1

Table of Content

I Introduction 4

II. The Definition of the Corridor and Building Conditions 4

III. Visions and Goals5

IV.Guidelines and Basic Principles 6

V.Key Cooperation Areas 8

VI.Investment and Financing Mechanism and Supporting

Measures14

VII. Conclusion16
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INTRODUCTION

From the beginning of diplomatic relations, the People’s Republic of China and
the Islamic Republic of Pakistan has seen their relations ever consolidating and
progressing. Throughout different historical periods, Chinese and Pakistani
governments and people have been working hard to enrich their friendship .They
have set a model for friendly bilateral ties between different cultures, social
systems and ideologies. Chinese and Pakistani governments and people have
deeply known the significance of China-Pakistan Economic Corridor that starts
from Kashgarin Xinjiang, China, and reaches Karachi andGwadar in Pakistan via
the Khunjerab Pass.CEPEC aims for cementing ChinaPakistan economic relations,
promoting friendly cooperation and establishing the shared destiny of the two
countries. CPEC is an economic and development project for the benefit of the
South Asian peoples.After consensus reached between Premier Li Keqiang and
then Pakistan Prime Minister Nawaz Sharif, relevant ministries and departments
of both countries, have set up a cooperation mechanism to coordinate the
development of CPEC.1 They have jointly formulated the Long Term Plan for
China-Pakistan Economic Corridor (2017-2030). This national type plan has been
approved by both Chinese and Pakistani governments. It will effectively execute
relevant national plans and local plans of China as well as Pakistan’s Vision
2025.This plan is effective until 2030 that includes short term and long term

1
"Li Keqiang: China-Pakistan ties 'unbreakable', economic corridor planned". gbtimes.com. 23 May 2013. Archived
from the original on 2014-03-12.
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projects. The CPEC asbelt ofdevelopment possesses features ofcomplementary

advantages, collaboration, mutual benefits and common prosperity. It will
developcomprehensive system of transportation and industrial cooperation
between China and Pakistan with concrete economic and trade cooperation. It
will enhance people to people exchange and cultural communications as the
engine. CPEC is based on major collaborative projects for infrastructure
construction, industrial development and livelihood improvement .It aims at
socio-economic development, prosperity and security in the regions .

The Definition of the Corridor and Building Conditions

The CPEC covers China's Xinjiang Uygur Autonomous Region and the whole
territory of Pakistan. In order to reflect the level, scope and layout of the
construction and development of the Corridor, its coverage is divided into the
core zone and the radiation zone.The node cities that the corridor passes through
include Kashgar, Atushi, Tumshuq, Shule, Shufu, Akto, Tashkurgan Tajik, Gilgit,
Peshawar, Dera Ismail Khan, Islamabad, Lahore, Multan, Quetta, Sukkur,
Hyderabad, Karachi and Gwadar. The CPEC's core zone and the radiation zone,
presents the spatial layout of “one belt, three axes and several passages”. By “one
belt” means the belt area composed of the core zone of the CPEC, including
Kashgar, Tumshuq city, and Atushi city and Akto county in Kizilsu Kirghiz
autonomous prefecture of Xinjiang, China, as well as Islamabad, parts of Punjab,
Sindh, Khyber-Pakhtunkhwa, Balochistan, AJK and GilgitBaltistan. The “three
axes” refer to three horizontal axes connecting Lahore and Peshawar, Sukkur and
Quetta, and Karachi and Gwadar. The “several passages” refer to several railways
and highway trunk lines from Islamabad to Karachi and Gwadar. The CPEC is
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divided into the following five functional zones from north to south: Xinjiang
foreign economic zone, northern border trade logistics and business corridor &
ecological reserve, eastern and central plain economic zone, western logistics
corridor business zone, and southern coastal logistics business zone. Most of the
node cities, transportation corridors and industrial clusters are concentrated in
them. China-Pakistan cooperation on economic and social development has made
remarkable progress. In the past years China-Pakistan trade has continued to
grow rapidly. Bilateral investment has also been soaring and China has become
the biggest sources of foreign capital for Pakistan. International economic and
technological cooperation has shown strong momentum. This cooperation is
expanding into more areas and reaching at a higher level. Social and people-to-
people exchange has been increasing day by day.

