CPEC

CPEC

China Pakistan Economic Corridor (CPEC) was formally launched by the two countries in 2013. CPEC aims at greater connectivity and trade linkages between Pakistan and China through a network of road, rail, fiber optic cable, energy pipelines, industrial clusters and Special Economic Zones (SEZs). Once completed, CPEC will connect Kashghar region in China with Gwadar region in Pakistan. The cumulative investment in these projects by China is estimated to be around US $46 billion.

Under CPEC, there are four strands of cooperation: (i) developing and operationalizing Gwadar Port on modern lines (ii) building infrastructure, (iii) creating energy and trade corridor for China through Pakistan and (iv) enhancing Chinese investment in Pakistan through construction of Industrial Parks and Special Economic Zones. Projects in these sectors include government to government cooperation, private sector collaboration and equity investment by Chinese companies. The two Governments are committed to removing bottlenecks and facilitating the completion of these projects for the success of CPEC.

By providing cheaper routes for transportation of goods through Gwadar port CPEC brings the promise of infrastructure development, energy generation and enhanced connectivity. By linking China with Arabian Sea and Persian Gulf, CPEC will augment the trade potential of China and Pakistan with the rest of the world. This way, it will directly benefit billions of people inhabiting China, South Asia, Central Asia and the Middle East. It is thus a win-win project for everyone in the region.