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Old Friday, June 26, 2015
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Default CPEC China Pakistan Economic Corridor

China-Pakistan Economic Corridor

The writer delivered a talk on China-Pakistan Energy Corridor and its ramifications at Thinkers Forum Pakistan on May 31, 2015, chaired by Air Chief Marshal (retd) Kaleem Saadat and attended by Lt Gen (retd) Lodhi, and members both from civil and military. After the talk, there was long question/answer session followed by summing up by the Chairman. Details of presentation are covered in succeeding paragraphs:

1- CPEC:

Establishment of China-Pakistan Economic Corridor (CPEC) was first proposed by Chinese Premier Li Keqiang during his visit to Pakistan in May 2013. The proposed project of linking Kashgar in northwest China with Gwadar Port on Arabian Sea coastline in Baluchistan was approved on July 5, 2013 during the visit of PM Nawaz Sharif to Beijing, which included construction of 200 km long tunnel.

2- China’s Investments:

In December 2013, China committed $6.5 billion for the construction of a major nuclear power project in Karachi. In May 2014, another agreement was signed to supplement Orange Line metro train project in Lahore worth $1.27 billion. In November 2014, the two countries signed 19 agreements related to CPEC. In addition, Chinese firms started work on six mega power projects in Gilgit-Baltistan such as Dassu, Phandar, Bashu, Harpo, Yalbo to tackle Pakistan’s energy crisis.

3- Quest for Warm Waters:

Mindful of the under development of its western provinces which are its soft belly and ongoing Uighur movement, China wants speedy modernisation of Xingjiang and other under developed provinces to bring them at par with eastern provinces. For the accomplishment of these dreams, China needs access to warm waters in Arabian Sea through Gwadar since this route to world markets is the shortest and the cheapest. This access was never granted to Russia.

4- Visit of President Xi Jinping:

With this objective in view, President Xi Jinping visited Islamabad on April 20-21, 2015 and raised the level of investment from $ 26 billion to $ 46 Billion. He signed 51 agreements/MoUs worth $28 billion, with $17 billion in pipeline spread over 15 years. His visit achieved the milestone of the groundbreaking of historic 3,000 km-long strategic CPEC.

5- Projects in Hand:

It includes $ 33 billion worth energy projects such as coal, solar, hydroelectric power projects which will inject 10,400 MW electricity in the national grid by 2017/18, and hydro power projects. Other projects are fibre optic cable from Xingjiang to Rawalpindi, 1240 km long Karachi-Lahore motorway, metro and bus service in six major cities, up gradation of 1300 km long Karakorum Highway, oil/gas pipelines to connect Kashgar to the seaport of Gwadar, 1,800-km railway line, commercial sea-lanes, special economic zones, dry ports and other infrastructure.

6- Routes:

Three routes have been marked:-
I- Western route originating from Gwadar will pass through Turbat, Panjgur, Naag, Basima, Sohrab, Kalat, Quetta, Qila Saifullah, Zhob DIK, Mianwali, Hasanabdal, Isbd.

II- Central route will originate from Gwadar, Quetta, and reach DIK via Basima, Khuzdar, Sukkar, Rajanpur, Liya, Muzaffargarh, Bhakkar, DIK.

III-Eastern route will include Gwadar, Basima, Khuzdar, Sukkar, RYK, Bwp, Multan, Lahore/Fsbd, Isbd, Mansehra.

7- Importance of Gwadar:

Gwadar is one of the least developed districts in Baluchistan province. It sits strategically near the Persian Gulf and close to the Strait of Hormuz, through which 40 per cent of the world’s oil passes. Work on Gwadar deep-seaport had started in 2002 with China’s investment. In 2013, management of the seaport which was in the sloppy hands of Singapore PSA International was handed over to China’s Port Holdings. It is planned to develop Gwadar into free trade zone with a modern airport on the model of Singapore or Hong Kong and a gateway to CPEC. It will be largest, deep seaport, overshadowing Chahbahar and Dubai seaports.

8- Views of Analysts:

Some analysts perceive Gwadar seaport turning into China’s naval base in the Indian Ocean, enabling Beijing to monitor Indian and American naval activities and thus frustrating their ambition to convert the ocean into exclusive Indian lake. Modernization of Pak Navy by China is seen as a step in that direction.

Analysts say the projects conceived under CPEC will ease Pakistan’s energy shortages and make a substantial difference in the long term.

Some experts opine this initiative can bring greater cohesion in South Asia, one of the world’s least economically integrated regions. It is also feared that clashing geo-economic interests may lead to unhealthy competition.

