China–Pakistan Economic Corridor#Eastern alignment
{{Short description|Network of infrastructure projects}}
{{EngvarB|date=April 2016}}
{{Use dmy dates|date=August 2024}}
{{Infobox project
| name =China–Pakistan Economic Corridor
| logo = 200px
100px File:Flag of Pakistan.svg
| mission_statement = Securing Energy Import and Trade Boost for China,{{cite news |author1=Jon Boone |title=China president in Pakistan to sign £30bn 'land corridor' agreement |url=https://www.theguardian.com/world/2015/apr/20/china-president-xi-jinping-pakistan-land-corridor-agreement |access-date=3 November 2022 |work=The Guardian |date=20 April 2015 |location=Islamabad}}
Infrastructure Development for Pakistan
| type = Economic corridor
| location = Pakistan: Khyber Pakhtunkhwa, Gilgit-Baltistan, Punjab, Balochistan, Sindh & PAK/AJK
China: Xinjiang
| established = {{start date and age|df=yes|p=y|2015|04|20}}{{cite encyclopedia |author1=Shayan Rauf |title=China-Pakistan Economic Corridor (CPEC) |url=https://www.britannica.com/topic/China-Pakistan-Economic-Corridor |encyclopedia=Encyclopædia Britannica |access-date=4 November 2022}}
| funding = $62 billion{{Cite web|url=https://fp.brecorder.com/2017/04/20170413168092/|title=Investment under CPEC rises to $62 billion: Zubair |work=Business Recorder}}
| current_status = A few projects are operational, while Special Economic Zones are under construction (as of 2020).{{Cite web|url=https://dunyanews.tv/en/Business/527369-Works-on-CPEC-projects-to-be-accelerated-in-2020-Asad-Umar|title=Works on CPEC projects to be accelerated in 2020: Asad Umar|publisher=Dunya News|date=14 February 2008 }}{{Cite web|url=https://tribune.com.pk/story/2134657/2-work-cpec-projects-accelerated/|title=Work on CPEC projects to be accelerated|date=11 January 2020|website=The Express Tribune}}
}}
China–Pakistan Economic Corridor (CPEC; {{lang-zh|c=中巴经济走廊|p=Zhōng bā jīngjì zǒuláng}}; {{langx|ur|چین پاکستان اقتصادی راہداری}}) is a 3,000 km Chinese infrastructure network project currently under construction in Pakistan. This sea-and-land-based corridor aims to secure and shorten the route for China’s energy imports from the Middle East,{{cite news |title=Backgrounder: China-Pakistan Economic Corridor |url=https://www.chinadaily.com.cn/world/2015xivisitpse/2015-04/22/content_20503693.htm |access-date=4 November 2022 |publisher=China Daily Information Co (CDIC) |date=22 April 2015}} avoiding the existing path through the Straits of Malacca between Malaysia and Indonesia, which could be blockaded in case of war, thereby threatening China’s energy-dependent economy.{{cite news |author1=The Editorial Board |title=China's Big Plunge in Pakistan |url=https://www.nytimes.com/2015/04/23/opinion/chinas-big-plunge-in-pakistan.html |access-date=3 November 2022 |work=The New York Times |date=23 April 2015}}{{cite news |author1=Lucy Hornby |author2=Charles Clover |date=12 October 2015 |title=China's Great Game: Road to a new empire |work=Financial Times |url=https://www.ft.com/content/6e098274-587a-11e5-a28b-50226830d644 |access-date=3 November 2022}} Developing a deep-water port at Gwadar in the Arabian Sea and establishing a robust road and rail network from this port to the Xinjiang region in western China would serve as a shortcut, enhancing trade between Europe and China. In Pakistan, the project aims to address electricity shortages, develop infrastructure, and modernize transportation networks, while also transitioning the economy from an agriculture-based structure to an industrial one.{{Cite web |date=31 December 2022 |title=Pakistan has a lot to learn from China: Iqbal |url=https://tribune.com.pk/story/2393576/pakistan-has-a-lot-to-learn-from-china-iqbal |access-date=7 January 2023 |website=The Express Tribune}}
CPEC is seen as the main plank of China's Belt and Road Initiative, and as of early 2024, is the BRI's most developed land corridor. CPEC's potential impact on Pakistan has been compared to that of the Marshall Plan, undertaken by the United States in the post-war Europe.{{cite news |last1=Sukumar |first1=Arun Mohan |date=10 January 2017 |title=What the Marshall Plan Can Teach India About the China-Pakistan Economic Corridor |agency=The Wire (India) |url=https://thewire.in/98310/marshall-plan-india-china-pakistan-economic-corridor/ |access-date=22 January 2017 |quote=The CPEC may be a bilateral endeavour, but New Delhi cannot ignore its spillover effects on regional governance. The inequities in the China-Pakistan relationship and the nature of proposed Chinese investment in the CPEC merit a comparison with the Marshall Plan, the most successful foreign assistance project of the 20th century.}}{{cite news |last1=Muhammad |first1=Salim |date=6 November 2016 |title=Marshall Plan for Pakistan |agency=The News on Sunday |url=http://tns.thenews.com.pk/marshall-plan-pakistan/ |url-status=dead |access-date=22 January 2017 |archive-url=https://web.archive.org/web/20170202012815/http://tns.thenews.com.pk/marshall-plan-pakistan/#.WIUjuLYrKdI |archive-date=2 February 2017}}{{cite news |last1=Curran |first1=Enda |date=7 August 2016 |title=China's Marshall Plan |publisher=Bloomberg News |url=https://www.bloomberg.com/news/articles/2016-08-07/china-s-marshall-plan |access-date=22 January 2017 |quote=China's ambition to revive an ancient trading route stretching from Asia to Europe could leave an economic legacy bigger than the Marshall Plan or the European Union's enlargement, according to a new analysis.}}
Following the proposal by Chinese premier Li Keqiang in 2013, once operational, the existing 12,000 km journey for oil transportation to China will be reduced to just 2,395 km.{{cite news |author1=Wang Ting |title=China gets 40-year rights at Pakistani port – World |url=https://www.chinadaily.com.cn/world/2015-04/14/content_20433493.htm |access-date=4 November 2022 |publisher=China Daily Information Co (CDIC) |date=14 April 2015}} This is estimated to save China $2 billion per year.{{cite news |author1=Dr Manzoor Ali Isran |title=Six concerns PML-N government must address about CPEC |url=https://tribune.com.pk/story/1308699/six-concerns-pml-n-government-must-address-cpec/ |access-date=30 December 2022 |work=The Express Tribune |date=27 January 2017}} China had already acquired control of Gwadar Port on 16 May 2013.{{cite news |author1=Cui Jia |date=28 June 2014 |title=China studying new Silk Road rail link to Pakistan |url=https://usa.chinadaily.com.cn/business/2014-06/28/content_17621848.htm |access-date=4 November 2022 |publisher=China Daily Information Co (CDIC)}} Originally valued at $46 billion, the value of CPEC projects was $62 billion as of 2020.{{cite web|url=https://timesofindia.indiatimes.com/blogs/rakshakindia/the-cpec-challenge-and-the-india-china-standoff-an-opportunity-for-war-or-peace/|title=The CPEC challenge and the India-China standoff: An opportunity for war or peace?|website=The Times of India|date=9 August 2020}} By 2022, Chinese investment in Pakistan had risen to $65 billion.{{cite news |author1=Asif Shahzad |title=Pakistan's Sharif lands in Beijing to discuss economy, debt |url=https://www.reuters.com/world/asia-pacific/pakistans-sharif-lands-beijing-discuss-economy-debt-2022-11-01/ |access-date=7 November 2022 |work=Reuters |date=2 November 2022 |location=Islamabad}} China refers to this project as the revival of the Silk Road.{{cite journal |author1=Muhammad Zahid Ullah Khan |author2=Minhas Majeed Khan |title=China-Pakistan Economic Corridor: Opportunities and Challenges |journal=Strategic Studies |year=2019 |volume=39 No.2 |issue=Summer 2019 |pages=67–82 |url=https://www.jstor.org/stable/48544300 |access-date=23 November 2022 |publisher=Institute of Strategic Studies |location=Islamabad|jstor=48544300 }} CPEC envisages rapidly upgrading Pakistan's infrastructure and thereby strengthening its economy by constructing modern transportation networks, numerous energy projects, and special economic zones.{{cite web|url=http://herald.dawn.com/news/1153597/cpec-the-devil-is-not-in-the-details|title=CPEC: The devil is not in the details|archive-url=https://web.archive.org/web/20161123090242/http://herald.dawn.com/news/1153597/cpec-the-devil-is-not-in-the-details|archive-date=23 November 2016|url-status=dead|access-date=10 February 2017}}{{cite web|url=http://tribune.com.pk/story/846370/economic-corridor-chinese-official-sets-record-straight/|title=Economic corridor: Chinese official sets record straight|date=2 March 2015|newspaper=The Express Tribune|archive-url=https://web.archive.org/web/20150303061541/http://tribune.com.pk/story/846370/economic-corridor-chinese-official-sets-record-straight/|archive-date=3 March 2015|url-status=live}}{{cite news|title=China's Xi in Pakistan to cement huge infrastructure projects, submarine sales|first1=Tom|last1=Hussain|newspaper=McClatchy News|date=19 April 2015|location=Islamabad|access-date=20 April 2015|publisher=mcclatchydc|url=https://www.mcclatchydc.com/news/nation-world/world/article24783286.html}}{{cite news|url=http://www.dawn.com/news/1287040|title=With a new Chinese loan, CPEC is now worth $54bn|work=Dawn|date=30 September 2016|access-date=19 November 2016|first=Khaleeq|last=Kiani}}
The potential industries being set up in the CPEC special economic zones include food processing, cooking oil, ceramics, gems and jewelry, marble, minerals, agriculture machinery, iron and steel, motorbike assembling, electrical appliances, and automobiles.{{Cite web |author=Muhammad Zamir Assadi |date=1 February 2023 |title=CPEC unfolding opportunities for Pakistan |url=https://pakobserver.net/cpec-unfolding-opportunities-for-pakistan-by-muhammad-zamir-assadi/ |access-date=6 February 2023 |website=Pakistan Observer}}
History
=Background=
Plans for a corridor stretching from the Chinese border to Pakistan's deepwater ports on the Arabian Sea date back to the 1950s and motivated the construction of the Karakoram Highway beginning in 1959.{{cite book|title=Roads and Rivals: The Political Uses of Access in the Borderlands of Asia|date=June 1989|publisher=Cornell University Press|isbn=978-0801422201|page=191|author=Mahnaz Z. Ispahani|edition=First}} Chinese interest in Pakistan's deep-water harbor at Gwadar was rekindled in 2002, leading to construction at Gwadar port, which was completed in 2006. Expansion of Gwadar Port then ceased due to political instability in Pakistan following the fall of General Pervez Musharraf and the subsequent conflict between the Pakistani state and Taliban militants.{{cite news|last1=Abrar|first1=Mian|title=Between the devil and deep Gwadar waters|url=http://www.pakistantoday.com.pk/2015/12/05/comment/between-the-devil-and-deep-gwadar-waters/|access-date=6 December 2015|work=Pakistan Today|date=4 December 2015}}
Since the early 1990s, the IMF has provided more than a dozen bailouts to Pakistan to save its dwindling economy, which has struggled for 22 of the past 30 years to meet the austerity measures demanded by the IMF. Nadeem-ul-Haque, a former IMF official and former deputy chairman of the Pakistani government's Planning Commission, wrote, "The pattern is always the same. With the Fund's blessing, the government goes on a shopping spree, taking out costly loans for expensive projects, thus building up even more debt and adding new inefficiencies. After a few years, another crisis ensues, and it is met by another IMF program."{{cite news |author=Ishaan Tharoor |date=10 August 2018 |title=Pakistan may be the next victim of China's new 'imperialism' |newspaper=The Washington Post |url=https://www.washingtonpost.com/world/2018/08/10/pakistan-may-be-next-victim-chinas-new-imperialism/ |access-date=2 November 2022}} The Pakistani establishment views Chinese loans as an alternative to IMF loans.{{cite news |author1=Yvonne Lau |title=China gave tens of billions in secretive 'emergency loans' to vulnerable nations, emerging as world's major creditor and IMF competitor |url=https://fortune.com/2022/09/12/china-gave-tens-of-billions-in-secretive-emergency-loans-to-vulnerable-nations-emerging-as-worlds-major-creditor-and-imf-competitor/ |access-date=2 November 2022 |work=Fortune |date=13 September 2022}}
In 2013, then Pakistani President Asif Ali Zardari and Chinese Premier Li Keqiang decided to further enhance mutual connectivity.{{cite web|url=http://gbtimes.com/china/li-keqiang-china-pakistan-ties-unbreakable-economic-corridor-planned|title=Li Keqiang: China-Pakistan ties 'unbreakable', economic corridor planned|date=23 May 2013|work=gbtimes.com|archive-url=https://web.archive.org/web/20140312032536/http://gbtimes.com/china/li-keqiang-china-pakistan-ties-unbreakable-economic-corridor-planned|archive-date=12 March 2014}} A memorandum of understanding on cooperation for a long-term plan for the China–Pakistan Economic Corridor was signed by Xu Shao Shi and Shahid Amjad Chaudhry.{{Cite web|url=http://www.nihao-salam.com/news-detail.php?id=Mzk5NA==|archive-url=https://web.archive.org/web/20230311130159/http://www.nihao-salam.com/news-detail.php?id=Mzk5NA==|url-status=dead|archive-date=11 March 2023|title=Pakistan, China sign agreements, MoUs on Economic Corridor Plan, maritime cooperation|last=Salam|first=Nihao|website=nihao-salam.com|access-date=18 May 2017}}
In February 2014, Pakistani President Mamnoon Hussain visited China to discuss plans for an economic corridor in Pakistan.{{Cite web|first=Shannon |last=Tiezzi|url=https://thediplomat.com/2014/02/china-pakistan-flesh-out-new-economic-corridor/|title=China, Pakistan Flesh Out New 'Economic Corridor'|date=20 February 2014 |work=The Diplomat|access-date=23 April 2015}} Two months later, Pakistani Prime Minister Nawaz Sharif met with Premier Li Keqiang in China to discuss further plans,{{cite web|url=http://articles.economictimes.indiatimes.com/2014-04-09/news/48999704_1_nawaz-sharif-china-pakistan-economic-corridor-li-keqiang|archive-url=https://web.archive.org/web/20140413034227/http://articles.economictimes.indiatimes.com/2014-04-09/news/48999704_1_nawaz-sharif-china-pakistan-economic-corridor-li-keqiang|url-status=dead|archive-date=13 April 2014|title=Nawaz Sharif, Li Keqiang to firm up plans for China-Pakistan Economic Corridor |newspaper=The Times of India}} resulting in the full scope of the project being devised under Sharif's tenure. In November 2014, the Chinese government announced its intention to finance Chinese companies as part of its $45.6 billion energy and infrastructure projects in Pakistan as part of CPEC.
