As per Pakistan Economic Survey 2014-15, $16 bn trade has been concluded between China and Pakistan. Trade has increased by 10% from china during these five years from 2009-2015. Resultantly, in Pakistan’s economy the share of China’s trade is expanding from 4% in 2009-10 to 9% in 2014-15. Contemporarily, the biggest milestone achieved in this bilateral relationship is the Memorandum of Understanding on the construction of CPEC. Essentially, the rout under CPEC is 3,218km and will be complete in upcoming years. Under CPEC, not only roads will be constructed but also railways, highways and pipelines. The total expected cost of CPEC is US$75bn from which US$45bn will be given to Pakistan Government to operationalize by 2020. The remaining massive investment will be accomplished on infrastructure and energy generation.
There are two major parts of CPEC project to be accomplished on priority basis. First is completion of Gwadar International Airport and second is development of Gwadar port. It is being estimated that if this project successfully implemented then it will be counted as the biggest Foreign Direct Investment on Pakistan since 1970 because it would be equal to 17% GDP of Pakistan in 2015. There is further estimation that this project will generate employment up to 700,000 within the time 2015-30. There are enormous benefits of CPEC like: CPEC will not only benefit Pakistan but also geographically connect China to its markets in Europe, Asia etc. currently, around 80% of oil is being transported to China by utilizing Strait of Malacca. It takes almost 2-3 months to cover a distance of 16000km. By operationalizing the Gwadar port distance will be decreased to 5000km on successful implementation of the giant plan of which 21 agreements on energy- coal, gas, solar energy and remaining fourteen will provide 10,400 megawatts of energy by 2018. As per reports revealed in China Daily, above-mentioned projects will provide more than 16,400 MW of energy. Infrastructurally, roads will be constructed to connect Karachi and Lahore. Simultaneously, Karakorum highway will also be renovated to connect Rawalpindi and the China border. There will also be upgradation of Karachi-Peshawar railway. Railways will also be constructed to connect Pakistan with China’s Southern Xinjiang region.
China can also get oil from Middle East through China corridor. CPEC will work as a connector of three continents Asia, Africa and Europe. That’s is why this project has been known as trans-Eurasian Project. CPEC is being considered as gateway for central Asia. Power generation facilities under CPEC is major milestone in this project when Chinese government decided to invest $33bn in energy sector. Between 2018-20 more then 10,400Mw of energy will be generated with a great pace and speed. Undoubtedly, CPEC is the harbinger of economic development and peace and prosperity not only for Pakistan and china but also for regions included in this project development. The writer Ms. AIMON AFZAL , she is student of Gradsy Institute. She says she is very much fortunate that Gradsy Institute, and Mr. ARIF Manager HR & Training of Nelson Paints and Mr. Fazian Head CSR of Nelson Paints who have given me Souvenir of Nelson Paints for writing this article. I am also thankful to Mr. Nabeel Gohar who have encouraged mes by his motivational speeches.
The writer is a student at Gradsy Institute of Business and Technology.