9- Gains for China:

While the CPEC may be ‘monumental’ for Pakistan, for China it is part of more ambitious plans to beef up the country’s global economic muscle. Chinese officials describe the corridor as the “flagship project” of a broader policy — “One Belt, One Road” — which seeks to physically connect China to its markets in Asia, Africa, Europe and beyond. The New Silk Road will link China with Europe through Central Asia and the Maritime Silk Road to ensure a safe passage of China’s shipping through the Indian Ocean and the South China Sea. CPEC will link China with nearly half of the population of the world.

Access to Indian Ocean via Gwadar will enable China’s naval warships and merchant ships to bypass Malacca Strait and overcome its “Malacca Dilemma”.
Development of Gwadar seaport and improvement of the infrastructure in the hinterland would help China sustain its permanent naval presence in the Gulf of Oman and the Arabian Sea.

At the same time, the new silk roads are bound to intensify ongoing competition between India and China –and to a lesser extent between China and the US – to invest in and cultivate influence in the broader Central Asian region.

10- Indian Concerns:

Modi is at the horns of dilemma; whether to bow to RSS agenda of Hindutva and remain captive to entrenched interest groups and lobbies in India with hardened mindset who are doggedly resisting any paradigm shift in relations with rising China and cling to the myth of Mahabharat. The dice of connectivity loaded by China has left India confused and bewildered, whether to remain tied to the aprons of declining super power which is not in a position to make big investments, or to hitch the bandwagon of ascending power which promises a lot.

Modi’s position will become more vulnerable when Pakistan starts politically stabilizing and economically shining and Lahore turning into a regional capital and he unable to fulfill the development agenda.

India is also concerned about China’s huge investment in Pakistan, particularly its recent decision to fund a new batch of nuclear reactors. Pakistan plans to add four new nuclear plants by 2023, funded by China, with four more reactors in the pipeline (adding up to a total power capacity of 7,930 MW by 2030). China is helping Pakistan in producing plutonium at Chinese built Khushab reactor and will also sell 8 submarines worth $5 billion, which will give a quantum jump to Pak Navy’s sea capability.

Possibility of India making another somersault after finding the dicey US Asia-Pacific pivot less attractive and China’s policy of peace and friendship more beneficial cannot be ruled out. However, this strategic shift will take place only when China agrees to give preference to India over Pakistan (as had happened in 1990 when the US ditched Pakistan and befriended India).

11- Pakistan’s Travails:

Pakistan has remained under a dark star for a long period. It has bravely sailed past the period of trials and tribulations but at a very heavy cost. Pakistan has acted as the frontline state against the Soviets and against global terrorism and suffered enormously, but in the process it allowed China 35 free years to develop and prosper unobtrusively.

12- Changing Geo-Political Environment:

Geo-political scenario is fast changing and things are brightening up for Pakistan after its long rocky journey. China has entered into a new era of geo-economic relationship with Pakistan and plan to boost two-way trade from current $12 billion to $20 billion. Pak-Afghan relations have dramatically improved. ISI and NDS have inked intelligence sharing agreement. Afghanistan and China no more listen to India’s song of terrorism emanating out of Pakistan.

Pakistan wisely deciding not to take part in Yemen war has helped in improving Pak-Iran relations. Possibility of revival of IPL project and its extension up to China has brightened up after gradual lifting of US sanctions on Iran. Russia is warming up to Pakistan and establishing military ties with it. China and Russia are strategic partners and boosting their respective strategic ties with Iran. Pakistan is likely to be inducted as member of the SCO and possibly member of BRICS.

Internally, Pakistan economic indicators and GDP are improving; foreign exchange reserves are rising and inflation is down. Railway has gone in profit for first time. Energy crisis is being tackled earnestly. The leaders and the led are on one page to deal with scourge of terrorism on war footing. The world is fast changing its negative opinion about Pakistan and it is now being looked at with respect. Pakistan flags are being routinely hoisted in occupied Kashmir; IDPs are returning to South and North Waziristan, and so are Afghan refugees.

China has risked investing so much of amount in Pakistan since it is convinced of the genuineness of the Pakistani claim of a paradigm shift in its approach to terrorist groups. This change has come as a consequence to across the board Operation Zarb-e-Azb in FATA and spectacular successes achieved against terrorists of all hues including the Uyghur.

The Silk Road Economic Belt will not only connect and develop China and Pakistan but also the regional countries for the first time and promote peace. This phenomenon will be against India’s aggressive chemistry.