Although China and Pakistan signed the official MoUs in 2015, the first details of the long-term plan under CPEC were publicly disclosed in 2017 when a Pakistani media outlet revealed access to the original documents.{{cite news |author1=Khurram Husain |title=Exclusive: CPEC master plan revealed |url=https://www.dawn.com/news/1333101 |access-date=30 December 2022 |newspaper=Dawn |date=14 May 2017 |location=Pakistan}}
=Announcement of CPEC=
{{Main|2015 Xi Jinping visit to Pakistan}}
General Secretary of the Chinese Communist Party Xi Jinping described his "fate-changing visit" to Pakistan for signing the CPEC agreement by saying, "I feel as if I am going to visit the home of my brother,"{{cite news |author1=Ankit Panda |title=Xi Jinping on Pakistan: 'I Feel As If I Am Going to Visit the Home of My Own Brother' |url=https://thediplomat.com/2015/04/xi-jinping-on-pakistan-i-feel-as-if-i-am-going-to-visit-the-home-of-my-own-brother/ |access-date=4 November 2022 |work=The Diplomat |date=20 April 2015}} and claimed that the friendship between the two nations was "higher than mountains, deeper than oceans, and sweeter than honey." China frequently uses terms like "iron brothers" and "all-weather friends" to describe its relationship with Pakistan.{{cite book |author1=James Schwemlein |url=https://www.jstor.org/stable/resrep20244 |title=Strategic Implications of the China-Pakistan Economic Corridor |date=1 December 2019 |publisher=US Institute of Peace |isbn=9781601277923 |location=Washington |format=Research Report 459 |access-date=23 November 2022}} On 20 April 2015, Pakistan and China signed an agreement to commence work on the $46 billion project, which is roughly 20% of Pakistan's annual GDP, with approximately $28 billion worth of fast-tracked "Early Harvest" projects to be developed by the end of 2018.{{cite press release|url=http://www.pc.gov.pk/?cat=12|title=Ministry of Planning, Development & Reforms|publisher=pc.gov.pk}}{{cite news|title=Here's why Indian strategists should worry about China's $46 billion funding to Pakistan|url=http://www.firstpost.com/world/heres-why-indian-strategists-should-worry-about-chinas-46-billion-offering-to-pakistan-2205216.html|access-date=22 April 2015|publisher=Firstpost|date=22 April 2015}}
Under CPEC, a vast network of highways and railways will be built across Pakistan. The government estimates that inefficiencies stemming from Pakistan's largely dilapidated transportation network cause a loss of 3.55% of the country's annual GDP.{{cite news|title=Transport policy: need of the day|url=https://www.dawn.com/news/1314522|access-date=7 April 2017|work=Dawn|date=13 February 2017|quote="Dr Nadeem-ul-Haque was deputy chairman of the Planning Commission – saying it would reverse a colossal loss of 3.5pc of GDP that Pakistan was incurring due to poor transport infrastructure.}} Modern transportation networks built under CPEC will link seaports in Gwadar and Karachi with northern Pakistan, as well as points further north in western China and Central Asia.{{cite news|last=Shah|first=Saeed|title=China's Xi Jinping Launches Investment Deal in Pakistan|url=https://www.wsj.com/articles/chinas-xi-jinping-set-to-launch-investment-deal-in-pakistan-1429533767|newspaper=The Wall Street Journal|date=20 April 2015|access-date=23 April 2015}} A 1,100-kilometre-long motorway will be built between the cities of Karachi and Lahore,{{cite web|url=http://www.dawn.com/news/1116948|title=Karachi to Lahore Motorway Project Approved|year=2014|website=Dawn|access-date=5 September 2014}} while the Karakoram Highway from Hasan Abdal to the Chinese border will be completely reconstructed and overhauled.{{cite journal|last1=Rakisits|first1=Claude|title=A Path to the Sea: China's Pakistan Plan|journal=World Affairs Journal|date=Fall 2015|url=http://www.worldaffairsjournal.org/article/path-sea-china%E2%80%99s-pakistan-plan|access-date=6 March 2016|archive-url=https://web.archive.org/web/20160306234054/http://www.worldaffairsjournal.org/article/path-sea-china%E2%80%99s-pakistan-plan|archive-date=6 March 2016|url-status=usurped}} The currently stalled Karachi–Peshawar main railway line will also be upgraded to allow for train travel at up to 160 km per hour by December 2019.{{cite news|url=http://paktribune.com/news/Railway-track-project-planned-from-Karachi-to-Peshawar-275016.html|title=Railway track project planned from Karachi to Peshawar|date=13 November 2015|work=Pakistan Tribune|access-date=6 March 2016}}{{cite news|url=http://nation.com.pk/national/22-Jun-2015/cpec-may-get-extra-billion-dollars|title=CPEC may get extra billion dollars|date=22 June 2015|work=The Nation|location=Pakistan|access-date=11 December 2015}} Pakistan's railway network will also be extended to eventually connect to China's Southern Xinjiang Railway in Kashgar.{{cite news|url=http://www.scmp.com/business/companies/article/1877882/chinese-firm-takes-control-gwadar-port-free-trade-zone-pakistan|title=Chinese firm takes control of Gwadar Port free-trade zone in Pakistan|date=11 November 2015|work=South China Morning Post|last1=Zhen|first1=Summer|access-date=11 December 2015}} The estimated $11 billion required to modernize transportation networks will be financed by subsidized concessionary loans.{{Cite web|url=https://asiatimes.com/new-east-india-company-making/|title=A new 'East India Company' in the making?|last=Salman|first=Rafi|date=23 October 2016|website=Asia Times|access-date=22 November 2016}}
Over $33 billion worth of energy infrastructure is set to be constructed by private consortia to help alleviate Pakistan's chronic energy shortages,{{cite news|last1=Malik|first1=Ahmad Rashid|title=A miracle on the Indus River|url=https://thediplomat.com/2015/12/a-miracle-on-the-indus-river/|access-date=11 December 2015|agency=The Diplomat|date=7 December 2015}} which regularly exceed 4,500 MW,{{cite news|title=Electricity shortfall increases to 4,500 MW|url=http://dunyanews.tv/en/Pakistan/286627-Electricity-shortfall-increases-to-4500-MW|access-date=11 December 2015|publisher=Dunya News|date=29 June 2015}} and have reduced Pakistan's annual GDP by an estimated 2–2.5%.{{cite news|url=https://blogs.wsj.com/washwire/2015/07/09/pakistans-other-national-struggle-its-energy-crisis/|title=Pakistan's Other National Struggle: Its Energy Crisis|last1=Kugelman|first1=Michael|date=9 July 2015|work=The Wall Street Journal|access-date=11 December 2015}} By the end of 2018, over 10,400 MW of generating capacity is expected to be brought online, with the majority developed as part of CPEC's fast-tracked "Early Harvest" projects.{{cite news|title=Parliamentary body on CPEC expresses concern over coal import|url=http://www.dailytimes.com.pk/national/19-Nov-2015/parliamentary-body-on-cpec-expresses-concern-over-coal-import|access-date=11 December 2015|work=Daily Times|date=19 November 2015|archive-url=https://web.archive.org/web/20151222105640/http://www.dailytimes.com.pk/national/19-Nov-2015/parliamentary-body-on-cpec-expresses-concern-over-coal-import|archive-date=22 December 2015|url-status=dead}} A network of pipelines for transporting liquefied natural gas and oil will also be laid, including a $2.5 billion pipeline between Gwadar and Nawabshah to eventually transport gas from Iran.{{cite news|last1=Shah|first1=Saeed|title=China to Build Pipeline From Iran to Pakistan|url=https://www.wsj.com/articles/china-to-build-pipeline-from-iran-to-pakistan-1428515277|access-date=6 December 2015|work=The Wall Street Journal|date=9 April 2015}} Electricity from these projects will primarily be generated from fossil fuels, though hydroelectric and wind-power projects are also included, as well as the construction of one of the world's largest solar farms.{{cite web|url=http://tribune.com.pk/story/859627/quaid-e-azam-solar-park-solar-energys-100mw-to-arrive-in-april/|title=Quaid-e-Azam Solar Park: Solar energy's 100 MW to arrive in April|date=27 March 2015|work=The Express Tribune}}
Should the initial $46 billion worth of projects be implemented, their value would be roughly equivalent to all foreign direct investment in Pakistan since 1970, and would represent 17% of Pakistan's 2015 gross domestic product.{{cite news|last1=Khan|first1=Bilal|title=Pakistan's economy is turning a corner|url=https://www.sc.com/BeyondBorders/pakistan-economy/|access-date=14 March 2016|agency=Standard Charter Bank|date=3 December 2015}} CPEC is seen as a central component of China's Belt and Road Initiative. At the start of the project, Pakistan assigned about 10,000 troops to protect Chinese investments, a number that increased to 15,000 active troops by 2016.
