China Pakistan Economic Corridor: A Primer

Background

The China-Pakistan Economic Corridor (CPEC) is being developed as part of the strategic partnership between the governments of China and Pakistan. In principle, understanding on building the economic corridor from Pakistani port city of Gwadar to the Western Chinese city Kashgar was developed in 2007 between China and Pakistan but it was formally announced during the visit of Prime Minister of Pakistan to China in July, 2013. CPEC is around 2,700km long within the territory of Pakistan, crossing snow-caped mountains, narrow valleys, lush green fields, sand dunes and dry hills. In addition, the corridor provides Chinese traders a link to deliver their goods to the international markets through the Gwadar Port. The $46 billion CPEC presents a package of energy, communication and infrastructure projects, knowledge and technology cooperation, cultural exchange, and many other facets of “shared prosperity” between China and Pakistan.

Introduction

This report “China Pakistan Economic Corridor: A Primer” brings together, for the first time in Pakistan, facts, policies, perceptions and implementation status at one place about the most important business deal for the country. The report provides a broad overview of economic significance of economic corridors, identifies parameters of their success, highlights salient features of the institutional and legal framework that governs CPEC, identifies business opportunities alongside the route, highlights concerns from Pakistan’s private sector, updates on the implementation status of CPEC and suggests next steps.

The report is based on a review of available literature, background meetings with the senior government officials and representatives from business associations. PRIME Institute wishes to thank Professor Ahsan Iqbal, Federal Minister for Planning, Development & Reforms for his guidance and Major General (retd.) Zahir Shah, Project Director CPEC Coordination Cell, Dr. Faheem ul Islam, Member Private Sector Development Planning Commission, Dr. Nadeem Javaid, Chief Economist, Mr. Adil Sharif, Senior Manager Legal Private Power Infrastructure Board (PPIB), Mr. Abdul Aleem, Secretary General Overseas Investors Chamber of Commerce and Industry, Mr. Fuad Ishaq, President Khyber Pakhtunkhwa Chamber of Commerce and Industry and many other respondents for sharing their views. We also wish to thank all participants of the interactive session China-Pak Economic Corridor: Opportunities, Challenges and Strategic Significance held recently at the Planning Commission.