Visions and Goals

China and Pakistan are expected to bring their economic cooperation to an

unprecedented height by leveraging their respective comparative advantage.
They are strengthening all-round cooperation based on the physical Corridor.
There is a huge potential for China and Pakistan to strengthen cooperation based
on complementary resources. China and Pakistan are blessed with different
natural endowments at different stages of economic development,
industrialization and urbanization. China has advantages in
infrastructure,construction, high-quality production capacity in equipment
manufacturing, iron & steel and cement industries as well as financing for
investment. While Pakistan owns rich human and natural resources, huge
potential for economic growth and broad market prospects besides a geo-
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strategic location. The flow of economic factors in both countries along the CPEC
will significantly improve the resource allocation efficiency and bring into full play
the comparative advantage of each country. Western China has entered into a
new historic phase of economic and social development. Since the
implementation of the western development strategy, Xinjiangarea has made
huge economic and social progress. The economic strength has significantly
increased with improved infrastructure resulting in betterment of people's
livelihood. Kashgar, a major city for Xinjiang to open up to the outside world, has
embarked on the fast lane of economic and social development .It has become
more and more open. The infrastructure has been improving along the way from
Kashgar to Khunjerab Pass.It is providing basic support for China-Pakistan
economic and trade exchange on land. Pakistan has the potential to grow into a
“Tiger of Asia”. Pakistan is enrichedwith numerous natural resources.It possesses
a vast domestic market. Extensive consensus on the Vision2025 has been
reached.It seeks to harness location advantage of Pakistan at intersection of
South Asia, China and Central Asia for greater geo-economic cooperation and
development by stronger regional connectivity. It's being realized that by
improving public governance, reinforcing infrastructure construction, elevating
the industrialization level and developing competitive knowledge-based economy,
the CPEC will greatly speed up the industrialization and urbanization process in
Pakistan. It will help to grow into a highly inclusive, globally competitive and
prosperous country capable of providing high-quality life to its citizens.

Guidelines and Basic Principles

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The world economy is recovering in a favorable external environment. After years

of recession following the last international financial crisis, the world economy is
expected to enter a new round of growth. The investment and financing
environment for major collaborative projects between China and Pakistan is less
rigid. The market environment for their industrial cooperation has been improved
.It looks more promising for the international community to participate in the
CPEC building and for neighboring countries to share its fruits. The CPEC is closely
associated with the implementation of the Belt and Road Initiative. As a pilot
project of the Belt and Road Initiative, the experience accumulated from the CPEC
will be promoted to other countries along the Belt and Road. The fusion of
national development strategies will facilitate policy coordination between China
and Pakistan. Their geographical proximity is good for infrastructure connectivity.
Their closely coordinated economic and trade strategies will help to realize
unimpeded trade. The two countries are highly complementary to each other in
investment and financing that willmake financial integration much easier. All-
weather strategic friendship of Pakistan and China is deeply rooted among
peoples that is helpful for people-to-people interaction. The macro economy in
Pakistan has been much improved. Pakistan has reached wide consensus on social
stability, economic development and livelihood improvement. A series of
economic reform has started to take effect, and its advantage in the young
workforce and demographic dividend are playing a bigger role. The macro
economy has turned for better in Pakistan in recent years. The economic growth
has been picking up, boosting the market demand for transportation and energy.
The inflation level has been low. It is driving up the expected actual returns of
major projects for the CPEC building. The international balance of payments has
 7

been moving towards equilibrium .The foreign exchange reserves have been
growing and the expectation of the exchange rate has been stable. These are
reducing the investment and financing risks for major CPEC projects. The
macroeconomic environment has never been so better before for the building of
the CPEC.