=Subsequent developments=
On 12 August 2015, in the city of Karamay, China and Pakistan signed 20 additional agreements worth $1.6 billion to further expand the scale and scope of CPEC.{{cite news|url=http://www.outlookindia.com/news/article/china-pakistan-sign-deals-worth-usd-16-billion-to-beef-up-cpec/909764|title=China, Pakistan Sign Deals Worth USD 1.6 Billion to Beef Up CPEC|magazine=Outlook|location=New Delhi|date=12 August 2015|access-date=13 August 2015}} Details of the plan remain opaque,{{cite news|last1=Tiezzi|first1=Shannon|title=The China-Pakistan Economic Corridor Gets Even More Ambitious|url=https://thediplomat.com/2015/08/the-china-pakistan-economic-corridor-gets-even-more-ambitious/|access-date=5 February 2016|publisher=The Diplomat|date=13 August 2016}} but it is reported to mainly focus on increasing energy generation capacity.{{cite news|title=China, Pakistan sign co-op agreements worth over 10 billion yuan|url=http://usa.chinadaily.com.cn/world/2015-08/12/content_21580572.htm|access-date=5 February 2016|agency=Xinhua News Agency|date=12 August 2015}}{{Better source needed|date=October 2021}} As part of the agreement, Pakistan and China have also agreed to cooperate in the field of space research.{{cite news|title=Pakistan, China to cooperate in space as part of Karamay declaration|url=http://www.dawn.com/news/1201240|access-date=5 February 2016|work=Dawn|date=19 August 2016}}
In September and October 2015, the United Kingdom announced two separate grants to Pakistan for the construction of roadways complementary to CPEC.{{cite web|url=http://tribune.com.pk/story/948870/uk-to-partner-in-cpec-provide-121-6-million-grant/|title=UK to Partner in CPEC, Provide $121.6 Million Grant|date=1 September 2015|author=Shahbaz Rana|website=The Express Tribune}}{{cite web|url=http://tribune.com.pk/story/977770/loan-for-gojra-shorkot-pakistan-adb-sign-178m-agreement-for-m-4-section/|title=Pakistan, ADB Sign $178M Agreement for M-4 Section|date=23 October 2015|author=Shahbaz Rana|website=The Express Tribune}} In November 2015, China incorporated CPEC into its 13th Five-Year Development Plan,{{cite web|url=http://www.pakistantoday.com.pk/2015/11/23/business/cpec-made-part-of-chinas-13th-5-year-development-plan-weidong/|title=CPEC Made Part of China's 13th Five-Year Development Plan: Weidong|website=Pakistan Today|date=23 November 2015}} and in December 2015, China and Pakistan agreed on an additional $1.5 billion investment to establish an information and technology park as part of CPEC.{{cite web|url=http://tribune.com.pk/story/1002185/pak-china-technology-park-on-anvil/|website=The Express Tribune|title=Pak-China 'Technology Park' on Anvil|date=2 December 2015}} On 8 April 2016, during a visit by Xinjiang Communist Party Chief Zhang Chunxian, companies from Xinjiang signed $2 billion in additional agreements with their Pakistani counterparts, covering infrastructure, solar power, and logistics.{{Cite web|url=http://tribune.com.pk/story/1081007/chinas-xinjiang-seals-pakistan-ties-with-2-billion-in-deals/|title=China's Xinjiang seals Pakistan ties with $2 billion in deals – The Express Tribune|website=The Express Tribune|date=7 April 2016|access-date=8 April 2016}}
The first convoy from China arrived in Gwadar on 13 November 2016, marking the formal commencement of CPEC operations.{{Cite news|url=http://www.dawn.com/news/1296016/|title=With Gwadar Set to Go Operational, CPEC Dreams Come True|date=13 November 2016|newspaper=Dawn|location=Pakistan|access-date=13 November 2016}} On 2 December 2016, the first cargo train departed from Yunnan, launching the direct rail and sea freight service between China and Pakistan. The train, loaded with 500 tonnes of commodities, left Kunming for the port city of Guangzhou, where the cargo was transferred to ships for transport to Karachi, thereby opening the new route.{{Cite news|url=http://tribune.com.pk/story/1250948/rail-sea-freight-service-open-china/|title=Rail, Sea Freight Service Open with China – The Express Tribune|date=2 December 2016|newspaper=The Express Tribune|access-date=2 December 2016}} The new rail and sea freight service is expected to reduce logistics costs, including transportation, by 50 percent.{{Cite news|url=https://en.dailypakistan.com.pk/headline/cpec-china-departs-first-cargo-train-for-karachi/|title=First cargo train under CPEC leaves China for Karachi|newspaper=Daily Pakistan Global|access-date=2 December 2016}}
In November 2016, China announced an additional $8.5 billion investment in Pakistan, with $4.5 billion allocated to upgrading Pakistan's main railway line from Karachi to Peshawar, including improvements to tracks, speed, and signaling, and $4 billion directed towards an LNG terminal and transmission lines to alleviate energy shortages.{{cite news|url=http://uk.reuters.com/article/uk-pakistan-economy-cpec-idUKKBN13I1Y2?il=0|archive-url=https://web.archive.org/web/20161124025117/http://uk.reuters.com/article/uk-pakistan-economy-cpec-idUKKBN13I1Y2?il=0|url-status=dead|archive-date=24 November 2016|title=Pakistan Says China to Make Extra $8.5 Billion Investments in Rail, Energy|first=Karin|last=Strohecker|work=Reuters|date=23 November 2016}} In February 2017, the Egyptian Ambassador to Pakistan expressed interest in CPEC cooperation.{{cite news|title=Egypt Expresses Desire to Join CPEC|url=https://www.newindianexpress.com/world/2017/feb/06/egypt-expresses-desire-to-join-cpec-1567544.html|access-date=6 March 2017|work=The New Indian Express|date=6 February 2017}} In January 2017, Chief Minister Pervez Khattak of Khyber Pakhtunkhwa stated that he had received assurances from Chinese investment companies of up to $20 billion in investments for various projects.{{cite news|title=Chinese Firms to Invest $20B in KP: Khattak|url=https://www.thenews.com.pk/print/177343-Chinese-firms-to-invest-20b-in-KP-Khattak|access-date=6 March 2017|work=The News|date=7 January 2017}} In March 2017, an agreement was signed for these projects, which include a $1.5 billion oil refinery, $2 billion in irrigation projects, a $2 billion motorway between Chitral and DI Khan, and $7 billion in hydroelectric projects.{{cite news|title=Khyber Pakhtunkhwa inks deals worth $20bn with Chinese companies|url=https://www.dawn.com/news/1318237|access-date=6 March 2017|work=Dawn|date=3 March 2017}}
As of September 2017, over $14 billion worth of projects were under construction.{{cite news|title=Massive Chinese Investment is a Boon for Pakistan|url=https://www.economist.com/news/asia/21728619-china-pakistan-economic-corridor-project-carries-risks-massive-chinese-investment-boon|access-date=8 September 2017|newspaper=The Economist|date=8 September 2017}} In March 2018, Pakistan announced that once the ongoing energy projects were completed, future CPEC energy initiatives would focus on hydropower.{{Cite news|url=https://www.dawn.com/news/1392836/energy-investments-under-cpec-shifted-to-hydropower-sector|title=Energy investments under CPEC shifted to hydropower sector|last=Kiani|first=Khaleeq|date=3 March 2018|work=Dawn|location=Pakistan|access-date=3 March 2018}}
In 2022, Federal Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal, criticized the CPEC Authority for failing to attract investments and called for its dissolution.{{cite news |title=CPEC body brought no investment |url=https://www.dawn.com/news/1705649 |access-date=2 November 2022 |agency=APP |work=Dawn |date=19 August 2022 |location=ISLAMABAD}} On 17 August 2022, Prime Minister Shehbaz Sharif approved, in principle, the abolition of the China–Pakistan Economic Corridor (CPEC) Authority, pending China's consent.{{cite news |author1=Shahbaz Rana |title=PM gives nod to abolish CPEC Authority |url=https://tribune.com.pk/story/2371790/pm-gives-nod-to-abolish-cpec-authority |access-date=2 November 2022 |work=The Express Tribune |date=18 August 2022}}
On 21 May 2025 - China, Pakistan and Afghanistan agreed to expand the China-Pakistan Economic Corridor to Afghanistan during an informal trilateral meeting in Beijing.{{Cite news |date=2025-05-21 |title=China, Pakistan, Afghanistan agree to expand CPEC during trilateral talks |url=https://www.hindustantimes.com/world-news/china-pakistan-afghanistan-agree-to-expand-cpec-during-trilateral-talks-101747818018065.html |archive-url=http://web.archive.org/web/20250521224953/https://www.hindustantimes.com/world-news/china-pakistan-afghanistan-agree-to-expand-cpec-during-trilateral-talks-101747818018065.html |archive-date=2025-05-21 |access-date=2025-05-22 |work=Hindustan Times |language=en-us}}
Projects in Gwadar
File: Pakistan Balochistan province - Gwadar IMG 7931.jpg]]
Gwadar gained strategic importance after the Kargil War when Pakistan recognized the need for a military naval port, leading to the construction of the Karachi-Gwadar Coastal Highway for defense purposes.{{cite news |author1=Shahzada Irfan Ahmed |date=3 September 2017 |title=CPEC is not a game-changer, it's game over |work=The News International |format=Interview: Kaiser Bengali |url=https://www.thenews.com.pk/tns/detail/563925-cpec-game-changer-game |access-date=30 December 2022}} Gwadar is central to the China-Pakistan Economic Corridor (CPEC) project, envisioned as the link between China's ambitious One Belt, One Road initiative and its 21st Century Maritime Silk Road project.{{cite news|last1=Saran|first1=Shyam|title=What China's One Belt and One Road Strategy Means for India, Asia and the World|url=http://thewire.in/2015/10/09/what-chinas-one-belt-and-one-road-strategy-means-for-india-asia-and-the-world-12532/|access-date=6 December 2015|agency=The Wire (India)|date=10 September 2015|url-status=dead|archive-url=https://web.archive.org/web/20151118041734/http://thewire.in/2015/10/09/what-chinas-one-belt-and-one-road-strategy-means-for-india-asia-and-the-world-12532/|archive-date=18 November 2015}} Over $1 billion worth of projects were planned around the port by December 2017.
As of 2022, only three CPEC projects in Gwadar were declared completed: the $4 million Gwadar Smart Port City Master Plan, the $300 million Physical Infrastructure of Gwadar Port and the Free Zone Phase-1, and the $10 million Pak-China Technical and Vocational Institute. Meanwhile, a dozen projects worth nearly $2 billion, including water supply, electricity provision, expressways, an international airport, a fishing harbor, and a hospital, remain undeveloped.{{cite news |author1=Shabaz Rana |title=Only 3 CPEC projects in Gwadar completed |url=https://tribune.com.pk/story/2355606/only-3-cpec-projects-in-gwadar-completed |access-date=2 November 2022 |work=The Express Tribune |date=8 May 2022}}
Over the past two years, China has provided 7,000 solar panel sets to households in Gwadar. An additional 10,000 sets are being prepared for distribution to underprivileged communities in Balochistan. The Chinese Embassy in Pakistan is also set to donate household solar units and other forms of assistance to the people of Balochistan.{{Cite web |title=Chinese support to Pak economy will continue: Nong Rong |url=https://www.thenews.com.pk/print/1028685-chinese-support-to-pak-economy-will-continue-nong-rong |access-date=10 January 2023 |website=The News International}}
=Gwadar Port Complex=
{{Main|Gwadar Port}}
Initial infrastructure works at Gwadar Port commenced in 2002 and were completed in 2007, however plans to upgrade and expand Gwadar's port stalled. Under the CPEC agreement, Gwadar Port will initially be expanded and upgraded to accommodate larger ships with a deadweight tonnage of up to 70,000.{{cite news|title=Industrial potential: Deep sea port in Gwadar would turn things around|url=http://tribune.com.pk/story/1067204/industrial-potential-deep-sea-port-in-gwadar-would-turn-things-around/|access-date=9 April 2016|work=The Express Tribune|date=17 March 2016}} Improvement plans also include the construction of a $130 million breakwater around the port,{{cite news|last1=Butt|first1=Naveed|title=Economic Corridor: China to Extend Assistance at 1.6 Percent Interest Rate|url=http://www.brecorder.com/market-data/stocks-a-bonds/0/1223449/|access-date=16 December 2015|work=Business Recorder|date=3 September 2015|url-status=dead|archive-url=https://web.archive.org/web/20151117081205/http://www.brecorder.com/market-data/stocks-a-bonds/0/1223449/|archive-date=17 November 2015}} as well as the construction of a floating liquefied natural gas facility that will have a capacity of 500 million cubic feet of liquefied natural gas per day and will be connected to the Gwadar-Nawabshah segment of the Iran–Pakistan gas pipeline.{{cite news|title=Gwadar-Nawabshah LNG project part of CPEC|url=http://nation.com.pk/business/28-Mar-2016/gwadar-nawabshah-lng-project-part-of-cpec|access-date=9 April 2016|work=The Nation|date=28 March 2016}}
The expanded port is located near a 2,282-acre free trade area in Gwadar, which is being modeled on the lines of the Special Economic Zones of China.{{cite web|last1=Li|first1=Yan|title=Groundwork laid for China-Pakistan FTZ|url=http://www.ecns.cn/business/2015/11-17/188916.shtml|website=ECNS|access-date=6 December 2015}} The land was handed to the China Overseas Port Holding Company in November 2015 as part of a 43-year lease.{{cite news|title=Economic Zone: Government Hands Gwadar Land over to China|url=http://www.brecorder.com/market-data/stocks-a-bonds/636:/1245670:economic-zone-government-hands-gwadar-land-over-to-china/?date=2015-11-12|work=Business Recorder|date=12 November 2015|access-date=17 November 2015|archive-date=4 March 2016|archive-url=https://web.archive.org/web/20160304211403/http://www.brecorder.com/market-data/stocks-a-bonds/636:/1245670:economic-zone-government-hands-gwadar-land-over-to-china/?date=2015-11-12|url-status=dead}} The site will include manufacturing zones, logistics hubs, warehouses, and display centers.{{cite news|title=Gwadar Port to become distribution center for ME market: Zhang|url=http://www.brecorder.com/market-data/stocks-a-bonds/202:pakistan/26158:gwadar-port-to-become-distribution-centre-for-me-market-zhang/|access-date=9 April 2016|work=Business Recorder|date=17 March 2016|quote=include bonded warehouses, manufacturing, international purchasing, transit and distribution transshipment, commodity display and supporting services and where the federal, provincial and local taxes|archive-date=10 August 2017|archive-url=https://web.archive.org/web/20170810014553/http://www.brecorder.com/market-data/stocks-a-bonds/202:pakistan/26158:gwadar-port-to-become-distribution-centre-for-me-market-zhang/|url-status=dead}} Businesses located in the zone will be exempt from customs authorities as well as many provincial and federal taxes. Businesses established in the special economic zone will be exempt from Pakistani income, sales, and federal excise taxes for 23 years.{{cite news|title=Pakistan approves massive tax exemptions for Gwadar port operators|url=http://tribune.com.pk/story/1109013/massive-tax-exemptions-gwadar-port-operators/|access-date=25 May 2016|work=The Express Tribune|date=24 May 2016|quote=In a major move, the ECC approved a complete income tax holiday for 23 years to businesses that will be established in the Gwadar Free Zone... / A 23-year exemption from sales tax and federal excise duty has also been granted to businesses that will be established inside the Gwadar Free Zone. However, if these businesses make supplies and sales outside the free zone, they will be subject to taxation.}} Contractors and subcontractors associated with China Overseas Port Holding Company will be exempt from such taxes for 20 years,{{cite news|title=Pakistan approves massive tax exemptions for Gwadar port operators|url=http://tribune.com.pk/story/1109013/massive-tax-exemptions-gwadar-port-operators/|access-date=25 May 2016|work=The Express Tribune|date=24 May 2016|quote=Under the move, the concession will extend to contractors and subcontractors and COPHCL companies for 20 years.}} while a 40-year tax holiday will be granted for imports of equipment, materials, plant/machinery, appliances, and accessories that are used for the construction of Gwadar Port and the special economic zone.{{cite news|title=Pakistan approves massive tax exemptions for Gwadar port operators|url=http://tribune.com.pk/story/1109013/massive-tax-exemptions-gwadar-port-operators/|access-date=25 May 2016|work=The Express Tribune|date=24 May 2016|quote=Pakistan approved customs duty exemption for the COPHCL, its operating companies, contractors and subcontractors for a period of 40 years on import of equipment, materials, plants, machinery, appliances, and accessories for the construction of Gwadar Port and the associated Free Zone.}}
The special economic zone will be completed in three phases. By 2025, it is envisaged that manufacturing and processing industries will be developed, with further expansion of the zone intended to be completed by 2030. On 10 April 2016, Zhang Baozhong, chairman of China Overseas Port Holding Company, said in a conversation with The Washington Post that his company planned to spend $4.5 billion on roads, power, hotels, and other infrastructure for the industrial zone, as well as other projects in Gwadar city.{{Cite news |last=Shah |first=Saeed |title=Big Chinese-Pakistani Project Tries to Overcome Jihadists, Droughts and Doubts |url=https://www.wsj.com/articles/big-chinese-pakistani-project-tries-to-overcome-jihadists-droughts-and-doubts-1460274228 |access-date=10 April 2016 |newspaper=The Wall Street Journal |issn=0099-9660}}
=Gwadar city projects=
{{Main|Gwadar}}
China will grant Pakistan $230 million to construct a new international airport in Gwadar.{{cite news|last1=Sial|first1=Amer|title=China converts Rs 23b Gwadar Airport loan into grant|url=http://www.pakistantoday.com.pk/2015/08/27/business/china-converts-rs-23b-gwadar-airport-loan-into-grant|access-date=6 December 2015|work=Pakistan Today|date=27 August 2015}} The provincial government of Balochistan has set aside 4,000 acres for the construction of the new $230 million Gwadar International Airport, which will require an estimated 30 months for completion.{{cite web|url=http://www.dailytimes.com.pk/national/12-Nov-2015/china-to-build-pakistan-s-largest-airport-at-gwadar|title=China to build Pakistan's largest airport at Gwadar|date=12 November 2015|work=Daily Times|archive-url=https://web.archive.org/web/20151114013547/http://www.dailytimes.com.pk/national/12-Nov-2015/china-to-build-pakistan-s-largest-airport-at-gwadar|archive-date=14 November 2015}} The costs will be fully funded by grants from the Chinese government, which Pakistan will not be obliged to repay.{{cite web|url=http://www.geo.tv/article-198450-China-converts-230m-loan-fo|title=China converts $230m loan for Gwadar airport into grant|date=23 September 2015|work=Geo.tv}}
The city of Gwadar is further being developed with the construction of a 300 MW coal power plant, a desalinization plant, and a new 300-bed hospital, which are to be completed in 2023. Plans for Gwadar also include the construction of the Gwadar East Bay Expressway – a 19-kilometer controlled-access road that will connect Gwadar Port to the Makran Coastal Highway.{{cite news|title=China kick-starts Pakistan's Gwadar East Bay Expressway|url=http://www.worldhighways.com/categories/auctions-equipment-supply-servicing-finance/news/china-kick-starts-pakistans-gwadar-east-bay-expressway/|access-date=9 April 2016|agency=World Highway|date=9 September 2015|archive-url=https://web.archive.org/web/20190223133328/http://www.worldhighways.com/categories/auctions-equipment-supply-servicing-finance/news/china-kick-starts-pakistans-gwadar-east-bay-expressway/|archive-date=23 February 2019|url-status=dead}} These additional projects are estimated to cost $800 million and will be financed by 0% interest loans extended by the Exim Bank of China to Pakistan.