13- Pakistan’s Expected Gains:

a. CPEC has opened vista of great opportunities for Pakistan and will greatly help in overcoming poverty, unemployment, inequities of smaller provinces and help Pakistan in becoming the next Asian tiger.

b. CPEC from all counts will prove a game changer and will make China a real stakeholder in Pakistan’s stability and security. It is a win-win situation for both. It will greatly expand the scope for the sustainable and stable development of China’s economic development.

c. Investments by China will boost Pakistan’s $274 billion GDP by over 15 %.

d. Corresponding progress and prosperity in Pakistan and China’s patronage will help Pakistan in getting rid of the decade old labels of ‘epicentre of terrorism’, ‘most dangerous country’ and a ‘failing state’.

e. Given the solid foundations of friendship at the people-to-people level between China and Pakistan, Chinese influence in Pakistan is destined to endure the test of time.

f. Pakistan seems to have found a saviour in China, which has promised to stand by the country in its dark hour. Once Pak-China connectivity strike roots, Pakistan’s geo-strategic security interests whenever threatened will be guarded by China.

g. China’s investment surpasses all foreign investments in Pakistan in the past. Win-win cooperation is based on trust, confidence and convergence of interests. The Chinese influence in Pakistan has touched an unprecedented high level and it has surpassed the US which has remained the most preferred ally since 1954.

h. The US which has repeatedly betrayed Pakistan and is widely disliked by the public will have to negotiate with Pakistan harder than ever from now onward. The elites under the magic spell of the US are also inclined to change their western oriented mindset and change their orientation.

j. Pakistan enjoys a more favorable fiscal budget situation compared to India by reducing its budget deficit to 4.7% of GDP in 2014 (as against India’s 7%) and Pakistan is much cheaper as an emerging market.

k. China’s economic and military assistance will help Pakistan a great deal in narrowing its ever widening gap in economic-military-nuclear fields with India and in bettering its defence potential.

l. Keeping strategic parity with India has now become an achievable goal for Pakistan.

m. Revival of economy in the coming period is bound to make Pakistan an attractive destination for foreign investors and will greatly help in removing socio-economic inequities of smaller provinces and in squeezing the space for anti-Pakistan elements.

n. The success of the Sino-Pak partnership is critically linked to the success of stabilization of the Afghan situation. China and Pakistan have a shared interest in the stabilization of Afghanistan, because the main threat to the realization of the “Belt and Road” projects in Pakistan come from the terrorist groups operating out of the Af-Pak region.

o. Pakistan is far more comfortable with China as a facilitator of the Afghan peace talks than it is with the US, whose intentions are highly suspect.

p. China’s investment in Pakistan has conveyed a big message to the other South Asian countries such as Sri Lanka, Bangladesh, Nepal to hurry and climb on board the Chinese “Belt and Road Initiative” to derive growth benefits.

q. Pakistan’s gravitation in the direction of China and Russia at this juncture underscores a strategic realignment in the making.

r. China is uniquely placed to pull the key regional states – Russia, Iran, Central Asian states to its side.

14- Efforts to Scuttle CPEC:

Strategic economic moment for Pakistan has arrived and interesting part is that Pakistan has assumed the position of economic pivot for the whole region. This paradigm shift in circumstances is a cause of great worry for the enemies of Pakistan both within and outside. India, Iran, UAE, Gulf States, Israel, US are unhappy. For India, CPEC is a thorn in its paw
They have put their heads together to work out new strategies how to block the forward march. RAW has opened a special office in Delhi and has been allotted $300 million to disrupt CPEC. Already one can notice sudden upsurge in acts of terror in the three restive regions and activation of certain NGOs and think tanks all trying to air misgivings and create fear psychosis.

ANP, Baloch nationalists, PkMAP raised serious objections on the routes of CPEC and alleged these have been changed. Even PTI and JUI-F showed inclinations to climb the bandwagon of anti-CPEC forces. Objections were being raised despite assurances by the government that no change has been made.

15- Controversies Raised in CPEC:

Eastern route benefits Punjab and Sindh and bypasses major portion of Baluchistan and KP.

In their view, western route is original route, conceived in 2006 and is shortest.

CPEC not transparent and kept under wraps.

Three-route theory is a cover story to hide change of route.

Eastern route is six-lane motorway.

Western route is 1-2 lane roads.

Orange Line Train project is from CPEC allocations.

Special Economic Zones are inequitably distributed.

Eastern route is unsafe being close to Indian border.

16- Government’s Stance:

No original route in existence before 2013.

