5 Years of CPEC ; What has Pakistan achieved so far?

[Chakar The Great]

On 22nd May 2013 a memorandum of understanding on China–Pakistan Economic Corridor was inked by Xu Shao Shi and Shahid Amjad Chaudhry in Islamabad. The two countries haven’t looked back since. China-Pakistan Economic Corridor (CPEC) is a major and pilot project of the Belt and Road Initiative. The leaders of two countries have attached great importance as well as rendered active promotion to the construction of CPEC. During President Xi Jinping's visit to Pakistan, China and the host country agreed to form a '1+4' cooperation structure with the CPEC at the center and Gwadar Port, energy, transport infrastructure and industrial cooperation being the four key areas to achieve common development.

Xi Jinping while addressing to Pakistani parliamentarian said, "As soon as I set foot on this beautiful soil, my colleagues and I were immediately immersed in the ocean of warmth and friendship. I felt like returning to the home of my own brother," the president said. "The Chinese people will always stand together with the Pakistani people," Xi told Pakistani lawmakers.


1) Energy Sector:



1) Sahiwal Coal power plant:

2) 2×660MW Coal-fired Power Plants at Port Qasim Karachi

3) Hydro China Dawood 50MW Wind Farm(Gharo, Thatta)

4) Quaid-e-Azam 1000MW Solar Park (Bahawalpur) Quaid-e-Azam

5) UEP 100MW Wind Farm (Jhimpir, Thatta)

6) Sachal 50MW Wind Farm (Jhimpir, Thatta)

7) CPHGC 1,320MW Coal-fired Power Plant, Hub,Balochistan ( Underconstruction)

8) Engro Project at Thar Block-II, Sindh, Pakistan ( Under construction)

9) Karot Hydropower Station

There are several others that are still under construction.



2) Infrastructure:



1) Lahore Metro train

2) KKH Phase II (Thakot -Havelian Section)

2) Peshawar-Karachi Motorway ( PKM)

The Karachi–Peshawar Motorway (KLM) is a 1,694-kilometre-long (1,053 mi) under construction six-lane, high-speed, limited-access motorway that will connect Karachi and Peshawar through Islamabad, Lahore, Multan and Sukkur.


PKM is divided into seven sections as below,

Karachi-Hyderabad (M-9) section 136 km (Re-carpeting of existing Super Highway)

Hyderabad-Sukkur (M-6) section 296 km

Sukkur-Multan (M-5) section 387 km

Multan-Abdul Hakeem (M-4) section 103

Abdul Hakeem-Lahore (M-3) section 230 km

Lahore-Islamabad (M2) section 376 km

Islamabad-Peshawar (M1) section 166 km

( 70 percent work completed)

3) Expansion and reconstruction of existing Line ML-1
( $8 Billion project, no ground so far )


3) Gwader related projects:

1) Gwadar East-Bay Expressway ( At very early stage)

2) New Gwadar International Airport
( Construction at preliminary stage)
The sources said that it would be premature to give any assessment related to cost, but it would be more than $2 billion to $2.7 billion at least if we want to construct state of the art airport in accordance with international standards.


3) Development of Industrial Zone

( Land allocated, establishment of industry underway, 10 industrial units to start production by end of this year)

4) Pak China Friendship Hospital

6) Gwadar Smart Port City Master Plan ( To be released on 14th Aug 2018)

7) Gwader Oil city

Pakistan has decided to construct a mega oil city at Gwadar on 80,000 acres under much hyped China Pakistan Economic Corridor (CPEC).
This mega oil city will be used for transportation of imported oil through the Gwadar Port to China. The oil will be imported from Gulf and will be stored at this proposed mega Gwadar oil city.

8) Necessary facilities of fresh water treatment, water supply and distribution



4) CPEC Proposed Special Economic Zones(SEZs)

1 Rashakai Economic Zone , M-1, Nowshera
2 China Special Economic Zone Dhabeji
3 Bostan Industrial Zone
4 Allama Iqbal Industrial City (M3), Faisalabad
5 ICT Model Industrial Zone, Islamabad
6 Development of Industrial Park on Pakistan Steel Mills Land at Port Qasim near Karachi
7 Special Economic Zone at Mirpur,AJK
8 Mohmand Marble City
9 Moqpondass SEZ Gilgit-Baltistan

Infrastructure being laid down on all those economic zones. The next phase of CPEC development involves industrial development.

