south china sea is of great impotance for china.

STRAIT OF MALACCA

As the trade is mainly done in the eastern side of china and major cities are situated here eastern china is much developed than the western part of china

Only 6% of total population of the country lives in the western parts,where as 94% of the total population is in the eastern side,this clearly indicates the difference between these 2 parts.

Adding to it,china is not able to keep good trade rrelationship with middle asia,due to lack of connectivity.

• Chinese industries are facing problems to compete in global market due to high transportation cost and delivery time.• China is using a longest way due to which

transportation cost and time increases, which gives a competitive edge to competitors e.g. Japan, USA

BENEFITS TO CHINA

Problems with south china sea can be eliminated.China can easily extend its western area,it’s development

can be done by industrialisation .It would decrease the travel distance and cost greatly from

China to Gulf.Even if China uses PCEC for 50% of its Oil supplies then it

will save $6 Million every day, almost $2 billion every year.Independent path from India and USA’s interference.New business market in another country.

BENEFITS TO PAKISTAN

Development of Infrastructure.Connect all the Province.Development of FATA and Balochistan.Job opportunities Strategic and economic trade routes.CPEC from all counts will prove a game changer Investments by China will boost Pakistan’s $274 billion GDP

by over 15 %Given the solid foundations of friendship

DISADVANTAGES FOR PAKISTAN

• This leads to threat for local markets and local manufacturers • Disturb of local industries• Difficult to compete chine’s product in market• Dependent to China

ISSUES REGARDING INDIA

The route consists of Gilgit-Baltistan (POK) which is an disputed land, if china will be able to make road through it ,this will be a great threat to Indian security .

So if India doesn’t want this road can’t be made .A major portion of the corridor passes through

Balochistan ,which is forcibly occupied by Pakistan and violation of human rights is vary often noticed.

So, if India supports Balochistan it can also have a whole new set of equations.

India is investing in iran ($ 20 billion) and Afghanistan (300 million dollar) and developing chabahar port which will provide india with free path for trade with Afghanistan and Iran

At the same time if china will be albe to develop Gwadar port it can create troubles in these area as Gwadar port is only 72KMs away from chabahar port

PAKISTAN POLITICAL MAP

BALOCHISTAN ISSUE

Balochistan is the largest province of pakistan geographically.Least populated but full of natural resources.27 districts occupies 44% of total volume of Pakistan.At time of line of creation of balochistan it was divided into 2 partsGawadar was part of sultanate of oman and was purchased on

Sep 1958 and was made part in 1977Balochistan province came into being on jul 1st 1970

• Economy is disturb and destroyed no development no jobs no common facilities no technical instutions.• Balochistan is neglected for past 6 decades.• No basic facilities of education communication sources

and infrastructure• It is the largest but most backward province as compared

to the other provinces of Pakistan• Injustice and no fundamental rights• No projects and development works benefitted people of

Baluchistan

• unique cultural identity• No representation given to baloch culture• Balochs and pashtoons have strong tradition and culture• Baloch do not want to loose their cultureTHE CURRENT SITUATION IN BALOCHISTAN IS WORSETHE CONFLICT BETWEEN SECURITY FORCES AND BALOCH

INSURGENT GROUPSTHE KILLING OF NAWAB AKBAR BUGTI

CONCLUSION

• Natural Gateway for China• Positive response by both countries through mutual

cooperation• Both countries are keen to enhance trade activities• Infrastructural improvement and Development of

Dams• Stability of economy by investment in different sectors

THANK YOU FOR YOUR ATTENTION

By :Ashish Kumar Gouda