China has adopted the strategy of development in Western China. China wants
economic and social development in that area.By accelerating the Belt and Road
construction,China has planned to spread modern technology, production
capacity and engineering operation for the formation of a new open economic
system. Pakistan wants to utilize the demographic and natural endowments of
the country by enhancing its industrial capacity through creation of new industrial
clusters. Pakistan wants to balance the regional socio-economic development,
enhance people's wellbeing and promotion in domestic peace and
stability.CPECwill form a new international logistics network and industrial layout
based on major transportation and infrastructure.It will elevate the status of
South Asian and Central Asian countries in labor division of global economy. It will
promote regional economic integration through stable trade growth,
international economic and technological cooperation and personnel exchange.

The CPEC will take the initial shape by 2020. Major bottlenecks to
Pakistan’seconomic and social development shall be basically addressed. The
CPEC shall start to boost the economic growth along it for both countries.The
CPEC building strives shall be basically successful by 2025.The industrial system
shall have been accomplished. Major economic functions shall have been brought
into play in a holistic way.The people’s livelihood along the CPEC significantly shall
 8

have been improved. The regional economic development shallbe morebalanced.

All the goals of vision 2025 shall have been achieved.The CPEC building strives
shall be entirely accomplished by 2030.The endogenous mechanism for
sustainable economic growth shall have been taken place. The CPEC’s role in
stimulating economic growth in Central Asia and South Asia shall be into a holistic
play. South Asia shall be growing into an international economic zone with global
influence.

Key Cooperation Areas

Transport infrastructure is the basic and prerequisite condition for the

construction of the CPEC. It is an important field that can be relied on to guide
and drive the economic and social development of regions along the CPEC,
besides promoting the interconnectivity and all-round cooperation between
China and Pakistan for shared prosperity.There will be formation of a convenient,
efficient and integrated transport corridor through the joint planning and
development of highways, railways ,ports aviation and other infrastructure. In
order to meet the needs of trade and personnel exchanges between China and
Pakistan for the socio-economic development of regions along the CPEC,
following initiatives have been planned to achieve the aforementioned
objectives.There will be construction and development of Kashgar-Islamabad,
Peshawar-IslamabadKarachi, Sukkur-Gwadar Port and Dera Ismail Khan-Quetta-
Sohrab-Gwadar road infrastructure, to enhance road safety and service levels and
expand traffic capacity.There is to generate capacity expansion of existing railway
lines (specifically ML-1 that is of strategic nature under CPEC), and construction of
new projectsand promoting the modernization of the railway and build an
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integrated transport corridor.There is to construct and develop of Gwadar city

and port, to build a consolidation and distribution transport system, to
continuously improve the infrastructure of the port, to accelerate the
construction of East Bay Expressway and the new international airport and
enhance the competitiveness of the Free Zone to promote the social progress and
economic development of the region.It is to strengthen China-Pakistan
cooperation in technical training and cooperation in the construction and
management of transport infrastructure and continuously provide talentsfor the
development of the CPEC .It is to promote the sustainable development of
transportation industry.

China and Pakistan should boost information connectivity and promote pragmatic
cooperation through construction and operation of local communication
networks and broadcast & TV networks.There is to promote the construction of
cross-border optical fiber cables between China and Pakistan and the
construction of the backbone optical fiber networks in Pakistan. There is to
upgrade Pakistan's network facilities, including the national data center and the
second submarine cable landing station. There is to expedite Pakistan to adopt
China's Digital Terrestrial Multimedia Broadcasting (DTMB) standard.The project
will promote the ICT-enabled development of Pakistan, including e-government,
border electronic monitoring and safe city construction. It will also promote the
development of e-commerce in Pakistan. There is to enhance the development of
the information industry in Pakistan, and building IT industrial parks and IT
industry clusters in Pakistan to improve Pakistan's information technology and
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service outsourcing.There is to increase Pakistani personnel in exchange programs

in China, establish technical training centers in Pakistan, and strengthen the
construction of ICT human resources in Pakistan.