5) Fiber optic :

The committee was further informed that the $44 million Optical Fiber Cable (OFC) project, directly connecting Pakistan and China would be completed under the China Pakistan Economic Corridor (CPEC) by December 31, 2018, providing safest internet route to both countries, said SCO officials.



CONCLUSION
To sum up, the above analysis shows that CPEC projects are most likely to bring positive net economic and social benefits to Pakistan, provided they strengthen there response and absorptive capacity in terms of business model, institutions and policies.

Those who think that CPEC would be a game-changer should wait to make such bold claims until Pak is able to design and implement export led investment in the manufacturing sector in the nine industrial zones to be built under CPEC. At present, the average annual investment of $3-4 billion under the CPEC amounts to only 6-8pc of our annual investment spending of $45-50 billion.

Similarly, those who are propagating unnecessary fear and despair by arguing that Pakistan would become so entrapped in debt burden that it would lose its economic sovereignty and forced to cede its territory i.e., Gwadar port to China are sadly mistaken.

The analysis above clearly shows that Pakistan can easily absorb even the peak payments from its own foreign exchange earnings but it would require concerted efforts to keep the export growth rate above 10pc annually. This is not such a difficult goal to achieve as we have done so in the past and under the new energy supply scenario, which pushed our exports down the curve, it is possible to get back on that path.



I would like members input on the above. Thanks

By: ThanatosI~

 

[Asian.Century]

Slow but achieved alot, CPEC has moved on and on, despite all the pressures.

I must say great job!

 

[The SC]

Slowly but surely getting there,,
All the best..

 

[AZADPAKISTAN2009]

We still need to see a Marina for Local Fisherman community so they have a professional docks and residential Areas for their community

Desalination plant GAWADAR

China's approach Help other Humans and help Humanity

 

[Kuru]

The 5 years of CPEC didn't help the Pak Economy it seems:

https://twitter.com/x/status/1005850399864172545

 

[kmc_chacko]

The 5 years of CPEC didn't help the Pak Economy it seems:

https://twitter.com/x/status/1005850399864172545

Do you think, DMICDC will be also a failure project ?

What i am saying is any project, it might be CPEC or DMICDC will not be successful unless until its full economic cycle will complete and CPEC is still under implementation stage and as per estimation by 2030 this project will be fully implemented and we can see full effects of the project.

and I believe that until that time its waste to discuss its effectiveness, other than general discussion purpose.

To sum up, the above analysis shows that CPEC projects are most likely to bring positive net economic and social benefits to Pakistan, provided they strengthen there response and absorptive capacity in terms of business model, institutions and policies.

Economic Effects
a) Direct - can say only after 2030
b) InDirect - Its fact that Pakistan economy is not showing its effect as it is CPEC initial stages

Social Effects
a) Short Term - it is not good from my point (i conclude it after seeing video where Chinese people not accepting Pakistan Laws)
b) Long Term - Every civilization or country changed after outsiders interference (both economically, culturally) and we are the example how we are developed from Indus Vally civilization to South Asian Developing Countries

Those who think that CPEC would be a game-changer should wait to make such bold claims until Pak is able to design and implement export led investment in the manufacturing sector in the nine industrial zones to be built under CPEC. At present, the average annual investment of $3-4 billion under the CPEC amounts to only 6-8pc of our annual investment spending of $45-50 billion.

yes, wait till 2030, but I believe CPEC will be a true game changer for Pakistan if it is implemented properly

Similarly, those who are propagating unnecessary fear and despair by arguing that Pakistan would become so entrapped in debt burden that it would lose its economic sovereignty and forced to cede its territory i.e., Gwadar port to China are sadly mistaken.

This is also true considering Chinese investments is different countries, but, Pakistan is a sovereign country and different from all other nations which are compared and I believe though politicians are milking Pakistan now, but when situation arises they will rise above this selfishness eg. India during 90s and act for the sake of their motherland.

The analysis above clearly shows that Pakistan can easily absorb even the peak payments from its own foreign exchange earnings but it would require concerted efforts to keep the export growth rate above 10pc annually. This is not such a difficult goal to achieve as we have done so in the past and under the new energy supply scenario, which pushed our exports down the curve, it is possible to get back on that path.

Yes, True and my final conclusion is whoever whatever they say but time will tell whether its success or failure but one thing i can say clearly is this project will change India and Pakistan relations forever.

