CPEC or simply China Pakistan Economic corridor is a multibillion-dollar project. It is an initiative by China and the extension of the BRI- Belt and Road Initiative. CPEC is an amalgamation of many different projects. It includes Rodway projects, Railway projects, Energy sector projects, and other areas of cooperation. CPEC can be beneficial for the whole world, especially Pakistan. On the other hand, there are certain security risks and challenges for Pakistan as well. In addition to this, there are many global prospects for CPEC as well. In the coming section, we will discuss all regarding CPEC and with the help of this article, you will be able to write a quality CPEC Essay.
What is CPEC
As mentioned earlier that CPEC is a multibillion-dollar project which is initiated by China. Trade is one of the main sources of earning in the world. China is one of the strongest traders in the world. In 2018, China alone exported $2.49 trillion in goods while it imported $2.13 trillion. World trade is conducted through the Indian Ocean. There are many bottlenecks on that route which include Strait of Malacca, Strait of Hormuz, and Bab-ul-Mandeb. In addition to this, the distance is quite long, it took over a month to transport Chinese Oil in different countries. The ship needs to travel over 12,500 kilometers. With the help of CPEC, China will surpass the few of the choke points. In addition to this, the distance will also be shortened and the consignments can be reached to its location within 2 days.
With the help of CPEC, China will be able to reach to Indian ocean through Pakistan. Whereas, before CPEC china trades through the South China Sea. In the coming section, we will also compare the routes of China’s trading with the world. China has helped Pakistan to develop the Gawadar port, which is a deep seaport. In addition to this, the projects include railroad and railway projects through which the containers can reach from Kashgar to Gawadar
Trade Routes with and without CPEC
Traditionally the route for China trade is through the South China Sea. After that, it passes from Strait of Malacca and reaches to the Indian Ocean. From the Indian ocean, the ships reach to Strait of Hormuz to trade with the middle eastern portion of the world. In order to trade with Europ and the rest of the world, the ships need to pass Bab-al-Mandeb which is located between Yemen and the African Continent. These three chokepoints have a lot of issues in them.
With the help of CPEC, the trade route is shortened. The containers can reach to Gawadar port through railway and roadways. The shipment will enter into Pakistan through Kashgar which is a Chinese province right next to Gilgit-Baltistan. After that through railroads or roads, the goods will reach the deep seaport in Gawadar. From Gawadar the trade will continue with the whole world.
Projects in CPEC Essay:
There are almost 22 projects related to the energy sector, 7 infrastructure projects, 8 Gwadar Projects, and so on. The CPEC includes projects related to Roadway, Railway, Energy, Agriculture, and many more. Because of these projects, CPEC is considered very important for Pakistan. The details of all of these projects of CPEC are given below.
These projects are related to one of the best ports of Pakistan i.e. Gwadar in Balochistan. With the help of the CPEC project, Pakistan can get a lot of benefits that we will discuss later but this project is also equally important for china as they will get access to the sea through Pakistan. For Pakistan different projects would be started that will help in building innovative infrastructure the projects that will be started in Gwadar under CPEC are followings:
1. Gwadar East-Bay Expressway:
Under this project, a route will be built and it will connect the Gwadar Port & its Free Zone with the express. It is a much-needed project because currently there is a small road for transportation of logistics and the same road is used by the general public. With the help of this, a wide road will be build that did not affect the traffic flow. The estimated cost of this project is 168 Million US Dollar and the expected date of completion is October 2020.
2. New Gwadar International Airport:
Under CPEC a new Gwadar International Airport will be built. It will be helpful for trading goods by air. This Airport will be capable of handling big airplanes like ATR 72, Airbus, (A-300), Boeing (B-737), and Boeing (B-747). The estimated cost of this project is 230 Million US Dollars and this project has been started on 31 October 2019 after the approval of the design and work plan.
3. Construction of Breakwaters:
Breakwaters are constructed on the coast. These structures protect the place form the longshore drift and weather. As the expansion work is going on at Gwadar the Construction of breakwater is also necessary alongside these projects. Therefore, the construction of breakwaters will be started after reviewing the plan received from COPHCL (China Overseas Port Holding Company Limited). The estimated cost of this project is 123 Million US dollars.
4. Dredging of berthing areas & channels:
Dredging is a process through which a bed of water is cleared by removing mud, weeds, and any unnecessary trash. Berthing areas are where ships are stopped and loading and unloading of goods are done. This project will cost almost 27 Million US dollars. The feasibility of the project has been made but there is no update regarding the start of this project.
5. Development of Free Zone:
This Free Zone will be the backup port industry of Gwadar port and it includes all the projects like building roads, warehouses, water facility, gas and power facility, custom facility, and so on. The estimated cost of this project is 32 Million US dollars. Construction work will be started soon.