China and Pakistan should strengthen cooperation in the fields of oil and gas,
electricity and power grids, and focus on promoting the construction of major
projects of thermal power, hydropower, coal gasification and renewable power
generation. They should concentrate upon supporting power transmission
networks, in order to enhance its power transmission and supply reliability. They
are to promote the cooperation in the development of oil and gas resources,
research on the integrated vision and demand of China and Pakistan oil and gas
cooperation so as to improve the cooperation between the two countries and
diversify oil supplies. The opinions of establishing oil refineries and storages along
the CPEC route will also be considered.There will be optimization of sources and
use of coal, and research on development and utilization of Pakistan's own coal
for power plant and developing technologies for surface coal gasification,
expansion and augmentation of coal mining sector. China and Pakistan will
actively promote river planning and preparatory work of major projects to
accelerate the hydropower development process. The project is to develop wind
and solar energy based on local conditions, and establish diversified energy
supply channels.2It is the part of project to construct of high voltage-class power
grids and power transmission and distribution networks to fulfill the electricity
demand and ensure the reliability of electricity supply in Pakistan.It is to develop
the industry for manufacturing of energy sector equipment required for

2
"Zonergy plugs in 300-MW solar park in Pakistan - report". Renewablesnow.com. Retrieved 2018-03-02.
 11

generation, transmission and distribution including renewable energy

technologies.

China and Pakistan should strengthen cooperation in trade and industrial areas,
expand bilateral economic and trade relations. They should enhance the level of
bilateral trade liberalization. They should cooperate in key areas, enhance the
effectiveness of cooperation and strive to achieve the synchronization,
coordination and reciprocity of economic development. Through this project,
both countries are planning to promote the quality, value addition,
competitiveness and efficiency improvement of the textile and garment industry.
They want to expand the size of the textile industry, and increase the supply of
high value-added products; to adopt the means like export processing to establish
a regional cooperation and development model based on complementary
advantages, and mutual benefits. There will be making of Special Economic Zones
(SEZs) in all provinces and regions in Pakistan along with Kashgar Economic and
Technological Development Zone and Caohu Industrial Park from Chinese side.
There will be complete cooperation in industry sector. There isto promote
Pakistan's industries from assembling imported parts and components to
localized production of parts, and toencourage various forms of Chinese
enterprises to enter the Pakistan market to improve the development of energy
efficient industry in Pakistan. It is the part of the planning to promote the
industrial capacity cooperation in sectors such as: chemical & pharmaceutical,
engineering goods, agro, iron & steel, light manufacturing & home appliances and
construction materials, and use efficient, energy-saving and environmental
friendly processes and equipment to meet the demands of Pakistan's local
markets and at the same time to further expand it to the international market.
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This project will increase the exploration and development of resources. It will
introduce bilateral enterprises to participate in the exploration and development
of mineral resources and setting up of mineral processing zones and
industries.There will be relying on industrial parks and the characteristics of
bilateral economic and trade cooperation to expand cooperation in related
industries and promote the development of industrial concentration.CPEC will
expand trade logistics and areas of business cooperation. It will improve business-
to-business (B2B) links and the investment environment .There will be
optimization of the bilateral trade structure and promotion of balanced
trade.There will be relying on the advantages of the ports to expand logistics
transportation. The project will support the establishment of customs special
supervision areas along the CPEC on the basis of China- Pakistan economic
cooperation zones and industrial parks in order to provide investment platforms
for companies.There will be promotion in the development of Gwadar Free Zone.
There will be informationof free zones in Pakistan and the customs special
supervision areas in China. It will conduct standardized data exchange on pilot
basis so as to realize free flow of goods among customs special supervision areas
along the CPEC route and enhance trade facilitation.