CPEC project director Maj Gen Zahir Shah stated that no document is in existence showing original route; hence changing of original route doesn't arise.

Western route will be developed as motorway by extending Kashgar-Karakorum Highway.

Work on three routes has started simultaneously.

15 year project has short/mid/long term projects.

Government and China wished to first develop eastern route due to factors of security, better infrastructure and early completion.

Western route will be a long term project since it is uninhabited, insecure, time consuming.

Provincial capitals will be nodes of CPEC.

Orange Line project is Punjab project funded by Punjab govt.

Proposed 16 industrial zones not yet finalised.

Development of backward provinces is high priority of govt.

Power projects are more in KP, followed by Sindh, Punjab and Baluchistan respectively.

17- Ramifications:

Political consensus, security and law and order are pre-requisites for early completion of CPEC

China has other options to exercise if Pakistan fails to deliver.
Pakistan cannot afford to lose this golden opportunity.

Successive govts will have to remain focused and committed to completion of projects in hand.

Provinces should focus on industrial parks, energy projects instead of routes.

Trade routes are not developed on basis of ethnicity but on basis of convenience and requirements.

There is skepticism that administrative, technical and operational capacity of workforce and staff of Pakistan employed in CPEC may not match the Chinese efficiency/commitment, and also fail to absorb huge investment productively.

18- Actions in hand:

Operations in restive areas have been geared up.

Agenda of NAP has been expedited, although not satisfactorily.

10,000 strong Special Security Division has been created to provide foolproof security.

APC was held on May 13 to remove misgivings on CPEC. Another meeting was held on May 28 and in this consensus was achieved after PM agreed to develop western route first.

Special Parliamentary Committee has been formed to address complaints.

Working groups will be formed in July and economic zones decided in consultation with provinces.

No funds will be transferred from CPEC allocations for Orange Line project. China will however gift additional funds to complete this project in two years.

19- Conclusion:

The CPEC connected to Gwadar has the potential to radically alter the regional dynamics of trade, development and politics. CPEC is a game changer for the entire region. It will uplift the lives of about 3 billion people across China, Central Asia, South Asia and the Middle East.