 

[MrSato1]

The 5 years of CPEC didn't help the Pak Economy it seems:

https://twitter.com/x/status/1005850399864172545

You people seem to be expeting a flipping miracle. The base/foundation of the projects havent even been finished yet you seem to have expected a skyscraper. How longs to it take to make a single skyscraper by the way? you south asians are way too unrealistic.

 

[AZADPAKISTAN2009]

Nice and steady wait till we get to Karachi

 

[258963147harry]

why the hell Indians friends are so worried about Pakistan hmmmmmm all the time

 

[beijingwalker]

The 5 years of CPEC didn't help the Pak Economy it seems:

https://twitter.com/x/status/1005850399864172545

Infrastructure building is an investment, a good investment will lead to long term business gain. No investment, no progress. simple as that, money doesn't just fall on your lap.

 

[pzfz]

Infrastructure building is an investment, a good investment will lead to long term business gain. No investment, no progress. simple as that, money doesn't just fall on your lap.

True, but the Chinese should've been more insistent on the Pakis to invest in agri sector and structural reforms (like they were in the beginning). They let democracy-led politicians siphon money to projects like motorways and metros that are at best headaches for the economy of Pakistan. Soft infrastructure over hard (wasteful) infrastructure.

 

[Śakra]

Nice roads

 

[zip]

Great should learn from Chinese ... These are life savours for deteriorated Pakistani economy ,especially energy projects ..Now they have a chance to make amends for lost decade ..best of luck

 

[Chakar The Great]

Do you think, DMICDC will be also a failure project ?

What i am saying is any project, it might be CPEC or DMICDC will not be successful unless until its full economic cycle will complete and CPEC is still under implementation stage and as per estimation by 2030 this project will be fully implemented and we can see full effects of the project.

and I believe that until that time its waste to discuss its effectiveness, other than general discussion purpose.

To sum up, the above analysis shows that CPEC projects are most likely to bring positive net economic and social benefits to Pakistan, provided they strengthen there response and absorptive capacity in terms of business model, institutions and policies.

Economic Effects
a) Direct - can say only after 2030
b) InDirect - Its fact that Pakistan economy is not showing its effect as it is CPEC initial stages

Social Effects
a) Short Term - it is not good from my point (i conclude it after seeing video where Chinese people not accepting Pakistan Laws)
b) Long Term - Every civilization or country changed after outsiders interference (both economically, culturally) and we are the example how we are developed from Indus Vally civilization to South Asian Developing Countries

Those who think that CPEC would be a game-changer should wait to make such bold claims until Pak is able to design and implement export led investment in the manufacturing sector in the nine industrial zones to be built under CPEC. At present, the average annual investment of $3-4 billion under the CPEC amounts to only 6-8pc of our annual investment spending of $45-50 billion.

yes, wait till 2030, but I believe CPEC will be a true game changer for Pakistan if it is implemented properly

Similarly, those who are propagating unnecessary fear and despair by arguing that Pakistan would become so entrapped in debt burden that it would lose its economic sovereignty and forced to cede its territory i.e., Gwadar port to China are sadly mistaken.

This is also true considering Chinese investments is different countries, but, Pakistan is a sovereign country and different from all other nations which are compared and I believe though politicians are milking Pakistan now, but when situation arises they will rise above this selfishness eg. India during 90s and act for the sake of their motherland.

The analysis above clearly shows that Pakistan can easily absorb even the peak payments from its own foreign exchange earnings but it would require concerted efforts to keep the export growth rate above 10pc annually. This is not such a difficult goal to achieve as we have done so in the past and under the new energy supply scenario, which pushed our exports down the curve, it is possible to get back on that path.

Yes, True and my final conclusion is whoever whatever they say but time will tell whether its success or failure but one thing i can say clearly is this project will change India and Pakistan relations forever.

I can dissect your post, but its all BS so i would ignore it. Just goes to show how ignorant indians are, have no sense of CPEC or whats going on in Pakistan.

 

[LeGenD]

My greatest concern is coal power plants [1] and enormous spending on projects like METRO [2].

[1] Coal power plants will exacerbate war crisis in Pakistan.

[2] An entire city could be improved with the cost of Orange Metro alone.

Conversely, Gwadar is wonderful; roads necessary; and Solar projects are welcome.

My assessment is that some projects are good and some not suitable for Pakistani needs. CPEC should have been planned more carefully but we lack in Think Tanks and/or certain quarters trying to make profits.