In addition to the aforementioned infrastructure works, the Pakistani government announced in September 2015 its intention to establish a training institute named Pak-China Technical and Vocational Institute at Gwadar. This institute will be developed by the Gwadar Port Authority at a cost of 943 million rupees, and is designed to impart the skills required to operate and work at the expanded Gwadar Port.
As of 2017, there are a total of nine projects funded by China in and around Gwadar.{{Cite journal|last=Ranade|first=Jayadeva|date=30 June 2017|title=Does the China-Pakistan Economic Corridor Really Help Pakistan?|url=https://ojs.indrastra.com/index.php/liberalstudies/article/view/168|journal=Liberal Studies|volume=2|issue=1|pages=33–41|issn=2688-9374|access-date=14 September 2019|archive-date=15 July 2020|archive-url=https://web.archive.org/web/20200715102311/https://ojs.indrastra.com/index.php/liberalstudies/article/view/168|url-status=dead}}
Development of Gwadar includes the construction of a hospital funded by a Chinese government grant. The proposed project includes the building of medical blocks, nursing and paramedical institutes, a medical college, a central laboratory, and other allied facilities, along with the supply of medical equipment and machinery.{{Cite web |title=Pak China Friendship Hospital |url=http://cpec.gov.pk/project-details/38 |website=cpec.gov.pk |publisher=China-Pakistan Economic Corridor (CPEC) Official Website}}
In 2020, the government{{which|date=April 2020}} released funds of Rs 320 million for a Gwadar Seawater Desalination Plant with a capacity of five million gallons per day. The funds were also allocated for expanding the optical fiber network in Gwadar, and for the construction of a fish landing jetty.{{Cite web|url=https://www.thenews.com.pk/latest/483549-gwadar-gets-over-rs-4-bln-for-uplift-projects|title=Budget 2019–20: Gwadar gets over Rs 4 billion for uplift of projects|website=The News International}}
Roadway projects
File: Pakistan roadway map.jpg
The CPEC project includes significant upgrades and overhauls to Pakistan's transportation infrastructure. So far, China has announced financing for $10.63 billion worth of transportation infrastructure under the CPEC project; $6.1 billion has been allocated for constructing "Early Harvest" roadway projects at an interest rate of 1.6 percent.{{cite web|title=PURCHASE OF POWER: PAYMENTS TO CHINESE COMPANIES TO BE FACILITATED THROUGH REVOLVING FUND|url=http://www.brecorder.com/top-stories/0/1252767/|work=Business Recorder|access-date=6 December 2015|archive-date=1 October 2016|archive-url=https://web.archive.org/web/20161001130130/http://www.brecorder.com/top-stories/0/1252767|url-status=dead}} The remaining funds will be allocated when the Pakistani government awards contracts for road segments that are still in the planning phase.
Three corridors have been identified for cargo transport: the Eastern Alignment through the heavily populated provinces of Sindh and Punjab, where most industries are located; the Western Alignment through the less developed and more sparsely populated provinces of Khyber Pakhtunkhwa and Balochistan; and the future Central Alignment, which will pass through Khyber Pakhtunkhwa, Punjab, and Balochistan.{{cite web|url=http://tribune.com.pk/story/926582/economic-corridor-eastern-cpec-route-unfeasible/|title=Eastern CPEC route unfeasible: report|work=The Express Tribune|date=26 July 2015|access-date=8 June 2016|author=Shahbaz Rana}}
=Karakoram Highway=
{{Main|Reconstruction of the Karakoram Highway}}
File:KKHReconstructions.png, which is to be completely rebuilt and upgraded under the CPEC agreement. Highlighted in blue is the 175-kilometer road between Gilgit and Skardu, which is to be upgraded to a four-lane highway.]]
File:Sost_Pakistan_Customs_and_Chinese_Trucks_IMG_7494_China_Pakistan_Karakoram_Highway_KKH.jpg
The CPEC projects involve reconstruction and upgrades to National Highway 35 (N-35), which forms the Pakistani section of the Karakoram Highway (KKH). The KKH spans the 887 kilometers between the China-Pakistan border and the town of Burhan, near Hasan Abdal. At Burhan, the existing M1 motorway will intersect the N-35 at the Shah Maqsood Interchange. From there, access to Islamabad and Lahore continues via the M1 and M2 motorways. Burhan will also be at the intersection of the Eastern Alignment and Western Alignment.
Upgrades to the 487-kilometer section between Burhan and Raikot are officially known as the Karakoram Highway Phase 2 project. At the southern end of the N-35, construction is underway for a 59-kilometer, four-lane controlled-access highway between Burhan and Havelian, which will be officially named the E-35 expressway.{{cite web|title=Questions for Oral Answers and Their Replies|url=http://www.senate.gov.pk/uploads/documents/questions/1414066312_704.pdf|website=Senate Secretariat|publisher=Senate of Pakistan|access-date=11 February 2016|at=Question 126|date=23 October 2014|quote=From Havelian to Shah Maqsood Interchange, the proposed alignment of CPEC will overlap with the alignment of E-35. This section will be 15 km long and undertaken with ADB assistance as 4-Lane Motorway with 6-Lane structures... Shah Maqsood Interchange – Islamabad section will be 50 km long and constructed along a new alignment as 4-Lane Motorway with 6-Lane structures.}} North of Havelian, the next 66 kilometers will be upgraded to a four-lane dual carriageway between Havelian and Shinkiari.{{cite web|title=Questions for Oral Answers and Their Replies|url=http://www.senate.gov.pk/uploads/documents/questions/1414066312_704.pdf|website=Senate Secretariat|publisher=Senate of Pakistan|access-date=11 February 2016|at=Question 126|date=23 October 2014|quote="Shinkiari – Mansehra – Abbottabad section will be 50 km long and constructed as 4-Lane Expressway... Abbottabad – Havelian section will be 11 km in length and constructed as 4-Lane Motorway with 6-Lane structures." {{!}} Portion between Abbottabad and Havelian is now to be a dual carriageway rather than motorway.}} Groundbreaking for this portion commenced in April 2016.{{cite web|title=Questions for Oral Answers and Their Replies|url=http://www.senate.gov.pk/uploads/documents/questions/1414066312_704.pdf|website=Senate Secretariat|publisher=Senate of Pakistan|access-date=11 February 2016|at=Question 126|date=23 October 2014|quote=Raikot – Thakot section will be 280 km in length and constructed as a 2-Lane highway along a new alignment... Thakot – Shinkiari section will be 74 km in length wherein existing 2-Lane KKH will be upgraded and improved.}}
The entire 354 kilometers of roadway north of Shinkiari, extending to Raikot near Chilas, will be constructed as a two-lane highway. Construction on the first section between Shinkiari and Thakot began in April 2016, alongside the construction of the Havelian to Shinkiari four-lane dual carriageway further south.{{cite news|title=PM Sharif performs ground-breaking of Havelian-Thakot Motorway|url=http://www.thenews.com.pk/latest/116008-PM-Sharif-performs-ground-breaking-of-Havelian-Thakot-Motorway|access-date=4 May 2016|agency=The News Pakistan|date=28 April 2016}} Both sections are expected to be completed within 42 months at a cost of approximately $1.26 billion, with 90% of the funding provided by China's EXIM Bank in the form of low-interest concessional loans.133 billion Pakistan rupees equivalent to US$1.26 billion as of May 2016{{cite news|title=CPEC eastern alignment: Pakistan, China ink agreements worth $4.2b|url=http://tribune.com.pk/story/1096762/cpec-eastern-alignment-pakistan-china-ink-agreements-worth-4-2b/|access-date=4 May 2016|publisher=Tribune (Pakistan)|date=4 May 2016}}
Between Thakot and Raikot lies an area where the Pakistani government is either planning or actively constructing several hydropower projects, including the Diamer-Bhasha Dam and Dasu Dam. Sections of the N-35 around these projects will be completely rebuilt in conjunction with the dam construction.{{cite web|title=Questions for Oral Answers and Their Replies|url=http://www.senate.gov.pk/uploads/documents/questions/1414066312_704.pdf|website=Senate Secretariat|publisher=Senate of Pakistan|access-date=11 February 2016|at=Question 126|date=23 October 2014|quote=Raikot – Thakot section (2-Lane) 255.8 km; Feasibility Study Completed by Chinese Side. However, the Alignment falls under the Four Dams planned by WAPDA, namely; Bhasha, Dasu, Pattan, and Thakot. The Road construction is planned to commensurate with Dam Construction activities. In the meanwhile, the existing KKH is being improved in its present condition.}} In the meantime, this section of the N-35 is being upgraded from its current state until dam construction fully begins. Improvement projects on this section are expected to be completed by January 2017 at a cost of approximately $72 million.{{cite news|title=NHA launches projects to improve KKH's condition|url=http://www.thenews.com.pk/print/14211-nha-launches-projects-to-improve-kkhs-condition|access-date=11 February 2016|work=The News|date=22 August 2015}}7.5 billion PKR = 71.66 million USD as of 10 February 2016 The next 335 kilometres of roadway connect Raikot to the China-Pakistan border. Reconstruction of this section of the roadway began before the CPEC initiative, following significant damage from the 2010 Pakistan floods. Most of the reconstruction was completed by September 2012 at a cost of $510 million.{{cite news|title=PM LAUNCHES KKH PROJECTS THANKS CHINA FOR ROAD NETWORKS UPGRADATION HELP|url=http://pakobserver.net/detailnews.asp?id=175942|access-date=11 February 2016|work=Pakistan Observer|date=29 September 2012|archive-url=https://web.archive.org/web/20160215151806/http://pakobserver.net/detailnews.asp?id=175942|archive-date=15 February 2016|url-status=dead}}
In 2010, a large earthquake struck the region near the China-Pakistan border, triggering massive landslides that dammed the Indus River and led to the formation of Attabad Lake. Portions of the Karakoram Highway were submerged by the lake, forcing all vehicular traffic onto barges to cross the newly formed reservoir. Construction on a 24-kilometer series of bridges and tunnels around Attabad Lake began in 2012 and took 36 months to complete. The bypass, consisting of two large bridges and five kilometers of tunnels, was opened to the public on 14 September 2015 at a cost of $275 million.{{cite news|title=PM Nawaz inaugurates Pak-China Friendship Tunnels over Attabad Lake|url=http://www.dawn.com/news/1206911|access-date=11 February 2016|work=Dawn|date=14 September 2015}}{{cite news|title=PM inaugurates tunnels over Attabad Lake in G-B|url=http://tribune.com.pk/story/956452/pm-inaugurates-tunnel-over-attabad-lake-in-g-b/|access-date=11 February 2016|work=The Express Tribune|date=14 September 2015}} Additionally, the 175-kilometer road between Gilgit and Skardu will be upgraded to a four-lane road at a cost of $475 million to provide direct access to Skardu from the N-35.{{cite news|title=PM announces construction of Skardu-Gilgit road|url=http://www.samaa.tv/pakistan/2015/11/pm-announces-construction-of-skardu-gilgit-road/|access-date=6 December 2015|publisher=Samaa TV|date=24 November 2015}}note: 50 billion Pakistani Rupees = US$475 million as of December 2015
=Eastern alignment=
{{Main|M5 motorway (Pakistan)|M9 motorway (Pakistan)}}
The term "Eastern Alignment" of CPEC refers to roadway projects located in the provinces of Sindh and Punjab, some of which were first envisioned in 1991.{{cite news|title=First phase of Karachi-Lahore motorway launched|url=http://www.dawn.com/news/1168960|access-date=16 January 2016|work=Dawn|date=12 March 2015}} As part of the Eastern Alignment, a 1,152-kilometer-long motorway will connect Pakistan's two largest cities, Karachi and Lahore, with a six-lane controlled access highway designed for travel speeds of up to 120 kilometers per hour.{{cite news|title=China's CSCEC to build $20000.9bn motorway in Pakistan as part of planned 'corridor'|url=http://www.globalconstructionreview.com/news/chinas-cscec-build-29bn-motorw7ay-pa7kis7tan-pa7rt/|access-date=16 January 2016|publisher=Global Construction Review|date=8 January 2016}} The entire project will cost approximately $6.6 billion, with the bulk of financing provided by various Chinese state-owned banks.{{cite news|title=Karachi-Lahore motorway: Project to be completed in 3 years|url=http://tribune.com.pk/story/829305/karachi-lahore-motorway-project-to-be-completed-in-3-years/|access-date=16 December 2015|work=Pakistan Tribune|date=29 January 2015|ref=700 Billion Pak rupees = US$6.6 billion as of 16 December 2015|quote=700 Billion Pak rupees = US$6.6 billion as of 16 December 2015}}
The entire Eastern Alignment motorway project is divided into four sections: a 136-kilometer-long section between Karachi and Hyderabad, also known as the M9 motorway; a 345-kilometer-long section between Hyderabad and Sukkur; a 392-kilometer-long section between Sukkur and Multan;{{Cite web|url=http://cpec.gov.pk/project-details/29|title=Peshawar-Karachi Motorway|website=cpec.gov.pk|access-date=28 January 2018}} and a 333-kilometer section between Multan and Lahore via the town of Abdul Hakeem.{{cite news|title=Nawaz Sharif to inaugurate Karachi-Lahore Motorway on Dec 19|url=http://www.dnd.com.pk/nawaz-sharif-to-inaugurate-karachi-lahore-motorway-on-dec-19/102810|access-date=16 January 2016|publisher=Dispatch News Desk|date=17 December 2015}}
File:Lahore-Islamabad M2 motorway (Pakistan) 01.jpg is the longest motorway in Pakistan, built under CPEC.]]