China and Pakistan should give full play to their own comparative advantages to
strengthen agricultural infrastructure construction within the CPEC coverage
.They should play their roles in agricultural personnel training, technical
exchanges and cooperation. They should cooperate in key construction areas such
as biological breeding, production, processing, storage and transportation,
infrastructure construction, disease prevention and control, water resources
utilization, conservation and production, land development and remediation, ICT-
 13

enabled agriculture and marketing of agricultural products to promote the

systematic, large-scale, and standardized and intensified construction of the
agricultural industry. They should promote the transition from traditional
agriculture to modern agriculture in the regions along the CPEC to effectively
boost the development of local agricultural economy and help local people get rid
of poverty and become better off.There will be upgrading of agricultural
infrastructure in the regions along the CPEC. There will be promotion of the
construction of water-saving modern agricultural zones. There will be
development and remediation of medium- and low-yielding land to achieve
efficient use of resources. The CPEC project will strengthen drip irrigation
technology for water efficiency. Both countries will develop cooperation in the
fields such as crop farming, livestock breeding, forestry and food growing, and
aquatic and fishery in the regions along the CPEC, with the highlight on technical
exchange and cooperation in the fields of development of comprehensive
agricultural production capacity, construction of farmland water conservancy
facility and agricultural products circulation facility. There will be improvement in
post-harvest handling, storage and transportation of agricultural products, and
innovate in marketing and sales models.There will be improvement in water
resources operation and management, strengthening development of pastoral
areas and desert, and promotion in application of remote sensing
technology.There will be concentration upon production of agriculture inputs
particularly pesticides, fertilizer, machinery and support services including
agriculture education and research3.There will be collaboration in forestry,

3
"CPEC to introduce technology in agriculture - The Express Tribune". 2016-05-09. Retrieved 2016-08-30.
 14

horticulture, fisheries and livestock medicines and vaccines.China and Pakistan

are working to increase production of horticulture products.

China and Pakistan should further exploit the potential advantages of the tourism
resources in the regions along the CPEC, especially the China-Pakistan border
areas. They should actively research comprehensive development of coastal
tourism within the CPEC coverage, with Gwadar and Karachi as the hubs. They
should expand cross-border tourism and improve the quality of tourism services
to effectively promote the socio-economic development of the two
countries.There will be actual consideration of the potential advantages of the
tourism resources in the regions along the China-Pakistan Economic Corridor,
especially the China-Pakistan border areas along the railways and highways .There
will be joint research on the development and construction of cross-border
tourist routes. There will be work on tourism spatial structure in Pakistan, which
includes two centers, one axis and five zones: Karachi Port and Gwadar Port as
the two centers, and the coastal tourism belt as the development axis, and five
tourist zones of Jiwani&Gwadar tourism zone, JhalJhao, Ormara, Sonmini and
KetiBander. The tourism public service system in cross border areas will be
improved, with particular attention to the services of public information,
convenient transportation, and security protection and other services benefiting
the public.The work is going on building a tour route connecting coastal cities of
Pakistan especiallyKetiBander - Karachi - Sonmiani - Ormara - JhalJhao - Gwadar -
Jiwani.

China and Pakistan should further strengthen cooperation between local

governments, strengthen the communications among non-governmental
 15

organizations, develop extensive project cooperation centered on public opinions

communication, people-to-people friendship and people's livelihood
improvement, and enhance the comprehensive service capability of the cities
along the CPEC. They should significantly improve people's livelihood to provide a
good social environment for the CPEC building. There will be application of
international and China's new urbanization concepts to the municipal
construction of the node cities along the CPEC. There will be the construction of
the public transport system and water supply and drainage systems. There will be
utilization of China's strength in technology, equipment, capital and in solution of
some prominent livelihood issues via pilot projects.There will be expansion of the
scale of training programs in China for Pakistani central government officials,
parties and local government officials from regions along the CPEC. There will be
selectionof outstanding Pakistani students from regions along the CPEC and
sending them to Chinese universities such as university in Xinjiang to receive
higher education and make cultural exchanges. Theefforts will be made to carry
out vocational training in Pakistan. There will be relying on higher education
resources in Pakistan to carry out design and research activities. There will be
cooperation among educational and research institutions in technology transfer,
to strengthen the construction, operation and management of the transportation
and power infrastructure. There will be the technical training for Pakistani
personnel by reference to Xinjiang's “Academy of Central Asia Regional Economic
Cooperation”. There will be availability of medical assistance services in more
places within the CPEC coverage and upgrading of existing medical facilities based
on actual needs. Therewill be cooperation between china and Pakistan for
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planning of water resources utilization,river basin, conservation and protection,

flood and drought prevention and disaster relief.