The time and tide is not in favor of the detractors. They will die their death in the hurricane of CPEC since China is determined to make Pakistan a success story. $46 billion economic package is Chinese gift for people of Pakistan.
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Very balanced analysis on such a major issue now a days.
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its China Pakistan Economic Corridor not Energy Corridor
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Kindly project your thoughts on the concern that CPEC can be future East India Company
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Constructing China Pakistan Economic Corridor will bring regional harmony and better economic ties. It will provide China a shorter, cheaper and more secured route to interact with West and South Asia, Arabian Peninsula and Africa through Pakistan. As president Mamnoon Hussain already termed CPEC “Framework of Regional Connectivity” which would bolster the activities of trade and business in the whole region. It is an extra-ordinary project of shared dreams, goals, destiny, harmony and collective development through the extension of geographical links. CPEC is basically initiation the Maritime Silk Road that will link 3-billion people of Europe, Asia and Africa. From the initial value of $46-billion, China is going to invest $33.79 billion in energy sector of Pakistan to curb the energy short-fall in the country which has now become one of the main reasons of economic descent. $11.19 billion would be spent in transport sector including 1,240km Karachi-Lahore motorway which is a six lane high speed corridor and orchestrating upgrades to public transportation, including metro and bus service, in six cities, including Lahore Karachi and Rawalpindi. Modernizing the Karakoram Highway, which runs 1,300km from Kashgar, the ancient Silk Road crossing in Sinkiang, all the way into the heart of Punjab, Pakistan’s biggest province, will also prove critical. $44 million fiber optics will be installed linking Sinkiang and Rawalpindi. $0.66 billion will be spent on the up-gradation of Gawadar port to be fully operational for CPEC. In 2016, China’s aid exceeded the American spending, which has total $31 billion since 2002. CPEC is crucial for both, Pakistan and China, countries. According to Pakistan Economic Survey 2014-15, the trade between Pakistan and China has increased to $16-billion which has increased 10% from fiscal year 2009-10 to 2014-15. CPEC is 3,218km lengthy route that will be completed in the first phase of this mega project, embodied by highways, railways and pipelines. The much advertised $46-billion economic route goes through the stunning Gilgit-Baltistan Province in north of the country which connects Kashgar in China’s Western Province Sinkiang to the rest of the world through the Chinese operated Gwadar Port in South. The mage project has kept the hopes alive of elevating the economy and eliminating Pakistan’s energy crisis. It can be said that if CPEC is materialized according to the plan, it would exceed all the foreign direct investment in Pakistan since 1970 and would be equivalent to the 17-percent of 2015’s gross direct product. It is further estimated that CPEC would produce 700,000 direct jobs to the youth of Pakistan in different projects during the period of 2015-30 and add up to2.5 percent points to the country’s growth rate.
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CPEC will provide the opportunity of immense economic ascend not only for Pakistan but will link China to the markets of Asia, Europe and Africa. Righty percent of China’s oil comes from Persian Gulf, through Strait of Malacca, to Shanghai. It takes 2-3months to cover the distance of more than 16,000km. If Gwadar becomes operational, it would reduce the distance to 5,000km. All is going well on its track since its inception in 2013, Chashma-I, Chashma-ll nuclear power plants in Karachi, Karot hydropower project of 720 megawatt will be generated on Jhehlum River in Rawalpindi. Out of 21 agreements of energy- including coal, gas and solar power plants- 14 will be able to produce 10,400 megawatts of energy by March 2018. It is worth mentioning that Pakistan’s chronic energy short-fall is of 4,500 mega-watts which is shedding 2-2.5% of GDP annually. So it would bolster the energy sector by more than double of short-fall.
The project is embodied by all optimism yet cannot be completely taken without apprehensions and reservations. The lack of consensus among all the political parties would be the foremost hurdle towards the implementation of CPEC project. Failure to address this issue will jeopardize Pakistan’s trade and economic growth with the other states of the region. It would, resultantly, slow down the progress pace of Pakistan. Gilgit-Baltistan is famous for the exports of fruits like apricot, cherries and apples. CPEC will be the game changer for the region’s traders by opening more feasible opportunities to them. This will provide the local traders to double their profits in the cost of transportation and increasing their sales. Currently, Fruits are being sent through air-cargo via Dubia it would be cheaper and quick if transported by road to China via Sinkiang.
Pakistan needs to strengthen its dilapidated economy. Already, Pakistan is facing numerous internal and external challenges. Terrorism, though dwindled after Zarb-a-Azb under the supervision of Ex-Chief of the Army Staff-General Raheel Sharif and currently Operational Rad-ul-Fasad initiated by General Kamar Javed Bajwa, has damaged the country a lot. Lawlessness in Karachi and Baluchistan has shaken the confidence of investors. SAARC has proved ineffective due to the arrogance of India. Poverty, corruption, unemployment and illiteracy are like venom to our country’s economy. Our trustworthy neighbor China has shown that by investing in Pakistan, the cordial relations between the “iron brothers” are going to be perennial. Chinese investment is going to be beneficial to Pakistan in curbing not only the menace of terrorism but also making Pakistan an Asian Tiger in the long run. Strong economy is more able to resist lawlessness. With CPEC materialized, Gawadar Port would become a major trading centre in the world, region will become industrialized and it would help us to be well-connected with the energy-rich Central Asia.