The first section of the project provides high-speed road access from the Port of Karachi to the city of Hyderabad and interior Sindh. Upgrade and construction work on this section, currently known as the Super Highway between Karachi and Hyderabad, began in March 2015 and aimed to convert the road into the six-lane controlled access M9 Motorway, which was completed in approximately 30 months.{{cite news|title=Karachi-Hyderabad Motorway will be completed in 30 months: PM|url=http://nation.com.pk/national/11-Mar-2015/karachi-hyderabad-motorway-will-be-completed-in-30-months-pm|access-date=11 December 2015|work=The Nation|location=Pakistan|date=11 March 2015}} In February 2017, a completed 75-kilometer stretch of the motorway was opened for public use by Prime Minister Nawaz Sharif.{{cite news|title=Nawaz inaugurates completed portion of Karachi-Hyderabad M-9 motorway|url=http://www.dawn.com/news/1312471|access-date=8 February 2017|work=Dawn|date=3 February 2017}}
At the terminus of the M9 motorway in Hyderabad, the Karachi-Lahore Motorway will continue to Sukkur as a six-lane controlled-access motorway, also known as the M6 motorway. This section will be 345 kilometers long and is projected to cost $1.7 billion.{{cite news|title=Hyderabad-Sukkur section: China, S Korea lobbying for M-6 motorway|work=The Express Tribune|date=28 July 2016}} It will provide high-speed road access to interior Sindh, particularly near the towns of Matiari, Nawabshah, and Khairpur. The project will require the construction of seven interchanges and 25 bridges over the Indus River and irrigation canals.{{cite news|url=http://tribune.com.pk/story/848462/karachi-lahore-motorway-stakeholders-unhappy-with-environment-impact-report/|title=Karachi-Lahore motorway: Stakeholders unhappy with environment impact report|date=6 March 2015|work=The Express Tribune|access-date=16 January 2016}} The planned route of the motorway runs roughly parallel to the existing National Highway and Indus Highway in various sections. In July 2016, the Pakistani government announced that the project would be open to international bidders on a build-operate-transfer basis, with Chinese and South Korean companies expressing interest in the project.
The 392-kilometer Sukkur to Multan section of the motorway is estimated to cost $2.89 billion. Construction on this section began on 6 May 2016 and was completed in September 2019.{{cite news|title=PAK PM inaugurates Sukkur-Multan highway|url=http://www.business-standard.com/article/news-ani/pak-pm-inaugurates-sukkur-multan-highway-116050600756_1.html|access-date=8 May 2016|work=Business Standard|date=6 May 2016}} The road is a six-lane controlled-access highway{{cite news|title=China's CSCEC to build $2.9bn motorway in Pakistan as part of planned 'corridor' |agency=Global Construction Review}} featuring 11 interchanges, 10 rest facilities, 492 underpasses, and 54 bridges along its route. In January 2016, the Pakistani government awarded the construction contract to China State Construction Engineering. However, final approvals for the disbursement of funds from the Government of the People's Republic of China were not granted until May 2016. Ninety percent of the project's cost is being financed through concessionary loans from China, with the remaining 10% funded by the Government of Pakistan.{{cite news|last1=Haider|first1=Mehtab|title=Govt allocates Rs 73 billion for Pakistan-China trade corridor|url=http://www.thenews.com.pk/Todays-News-3-252518-Govt-allocates-Rs73-billion-for-Pakistan-China-trade-corridor|access-date=6 December 2015|work=The News|date=28 May 2014}} The construction of this segment is expected to take 36 months.
Construction of the section between Multan and Lahore, costing approximately $1.5 billion,{{cite news|last1=Samar|first1=Azeem|title=JCC of CPEC decides to enhance capacity of Thar power projects to 2,600 MW|url=http://www.thenews.com.pk/Todays-News-2-350977-JCC-of-CPEC-decides-to-enhance-capacity-of-Thar-power-projects-to-2600MW|access-date=6 December 2015|work=The News|date=13 November 2015}} was launched in November 2015.{{cite news|last1=Rana|first1=Shahbaz|title=ECNEC clears motorway's Lahore-Multan section|url=http://tribune.com.pk/story/991693/ecnec-clears-motorways-lahore-multan-section|access-date=11 December 2015|work=The Express Tribune|date=15 November 2015}} The project is a joint venture between the China Railway Construction Corporation Limited and Pakistan's Zahir Khan and Brothers Engineers.{{cite news|title=Consortium Wins Pakistan Contract|url=https://www.wsj.com/articles/business-watch-1449687113|access-date=11 December 2015|work=The Wall Street Journal|date=9 December 2015}} The total length of this motorway section is 333 kilometers; however, the first 102 kilometers of the road between Khanewal and Abdul Hakeem is part of the M4 Motorway and is being funded by the Asian Development Bank.{{cite news|last1=Kiani|first1=Khaleeq|title=Two Asian banks to give Rs 29bn for M-4 project|url=http://www.dawn.com/news/1226381/two-asian-banks-to-give-rs29bn-for-m-4-project|access-date=16 December 2015|publisher=Dawn News|date=16 December 2015}}{{cite news|title=M-4 to Reduce Travel Time, Contribute to Trade Corridor|url=http://pakobserver.net/detailnews.asp?id=258985|access-date=16 January 2016|work=Pakistan Observer|date=7 January 2015|url-status=dead|archive-url=https://web.archive.org/web/20150628003144/http://pakobserver.net/detailnews.asp?id=258985|archive-date=28 June 2015}} The remaining 231 kilometers between Abdul Hakeem and Lahore, currently under construction as part of CPEC, will complete this section of the motorway.{{cite news|title=Ecnec approves 230 km [sic] Karachi-Lahore Motorway|url=http://nation.com.pk/business/15-Nov-2015/ecnec-approves-230kms-karachi-lahore-motorway|access-date=16 January 2016|work=The Nation|location=Pakistan|date=25 November 2015}}
=Western alignment=
{{Main|Western Alignment|Brahma Bahtar-Yarik Motorway}}
File: CPEC Western Alignment.png of CPEC, a 1,153-kilometer route connecting the Brahma Bahtar Interchange of the M1 Motorway to the city of Gwadar in Balochistan. The orange line between Basima and Shahdadkot is sometimes also considered part of the Western Alignment.]]
The CPEC project plans to expand and upgrade the road network in the Pakistani provinces of Balochistan, Khyber Pakhtunkhwa, and western Punjab Province as part of the Western Alignment. This project will upgrade several hundred kilometers of road into two- and four-lane divided highways by mid-2018, with land acquisition allowing for future upgrades to a six-lane motorway.{{cite news|title=KP remained part of CPEC Western Route meetings at federal level|url=http://www.thenews.com.pk/print/89984-KP-remained-part-of-CPEC-Western-Route-meetings-at-federal-level|access-date=16 January 2016|publisher=The News (Pakistan)|date=13 January 2016}} The CPEC project includes the reconstruction of 870 kilometers of road in Balochistan province alone, of which 620 kilometers had already been rebuilt by January 2016.{{cite news|title=COAS Assures Balochistan People Will Prosper With Upcoming Projects|url=http://www.geo.tv/latest/8967-COAS-assures-Balochistan-people-will-prosper-with-upcoming-projects#sthash.ZDluSmfK.dpuf|access-date=26 January 2016|publisher=Geo News|date=1 January 2016}}
The Western Alignment roadway network will start at the Barahma Bahtar Interchange on the M1 Motorway near the towns of Burhan and Hasan Abdal in northern Punjab province.{{cite news|title=PM Inaugurates Western Alignment of CPEC|url=http://dailyfrontierstar.com/%EF%BB%BFpm-inaugurates-western-alignment-of-cpec/|access-date=2 February 2016|work=Daily Frontier Star|date=31 December 2015}} The newly reconstructed Karakoram Highway will connect to the Western Alignment at Burhan, where the new 285-kilometer controlled-access Brahma Bahtar-Yarik Motorway will begin.{{cite news|title=China to finance 90% of Sukkur-Multan Motorway|url=http://dailytimes.com.pk/pakistan/12-May-16/china-to-finance-90-of-sukkur-multan-motorway|access-date=13 May 2016|work=Daily Times|date=12 May 2016}} The motorway will terminate near the town of Yarik, just north of Dera Ismail Khan.{{cite web|title=CHINA – PAKISTAN ECONOMIC CORRIDOR (CPEC) WESTERN ROUTE: NEW FOUR LANE HIGHWAY FACILITY FROM BARAHMA BAHTAR TO D. I. KHAN AS PART OF WESTERN ROUTE OF CHINA – PAKISTAN ECONOMIC CORRIDOR (CPEC) 285 km APPROX., PACKAGES: I TO V.|url=http://downloads.nha.gov.pk/nhadocs/pq-document-of-barhma-bahtr--to-di-khan.pdf|website=National Highway Authority|access-date=2 February 2016|pages=38|archive-date=10 January 2017|archive-url=https://web.archive.org/web/20170110203636/http://downloads.nha.gov.pk/nhadocs/pq-document-of-barhma-bahtr--to-di-khan.pdf|url-status=dead}} Groundbreaking for the project occurred on 17 May 2016, and it was inaugurated on 5 January 2022.{{cite news|title=PM Nawaz performs groundbreaking of Motorway in D.I Khan|url=http://www.thenews.com.pk/latest/120599-PM-Nawaz-performs-groundbreaking-of-Motorway-in-DI-Khan|access-date=19 May 2016|work=The News|date=17 May 2016}} The motorway crosses the Sindh Sagar Doab region and the Indus River at Mianwali before entering Khyber Pakhtunkhwa province. It includes 11 interchanges, 74 culverts, and 3 major bridges over the Indus, Soan, and Kurram Rivers.{{cite news|last1=Haider|first1=Mehtab|title=Ecnec approves motorway from Burhan/Hakla to DI Khan|url=http://www.thenews.com.pk/print/114865-Ecnec-approves-motorway-from-BurhanHakla-to-DI-Khan|access-date=4 May 2016|work=The News|date=24 April 2016}} The total cost of the project was approximately $1.05 billion.{{cite news|title=Nawaz to open Gwadar-Turbat Highway project today|url=http://www.brecorder.com/market-data/stocks-a-bonds/0/12842/|access-date=3 February 2016|work=Business Recorder|date=3 February 2016|quote=110 billion Pakistani Rupees = US$1.05 billion as of 3 Feb 2016|archive-date=22 February 2016|archive-url=https://web.archive.org/web/20160222170120/http://www.brecorder.com/market-data/stocks-a-bonds/0/12842/|url-status=dead}}
At the southern terminus of the new Brahma Bahtar-Yarik Motorway, the N-50 National Highway will be upgraded between Dera Ismail Khan in Khyber Pakhtunkhwa and Zhob in Balochistan province, with future plans for reconstruction between Zhob and Quetta.{{cite news|title=PARLIAMENTARY BODY MONITORING PROGRESS OF CPEC|url=http://www.brecorder.com/pakistan/politics-a-policy/271939-parliamentary-body-monitoring-progress-of-cpec.html|access-date=16 January 2016|work=Business Recorder|date=9 January 2016|archive-date=5 February 2016|archive-url=https://web.archive.org/web/20160205094421/http://www.brecorder.com/pakistan/politics-a-policy/271939-parliamentary-body-monitoring-progress-of-cpec.html|url-status=dead}} The upgraded road will be a four-lane dual-carriageway spanning the 205-kilometer distance between the two cities.{{cite news|title=Nawaz to open Gwadar-Turbat Highway project today|url=http://www.brecorder.com/market-data/stocks-a-bonds/0/12842/|access-date=3 February 2016|work=Business Recorder|date=3 February 2016|archive-date=22 February 2016|archive-url=https://web.archive.org/web/20160222170120/http://www.brecorder.com/market-data/stocks-a-bonds/0/12842/|url-status=dead}} The first portion of the N-50 to be upgraded is the 81-kilometer section between Zhob and Mughal Kot, with construction beginning in January 2016.{{cite news|title=PM inaugurates western route of CPEC in Zhob|url=http://www.dawn.com/news/1229616|access-date=3 February 2016|work=Dawn|date=6 January 2016}} This segment is expected to be completed by 2018 at a cost of $86 million. Although the project is a key component of CPEC's Western Alignment, its financing will come from the Asian Development Bank under a 2014 agreement predating CPEC,{{cite news|title=ADB approves $197 million for Balochistan road project|url=http://nation.com.pk/national/06-Jul-2014/adb-approves-197m-for-balochistan-road-project|access-date=5 February 2016|work=The Nation|date=6 July 2014}}{{cite news|title=ADB Provides $197 Million to Develop Highway in Balochistan|url=http://www.adb.org/news/adb-provides-197-million-develop-highway-balochistan|access-date=5 February 2016|publisher=Asian Development Bank|date=12 May 2015}} and from a grant provided by the United Kingdom's Department for International Development.{{cite news|title=ADB to provide $72m for highways in Balochistan|url=http://www.dawn.com/news/1233079/adb-to-provide-72m-for-highways-in-balochistan|access-date=5 February 2016|work=Dawn|date=15 January 2016}}
