Name : Shanzeh Malik

Roll no : 01-111221-213

English, Spring 2022

Final Essay

China-Pakistan-Economic-Corridor
CPEC

Outline:
● Introduction
● Development of CPEC
● Different routes in CPEC
● Geostrategic location of Gwadar
● Challenges for Pakistan
● Indian influence
● Economic gains due to this project
● Effects of the CPEC projects
● Conclusion
Introduction
China’s close relations with Pakistan came into being in 1955 when the Prime Ministers of
both countries met in Indonesia. China has helped Pakistan in many areas of life many times.
That is why China and Pakistan have deep rooted friendship also China and Pakistan are
sharing a 600-kilometre long borderline. This friendship grew stronger when the Karakoram
highway was built which is commonly known as Silk Route. This route linked many areas of
Pakistan to China and helped a lot in the trade of silk. Now these relations will increase due
to CPEC. CPEC is the abbreviation of China Pakistan Economic Corridor. CPEC is a
highway which links the newly created Gwadar port to Kashgar, city of China. It’s length is
about 2318 kilometres. Gwadar port will be used for importing and exporting the Chinese and
Pakistani utilities. The main goal of CPEC is to expand the trade relations of China and
Pakistan to the other countries, to stabilize the economy of Pakistan. CPEC is considered as
game changer for Pakistan in term of trade, economic development and growth. (Awais, M.,
Samin, T., Gulzar, M. A., & Hwang, J. 2019)

Development of CPEC
This project involves road and railway construction including the upgradation of 1300 km
Karakoram highway which is the highest paved international road in the world and connects
China and Pakistan across the mountains. This project will reduce the distance of China for
the import of oil and gas from Middle East and Africa by thousands of kilometers. With the
support of its neighbouring country China, Pakistan has gained significant importance in the
entire world due to this project. This project also provide support to revive the historic Silk
Road which is one of the oldest route for trade in the world and also help to provide a route
for trade from China to Pakistan. This project will provide an opportunity for China to build
its naval base on Gwadar Port which will increase the influence of China and Pakistan in the
region and also counter the US influence in the region.

Different routes in CPEC

After its completion this corridor will function as a primary gateway for trade between China,
Africa and the Middle East and this corridor will help to cut the 12000 kilometre route which
Middle East oil supplies now take to reach the ports of China. This project will run through
most of Pakistan, starting from Gwadar and ending is Kashgar while passing through
northern Pakistan to reach the Khunjrab Pass and to China. China has framed three corridor
routes to overcome a greater security challenge in the South China Sea in shape of possible
blockade of Sea Lane of Communications at the point of Straits of Malacca during conflict
times. (Fareeha, R. S. 2015). Also, Pakistan has prepared a plan to construct three corridors
with Chinese authorities, these are the western alignment, central alignment and the eastern
alignment.

Geostrategic location of Gwadar

The Eastern alignment of the corridor originates from Gwadar and travel parallel to to
Makran Coastal Highway and then after passing through the parts of interior Sindh and
southern and northern regions of Punjab, it reaches Islamabad. Then from Islamabad it
extends to Haripur, Abbottabad and Mansehra districts. This part of the corridor will also run
through Muzaffarabad, the Capital of Azad Jammu and Kashmir, and reaches Khunjrab after
passing through Diamer and Gilgit areas in the Norther part of Pakistan.

Western alignment was the original alignment which the government says that this part will
not be constructed until the eastern alignment is not completed. According to the Western
alignment plan, the economic corridor which consists of highway and railway starts from
Gwadar and runs through the districts of Balochistan and some districts in South Punjab to
reach D.I khan. From D.I khan it further extends to Islamabad and Abbottabad. The western
alignment will have an additional regional connectivity to Afghanistan through Chaman and
will also connect with Iran through Taftan.

The geographic location of Pakistan is very important and has attracted many world powers
for economic, political, and energy interests. Pakistan has a border with China in the North,
Afghanistan in the West, India in the East, Iran in the Southwest, and the Arabian Sea in the
South. Therefore, It is the gateway of Central Asia and the Middle East and plays a vital role
in transport economy. (Khalid Mehmood Alam, Xuemei Li, Saranjam Baig. 2019)
Challenges for Pakistan
Pakistan faced many challenges during the implementation of CPEC project. The political
unrest, the security situation and administrative issues are some of the challenges in the way
of the successful completion of this project. This project has become a cause of great worry
for the enemies of Pakistan. India and Israel are unhappy, India has a special office in Delhi
and allotted 300 million dollars to disrupt this project. Even some political parties in Pakistan
like ANP and Baloch Nationalists raised a serious obligations to the CPEC project. These
obligations were being raised despite assurances by the government that this project will
provide equal opportunities to all the provinces without any favour and discrimination. After
many military operations been conducted in different parts of Pakistan the terrorist challenges
still exist which will continue to pose a threat to this project.