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Despite possessing two different social and political systems, Pakistan and China have set an outstanding precedent of cooperation and friendship by adhering five principles of peaceful coexistence, share weal and woe, act in a good faith, respect each other and support each other. For the last sixty years, Pak-China affable relations have withstood international fluctuations and rooted into the hearts of the people of both countries. In this regard, China Pakistan Economic Corridor is a milestone and initiation of a new era of economic and strategic cooperation as well. China wants to reestablish the ancient trade “Silk Route” which had been used for trade since ages and China Pakistan Economic Corridor is the initiation of this enormous vision. Silk route played a central role in connecting people and regions on commercial bases. It was a fast and strong system of roads from China to Mediterranean Sea and from Ural to Indian Ocean. This route provided a luxury to communicate different civilizations and exposed the region in terms of distinctive cultures, ideas, knowledge, and Economic experiences. Many states initiated the Silk Road project but Chinese program is favorable for Pakistan and an economically strong country can take larger initiatives for the establishment of New Silk Road. Standing at the start of twenty-first century, Pakistan and China jointly proposed to construct “China-Pakistan Economic Corridor”, a part of “New Silk Road Economic Belt” and “New Maritime Silk Road”, as a result of a visit paid by the Premier Li Keqiang to Pakistan in May 2013. CPEC is a part of “One Belt One Road” vision expounded by Chinese President Xi Jinping which would connect sixty plus countries by land and maritime links across Asia and Europe. CPEC is a collection of infrastructure projects in Pakistan which was initially valued forty six (46) billion dollars now extended till sixty two (62) billion dollars. Geographically, Pakistan is located in strategically important place makes it a corridor between the South East Asian countries and energy-rich Middle Eastern states. CPEC is an extra-ordinary concept based on the existing trunk highways and railways of both countries. The corridor encourages of construction of cross border network of highways, railways, airlines, fiber-optic cables and oil-gas pipelines on both sides of the fences. Economic corridor is a complete package containing the connection of Karakoram highway from Kashgar to Gawadar Port providing China a direct access to the warm waters of Arabian Sea, coal power and hydropower projects and economic park projects for textile and home appliances and other sectors. Pakistan will surely get advantage from this mega project which will lead Pakistan towards its economic stability, in improving the livelihoods of its people, by providing better living conditions and social harmony. China’s Muslim Province Singiang is somehow considered to be the largest beneficiary of corridor would also promote the economic development, better living conditions to the people of Singiang and social security as well. Many columnists and scholars of both countries show their worry about the security of China Pakistan Economic Corridor considering the sabotage activities of terrorists in Pakistan and constant military operations against the non-state actors instigating anti-state agendas in Pakistan. Insecurity and risk do exist but it will hamper the construction of economic corridor. Safety and economic development are the two complementary issues. CPEC is undoubtedly the “Game Changer” for Pakistan and it would bring common prosperity to both Pakistan and Muslim-congregated Xingiang. More than sixty percent of the world’s crude oil with the worth of four trillion dollars annually comes from Middle Eastern states passes through the Strait of Malacca annually which is strategically one of the most important shipping lanes of the world connecting Indian and Pacific Ocean and it runs between Indonesia, Malaysia and Singapore. USA has military and naval deployments on the shores of Singapore. Construction of 2000km long railway track and oil-gas pipelines will not only give the short and easy access towards energy-rich Middle Eastern states but it would also give a strategic check-post to China in Indian ocean against USA’s strategic partner India which is also a point of worry to both USA and India. China expects that the economic corridor will make it capable enough to suck oil and gas from Central Asian countries with the help of pipelines through Baluchistan into Sinkiang. Chinese goods would have much more compatible, nimble and fast route to global markets than the Strait of Malacca, which China presumes is at the mercy of America. China and America have tense relation with each other in the South China Sea. China has dispute with some other countries such as Vietnam and Philippines, the American allies over the Spratly and Paracel Islands. China apprehends American hegemonic intentions in the region in the vicinity of Malacca Strait. In the conflict of two, China’s trade and supply may be blocked. China’s economy would be jeopardized. Thus, China needs an alternative route and such route is Gawadar developed by Pakistan and China in 2007 and to make Gawadar fully operational, CPEC is imperative. Furthermore, China also wants to cope with the insurgency in Sinkiang. In order to do so, it needs to develop the region which is its largest province and is Muslin-dominated. Development, China hopes, would help to quell the movement. Further, if Pakistan’s economy prospers economically, terrorism in Pakistan would dwindle and this would have positive impact on Sinkiang. Thus, China likes to invest in Pakistan for all these benefits, even though risk still prevails. Constructing China Pakistan Economic Corridor will bring regional harmony and better economic ties. It will provide China a shorter, cheaper and more secured route to interact with West and South Asia, Arabian Peninsula and Africa through Pakistan. As president Mamnoon