CPEC (China-Pakistan Economic Corridor) Development Updates 2021

CPEC (China-Pakistan Economic Corridor) is a project for counties connectivity. CPEC, a huge project, gives more economic benefits to China and Pakistan. It also has positive impacts on Afghanistan, Iran, Central Asian Republic, and the other linked region.

CPEC is planned to rapidly upgrade the required infrastructure & support Pakistan’s economy by the building of modern transportation networks, several energy projects, and special financial zones.

In the globalized world, CPEC is a journey towards financial and profitable regionalization. It founded growth, peace, economical improvement, and a win-win model for all of them.

When the corridor is built, it is working as a major gateway for trade between China, Pakistan, Middle East, and Africa. This project has an important effect on the regional states the trade and energy security.

CPEC is a lead project of Chinese. This leadership gives the primary advantage of One Belt One Road and envisages connectivity Kashgar City with Gwadar Deep Sea Port via railways, highways, and pipelines.

Pakistan works as an International Interchange. It allows us a great strategic benefit to be the hub for the trade of international and integration of economies of Africa, Asia, and Europe.

These geostrategic advantages need to be connected based on the sympathy of interests to translate into geo-economic improvements.

Pakistan is continuously facing some kind of economic crisis. It give rise to the most amazing CPEC agreement, where for a better future both countries offered their geographical and financial support to each other. It is a fact that in Pakistan, the CPEC agreement has converted the unused part of the land into an economic Paradise.

Some of the basic land realties for this agreement can be mentioned below:

Basic Infrastructural Realities

Actually, CPEC (China-Pakistan Economic Corridor) is a long route covered 3,218 kilometers. CPEC opens the doorways of huge economic opportunities for Pakistan, China, and beyond with Asia and Europe. It present the following infrastructures:

• Gwadar seaport
• Highways / Motorways
• Railways
• Road belt links.
• Pakistan’s Gwadar port connects with China’s Kashgar.
• A connection with China Xinjiang the western province.

Strategic & Economic Framework & Gains

• Gwadar Port is the foundation of the whole strategy and Gateway to Central Asia and the South West with its strategic importance. It is covering from the Persian Gulf from the Indian Ocean to South East Asia and also the Far East.

 

• Gwadar is situated at the crossroads of the three sub-regional structures. It performs a major role in the future financial prospects of about 20 countries of South Asia, Central Asia, and China. It gives them economically viable, shortest, and cost-effective route for supply and transit

 

• The CPEC will reduce the route distance of sea-land to less than half among Europe and Western China. Furthermore, it is a great project for containers transportation from Beijing to Gwadar & also from Karachi through sea route as well as Land Route through Khunjrab.

 

• Transportation from land route takes just about half the time with an estimated saving of 7 to 14 Cents per Kg that converts into Dollars savings of Billions per annum.

 

• Comparatively regressive Western Regions especially Xinjiang’s economic growth will bring harmony and reliability by enabling the trade with Central Asia to meet the increasing requirements of energy.

 

• China has direct access to the marketplace in Asia, Europe & beyond by CPEC. Using the Gwadar Port allows the smooth trade from the Persian Gulf and from the Africa to Western & Northern by reducing the distance of many thousand kilometers.

 

• Roundabout 80% of China’s oil is now transported from Malacca to Shanghai. Oil import’s transportation time from the Middle East & Africa will be decreased from over 30 days to only in 2 days with the completion of pipeline projects.

 

• Moreover, the economic factor that is present in Gwadar has great strategic value for Pakistan and China.

 

• Fully functional Gwadar port that situated at the crossroads of big communicating and supplying markets plays an essential role in Pakistan economic revival.

 

• It also gives us great chances for the socio-economic development of Gilgit Baluchistan Province.

 

• It helps Pakistan in recognizing the potential to develop a regional trade hub and energy corridor by this means bringing for the best transit revenues & also for employment opportunities.

 

• With 95% of Pakistan’s trade from sea and economy deeply reliant on sea trade, Gwadar Port development and connectivity is of great worth to decrease the load on Bin Qasim and Karachi ports.

Key Imperatives for Pakistan.