6. Pak China Friendship Hospital:
Under this project, a Hospital will be built. Which was already under construction and one medical block out of six and 20% of the residential block is already completed. The rest will be done under this project. Not only that it also includes the construction of medical colleges, laboratories, and supply of the latest medical machinery. The estimated cost of this is 100 Million US dollars.
7. Pak-China Technical and Vocational Institute at Gwadar:
Under this project, technical and vocational institutes will be built and the management team of Gwadar port will enhance and can learn new skills. The cost of this project is 10 Million US dollars and Groundbreaking was held in December 2019.
8. Gwadar Smart Port City Master Plan:
This 4 Million US Dollar project is for building a small city near Gwadar.
INFRASTRUCTURE PROJECTS in CPEC ESSAY:
CPEC infrastructure projects are divided into two parts in the first part it has constructions of roads and on other the construction of the rail sector. Let’s have a look at these projects.
The following are the road projects that will be conducted under CPEC projects. The details of these projects are given below.
1. KKH Phase II:
KKH Phase II is the highway project from Havelian to Thakot. This is the total of 118KM highway project that includes the construction of 06 Lane Access Controlled motorway up to 39 km and construction of 79 km of Class-II Highway. The estimated cost of this project 1,315 US Million Dollar and most of the project is completed.
2. Peshawar-Karachi Motorway (Multan-Sukkur Section):
The next project is Peshawar to Karachi motorway (Multan-Sukkur Section) under this project Multan to Sukkur Motorway is constructed. It is a total of 392km and it costs 2,889 US Million Dollar. This project has been completed in November 2019.
3. Khuzdar-Basima Road N-30:
This project is started in Balochistan. Under this project, a 2-lane highway from Khuzdar to Basima will be constructed the total length of this road would be 110Km and it costs 19.19 Billion Rupee.
4. Upgradation of D.I.Khan (Yarik) – Zhob, N-50 Phase:
This project is to upgrade the existing 2 lanes to 4 lanes that can be further upgraded to 6 lanes in the future. The total length of this road will be 210Km and its estimated cost is 76 Billion Rupee.
5. KKH Thakot-Raikot N35:
The last project of the road is to complete the remaining portion of Thakot to Raikot 136Km road in KPK. The cost and starting date of this project are under process.
The railway infrastructure projects under CPEC are the following.
1. Expansion and reconstruction of existing Line ML-1:
Under this project, the ML-1 line will be double which is Karachi to Peshawar railway line. The manual system will be replaced with the computer-based signaling and control system. The doubling of a line increases the speed of the train from 110km/hr to 160km/hr. This project is yet to start. The estimated cost of this project is 8,172 US Million Dollars.
2. Havelian Dry port (450 M. Twenty-Foot Equivalent Units)
This Havelian Dry port will be constructed to meet the demand of future freight traffic under CPEC. Havelian railway station is almost 680 km away from the China border which is Khunjrab. The Dry port will be made at Havelian so that cargo from china first unloaded at Havelian and then this cargo will be uploaded on cargo train which will take the cargo to the Gwadar.
The other railway projects that include are given below the following projects are not yet stated except one which is almost complete
- Karachi Circular Railway Project for improving public transportation.
- Greater Peshawar Region Mass Transit
- Quetta Mass Transit
- Orange Line Train Lahore for public transportation almost completed.
ENERGY SECTOR PROJECTS:
Electricity is always the problem in Pakistan to overcome this problem the energy sector projects are signed. There are almost 22 energy sector projects that include coal-fired Power Plants, Hydropower Plants, and Wind Power Plants. The table below will tell you the name and energy that we get under these projects. The detail of each project is given at http://cpec.gov.pk/energy
|Sr. no||PROJECTS||ENERGY (MW)|
|1||Sahiwal 2x660MW Coal-fired Power Plant, Punjab||1320|
|2||2×660MW Coal-fired Power Plants at Port Qasim Karachi||1320|
|3||HUBCO Coal Power Project, Hub Balochistan||1320|
|4||· Engro 2x330MW Thar Coal Power Project
· Surface mine in block II of Thar Coal field, 3.8 million tons/year
|5||Quaid-e-Azam 1000MW Solar Park (Bahawalpur) Quaid-e-Azam||400
|6||Hydro China Dawood Wind Farm(Gharo, Thatta)||49.5|
|7||UEP Wind Farm (Jhimpir, Thatta)||99|
|8||Sachal Wind Farm (Jhimpir, Thatta)||49.5|
|9||Three Gorges Second and Third Wind Power Project||100|
|10||SSRL Thar Coal Block-I 6.8 mtpa & Power Plant(2×660MW) (Shanghai Electric)||1320|
|11||HUBCO Thar Coal Power Project (Thar Energy)||330|
|12||ThalNova Thar Coal Power Project||330|
|13||Karot Hydropower Station||720|
|14||Suki Kinari Hydropower Station, Naran,Khyber Pukhtunkhwa||870|
|15||Matiari to Lahore ±660kV HVDC Transmission Line Project||–|
|16||300MW Imported Coal Based Power Project at Gwadar, Pakistan||300|
|17||Thar Mine Mouth Oracle Power Plant ( 1320MW) & surface mine||1320|
|18||Kohala Hydel Project, AJK||1100|
|19||Cacho 50MW Wind Power Project||50|
|20||Western Energy (Pvt.) Ltd. 50MW Wind Power Project||50|
|21||Phandar Hydropower Station||80|
|22||Gilgit KIU Hydropower||100|
Other projects in CPEC includes followings
1. Cross Border Optical Fiber Cable:
Before these optical fiber cables, we used to get angry on slow internet but now with the optical fiber cable project, we have the fastest internet as compared to the previous one. This project was started for Gilgit Baltistan, Khyber Pakhtunkhwa, and Punjab. The estimated cost of this project was 37.4 US Million Dollars and it has been completed in 2018.
