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Cpec China Pakistan Economic Corridor

Autor:   •  April 24, 2016  •  Essay  •  990 Words (4 Pages)  •  16,938 Views

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CPEC China-Pakistan Economic Corridor

History & Background of the relation between both the countries:

China and Pakistan are the two countries which shares fine relation of friendship since 1950 when Pakistan recognizes PRC. Both countries have been acting as real companions of each other in every ground after they made alliance against India. Most of the time Pakistan is at the receiving end which makes Pakistan loyal to China may be that is because of China has granted economic, technical and military support to Pakistan which makes them strategic alleys. China always wants a stable and peaceful Pakistan because both the countries shares border with each other and some of the Chinese Imports and Exports are done through sea ports of Pakistan. Pakistan act as a bridge between China and the other Muslims countries either it is about trade or some specific talks. China also provides political support to Pakistan to solve regional issues.

CPEC: China-Pakistan Economic Corridor:

CPEC (China-Pakistan Economic Corridor) is an advance infrastructure project which was projected by Nawaz Sharif vice president of Pakistan and Li Keqiang premier of China when he visited Pakistan on May 2013. The project will transform economy of Pakistan by joining Pakistan`s Gwadar port with Northwestern region of China called Xinjaing via set-up of railways, roads and pipelines to transfer natural resources like oil, gas and many other commodities imported to Pakistan for China . From  Gwadar to Kashgar the the length of the project will be approximately 3,000 km. Energy, transport infrastructure, telecommunication and intelligence sharing are also significant and undertaken element of the mega project.

CPEC in numbers:

Before the CPEC on daily basis China use to spend around $18 million on import of oil shipment but after linking its import from Gwadar to Kashgar one third of the cost will be cut down.
The proposed and estimated cost for this project is up to $46 billion from which $5.9 billion is to be invested on roads, $3.7 billion on railway, $66 million for Gawadar port and bigger chunk of $33 billion on energy projects as part of CPEC in Pakistan and the project is expected to be completed by 2017.

10,400 megawatts of energy will be added by coal, hydro and solar energy projects which will also cost $15.5 billion.
Short term projects costs $17 billion in investment which includes Peshawar-Lahore-Karachi railway line costing $ 3.7 bn, expansion of  Thar coal blocks costing $2.2 bn, Bahawalpur solar park costing $1.3 bn and the Gwadar International Airport which will cost $230mn. The upgrading of Gwadar city only requires $ 1 billion which is to be financed @ 0% interest by Exim Bank of China to Pakistan.
Fiber optic wire will connect Pakistan and China will also be constructed using loans @ 2% rather than 1.6% applied on other projects.
10 % fraction of the cost will come from Public center development program and the remaining 90% from credit financing through government of China.


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