Heading south from Quetta, the Western Alignment of CPEC continues to the town of Surab in central Balochistan via the N-25 National Highway. From Surab, the N-85 National Highway extends 470 kilometers to connect central Balochistan with the town of Hoshab in southwestern Balochistan near the city of Turbat. This segment of the road was completed on schedule in December 2016.{{cite news|title=NHA completes work on 3 delayed projects in Balochistan|url=http://pakobserver.net/nha-completes-work-on-3-delayed-projects-in-balochistan/|access-date=9 February 2017|agency=Pakistan Observer|date=22 January 2017|archive-url=https://web.archive.org/web/20170211155314/http://pakobserver.net/nha-completes-work-on-3-delayed-projects-in-balochistan/|archive-date=11 February 2017|url-status=dead}}{{cite news|title=PM inaugurates CPEC's western route in Zhob|url=http://tribune.com.pk/story/1018615/pm-inaugurates-cpecs-western-route-in-zhob/|access-date=29 January 2016|publisher=Tribune Pakistan|date=30 December 2015}}
Along the Western Alignment route, the towns of Hoshab and Gwadar are connected by a newly built 193-kilometer section of the M8 Motorway. This portion, linking Hoshab to Gwadar, was completed and inaugurated in February 2016 by Prime Minister Nawaz Sharif.{{cite news|title=PM INAUGURATES 193 km LONG GWADAR-HOSHAB M-8|url=http://www.brecorder.com/top-news/pakistan/276827-pm-inaugurates-193-km-long-gwadar-hoshab-m-8.html|access-date=3 February 2016|work=Business Recorder}}
The Western Alignment will feature special economic zones along its route,{{cite news|title=Pakistan to build CPEC western route by the middle of 2018|url=http://economictimes.indiatimes.com/news/international/world-news/pakistan-to-build-cpec-western-route-by-middle-of-2018/articleshow/50595012.cms|access-date=16 January 2016|work=The Economic Times|date=15 January 2015}} with at least seven planned in Khyber Pakhtunkhwa.
==Central alignment==
Long-term plans for a "Central Alignment" of CPEC include a network of roads that represents the shortest route of CPEC. It will start in Gwadar and travel upcountry through Basima, Khuzdar, Sukkur, Rajanpur, Layyah, Muzaffargarh, and Talagang, with onward connections to the Karakoram Highway via the Brahma Bahtar–Yarik Motorway.{{cite web|url=http://spearheadresearch.org/index.php/economyenergy/overcoming-challenges-to-cpec|title=Overcoming Challenges to CPEC|date=27 May 2015|work=Spearhead Research|access-date=9 April 2016|archive-url=https://web.archive.org/web/20160415143420/http://spearheadresearch.org/index.php/economyenergy/overcoming-challenges-to-cpec|archive-date=15 April 2016|url-status=dead}}
=Associated roadway projects=
; ADB funded projects
The 184-kilometer-long M-4 Motorway between Faisalabad and Multan does not fall under CPEC projects but is considered vital to the CPEC transportation network. It will be financed by the Asian Development Bank and the Asian Infrastructure Investment Bank, marking the first project jointly financed by these banks.{{Cite news |date=3 May 2016 |title=China's AIIB to co-finance first project with ADB in Pakistan|work=Reuters|url=https://www.reuters.com/article/pakistan-aiib-idINKCN0XU18P |access-date=28 January 2023}} Additionally, the government of the United Kingdom announced a $90.7 million grant in October 2015 for the construction of a portion of the M4 Motorway project.{{cite news|title=M4 motorway: PM to inaugurate Gojra-Shorkot section today|url=http://tribune.com.pk/story/992216/m4-motorway-pm-to-inaugurate-gojra-shorkot-section-today/|access-date=16 December 2015|publisher=The Express Tribune (Pakistan)|date=16 November 2015}}
The Karakoram Highway south of Mansehra will be upgraded to a controlled-access highway and officially known as the E-35 expressway. Although crucial for the route between Gwadar and China, the E35 will not be financed by CPEC funds. Instead, it will be funded by the Asian Development Bank{{cite news|title=Asian Bank, UK to co-finance $327m in economic corridor|url=http://www.dailytimes.com.pk/national/01-Sep-2015/asian-bank-uk-to-co-finance-327m-in-economic-corridor|access-date=16 January 2016|work=Daily Times|location=Pakistan|date=1 September 2015}} and a $121.6 million grant from the United Kingdom.{{cite news|title=Pakistan, ADB sign $178m agreement for M-4 section|url=http://tribune.com.pk/story/977770/loan-for-gojra-shorkot-pakistan-adb-sign-178m-agreement-for-m-4-section/|access-date=16 January 2016|publisher=The Express Tribune (Pakistan)|date=23 October 2015}} Once completed, the E35 Expressway, M4 Motorway, and Karachi-Lahore Motorway will provide continuous high-speed road travel on controlled-access motorways from Mansehra to Karachi, a distance of 1,550 kilometers.
File:Under Construction at Mansehra.jpg is considered a vital link for the Western Alignment of CPEC.]]
Approximately halfway between Zhob and Quetta, the town of Qilla Saifullah in Balochistan is located at the intersection of the N50 National Highway and the N70 National Highway. The two roads form a 447-kilometer route between Quetta and Multan in southern Punjab. Although the N70 project is not officially part of CPEC, it will connect the CPEC Western Alignment to the Karachi-Lahore Motorway at Multan. Reconstruction of the 126-kilometer section of the N70 between Qilla Saifullah and Wagum is scheduled for completion by 2018,{{cite news|title=Multibillion-dollar project: Nawaz inaugurates CPEC's western route|url=http://tribune.com.pk/story/1019245/multibillion-dollar-project-nawaz-inaugurates-cpecs-western-route/|access-date=16 January 2019|work=Daily Times|date=31 December 2015}} and is financed by a $195 million package from the Asian Development Bank, and a $72.4 million grant from the United Kingdom's Department for International Development.
Railway projects
File:Phase1KPM.png overhaul and reconstruction, highlighted in black, spans between Peshawar and Lahore. This project will enable trains to travel at speeds of up to 160 kilometers per hour.]]
File:Phase2KPM.png and Hyderabad, is marked in orange. Phase 3 of the project, indicated by the green line, extends between Hyderabad and Karachi.]]
The CPEC project emphasizes major upgrades to Pakistan's aging railway system, including the reconstruction of the entire Main Line 1 railway between Karachi and Peshawar by 2020.{{cite news|title=Feasibility study for rehab of Karachi-Peshawar rail line in progress|url=http://nation.com.pk/business/23-Jan-2016/feasibility-study-for-rehab-of-karachi-peshawar-rail-line-in-progress|access-date=10 February 2016|work=The Nation|date=23 January 2016}} This railway currently handles 70% of Pakistan Railways traffic.{{cite news|title=Havelian to Khunjerab railway track to be upgraded under China-Pakistan Economic Corridor|url=http://sosttoday.com/5285-2/|access-date=10 February 2016|publisher=Sost Today|date=15 January 2016}} As of 25 May 2022, the project is stalled due to China's reluctance to provide funds.{{cite news|title=Pakistan railway project hanging in balance as China delays finance|url=https://www.aninews.in/news/world/asia/pakistan-railway-project-hanging-in-balance-as-china-delays-finance20220223024930/|access-date=29 May 2022|publisher=Ani News|date=23 February 2022}} In addition to the stalled Main Line 1 railway, upgrades and expansions are planned for Main Line 2 and Main Line 3. The CPEC plan also includes completing a rail link over the 4,693-meter high Khunjerab Pass, providing direct access for Chinese and East Asian goods to Pakistani seaports at Karachi and Gwadar by 2030.
The procurement of 250 new passenger coaches and the reconstruction of 21 train stations are also planned as part of the first phase of the project, bringing the total investment in Pakistan's railway system to approximately $5 billion by the end of 2019.{{cite web|url=http://pakobserver.net/detailnews.asp?id=278745|title=PESHAWAR-KARACHI PR TRACK TO BE UPGRADED BY CHINA|date=12 November 2015|work=Pakistan Observer|archive-url=https://web.archive.org/web/20151116133016/http://pakobserver.net/detailnews.asp?id=278745|archive-date=16 November 2015}} Of these, 180 coaches are to be built at the Pakistan Railways Carriage Factory near Islamabad,{{cite news|title=21 Railway Stations to be upgraded in three years: Minister|url=http://www.dnd.com.pk/21-railway-stations-to-be-up-graded-in-three-years-minister/100804|access-date=11 December 2015|publisher=Dispatch News Desk|date=11 November 2015}} while the Government of Pakistan intends to procure an additional 800 coaches at a later date, with the goal of building 595 of those coaches in Pakistan.
In September 2018, the new government led by Prime Minister Imran Khan reduced Chinese investment in the railways by $2 billion to $6.2 billion due to financing burdens.{{cite news|title=Pakistan cuts CPEC investment in railways by USD 2 billion citing huge burden of loans|date=2 October 2018|work=The Economic Times|url=https://economictimes.indiatimes.com/news/international/world-news/pakistan-cuts-cpec-investment-in-railways-by-usd-2-billion-citing-huge-burden-of-loans/articleshow/66039919.cms}}
=Main Line 1=
{{Main|Karachi–Peshawar Railway Line#ML-1 upgrade}}
The CPEC "Early Harvest" plan includes{{citation needed|date=January 2023}} a complete overhaul of the 1,687-kilometer-long Main Line 1 railway (ML-1) between Karachi and Peshawar. The plan was initially floated in 2015;{{cite news |title=Purchase of power: payments to Chinese companies to be facilitated through revolving fund |url=https://www.brecorder.com/news/4356621 |access-date=6 December 2015 |work=Business Recorder |date=5 December 2015}} however, as of January 2023, construction on the project has not yet started, with funding only secured in November 2022.{{cite news |last1=Bokhari |first1=Farhan |last2=Parkin |first2=Benjamin |title=Pakistan taps Chinese credit for railway upgrade despite debt crisis |url=https://www.ft.com/content/44c26d5c-97d2-4181-b5a4-9ef66ce776db |access-date=4 January 2023 |work=Financial Times |date=4 January 2023}} The total cost of the project is estimated to be {{US$|8.2|link=yes}} billion.{{cite news|title=China unveils rail network upgrade, gas pipeline plans for Pakistan|url=http://www.thehindu.com/news/international/china-unveils-rail-network-upgrade-gas-pipeline-plans-for-pakistan/article8709834.ece|access-date=9 August 2016|work=The Hindu}}
The upgrade plan involves doubling the track from Karachi to Peshawar, providing grade separation and implementing communications-based train control;{{Cite web|title=Expansion and reconstruction of existing Line ML-1 |publisher=China-Pakistan Economic Corridor (CPEC)|url=http://cpec.gov.pk/project-details/30|access-date=26 September 2020|website=cpec.gov.pk}} these improvements will increase capacity and allow for faster trains on the line.{{cite news|title=Karachi-Peshawar railway line being upgraded under CPEC|url=http://www.dailytimes.com.pk/national/22-Jan-2016/karachi-peshawar-railway-line-being-upgraded-under-cpec|access-date=10 February 2016|work=Daily Times|date=22 January 2016}}
=Main Line 2=
{{Main|Kotri–Attock Railway Line}}
File:Main Lines 2 and 3 of Pakistan Railways.png
In addition to upgrading the ML-1, the CPEC project also calls for a similar major upgrade of the 1,254-kilometer-long Main Line 2 (ML-2) railway between Kotri in Sindh province and Attock in northern Punjab province via the cities of Larkana and Dera Ghazi Khan.{{cite news|title=Railway tracks to be built, upgraded as part of CPEC project: report|url=http://www.dawn.com/news/1227822|access-date=10 February 2016|work=Dawn|date=21 December 2015}} The route towards northern Pakistan roughly parallels the Indus River, unlike the ML-1, which takes a more eastward course towards Lahore. The project also includes a plan to connect Gwadar to the town of Jacobabad, Sindh,{{cite news|title=New railway tracks planned under CPEC: Report|url=http://www.pakistantoday.com.pk/2015/12/21/business/new-railway-tracks-planned-under-cpec-report-2/|access-date=11 February 2016|work=Pakistan Today|date=21 December 2015}} which lies at the intersection of the ML-2 and ML-3 railways.