2. Pilot Project of Digital Terrestrial Multimedia Broadcast (DTMB):
With the help of this project, the new innovative technology will be provided to PTV as they are still using old ways of broadcasting. Under this project, they get the technology that is used by the US, Japan, China, and Europe. DTMB is used by China and we will also use the same. This technology is also used by Cuba, Macao, and Hong Kong. The estimated cost of this project is 4 Million US dollars.
The following information is gathered from the official website of CPEC. Kindly visit here http://cpec.gov.pk for more details
Funding for CPEC Essay
Well, the total estimated cost of this project will be $62 billion. The finances are provided on different terms and conditions. Few of the funds are on Concessionary loans, some are on interest-free loans, whereas, some funds generated by the joint venture of Chinese and Pakistani firms. Moreover, the Asian Development Bank also provided its assistance for the CPEC project.
Around $11 billion project lies under concessionary loans with an interest rate of 1.6%. The interest rate has bargained from 3%. This loan will be given by the Exim Bank of China, China Development Bank, and ICBC. This money will be utilized on the project. This concessionary loan will be used for
- Karachi-Lahore Motorway
- Multan to Sukkar Road
- Reconstruction of Korakaram highway from Burhan to Raikot.
- The roadway from Havelian to Thakot
- Lahore Metro Orange Line
- Pakistan-China Fiber optic project.
Approximately $757 million from the concessionary lies under the interest-free loans. Furthermore, the following projects lie under interest-free loans
- East Bay Expressway project
- Breakwaters in Gwadar
- The coal power plant in Gwadar
- Dredge berths in Gwadar harbor
- The 300-bed hospital in Gwadar
Chinese and Pakistani firms will construct an energy sector project worth $15.5 billion. This loan is at 5-6 percent interest. The government of Pakistan will purchase the electricity from those firms at negotiated prices. The projects under this include
- Balloki Power Plant
Asian Development Bank Assistance
Hazara Motorway lies under the assistance of ADB. Moreover, the governments of either country will not interfere in the matter. The following are the projects that fall under the assistance of the Asian Development Bank.
- Hazara Motorway
- Upgradation of N70 National Highway
- Upgradation of N50 National Highway
- M4 motorway between Faisalabad and Multan
Political & Economical grounds of CPEC Essay
China is an emerging superpower. In a short span of time, China has become economically strong. Since the bipolarity in the world is finished, America was the sole superpower in the world. However, recently China has also become a superpower. The United States of America try to maintain its hegemony on the Asian Continent. Americans have allies in the south China sea. Moreover, there are American Army bases on the South China Sea and the Indian Ocean. In addition to this, Indians also maintain their hegemony on the Indian Ocean. China and India don’t share cordial relations. They have border conflicts and both of these countries want to maintain their hegemonies in the Asian continent.
To the aforementioned concerns, China focuses on the construction of CPEC. With the CPEC project, China will least intervene in those areas. There will be no effect on the trade of China if the conflict persists between the states on the chokepoints or in the disputed regions. The relations among the states has also shifted with CPEC and BRI. We have seen that anti-western countries are focusing more on China and Pakistan.
Furthermore, another reason for the CPEC is to boost China’s economy. From the past few years, China’s economy was still. With the help of CPEC, the economy could further strengthen. The stronger the economy, it will be easier for China to maintain its hegemony. In addition to this, China will be able to trade with the world without any hurdles and politics. With more and easy trade, China market can be reached through the world easily. Economically, Pakistan will also strengthen with CPEC. It is estimated that the GDP of Pakistan will boost up to 7.5%.
