Top Games's video: CPEC Impact and Pakistan- CPEC

An IPRI Review meeting on “Completion of CPEC: Impact on Pakistan’s Strategic Position and Economy” was held at IPRI conference hall on April 26, 2016. China-Pakistan Economic Corridor (CPEC), linking Gwadar to China’s Western city of Kashgar was viewed optimistically. It was reiterated that CPEC would generate economic activity, open vistas and opportunities for Pakistan and the region at large. Further, China’s access to the markets of South Asia and Middle East would be enhanced. The corridor would also diversify China’s energy routes, and lessen the country’s dependence on the Strait of Malacca. o Historically, the very concept of a corridor, has been a cause of development in different parts of the world. In the post-1945 period, European Economic Community was formed (1957). Later, European Union (EU) was created in November 1993. Currently, the free movement of people, goods, services and capital are the pillars of EU. The idea to establish Exclusive Economic Zones (EEZ) comprising Cambodia, Laos, Vietnam and Myanmar under the Greater Mekong Sub-region Economic Cooperation Programme is also akin to the concept of establishing economic corridor for promoting trade and people to people interaction. o The CPEC will be a channel for the Maritime Silk Route that imagines connecting three billion people in Asia, Africa and Europe. As stated by President Xi Jinping: “The China-Pakistan Economic Corridor is located where the Silk Road Economic Belt and the 21stCentury Maritime Silk Road meet.” o The construction of CPEC would be along the Karakorum Highway build during the 1970s from the Pakistani town of Havalian in Hazara division to Khunjerab Pass, the border of China and Pakistan. o In 2010, China declared Kasghar, an important transit point on the ancient Silk Route and a gateway between China and Pakistan, as a Special Economic Zone (SEZ) with the idea to develop the Chinese Western province of Xinjiang into a major trading hub leading to energy and economic integration with South and Central Asia. The SEZs in the Pakistani port of Gwadar and Kashgar and the prospects of rail and road connectivity between proposed SEZs would develop great economic, political and strategic potential for the region. The concept of CPEC though started from 2006, was formally presented by Pakistani Prime Minister Nawaz Sharif during his visit to China in November 2014. The two countries signed 19 agreements and Memorandum of Understanding (MoU) to boost the bilateral ties between China and Pakistan in various fields including energy and basic infrastructure sectors. o CPEC is equally beneficial to China. The port of Shanghai is 10,000 kilometres from the Strait of Hormuz by sea via the Malacca route while Kashgar, the capital of Xinjiang, is about 4500 kilometres from the port of Shanghai. However, Kashgar is 2800 kilometres from Gwadar via the envisaged CPEC and hence just over 3400 kilometres from the Strait of Hormuz. It makes plain economic sense for Beijing to prefer this route only on the basis of the time distance equation. However, besides economy China also faces security issues which make the Gwadar-Kashgar route important. The ships travelling from the Persian Gulf or the Red Sea have to pass close to the Indian Territory as well as through the Malacca Strait. China is fully aware of the vulnerability of the ships throughout the long sea passage and particularly through the Malacca which is termed by the Chinese as the “Malacca Dilemma”. China is, therefore, looking for alternative options to safeguard its supplies and Gwadar provides the most secure and economically feasible alternative to link with this side of the world.