Having seen the huge potential, we should be focus to get the beneficial opportunity for improving economic development, socio-economic future securing. Development and improvement are necessary for economic infrastructure. Key imperatives in this framework are:-

• Regional connection by linking the major ports of the country with the trade routes via highways, pipelines, and railways.
• Improvement of world-class well-organized logistic chain, infrastructure, and also trade facilitation.
• Economic industrial zones development and transit facilities beside the Corridor.
• Improved oil storage connected and done with pipelines.
• The Water & the Hydro Power development containing mega-dams on Indus waterfall attached with average-sized HPPs.
• Mineral resources development and exploration to fund all economic strategies.
• Last, but is not least Skilled in Human Resource Development.

FWO Initiatives to Exploit Opportunities Gave by CPEC.

Frontier Works Organization (FWO) is an important organization of Pakistan. It has been qualified with the construction of many roads, bridges, airfields, tunnels, and dams in Pakistan.

FWO’s primary purposes contain the projects linked to constructions, civil, combat, structural, and army engineering. The FWO is nationally & internationally famed for leading the Karakoram Highway design and construction along with for building military and civil infrastructure for the Pakistan Government Armed Forces.

FWO is familiar with its duties. With CPEC projects implementation commended by the Government, FWO has planned projects of huge national worth to optimally capitalize on the huge opportunities with public-private partnership & built, operate & transfer regimes.

Road Infrastructure

• FWO is keeping the project of Karakoram Highway from the time of its construction. Capacity has been improved to keep the Khunjrab Pass open to make sure the functionality of CPEC
• Road Jalkhad – Chilas was finished last year. Now Road Kaghan, Jakhad Chilas works as an alternative route for the susceptible portion of KKH.
• FWO plays the main role in the Western and Eastern Routes development of CPEC, down from Northern Areas.
• The most challenging portions & links in Baluchistan have been made by FWO where many roads of 900 Kms have been finished in 2 years record time against the predicted 6 years’ time frame.
• These projects’ completion has linked the Gwadar with China via KKH, Afghanistan & Central Asia with Chaman & Torkham.
• FWO is also developed one package of Hakla D.I.Khan (Islamabad Dera Ismail Khan) Motorway is a part of the CPEC Western Route.
• Lahore & Islamabad Motorway has been improved and updated by FWO on a BOT basis along CPEC Eastern Route. While 75 Kms Karachi portion, Hyderabad Motorway has also been inaugurated and completed.

Railway Infrastructure

• As for Railway Infrastructure, China dedicated Cargo Corridor along ML-2 on BOT Basis to carry expected 80 Million Tons cargo traffic per annum.
• Reconstruction of existing line ML-2 shot & long term for water hazard treatment, the overhaul of the track, signal upgrading & speeding up, and arrival departure.
• In a phased task, the corridor will spread from Karachi & Gwadar to Kashgar, which ultimately links with New Eurasian Bridge and GCC Railway Network.
• The up-gradation of ML-I & ML-3 besides the development of Kashmir Railway that also is consequently linked with China.

Oil, Energy & Water Sector Projects

• First project is oil sector development along M-2 with dimensions of 50,000 MT. This Project is linked to the Oil sector with the Bin Qasim Port via White Oil Pipeline. This Pipeline will also be more extended to Tarujaba in KPK, and also Afghanistan and Central Asia.
• Gwadar is also a mega project of CPEC, Kashgar Cross Country Oil Pipeline on a build, design, Finance, and Operate Basis. This oil pipeline decreases the over 7000 kilometers distance among the Persian Gulf and Western China by making sure for the huge time and cost-saving of Oil transportation.
• In KPK (Khyber Pakhtunkhwa), An Oil refinery plant is also being established.
• Jagran-II HPP in Kashmir & Kurram Tangi Dam in FATA and Mohmand Dam is the developing project on a BOOT basis.
• The development of BOT basis Indus Cascade in Joint Venture with many Chinese firms to harness water & power potential is also a great project of CPEC.

Development of Human Resource

After understanding the needs of a hugely skilled and technical workforce encompassing the whole field of skill industry at the implementation level of General and Technical Education System (GATES) are being developed along CPEC routes. On the KP Govt. request, FWO is in the procedure of taking over the nonfunctional technical foundations of KP to succeed them with the modern requirement as the part of Corporate Social Responsibility.

Furthermore, Skills Development (NUTECH) & the National University of Technology has been theorized and established with its basis institutes to prepare & train the youth. The university will also introduce the basic concept for higher education in the technology field and skills development in Pakistan.