America, Israel and India have been continuously providing the support and assisting the
militant groups to conduct the terrorist activities in all provinces and using terrorist elements
to threaten the developing project of CPEC. They kidnapped many Chinese Nationalists in
Pakistan in the past few years, despite Pakistan efforts to provide the best possible security.
In the wake of these challenges Pakistan has announced 10,000 men special force for the
protection of these development projects.

Indian Influence
The development of Gwadar port is a reason of anxieties and concerns for many countries
especially India. A naval base and port at such an important strategic site increases the
significance of Pakistan. India is already trying to boost up its power in Arabian Sea and does
not tolerate any challenger and competitor. India is trying h best to increase its power and
influence in Afghanistan as well as Central Asia, but if once the Gwadar port is established,
all these countries will be dependent on Pakistan and will no longer stay under the influence
of India. ( Ali, A., Shah, B., Rizwan, M., & Ali, M.2019). Therefore, India is not happy with
the handing over of operations and the development of Gwadar port to China also Delhi is
fuelling insurgency in Balochistan which is rich in oil and gas resources but poor in law and
order situations which resulted in halted the work of exploration activities in Balochistan.
Researchers believe that the India-UAE nexus will try to fail the development and
exploration process of Gwadar port. India has been active in engaging Asian states for the
sake of pursuing energy deals. For the easy access to energy resources India can easily be
accommodated via CPEC itself but the disturbed relations between the countries did not let
this happen. Therefore, India is concerned about the China’s investment in Pakistan and for
CPEC.

Economic gains from this project

Pakistan may become a trade hub in the region after Gwadar port starts functioning fully and
duty free economic zones are set up and after the completion of CPEC. Central Asia states
have expressed their interest in becoming the part of this project. The partnership between
China and Pakistan has upset India and also Indian prime minister during his visit to China
pressed the Chinese authorities to drop its plan of CPEC. But China did not care about the
pressure and vowed to push ahead with the project. Pakistan has been playing a significant
role in South Asia due to this project and after the completion of CPEC commercial,
economic as well as geostrategic environment will improve in Pakistan. this corridor will
help Pakistan in dealing with the problems of poverty, unemployment and inequalities of the
undeveloped provinces of Pakistan. during the then PM of Pakistan Mamnoon meeting with
the president Xi Jinping he said: this corridor will prove to be a game changer for Pakistan by
creating massive trade and economic activity and by opening new ways of progress for the
people of the two countries. Kanwal and Rashid has addressed that CPEC projects not only
benefit Pakistani citizens but also change the fortune of the whole region because the
economic condition of Pakistan will reach its peak and be resolved for sustainable
development through development of the CPEC. The CPEC comprises several industrial
projects that are constructive for the economy of local citizens. It also has various electric
power plans that will enhance Pakistan’s industrial projects followed by the overall
enhancement of the economic environments. ( Kanwal, S., Pitafi, A. H., Malik, M. Y., Khan,
N. A., & Rashid, R. M.2020).

It’s a win-win situation and the investments by China will boost Pakistan GDP by over 15%.
According to the ambassador of China to Pakistan, the setting up of energy, infrastructure,
transport and industrial projects under the CPEC would benefit all the provinces of Pakistan.
According to him CPEC was not limited to just a road but it will connect the country with a
number of infrastructure projects.
Effects of the CPEC
This project will help to build a stable economy of Pakistan. it will create a significant
opportunity for Pakistan to advance its economic interests and revive its industry. This
project will create the interest in other companies around to globe to invest in Pakistan.
therefore, Pakistan economy will boom due to foreign investment. This project is a game
changer for Pakistan because it will life millions of Pakistanis out of poverty and misery. This
project will also help in creating networks of roads and railway lines that will eventually
create employment in Pakistan.

Conclusion
China-Pakistan-economic-corridor is not only the name of road, port and railway system but
a mega project which will bring prosperity as well as peace in the provinces of Pakistan. The
officials said that this project will not only benefit Balochistan but also prove beneficial for
the other three provinces of Pakistan.