The two countries should explore the establishment of multi-level cooperation

mechanisms and strengthen policy coordination. They should also strengthen
their own financial reform and opening up, innovate in their own financial
products and financial services. They should control financial risks to create a
good financial environment for the CPEC building.Both countries are going to
cooperate in financial regulation. They will promote monetary cooperation
between the central banks .They implement existing bilateral currency swap
arrangements. Theywill do research to expand the amount of currency swap and
explore to enrich the use scope of bilateral currency swap .They will assign the
foreign currency to domestic banks through credit-based bids to support the
financing for projects along the CPEC .They will promote the settlement in
domestic currencies (RMB and Rupees) to reduce the demand for third-party
currency .Theywill strengthen the cooperation between the central banks and
financial regulatory agencies of the two countries. The two sides will actively to
use bilateral currencies for the settlement of bilateral trade and investment under
the relevant arrangements. The twocountries will encourage clearing and
settlement of the financial institutions from both sides through Cross-Border
Inter-Bank Payment System (CIPS).Theywill promote the free flow of capital in an
orderly manner, and enhance the facilitation in cross-border transfer of legitimate
funds. China supports Pakistan to cooperate with the Asian Infrastructure
Investment Bank (AIIB)4. Both countries shall promote the mutual opening of their
financial sector and the establishment of financial institutions in each other .They

4
ShahbazRana (23 October 2015). "Pakistan, ADB sign $178m agreement for M-4 section". The Express Tribune
 17

will encourage financial institutions of the two countries to support the financing,
including the loans from international consortium of banks, for the projects along
the CPEC.They will establish and improve a cross-border credit system. They will
promote financial services such as export credit, project financing, syndicated
loan, trade finance, investment bank, cross-border RMB business, financial
market, assets management, e-banking and financial lease. They will support the
project financing by RMB loans, and establish the evaluation model of power bill
in RMB.The two countries shall promote the opening and development of the
secured markets.They will support the multi-currency direct financing of
Pakistan's central and local governments, enterprises and financial institutions in
China .They will strengthen the cooperation between stock exchanges of the two
countries, and support the two countries' enterprises and financial institutions in
carrying out direct financing for projects along the CPEC in each other's capital
markets. Pakistan shall promote the construction of Gwadar Port Free Zone by
drawing on the experience of China (Shanghai) Pilot Free Trade Zone and other
Pilot Free Trade Zones in China, and explore RMB offshore financial business in
Gwadar Free Zone. Both countries shall strengthen financial cooperation between
their Free Trade Zones and explore the formation of a RMB backflow mechanism.

Investment and Financing Mechanism and Supporting Measures

China should give full play to its advantages in investment and financing in
accordance with the principle of joint investment, joint construction and sharing
benefits. The two countries should reasonably determine the investment and
financing modes based on the nature of projects and the status of cash flow. They
should create necessary commercial conditions for the enterprises to carry out
 18

the projects according to the market-oriented principle. They should establish a

reasonable cost and revenue sharing mechanism to ensure reasonable
commercial returns from the projects for all stakeholders. The governments of
the two countries bear the primary responsibility for investment and financing of
public welfare projects. Relevant policies and procedures shall be honored to
coordinate the use of grant, interest-free loans, concessional loans and
preferential export buyer's credit provided by China to support strategic priority
projects along the CPEC .They will enhance the preferential margins and ensure
the funds thatare used exclusively in the projects along the CPEC. The Pakistani
federal government and provincial governments along the CPEC should try to
assume some investment and financing responsibilities by various means, such as
earmarked budget funds at all levels for the CPEC building and allowing provincial
governments to issue financial bonds in domestic and foreign capital markets.
Both governments will actively take various steps to provide credit enhancement
support for major financing projects, effectively reduce the financing costs and
protect the rights and interests of creditors. Both countries shall strengthen
strategic cooperation between policy banks, development finance institutions and
commercial banks, and study and solve financial issues with the CPEC building.
They will explore various ways to support the Silk Road Fund, China- Eurasia
Economic Cooperation Fund in participating in the investment and financing for
the CPEC.Both countries shall encourage Chinese enterprises, private sectors and
private sector funds of other economic entities to make various forms of direct
investment.They will also welcome Pakistan's private capital in participating in the
projects along the CPEC and establish various types of private financial institutions
infrastructure funds. Both countries welcome the World Bank, the Asian
 19