Miscellaneous Infrastructure with Travel Facilities

• A complete and inclusive plan has been presented for the development of Smart Cities, Industrial Zones, and also direly needed logistic substructures along motorways and CPEC routes.
• Hence, the number of Smart Cities, Container Terminals and Industrial Zones, Ware Houses, and Fuel & Grain storage facilities are planned along the Motorways.

CPEC Impacts on Real Estate Sector in Pakistan

CPEC has revolutionized the industry of real estate from the time when it linked to the Gwadar seaport to China Kashgar. This main link serves as the trade route for both neighboring countries.

With the CPEC development, Pakistan’s real estate sector has successfully attained investors’ attention from all over the world. The investors who are looking for an investment opportunity, the real estate market is the best selection for them.

CPEC routes make an easy way to access the real estate market for investment. Due to this tendency, there has been a noteworthy growth in real estate projects.

Economic growth is crucial in the real estate business. The economy is connected with increasing real estate prices.

With CPEC, job chances are increasing. Therefore, the people are requiring the buying or renting places near to their job place. This will improve the real estate business. A lot of luxurious smart cities or societies are developed in Pakistan and easily accessible from motorways, highways, and other routes or roads that are included in CPEC projects. Some top societies are as fellow:

• Capital Smart City
• Lahore Smart City
• Park View City Lahore
• Park View City Islamabad
• Bahria Town
• DHA Lahore
• DHA Islamabad
• Gawadar City
• New Metro City
• Graceland Housing Scheme
• PWD Housing Society

List of CPEC Latest Projects

• Dawood 50MW Wind Farm
• UEP Wind Farm (Jhimpir, Thatta)
• Sachal Energy Wind Farm
• Quaid-e-Azam Solar Park (Bahawalpur)
• Coal-Fired Power Plants at Port Qasim Karachi
• Sahiwal Coal-Fired Power Plant
• China-Pakistan Friendship School, Faqueer
• CPEC Emergency Medical Center in Gwadar
• Cross Border Optical Fiber Cable
• Feasibility study for Upgradation of ML1 and Establishment of Havelian Dryport of Pakistan Railways
• Three Gorges Second and Third Wind Power Projects
• KKH Phase II (Thakot -Havelian Section)
• Peshawar-Karachi Motorway (Multan-Sukkur Section)
• Orange Line – Lahore
• Gwadar East-Bay Expressway
• Karot Hydropower Station
• CPHGC 1,320MW Coal-fired Power Plant, Hub, Balochistan
• Gwadar Port Operation and Development of Free Zone
• Suki Kinari Hydropower Station
• Thar Coal Fired Power Plant
• Gwadar Smart Port City Master Plan
• Pilot Project of Digital Terrestrial Multimedia Broadcast

CPEC Phase-II Updates

China Pakistan Economic Corridor (CPEC) Phase II gives the opportunities to Pakistan industrialize development and become Asian Tiger.

The CPEC Phase-I has filled the infrastructure voids of Pakistan with the main focus on communication and energy infrastructure.

Many roads under the CPEC are in the final phase which is expected to be inducted in 2021. And after the completion of roads, locals will get a better experience of connectivity and also get business opportunities.

The CPEC Phase-II will be more beneficial for the general public of the country by creating investment and employment opportunities. Pakistan will start gaining the advantages of the CPEC phase-II in the form of agricultural and industrial development and deliver better road connectivity.

The work on CPEC Phase-II has increased momentum from the last few weeks by beating debunkers who slowdown in CPEC activities.

The revolutionary of two big Hydal power projects, ML-1 railway project, materializing the special economic zones, Gawadar port city development growing the CPEC scope. It is containing agriculture, technology, science, and also tourism sectors show that the work on all the projects is in full swing.

Although Covid-19 has spoiled most of the economic and business activities. But it is fact that the work on CPEC projects carries on by detecting (SOPs) standard operating procedures issued by the government to cover the pandemic.

After removing the restricted access and deliver one-window facilities to the foreign and local investors to invest in SEZs.  With this Pakistan, the government has more authority power to make sure speedy and smooth progress for the further projects without any delay.

The CPEC phase-II will contribute to the alleviation of poverty and also to the growth of GDP in Pakistan. Furthermore, the nine energy projects out of 17 have been completed and the other eight are under construction.