Global political concern on CPEC Essay
One of the main political concern for constructing the CPEC is Malacca Dilemma. As mentioned earlier, China needs to pass through the Strait of Malacca to do trade with other countries. It is a disputed region, Strait of Malacca consist of the disputed Spratly Islands. There is a global tension in this strait between China, Taiwan, Vietnam, Phillippines, and America. Almost 80% of the middle east energy imports pass through this strait. Therefore it is a very sensitive area. China is already an energy scarce country due to its population. If China manages to bypass the Strait of Malacca then it can continue its trade with other countries easily. That is one of the main reasons for the construction of CPEC.
The American concern regarding CPEC is not soo good. As with the help of CPEC, Pakistan and China will be able to boost its economy. China is already a threat to the United States. The United States has an old policy to contain the communist specifically China. Due to the policy of containment, the United States of America doesn’t support CPEC. Moreover, American hegemony will also be decreased with this CPEC.
Russian interest in CPEC Essay
Russia supports this project. As both China and Russia is a communist state, furthermore, Russians always work against Americans. Therefore, Russia has recently shown its interest in CPEC as well. Furthermore, Russia is also keen to invest in the energy sector of CPEC.
India is a threat to Pakistan since its independence. With the help of CPEC, the economy of Pakistan will get strengthens. In addition to this, Pakistan will become a stronger country and will be renowned in the international world. India doesn’t want this to happens. Furthermore, the Chinese hegemony will also increase with this project. India is also not an ally of China.
Some of the pro-west European countries don’t support the idea of BRI and CPEC, whereas, some countries are in favor of this project. As it will benefit them as well. The major portion of the European trade consists of Chinese products. They can get to the Chinese market easily. Moreover, their orders can also reach in less time.
Importance of CPEC for Pakistan:
CPEC is very important for Pakistan. The projects that are started under the CPEC will make the Pakistan economy better. Medical schools with the latest equipment, Roads, railways, and cities all these things that will be done with our beloved neighbor China not only provide the jobs for the local but also improve the overall image of Pakistan. A better medical and managerial education will be provided. The load shading that is the main problem of Pakistan will also be overcome with the help of energy projects under CPEC.
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This project is not only beneficial for Pakistan but also for our neighbor country China. Through this, they will get access to the seaport and they can also do trade through CPEC. Moreover, with this project, Pakistan can avail the services of Chinese professionals and engineers and they have the opportunity to learn new things that will also be helpful to make our country great.
Security Challenges for CPEC with respect to Pakistan:
Pakistan struggled too much to overcome the terrorist attacks in different cities. Our soldiers try their best and give their lives for providing us a safe and better future. There were times when people afraid to go out but now it’s safe and sound just because of our Pak armed forces.
No doubt the CPEC project will also make the image and economy of Pakistan better. But to prevent this happening there are many other countries that may cause these projects to fail. The same countries were also responsible for starting terrorist attacks in Pakistan. Our armed forces are giving its best to provide the security and make CPEC happens. Therefore, there is no issue regarding security related to CPEC. Alhamdullilah.
How CPEC can be beneficial for the world
Well, the question might arise in your mind that how CPEC could be beneficial for the world. If we talk about the Arab countries, they rely on oil. China is one of the biggest importers of oil in the world. With the help of CPEC, oil can easily be transported to China in less time. Another reason that how CPEC could be beneficial for the world is that, the trade distance will decrease. It takes 12,500 km for a ship to travel and it also takes more than 30 days. With the help of CPEC, the distance will be decreased to 2000 km and it can be accomplished within 2 to 3 days.
Furthermore, the CPEC will also reduce the chances of conflict between multiple states. As Chinese trade route will change, which will decrease the interference. In addition to this, several jobs will be created by CPEC. It is estimated that over 5000 jobs for Pakistanis and over 8000 jobs for Chinese. This will decrease the inflation rate and will enhance the employment rate in China and Pakistan.
Criticism of CPEC Essay
Some of the countries like the United States and India have criticized this project. Some of our local journalists also criticized CPEC. They believe that CPEC is doing the same as The East India Company did. On the other hand, India and the USA criticized the grounds that this project is a debt trap and is a soft power policy of China. However, the Government of Pakistan countered this by mentioning that most of the projects consist of equity finance such as joint ventures instead of os debt finance. This joint venture will give Pakistan an alternative mean to raise capital for the projects.
We can finally assert that CPEC is a game-changer for Pakistan and China. It will boost the economy of both countries. In addition to this, certain issues in the disputed areas in the South China sea will also start to diminish. There are certain challenges for Pakistan as well, however, if we tackle all of the challenges, we can surely get benefit from this multibillion-dollar project.
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