Development Bank, the Asia Infrastructure Investment Bank (AIIB), and other
international financial institutions to provide long-term concessional loans to
support the investment and financing for the projects along the CPEC.

The geopolitical environment is inherently unstable in South Asia. World powers'

adjustment of their policy towards this region might add to the uncertainty. The
mix of international, regional, national and extremist factors might cause
disruptive activities. They may threaten the security of the CPEC building. India is
against the OBOR and CPEC initiatives .India argues that the routes of CPEC is
passing through Gilgit-Baltistan and Azad Jammu and Kashmir that are disputed
territories therefore it is strongly objecting on this developmental project5. India
considers CPEC a strategic balancing move to counter Indo-Us strategic
partnership. It is believed that India has been sponsoring terrorist activities in
Pakistan to create hurdles in the way of CPEC construction, these speculations
have become reality after arrest and confession ofKulbhushanYadave .

Southern Xinjiang of China suffers from a weak industrial base and limited
economic scale. The construction, operation and management of major
infrastructure projects is costly because of the special natural and geographical
conditions in China-Pakistan border area. The Indus River valley in Pakistan is
comparatively advanced but possesses high population density and limited
resource. On other hand the western area is poorly developed and troubled with
harsh natural conditions. Pakistan needs to address major bottlenecks to
economic and social development to sustain economic growth momentum. It is
highly needed to monitor energy crisis,administration, infrastructure ,governance

5
Here's why Indian strategists should worry about China's $46 billion funding to Pakistan". Firstpost. 22 April 2015.
Retrieved 22 April 2015.
 20

deficiencies and external sector vulnerabilities, to avoid any possible challenges to

CPEC

Conclusion

At the end it can be said that CPEC beingthe part of OBOR is a huge project .Its
security must be ensured .China and Pakistan should allocate their forces to
protect the region .Pakistan being the member state of the project and sincere
companion of China can get numerous economic, strategic and political
advantages .Pakistan can have regional solidarity by developing means of
communications. Pakistan can control the regions of Baluchistan and Azad
Kashmir and Occupied Kashmirwith the help states attached with this project.
Pakistan can get favor of china in United Nations Security Council for the
liberation of Kashmir.China being a veto power can ask Security Council for
plebiscite in Kashmir .This project will create peace and harmony among member
states. Terrorist activities and smuggling will be controlled on Pak -Afghanand Pak
-Iran border. CPEC will be a good source of normal relations between Afghanistan
and Pakistan. Afghanistan is a landlocked country, it has to depend on Pakistan
for most of its maritime business .Afghanistan can also utilize road link touching
Pakistan .Kabul and Peshawar motorway (256 km) will help Afghanistan to get
economic benefits to the area of Arabian Sea. Afghanistan will also be connected
to CPEC via Chaman through additional link. This project will give economic,
political, and cultural exchange benefit to the linked states.CPEC have ability to
unite SAARC countries on a single platform .Shanghai Cooperation organization
will be more effective in the region of Central Asia .States will concentrate upon
their trade and economic development rather than armament and nuclear politics
 21

