UNIVERSITY OF ENGINEERING AND

TECHNOLOGY
TAXILA
TELECOMMUNICATION DEPARTMENT
PAK STUDIES
ASSIGNMENT NO 02
PRESENTED BY: PRESENTED TO:
SALMAN KHAN (22-TE-104) DR. SABAHAT JALIL
HAMZA MUNAWAR (22-TE-44)
EHSAN UL HAQ (22-TE-74)

DATE: 6-DEC-2023
Introduction

China Pakistan Economic Corridor starts from Kashgar in China’s western region and ends at Gwadar district in
Baluchistan a province of Pakistan. This corridor will connect the several countries of the world through
Gwadar seaport and will take the bilateral relationship of Pakistan and China at the new heights. A beginning of
a new journey of hopes will start to reinforce the economic condition and to reduce energy shortfall in Pakistan.
There are different phases of CPEC project as international airport in Gwadar and Expansion of Karakoram
Highway that connects China with Pakistan has also been prioritized for fast and secure transportation. Foreign
direct investment in Pakistan will touch the new horizons of economic prosperity, moreover, it is further
estimated that CPEC will create thousands of direct jobs during the period of 2015–2030. CPEC will make a
bridge between Middle East and South West Asia with Central Asian Republics. It forms the closest oceanic
path for landlocked Central Asian Republics. CPEC has very vast geo-strategic importance on many accounts,
for example, it possesses great magnitude with respect to trade and commercial ties with Central Asia, Gulf
States, and East African countries, United Arab Emirates, China and North Western India. Gwadar seaport will
become a regional hub for major trade and commercial activities (Razi, 2013). It will bring prosperity and uplift
the socioeconomic conditions of Pakistan particularly less developed provinces of Baluchistan and Khyber
Pakhtun Khaw. Open and deep water sea is a natural blessing for a country while landlocked countries always
feel compulsion due to absence of a seaport as like Central Asian States and Afghanistan. These states are rich
with natural resources but they have to rely on other seaports of neighboring countries (Rehman, 2012). The
length of CPEC is a 3,218 kilometer consisted with highways, railways and pipelines. The estimated cost of
CPEC project is expected to be US$75 billion. The US$45 billion from the total amount will be used to make
the corridor operational till 2020 while the remaining amount will be spent on power generation,
communication and infrastructure development.Pakistan is one of the most important countries, population-
wise, in Asia. It is considered the sixth most populous country in the world, with an estimated population of
almost 220 million people. Most of the people reside in the four provinces of Khyber Pakhtunkhwa (KP),
Punjab, Sindh, and Baluchistan. It will be the fourth most populous country by the year 2050 in the world.

A famous Chinese saying is, “To understand today, one needs to know the history; and to know the future, one
needs to review the past.”Balochistan is the most deprived province of Pakistan. It is located at the eastern edge
of Iran. It is geographically the largest of the four provinces with 347,190 sq km and equates to 42 percent of
the total land area of Pakistan. The population density is very low due to the hilly territory and insufficiency of
water and other human resources. It has 26 districts and the approximate population of Balochistan is about 15
million.Balochistan is rich in natural resources. The economy is largely based on the production of natural gas,
coal and minerals. The province’s natural resources significantly help meet the energy needs of Pakistan as a
whole. Limited farming in the east and fishing along the Arabian Sea coastline are other forms of income and
sustenance for the local population. Balochistan is very poor in basic education.It is expected that 2.0 million
people are expected to move to Gwadar within a span of 30 years. The port is not yet functioning, but noticeable
signs of progress have been seen. Similarly, new residential areas, hotels, buildings, schools, hospitals and roads
are indicative of modern trends. It is also expected to have a positive impact on the rest of the province, which
has been neglected for a long time. Gwadar Port is a mega project of CPEC and a vast amount of investment is
anticipated in both its infrastructure and extensions.

REFRENCE: Jaleel, Sabahat, Naureen Talha, and Zahir Shah. "CPEC and regional integration." Global
Regional Review 4.4 (2019): 19-28.

HISTORY OF CPEC

CPEC is an important project in improving regional connectivity as “strategic partners.” The idea became a
reality in 2013 through the visit of Chinese Premier Li Keqiang to Pakistan. The historic memorandum of
understanding between the two countries on CPEC was signed on July 5, 2013. In the same year, Prime
Minister Nawaz Sharif visited China and signed eight agreements. Prime Minister Nawaz Sharif visited China
again and 19 more agreements were signed in 2016.

The CPEC is an important part of One Belt One Road known as BRI. It is a package of infrastructure and
energy projects, Its specific purpose is to upgrade and expand Pakistani infrastructure, linking China’s western
province of Kashgar with Pakistan’s Gwadar Port on the Indian Ocean. Pakistan is a developing country; the
CPEC is a great opportunity to enhance its economy. Through this mega project, Pakistan’s population can
reduce its poverty and achieve a higher standard of living.

In April 2015, Chinese President Xi Jinping visited Pakistan. During his visit, approximately 51 agreements were signed
between China and Pakistan with a total worth of $46 billion, which also included the development of the CPEC. The
original $46 billion that China invested in Pakistan under the CPEC has now expanded to approximately $54 billion. This
amount exceeds all foreign direct investment. The result is that, over the last several years, Pakistan has received
considerably more aid than it has received from the United States.