Hussain already termed CPEC “Framework of Regional Connectivity” which would bolster the activities of trade and business in the whole region. It is an extra-ordinary project of shared dreams, goals, destiny, harmony and collective development through the extension of geographical links. CPEC is basically initiation the Maritime Silk Road that will link 3-billion people of Europe, Asia and Africa. From the initial value of $46-billion, China is going to invest $33.79 billion in energy sector of Pakistan to curb the energy short-fall in the country which has now become one of the main reasons of economic descent. $11.19 billion would be spent in transport sector including 1,240km Karachi-Lahore motorway which is a six lane high speed corridor and orchestrating upgrades to public transportation, including metro and bus service, in six cities, including Lahore Karachi and Rawalpindi. Modernizing the Karakoram Highway, which runs 1,300km from Kashgar, the ancient Silk Road crossing in Sinkiang, all the way into the heart of Punjab, Pakistan’s biggest province, will also prove critical. $44 million fiber optics will be installed linking Sinkiang and Rawalpindi. $0.66 billion will be spent on the up-gradation of Gawadar port to be fully operational for CPEC. In 2016, China’s aid exceeded the American spending, which has total $31 billion since 2002. CPEC is crucial for both, Pakistan and China, countries. According to Pakistan Economic Survey 2014-15, the trade between Pakistan and China has increased to $16-billion which has increased 10% from fiscal year 2009-10 to 2014-15. CPEC is 3,218km lengthy route that will be completed in the first phase of this mega project, embodied by highways, railways and pipelines. The much advertised $46-billion economic route goes through the stunning Gilgit-Baltistan Province in north of the country which connects Kashgar in China’s Western Province Sinkiang to the rest of the world through the Chinese operated Gwadar Port in South. The mage project has kept the hopes alive of elevating the economy and eliminating Pakistan’s energy crisis. It can be said that if CPEC is materialized according to the plan, it would exceed all the foreign direct investment in Pakistan since 1970 and would be equivalent to the 17-percent of 2015’s gross direct product. It is further estimated that CPEC would produce 700,000 direct jobs to the youth of Pakistan in different projects during the period of 2015-30 and add up to2.5 percent points to the country’s growth rate. CPEC will provide the opportunity of immense economic ascend not only for Pakistan but will link China to the markets of Asia, Europe and Africa. Righty percent of China’s oil comes from Persian Gulf, through Strait of Malacca, to Shanghai. It takes 2-3months to cover the distance of more than 16,000km. If Gwadar becomes operational, it would reduce the distance to 5,000km. All is going well on its track since its inception in 2013, Chashma-I, Chashma-ll nuclear power plants in Karachi, Karot hydropower project of 720 megawatt will be generated on Jhehlum River in Rawalpindi. Out of 21 agreements of energy- including coal, gas and solar power plants- 14 will be able to produce 10,400 megawatts of energy by March 2018. It is worth mentioning that Pakistan’s chronic energy short-fall is of 4,500 mega-watts which is shedding 2-2.5% of GDP annually. So it would bolster the energy sector by more than double of short-fall. Gilgit-Baltistan is famous for the exports of fruits like apricot, cherries and apples. CPEC will be the game changer for the region’s traders by opening more feasible opportunities to them. This will provide the local traders to double their profits in the cost of transportation and increasing their sales. Currently, Fruits are being sent through air-cargo via Dubia it would be cheaper and quick if transported by road to China via Sinkiang. It is believed that tourism industry will flourish, especially in Gilgit-Baltistan, the northern part of the country. This part of Pakistan is also known to be mountaineers paradise as it is the home of five of the eight thousands (peaks above 8,000 meters) as well as more than 50 mountains over 7,000 meters. It is a home of world’s second highest mountain K-2 and Nanga Parbat. The project is embodied by all optimism yet cannot be completely taken without apprehensions and reservations. The lack of consensus among all the political parties would be the foremost hurdle towards the implementation of CPEC project. Failure to address this issue will jeopardize Pakistan’s trade and economic growth with the other states of the region. It would, resultantly, slow down the progress pace of Pakistan. Another prevailing issues coming in a way of this mega project is a reservations of all provinces except Punjab that Punjab is getting more than 70-percent of the infrastructure portion in the development metro and bus services and refurnishing of existing roads. China Pakistan Economic Corridor is acceptable for all provinces for collective progress but other three provinces demands equal share in the developmental programs under the umbrella of CPEC without any respect of their size and population, which is an unjustifiable demand. Resources should be distributed according to the needs of the people of certain area. Access of resources would be exploited or wasted by bunch of greedy people. Indian Premier Modi straight away asserted that CPEC was “unacceptable” to India. Indian media is showing its anger by broadcasting controversial and false reports about the dilapidating situation of law and order in Pakistan which is threatening towards China’s projects in Pakistan. RAW increased sabotage activities in Baluchistan. It was for the first time in history that the Chinese officials warned Pakistan about RAW’s terror plans against Silk route and also made the Pakistani high authorities concerned over stumbling security situation in Baluchistan. India apprehends its encirclement by China. India, besides the US, dominates the Indian Ocean. But it feels that in future China is going to establish its hegemony in the ocean by establishing naval bases for warships in the so-called policy of “string of pearls”. China has given its official policy of