.CPEC will create a link between South Asian countries and Central Asian countries
.Under OBOR ,the Bangladesh -China -India -Myanmar corridor (BCIM-EM)and
CPEC will play significant role in multimodal connectivity ,trade and investment in
goods and services,energy cooperation,human resources development in South
Asian countries. The CPEC is a complete package that offers concentrated
economic activities along the routes, enhancing trade and commercial activities,
fulfilling infrastructural demands and energy requirements. In order to make CPEC
successful,there is need to complete other multilateral projects like Central Asia
South Asia electricity transmission project (CASA) andTurkmanastan-Afghanistan-
Pakistan-India -pipeline (TAPI). Framework of CPEC can bring Gawadar port in
central position against Dubai port. Development in Gawadar port will bring
prosperity in Baluchistan area .People will get jobs in millions because of this
project. CPEC will generate revenue for Pakistani government.Gawadar is also
important for China to connect its underdeveloped western part with Persian Gulf
and beyond for trade .Pakistani government should start negotiations with Gulf
Cooperation Council and Middle Eastern Countries to take them into confidence
and reduce their perceptions that see Gawadar as threat to the Arabian
Peninsula. The CPEC will also increase the market potential for Pakistan’s exports
to China in the field of textile,agricultural products and minerals. CPEC is very
much on its way in realizing the goal of bringing mutual prosperity to the two
countries. Pakistan’s location at the cusp of Central Asia ,South Asia ,and West
Asia makes it ideally suited for inter-regional trade .The infrastructure developed
under the CPEC would help Pakistan realize the dream of becoming a regional
trade hub ,but for which Pakistan Afghanistan and India would need to improve
their diplomatic relations as well.CPEC has reshaped the diplomatic relations of
 22

Russia and Pakistan in a new way after Afghanistan war .both countries have
signed gas pipe line agreement 6.Pakistani students are getting more and more
Chinese scholarships for higher studies .Different Pakistani universities have
started Chinese language courses that has become good source of earning for
young students. On this agenda,the area of cooperation in CPEC includes the
amelioration of transport, telecommunication and energy infrastructure in
Pakistan.It also includes the military information sharing between Pakistan and
China so that the regional security may be possible at maximum level.By the
investment of china in Pakistan through CPEC ,Pakistan’s security against America
and India will be strong enough .In this age of globalization, there will be more
systematic, up graded and need based interaction for socio-economic
development between two countries by CPEC.CPEC is a game changer for
Pakistan and the region therefor it requires a continued determination on part of
China and Pakistan to stay firm on the course. Memorandum of Understandings
signed between Pakistan and China should be implemented in its true spirit7.
Pakistan should provide security to engineers, technicians and labors that work on
corridor project. The business community and private sector should come
forward to make Pakistan a geographical asset through this project. There is
required a Pakistan-China joint counter terrorism mechanism to stop East
8
Turkistan Islamic Movement (ETIM)in Xinjiang . Think tanks,media and
educational exchanges should also play their role in allaying the negative
perceptions and apprehensions over the CPEC.

6
"Russia and Pakistan to construct $2bn gas pipeline". Hydrocarbons Technology. 19 October 2015. Retrieved 6
December 2015.
7
Salam, Nihao. "Pakistan, China sign agreements,MoUs on Economic Corridor Plan, maritime cooperation".
www.nihao-salam.com. Retrieved 2017-05-18.
8
Shah, Saeed. "Big Chinese-Pakistani Project Tries to Overcome Jihadists, Droughts and Doubts". The Wall Street
Journal.ISSN 0099-9660. Retrieved 2016-04-10
 23

Bibliography

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Recycling Mechanism Approach.Social Science Research Network. Date Accessed
26 August 2017
 24

2.Economic corridor: Chinese official sets record straight". The Express Tribune.
2 March 2015

3. Naveed Butt (3 September 2015). "Economic corridor: China to extend

assistance at 1.6 percent interest rate". Business Recorder.Archived from the
original on 17 November 2015.

4."One-on-one meeting between MamnoonHussain and his Chinese counterpart

was followed by delegation level talks". Radio Pakistan. 21 April 2015. Retrieved
21 April 2015

5."CPEC made part of China's 13th 5-year development plan: Weidong". Pakistan
Today. 23 November 2015

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August 2015. Retrieved 16 December 2015

7."Pakistan to Produce Electricity from Thar Coal by the end of 2018".

cpec.gov,pk. Retrieved 7 August 2018