=Main Line 3=
{{main|Rohri–Chaman Railway Line}}
Medium-term plans for the Main Line 3 (ML-3) railway include the construction of a 560-kilometer railway line between Bostan near Quetta and Kotla Jam in Bhakkar District near Dera Ismail Khan.{{cite news|title=New railway tracks planned under CPEC: report|url=http://www.dawn.com/news/1227664|access-date=10 February 2016|work=Dawn|date=20 December 2015}} This line will provide access to southern Afghanistan. The route will pass through Quetta and Zhob before terminating in Kotla Jam, with construction expected to be completed by 2025.
=Khunjerab Railway=
{{Main|Khunjerab Railway}}
File:Karakoram Railway.png is indicated by the brown line.]]
Longer-term projects under CPEC also call for the construction of the 682-kilometer-long Khunjerab Railway line between the city of Havelian and the Khunjerab Pass on the Chinese border, with an extension to China's Lanxin Railway in Kashgar, Xinjiang. The railway will roughly parallel the Karakoram Highway and is expected to be completed by 2030.
The cost of the entire project is estimated to be approximately $12 billion and will require 5 years for completion. A 300 million rupee study to establish the final feasibility of constructing the rail line between Havelian and the Chinese border is already underway.{{cite web|url=http://www.thenews.com.pk/Todays-News-3-252518-Govt-allocates-Rs73-billion-for-Pakistan-China-trade-corridor|title=Govt allocates Rs 73 billion for Pakistan-China trade corridor|author=Mehtab Haider|date=28 May 2014|work=The News International|archive-url=https://web.archive.org/web/20140528001538/http://www.thenews.com.pk/Todays-News-3-252518-Govt-allocates-Rs73-billion-for-Pakistan-China-trade-corridor|archive-date=28 May 2014}} A preliminary feasibility study was completed in 2008 by the Austrian engineering firm TBAC.{{cite news|title=CDWP approves uplift projects worth Rs 244bn|url=http://www.dawn.com/news/1059726|access-date=10 February 2016|work=Dawn|date=1 December 2013}}
=Lahore Metro=
{{main|Orange Line (Lahore Metro)}}
The Orange Line of the Lahore Metro is a significant commercial project under CPEC.{{Cite news |date=26 October 2020 |title=Pakistan's first metro line opens to passengers in Lahore |url=https://www.bbc.com/news/world-asia-54692488 |access-date=11 April 2024}} This $1.6 billion project was initially planned for completion by Winter 2017. However, it faced several delays and was finally launched on 25 October 2020. The Orange Line spans 27.1 kilometers (16.8 mi), with 25.4 kilometers (15.8 mi) being elevated and the remaining portion underground between Jain Mandir and Lakshmi Chowk. The project has the capacity to transport 250,000 commuters per day, with plans to increase this to 500,000 commuters per day by 2025. As of now, the Orange Line of the Lahore Metro is fully operational.{{Cite news |last=Toppa |first=Sabrina |date=5 November 2020 |title=Lahore's metro line opened to fanfare – but what is the real cost of China's 'gift'? |url=https://www.theguardian.com/global-development/2020/nov/05/lahore-metro-line-opened-to-fanfare-but-what-is-the-real-cost-of-china-gift |access-date=11 April 2024 |work=The Guardian|issn=0261-3077}} It is the first automated rapid transit line in Lahore, Punjab, Pakistan, and the first driverless metro in Pakistan. It is operated by the Punjab Mass Transit Authority and forms part of the Lahore Metro system.
Energy sector projects
Pakistan's current energy generating capacity is 24,830 MW.{{cite web|title=Annual Plan 2015–16|url=http://www.pc.gov.pk/wp-content/uploads/2015/06/Ch18-Energy.pdf|publisher=Ministry of Planning, Development, and Reform (Pakistan)|access-date=13 March 2016|page=130|archive-url=https://web.archive.org/web/20160313201410/http://www.pc.gov.pk/wp-content/uploads/2015/06/Ch18-Energy.pdf|archive-date=13 March 2016|url-status=dead}} Energy generation will be a major focus of the CPEC project, with approximately $33 billion expected to be invested in this sector. An estimated 10,400 MW of electricity are slated for generation by March 2018 as part of CPEC's "Early Harvest" projects.
The energy projects under CPEC will be constructed by private Independent Power Producers, rather than by the governments of China or Pakistan.{{cite news|title=OVER 80 PERCENT INVESTMENT UNDER CPEC TO COME THROUGH PRIVATE SECTOR: AHSAN|url=http://www.brecorder.com/markets/energy/america/268748.html?section=1|access-date=29 January 2016|work=Business Recorder|date=17 December 2015|quote=The minister said out of the total investment of US$46 billion, US$38 billion would be spent on energy-related projects which were on independent power producer (IPP) mode and would not increase the burden of national debt.}} The Exim Bank of China will finance these private investments at 5–6% interest rates, while the government of Pakistan will be contractually obliged to purchase electricity from these firms at pre-negotiated rates.{{cite web|url=http://www.brecorder.com/top-news/108/238832-1st-phase-of-cpec-to-bring-$35bn-investment-in-energy-ahsan-iqbal.html|title=1ST PHASE OF CPEC TO BRING $35BN INVESTMENT IN ENERGY: AHSAN IQBAL|author=Shoaib-ur-Rehman Siddiqui|date=17 April 2015|work=Business Recorder}} In April 2020, hit by the COVID-19 pandemic, Pakistan asked China to ease repayment terms on $30 billion worth of power projects.{{Cite news|url=https://www.economist.com/china/2020/06/04/the-pandemic-is-hurting-chinas-belt-and-road-initiative|title=The pandemic is hurting China's Belt and Road Initiative|date=4 June 2020|newspaper=The Economist}}{{Cite news|last=Fazl-e Haider|first=Syed|date=29 July 2020|title=The Impact of the COVID-19 Pandemic on the China-Pakistan Economic Corridor|url=https://jamestown.org/program/the-impact-of-the-covid-19-pandemic-on-the-china-pakistan-economic-corridor/|access-date=31 July 2020|website=Jamestown Foundation}}
=Renewable-energy=
{{Main|Renewable energy in Pakistan}}
In March 2018, Pakistan announced that hydropower projects would be prioritized following the completion of under-construction power plants. Pakistan aims to produce 25% of its electricity requirements from renewable energy sources by 2030.{{cite news|title=Faced with Blackouts, Pakistan's Largest Public Park Goes Solar|url=https://www.voanews.com/a/faced-with-blackouts-pakistan-largest-public-park-goes-solar/3708525.html|access-date=8 February 2017|publisher=Voice of America|date=6 February 2017}} China's Zonergy company is expected to complete the construction of the world's largest solar power plant – the 6,500-acre Quaid-e-Azam Solar Park near Bahawalpur, with an estimated capacity of 1,000 MW, by December 2016. The first phase of the project, completed by Xinjiang SunOasis, has a generating capacity of 100 MW.{{cite news|title=World's largest solar park to light up Pakistan's future|url=http://www.dawn.com/news/1205484|access-date=11 March 2016|work=Dawn|issue=8 September 2015}} The remaining 900 MW capacity will be installed by Zonergy under CPEC.
The Jhimpir Wind Power Plant, built by the Turkish company Zorlu Enerji, has already begun to sell 56.4 MW of electricity to the government of Pakistan.{{cite news|title=Turkish firm sells power in Pakistan|url=http://www.hurriyetdailynews.com/turkish-firm-sells-power-in-pakistan-.aspx?pageID=238&nID=51460&NewsCatID=348|access-date=27 July 2013|newspaper=Hürriyet Daily News|date=26 July 2013}} Under CPEC, another 250 MW of electricity are to be produced by the Chinese-Pakistan consortium United Energy Pakistan and others at a cost of $659 million.{{cite news|last1=Kiani|first1=Khaleeq|title=6,000MW power project accords to be signed during Xi's visit|url=http://www.dawn.com/news/1173396|access-date=11 December 2015|work=Dawn|date=2 April 2015}}{{cite news|last1=Kundi|first1=Imran Ali|title=18 projects under CPEC to generate 13,880 MW|url=http://nation.com.pk/business/18-Jul-2015/18-projects-under-cpec-to-generate-13-880mw|access-date=11 December 2015|work=The Nation|location=Pakistan|date=18 July 2015}} Another wind farm, the Dawood Wind Power Project, is under development by HydroChina at a cost of $115 million and will generate 50 MW of electricity by August 2016.{{cite news|title=China invests $115 million to develop wind energy in Pakistan|url=http://nation.com.pk/national/02-Aug-2015/china-invests-115-million-to-develop-wind-energy-in-pakistan|access-date=20 May 2016|work=The Nation|date=2 August 2015}}
SK Hydro Consortium is constructing the 870 MW Suki Kinari Hydropower Project in the Kaghan Valley of Pakistan's Khyber Pakhtunkhwa province at a cost of $1.8 billion,{{cite news|title=Deal signed for 870 MW hydropower project|url=http://nation.com.pk/islamabad/12-Apr-2014/deal-signed-for-870mw-hydropower-project|access-date=11 December 2015|publisher=Nation|date=12 April 2014}} with financing from China's EXIM Bank.{{cite news|title=Pakistan, China ink 51 MoUs|url=http://www.dailytimes.com.pk/national/20-Apr-2015/pak-china-sign-51-mous|access-date=11 December 2015|work=Daily Times|date=20 April 2015}} The $1.5 billion Azad Pattan Hydropower Project, being developed on the River Jhelum, is sponsored by Gezhouba Group. With a generation capacity of 700.7 MW, the project will have the lowest generation tariff out of five proposed projects on the River Jhelum Cascade.{{Cite web |title=Azad Pattan Hydropower – Business |url=https://laraibgroup.com/azad-pattan-hydropower/ |access-date=20 August 2023}}
The Karot Hydropower Project was financed by China's Silk Road Fund.{{Cite book |last=Lin |first=Shuanglin |title=China's Public Finance: Reforms, Challenges, and Options |publisher=Cambridge University Press |year=2022 |isbn=978-1-009-09902-8 |edition= |location=New York, NY}}{{Rp|pages=221}} It was the fund's first project and part of its focus on supporting clean energy in Pakistan as one of the priority focuses of the corridor.{{Rp|pages=221–222}}
Pakistan and China have also discussed including the 4,500 MW, $14 billion Diamer-Bhasha Dam as part of the CPEC project,{{cite news|title=Govt seeks Bhasha Dam inclusion in CPEC|url=http://nation.com.pk/business/11-Dec-2015/govt-seeks-bhasha-dam-inclusion-in-cpec|access-date=11 December 2015|work=The Nation|date=11 December 2015}} though as of December 2015, no firm decision has been made, although Pakistani officials remain optimistic about its eventual inclusion.{{cite news|title=DIAMIR BHASHA DAM LIKELY TO BE PART OF CPEC: AHSAN|url=http://www.brecorder.com/top-news/1/261687-diamir-bhasha-dam-likely-to-be-part-of-cpec-ahsan.html|access-date=11 December 2015|work=Business Recorder|date=18 November 2015}} On 14 November 2017, Pakistan dropped its bid to have the Diamer-Bhasha Dam financed under the CPEC framework.{{cite news|url=https://tribune.com.pk/story/1558475/2-pakistan-stops-bid-include-diamer-bhasha-dam-cpec/|title=Pakistan stops bid to include Diamer-Bhasha Dam in CPEC|last1=Rana|first1=Shahbaz|date=15 November 2017|work=The Express Tribune |access-date=19 November 2017}}
The $2.4 billion, 1,100 MW Kohala Hydropower Project, being constructed by China's Three Gorges Corporation, predates the announcement of CPEC, though funding for the project will now come from CPEC funds.{{cite news|title=PURCHASE OF POWER: PAYMENTS TO CHINESE COMPANIES TO BE FACILITATED THROUGH REVOLVING FUND|url=http://www.brecorder.com/top-stories/0/1252767/|access-date=11 December 2015|work=Business Recorder|date=5 December 2015|archive-date=1 October 2016|archive-url=https://web.archive.org/web/20161001130130/http://www.brecorder.com/top-stories/0/1252767|url-status=dead}} The project was approved by the government of Pakistani-administered Kashmir, the Chinese government, and the Three Gorges Corporation in 2020,{{Cite web|url=http://tribune.com.pk/story/2233400/2-deal-worth-2-4b-signed-kohala-power-project|title=Deal worth $2.4b signed for Kohala power project|date=1 June 2020|website=The Express Tribune|access-date=23 August 2020}} which was protested by India, which claims Kashmir as its territory.{{Cite news|url=https://economictimes.indiatimes.com/news/international/business/china-to-construct-1124-megawatt-power-project-in-pok-under-cpec/articleshow/76153010.cms|title=China to construct 1,124-megawatt power project in PoK under CPEC|access-date=23 August 2020|newspaper=The Economic Times}} Renewable energy projects also include a 640 MW Mahl hydropower project.{{Cite web|url=http://www.globalvillagespace.com/azad-kashmir-bringing-water-power-beauty-to-pakistan-cpec/|title = Azad Kashmir: Bringing Water, Power & Beauty to Pakistan & CPEC|date = 6 October 2020}}
=Coal=
Despite several renewable energy projects, the bulk of new energy generation capacity under CPEC will come from coal-based plants, with $5.8 billion worth of coal power projects expected to be completed by early 2019 as part of CPEC's "Early Harvest" projects.
