The volume of trade between the two neighboring countries Pakistan and china has increased to $ 16 billion. Moreover, China’s export to Pakistan has increased by 10% during the five year 2010-2015 which make a total boost up of china’s share in Pakistan’s ultimately exports from 4% to 9 during the aforementioned fiscal year 2010-2015. One of the most recent economical milestones achieved in this bilateral relationship is the passing out of memorandum of economical understanding on the commencement of China-Pakistan Economic Corridor (CPEC). This mega economical project of trade is expected to take the bilateral relationship between the two states to new heights. Pakistan has very high hopes on this mega economical project which will set Pakistan on the road of development, economical stability and will help bridge Pakistan’s power shortfall. This mega economical corridor will open the doors of trade all over the world through Chinese operated Gwadar Port in the country’s south
CPEC consisted of the following aspects
- CPEC is 3218 Kilometer long route which is still under development and expected to build over the next several years
- The total estimated cost of this mega economical project is expected to be US$ 75 billion, out of which US$ 45 billion plus will ensure that it should become operational by 2020
- The remaining investment will be invested on energy generation and others infrastructure developments
- This aforementioned US$ 45 billion will pass through the beautiful Gilgit Baltistan region in the north of Pakistan and will connect Kashgar in China’s western province Xinjiang.
- This mega project is divided into two phases:
- The first phase is the completion of Gwadar International Airport
- The next phase is the further development in the Gwadar Port
- These project also include the development and expansion of the Karakoram Highway: the road which connects Pakistan and China
- In order to ensure better communication between the two countries, the placement of fiber-optic line will also be ensured
The prospects which are attached within the brackets of this mega project are highlighted below:
- This implemented project would exceeds all the foreign direct investment in Pakistan and would be equivalent to the 17% of Pakistan’s 2015 gross domestic products
- This mega project will open up 700,000 Jobs opportunities during the timeframe of 2015-2030 and will definitely add to the country’s growth rate up to 2.5% points
- It will not open doors to immense opportunities not only to Pakistan but will equally beneficial for china as well. It will enable china to physically connect china to its market in Asia, Europe and beyond.
- It will give china the shortest route for transportation of its products and will save costly transportation and shipments overheads.
- According to the agreement, after proper and successful implementation of this project up to 10400 Megawatts of energy will be provided and according to the China Daily, these mega projects will add on up to 16400 Megawatts of energy cumulatively.
- As per policy regarding infrastructure, the Karachi-Lahore motorway is in progress for development which is 1100 kilometer long motorway and will save a lot of time and money for transportation and other aspects related to it.
- The Karakoram Highway between Rawalpindi and the Chinese border will be reconstructed completely and will add more to economical stability of Pakistan through convenient transportation and commercial aspects
- The Karachi-Peshawar main railway track will be upgraded and it will be ensured that the train would travel up to 160 kilometers per hour
- The railway network will also be extended to china’s southern Xinjiang railway in Kashgar which will connect Pakistan and china through railway track
Furthermore, there are many beneficial aspects which are associated with this mega project. This project will definitely bring economical revolution in Pakistan and china and will put forward Pakistan on the way of development and progress.