Maritime Silk Road to trade through oceans. But India is reluctant to accept this. By materializing CPEC, China would have direct access to the Indian Ocean which could hamper the interests of India. India also jealous of the fraternal relations between China and Pakistan, and cannot see a prosperous Pakistan. Pakistan needs to strengthen its dilapidated economy. Already, Pakistan is facing numerous internal and external challenges. Terrorism, though dwindled after Zarb-a-Azb under the supervision of Ex-Chief of the Army Staff-General Raheel Sharif and currently Operational Rad-ul-Fasad initiated by General Kamar Javed Bajwa, has damaged the country a lot. Lawlessness in Karachi and Baluchistan has shaken the confidence of investors. SAARC has proved ineffective due to the arrogance of India. Poverty, corruption, unemployment and illiteracy are like venom to our country’s economy. Our trustworthy neighbor China has shown that by investing in Pakistan, the cordial relations between the “iron brothers” are going to be perennial. Chinese investment is going to be beneficial to Pakistan in curbing not only the menace of terrorism but also making Pakistan an Asian Tiger in the long run. Strong economy is more able to resist lawlessness. With CPEC materialized, Gawadar Port would become a major trading centre in the world, region will become industrialized and it would help us to be well-connected with the energy-rich Central Asia. Instability and anarchy in Afghanistan is also unfavorable for the progress of Pakistan. Afghanistan is facing turmoil as the government and Afghan Taliban is up against each other. Pakistan endeavors to reconciliation between the Afghan government and Taliban groups as Pakistan share the “Durand line” border with Afghanistan which is used for cross-border trade as well. Stable and peaceful Afghanistan will boast up the trade and prosperity on the both sides of the fences. Pakistan have been doing ventures to support the neighboring country by giving 3,000 scholarly admissions to Afghan students in universities, appreciated by Afghan President Ashraf Ghani and in 2001, Pakistan gave shelter to 5-million Afghan Refugees when US attached with its horrific zeal in Afghanistan in the wake of an incidents in 9/11. Baluchistan’s turmoil could be a stumbling block in the way of the huge Chinese investment. There have been talk about the change in the route through the Punjab instead of Baluchistan. Nonetheless, Pakistan has promised Mr. Xi a 10,000 strong force to protect the Chinese workers. In January 2015, the Baloch Nationalists attached the electricity grid sinking 80% of the country, including the capital, into complete darkness. On May 29th 2015, the united Baloch Army, a secessionist group, killed 22 Pashtuns in Quetta. China knows Pakistan is a dangerous country for its workers could be in jeopardy. Chinese workers have occasionally been killed and kidnapped in Baluchistan. In March 2015, Baloch separatists assaulted oil tanker carrying fuel to a Chinese mines corporation. Pakistan’s previous endeavors to assuage the angry Baloch people turned futile. The insurgency was intensifying not mitigating. The present government strived hard to encourage the moderates such as allowing them to form a provincial government. For the sake of this project, and in larger perspective for the sake of sovereignty of the Muslim nuclear state, federal government mediated among these insurgent groups and provincial government in dialogues. In the result, many reservations of localities had, though not abated completely, come to an end to some extent. The leaders of these separatist groups were insured that the economic corridor would bring prosperity, development and job opportunities for the people of Baluchistan. Xi himself was optimistic during the visit. In a speech before parliament house of Pakistan, he admired the sacrifices of Pakistan’s law enforcement agencies, paramilitary and civil-military forces to combat terrorism. China and Pakistan committed to “resolutely crack down on the Eastern Turkestan Movement”, a Xingiang-separatist militant group reportedly based within Pakistan. Even then China aspires to invest in Pakistan so that Pakistan prospers economically. Pakistan’s economic prosperity would tamp down the terrorist and this would be a positive impact on China’s troublesome regions of Sinkiang and Tibet where rebellion keeps on simmering. Instability in Pakistan is not good for China’s own security, especially for Sinkiang. Andrew Small, author of the Pakistan-China Axis, points out that it’s precisely because of these security concerns that China is so committed to develop the region. “China is certainly not completely confident that all the projects will be protected, but they think these security problems one of the main reasons that it’s so important to move forward for the sake of Pakistan’s stability,” Former Prime Minister Nawaz Sharif said “Pakistan is a strong proponent of regional economic integration for the creation of new job opportunities, business, industrial production and agricultural growth in the region. He further stated that Pakistan is the future destination for investment, trade and production. In highlighting that importance of China Pakistan Economic Corridor, he emphasized that the regional countries to create awareness about this foundational stone of collective progress, dispel misgivings about it and harness resources for the project which will build the Gwadar Port as regional trans-shipment pivot supported by the network of roads, railway lines, power plants, industrial zones, pipelines and fiber optic cables. The former Premier further stated that Pakistan’s promise as an ascending nation and lucrative market was being recognized by the world and global markets.


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Valuable information
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Can you plz share the answer to these questions?

1 : The impact of the burgeoning US-India strategic partnership over the security situation of the region and the Indian Ocean Region.

2 : Critically examine China's strategic vision behind its 'One Belt, One Road' venture.
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