The China-Pakistan Economic Corridor (CPEC) has its roots in the longstanding bilateral relationship between China and
Pakistan. The history of CPEC can be traced back to various developments over the years, encompassing economic
cooperation, strategic interests, and evolving geopolitical dynamics. The following overview provides a chronological
account of the key milestones that led to the conception and implementation of CPEC:

Early Bilateral Relations (1950s-1960s):

China and Pakistan established diplomatic relations in 1951, and their ties have been characterized by mutual
trust and cooperation.

The two countries became close allies during the Cold War era, with Pakistan being one of the first countries to
recognize the People's Republic of China.

Strategic Alignment (1980s-2000s):

The strategic alignment between China and Pakistan deepened in the 1980s, especially during the Soviet-
Afghan War, where both nations collaborated in supporting Afghan resistance against the Soviet Union.

This period laid the foundation for a strong strategic partnership, and China emerged as a key supplier of
military equipment to Pakistan.

Early Economic Cooperation (2000s)

Economic cooperation between China and Pakistan gained momentum in the early 2000s. Both countries signed
a free trade agreement in 2006, promoting trade and economic ties.The Karakoram Highway, connecting
China's Xinjiang region to Pakistan, played a crucial role in facilitating economic activities between the two
nations.

Conception of CPEC (2013):

The formal announcement of the China-Pakistan Economic Corridor came in April 2013 during the visit of
Chinese Premier Li Keqiang to Pakistan.CPEC was presented as a comprehensive framework for bilateral
cooperation, with a focus on infrastructure development, energy projects, and economic integration.

Memorandum of Understanding (MoU) and Early Projects (2013-2015):

China and Pakistan signed a Memorandum of Understanding to initiate CPEC projects, outlining the key areas
of cooperation.Early projects included the development of the Gwadar Port, energy infrastructure, and
transportation networks, such as the expansion of the Karakoram Highway.

Comprehensive Development (2015-2018):

CPEC gained momentum with the announcement of various projects, including the establishment of energy
plants, road and rail networks, and the prioritization of the Gwadar Port development.Special Economic Zones
(SEZs) were identified to promote industrial collaboration and attract foreign investment.

Challenges and Controversies (2018 Onward):

As CPEC progressed, it faced challenges and controversies. Environmental concerns, questions about project
financing, and debates over the terms of Chinese loans garnered attention.The change in the political landscape
in Pakistan also led to a reevaluation of some CPEC projects.

Continued Expansion and Evolution (2020s):

Despite challenges, both China and Pakistan reiterated their commitment to CPEC, emphasizing its
transformative potential.New phases of CPEC were introduced, including a focus on social development,
poverty alleviation, and increased people-to-people exchanges.

Geopolitical Considerations (Ongoing):

CPEC remains a focal point in regional geopolitics, drawing attention from neighboring countries and global
powers.The corridor's strategic implications continue to shape regional dynamics, adding complexity to the
relationships between India, Pakistan, and other South Asian nations.The history of CPEC is a dynamic
narrative that reflects the evolving geopolitical and economic landscape of the region. It represents a significant
collaboration between China and Pakistan, with the potential to reshape the economic fortunes of both nations
and influence the broader balance of power in South Asia. As CPEC continues to evolve, it remains a subject of
intense scrutiny and analysis, offering insights into the challenges and opportunities associated with large-scale
international infrastructure projects.

REFRENCE McCartney, M. (2022). The dragon from the mountains: The China-Pakistan Economic Corridor
(CPEC) from Kashgar to Gwadar. Cambridge University Press.

Infrastructure Development under CPEC

The infrastructure development under the China-Pakistan Economic Corridor (CPEC) is a central aspect of this
ambitious initiative, aiming to enhance connectivity and economic integration between China and Pakistan. Key
infrastructure projects under CPEC include:

Gwadar Port Development

Gwadar Port in southwestern Pakistan is a focal point of CPEC. The project involves the expansion and
development of Gwadar into a major deep-sea port, strategically located near the Strait of Hormuz. It is
intended to facilitate maritime trade and provide China with a shorter and more secure route for its imports.
Transportation Networks

The expansion and improvement of transportation networks are vital components of CPEC. This includes the
upgrade of the Karakoram Highway, a crucial land route connecting China's Xinjiang region to Pakistan.
Additionally, new highways and railways are being constructed to connect Gwadar with major cities in
Pakistan, promoting efficient transportation of goods and people.

Energy Infrastructure:

CPEC addresses Pakistan's chronic energy shortages through the development of various energy projects. This
involves the construction of coal-fired power plants, hydroelectric dams, solar and wind energy projects. These
initiatives aim to boost Pakistan's energy capacity, reduce power outages, and promote sustainable development.

Special Economic Zones (SEZs):

CPEC includes the establishment of Special Economic Zones (SEZs) along the corridor. These zones are
designed to attract foreign investment and promote industrial collaboration. SEZs offer incentives for
businesses, including tax breaks and simplified regulations, fostering economic activity and job creation.

Communication Infrastructure:

CPEC emphasizes the development of communication infrastructure, including the establishment of fiber-optic
networks. This is crucial for enhancing digital connectivity, facilitating information exchange, and supporting
modern communication systems along the corridor.

Development of Airports:

Infrastructure development under CPEC extends to the improvement and expansion of airports. This includes
the enhancement of existing airports and the construction of new ones to facilitate increased air traffic,
promoting both trade and tourism.

REFRENCE Ahmed, Riaz, and Usman Mustafa. "Impact of CPEC projects on agriculture sector of Pakistan:
Infrastructure and agricultural output linkages." The Pakistan Development Review (2016): 511-527