On 26 May, it was announced that a 660 kV transmission line would be laid between Matiari and Lahore. The electricity would be produced from coal-based power plants at Thar, Port Qasim, and Hub. The line will have the capacity to supply 2,000 MW, with a 10 percent overload capability for two hours.{{Cite web|url=https://nation.com.pk/27-May-2019/four-mega-projects-under-cpec-launched|title=Four mega projects under CPEC launched|website=The Nation|date=27 May 2019|access-date=27 May 2019}}
;Balochistan
In Balochistan province, a $970 million coal power plant at Hub, near Karachi, with a capacity of 660 MW is being built by a joint consortium of China's China Power Investment Corporation and the Pakistani firm Hub Power Company. This is part of a larger $2 billion project to produce 1,320 MW from coal.{{cite news|title=Hubco's power project on track|url=http://www.dawn.com/news/1212406|access-date=20 February 2016|work=Dawn|date=12 October 2015}}
A 300 MW coal power plant is also being developed in Gwadar and is financed by a 0% interest loan.{{cite news|last1=Haider|first1=Mehtab|title=China converts $230m loan for Gwadar airport into grant|url=http://www.geo.tv/article-198450-China-converts-230m-loan-for-Gwadar-airport-into-grant|access-date=6 December 2015|publisher=Geo TV|date=23 September 2015}} The development of Gwadar also includes a 132 kV (AIS) Grid Station along with an associated D/C Transmission line at Downtown Gwadar, as well as other 132 kV Sub Stations at Deep Sea Port Gwadar.{{Cite web|url=http://cpec.gov.pk/cpec-psdp-funded-projects|title=CPEC PSDP Funded Projects | China-Pakistan Economic Corridor (CPEC) Official Website|website=cpec.gov.pk}}
;Punjab
The $1.8 billion Sahiwal Coal Power Project, which has been in full operation since 3 July 2017,{{cite news|title=Second unit of Sahiwal power plant being inaugurated today|url=http://nation.com.pk/business/03-Jul-2017/second-unit-of-sahiwal-power-plant-being-inaugurated-today|access-date=6 July 2017|work=The Nation|date=3 July 2017}} is located in central Punjab and has a capacity of 1,320 MW. It was built by a joint venture of two Chinese firms: Huaneng Shandong and Shandong Ruyi, who jointly own and operate the plant.{{cite web|last1=Liu|first1=Youliang|title=Application For a Generation License of Huaneng Shandong Ruyi (Pakistan) Energy (Private) Limited For Its 2 X 660 MW Imported Coal Fired Power Project at Sahiwal, Pakistan|url=http://www.nepra.org.pk/Licences/Licence%20Application/2015/Generation%20License%20App%20of%20Hunaneg%20Shdong%20RUYI.PDF|publisher=NEPRA|access-date=17 December 2015|page=235|date=9 March 2015|archive-url=https://web.archive.org/web/20160307175237/http://www.nepra.org.pk/Licences/Licence%20Application/2015/Generation%20License%20App%20of%20Hunaneg%20Shdong%20RUYI.PDF|archive-date=7 March 2016|url-status=dead}} Pakistan will purchase electricity from the consortium at a tariff of 8.36 US cents/kWh.{{cite web |author1=Huaneng Shandong Ruyi (Pakistan) Energy (Pvt.) Limited |title=LAG-292 Huaneng Shandong Generation License |url=http://www.nepra.org.pk/Licences/Generation/IPP-2002/LAG-292%20Huaneng%20Shandong%20Generation%20Licence%2010-06-2015.PDF |publisher=NEPRA |access-date=17 December 2015 |archive-url=https://web.archive.org/web/20151222081447/http://www.nepra.org.pk/Licences/Generation/IPP-2002/LAG-292%20Huaneng%20Shandong%20Generation%20Licence%2010-06-2015.PDF |archive-date=22 December 2015 |pages=18 |url-status=dead}}
The $589 million project to establish a coal mine and a 300 MW coal power plant in the town of Pind Dadan Khan, located in Punjab's Salt Range, is being developed by China Machinery Engineering Corporation.{{cite news|title=Nepra accepts tariff petition of Chinese firm for power plant|url=http://nation.com.pk/business/01-May-2015/nepra-accepts-tariff-petition-of-chinese-firm-for-power-plant|access-date=19 February 2016|work=The Nation|location=Pakistan|date=1 May 2015}} Pakistan's NEPRA has faced criticism for considering a relatively high tariff of 11.57 US cents/kWh proposed by the Chinese firm,{{cite news|title=TARIFF REVIEW PETITION FOR 1X330 MW LOCAL COAL FIRED POWER PROJECT IN PIND DADAN KHAN, SALT RANGE, PUNJAB|url=http://www.nepra.org.pk/Tariff/Petitions/2015/Motion%20for%20Leave%20for%20Review%20in%20respect%20of%20Determination%20of%20Authority%20in%20the%20matter%20of%20tariff%20petition%20filed%20by%20CMECPPL.PDF|archive-url=https://web.archive.org/web/20160605143137/http://nepra.org.pk/Tariff/Petitions/2015/Motion%20for%20Leave%20for%20Review%20in%20respect%20of%20Determination%20of%20Authority%20in%20the%20matter%20of%20tariff%20petition%20filed%20by%20CMECPPL.PDF|url-status=dead|archive-date=5 June 2016|access-date=11 August 2016|agency=NEPRA|pages=See table on pages 19–20}} which was initially set at 8.25 US cents/kWh in 2014.{{cite news|title='Under pressure' Nepra may okay excessive tariff for CMEC|url=http://nation.com.pk/business/06-May-2015/under-pressure-nepra-may-okay-excessive-tariff-for-cmec|access-date=11 August 2016|work=The Nation}} The Chinese firm claimed that the increase in coal transportation costs was due to the nonavailability of coal from nearby mines, which had initially been considered the primary source for the project. The company argued that coal would need to be transported from the distant Sindh province, resulting in a 30.5% increase in fuel costs due to inefficiencies in mining procedures.{{cite news|title=TARIFF REVIEW PETITION FOR 1X330 MW LOCAL COAL FIRED POWER PROJECT IN PIND DADAN KHAN, SALT RANGE, PUNJAB|url=http://www.nepra.org.pk/Tariff/Petitions/2015/Motion%20for%20Leave%20for%20Review%20in%20respect%20of%20Determination%20of%20Authority%20in%20the%20matter%20of%20tariff%20petition%20filed%20by%20CMECPPL.PDF|archive-url=https://web.archive.org/web/20160605143137/http://nepra.org.pk/Tariff/Petitions/2015/Motion%20for%20Leave%20for%20Review%20in%20respect%20of%20Determination%20of%20Authority%20in%20the%20matter%20of%20tariff%20petition%20filed%20by%20CMECPPL.PDF|url-status=dead|archive-date=5 June 2016|access-date=11 August 2016|agency=NEPRA|quote=In addition, the Authority did not include the transportation or beneficiation cost required for Salt Range in the assumed price of US$86.95/t (assuming the per Mm [million] btu price of Thar coal). Since the 6/20 Petitioner has assumed an average of 50 km transportation distance from the coal mines to the power plant, the transportation costs will work out to be US$13.5, assuming the transportation cost of US$0.27/t/km approved for Thar coal. This plus the assumed levelized beneficiation cost of US$11/t required for Salt Range coal, will work out to be US$111.45/t. From the above analysis, it is clear that in light of the approved coal price for Thar Coal, and the much smaller production scale and additional transportation & beneficiation costs required for Salt Range coal, the Petitioner's assumed coal price US$111.86/t in its tariff petition is reasonable and justified.}}
;Sindh
The Shanghai Electric company of China will construct two 660 MW power plants as part of the "Thar-I" project in the Thar coalfield of Sindh province. The "Thar-II" project will be developed by a separate consortium.{{cite news|title=Progress on Thar coal projects|url=http://www.dawn.com/news/1218338|access-date=19 February 2016|work=Dawn|date=9 November 2015}}{{cite news|title=Shanghai govt sign Thar coal power project|url=http://dunyanews.tv/en/Pakistan/294557-Shanghai-Electric-Power-govt-sign-Thar-coal-power|access-date=19 February 2016|publisher=Dunya TV|date=21 August 2015}} The facility will be powered by locally sourced coal,{{cite news|title=LOI signed with Chinese company for 1320 MW project at Thar|url=http://www.pakistantoday.com.pk/2015/08/21/national/loi-signed-with-chinese-company-for-1320-mw-project-at-thar-2/|access-date=19 February 2016|work=Pakistan Today|date=21 August 2015}} and is expected to begin commercial operation in 2018.{{cite news|title=Pakistan, China sign LoI to set up|url=http://www.thenews.com.pk/print/57754-pakistan-china-sign-loi-to-set-up|access-date=19 February 2016|publisher=The News (Pakistan)|date=22 August 2015}} Pakistan's National Electric Power Regulatory Authority (NEPRA) has agreed to purchase electricity from both Thar-I and Thar-II at a tariff of 8.50 US cents/kWh for the first 330 MW of electricity, 8.33 US cents/kWh for the next 660 MW, and 7.99 US cents/kWh for the subsequent 1,099 MW as further phases are developed.{{cite news|last1=Mirza|first1=Javed|title=Govt approves upfront tariffs for Thar coal-fired power projects|url=http://www.thenews.com.pk/print/21139-govt-approves-upfront-tariffs-for-thar-coal-fired-power-projects|access-date=14 March 2016|agency=The News (Pakistan)|date=30 January 2015|quote=Nepra has notified upfront tariff of 8.5015 cents/unit for Thar coal-based power projects of 330 megawatts on foreign financing, while tariff for similar capacity projects on local financing has been fixed at 9.5643cents/unit. The upfront tariff will be 8.3341 cents/unit for coal-fired power projects of 660 megawatts on foreign financing, while tariff for similar capacity projects on local financing has been fixed at 9.5668 cents/unit. The upfront tariff will be 7.9889 cents/unit for power projects of 1,099 megawatts on foreign financing, while tariff for similar capacity projects on local financing has been fixed at 9.1368 cents/unit.}}{{cite news|last1=Haq|first1=Shahram|title=Chinese bank promises $1b for Thar coal mining|url=http://tribune.com.pk/story/856019/chinese-bank-promises-1b-for-thar-coal-mining/|access-date=11 August 2016|work=The Express Tribune|date=20 March 2015|quote=The cost of electricity for the initial 10 years will be 8.5 cents per unit and when the loan period ends, the cost will come down to 6 cents per unit.}}
Near the Thar-I Project, the China Machinery Engineering Corporation and Pakistan's Engro Corporation will construct two 330 MW power plants as part of the "Thar-II Project". Initially, they had proposed constructing two 660 MW power plants. They will also develop a coal mine capable of producing up to 3.8 million tons of coal per year as part of the project's first phase.{{cite news|title=China Machinery Engineering to fund Pakistan coal projects|url=http://europe.chinadaily.com.cn/business/2015-12/22/content_22771391.htm|access-date=19 February 2016|work=China Daily|date=22 December 2015}}{{Better source needed|date=October 2021}} The first phase is expected to be completed by early 2019,{{cite news|title=Thar coal field's Block-II achieves financial close|url=http://www.thenews.com.pk/print/85967-Thar-coal-fields-Block-II-achieves-financial-close|access-date=19 February 2016|publisher=The News Pakistan|date=3 January 2016|quote="The production of remaining 660 megawatts from block-II will begin by the end of 2018 or by the beginning of 2019 while the mining and energy projects in block-I and block-VI of Thar will also reach their financial close this year," said the official."}} at a cost of $1.95 billion.{{cite news|last1=Rapoza|first1=Kenneth|title=China Shutters Coal Mines at Home, Opens $2 Bln Mining Project in Pakistan|url=https://www.forbes.com/sites/kenrapoza/2016/02/19/china-shutters-coal-mines-at-home-opens-2-bln-mining-project-in-pakistan/|access-date=19 February 2016|work=Forbes|date=19 February 2016}} Subsequent phases are expected to generate an additional 3,960 MW of electricity over ten years. As part of the infrastructure required for electricity distribution from the Thar I and II Projects, the $2.1 billion Matiari to Lahore Transmission Line and $1.5 billion Matiari to Faisalabad transmission line are also planned as part of the CPEC project.
The 1,320 MW, $2.08 billion Port Qasim Power Project near Port Qasim will be a joint venture between Al-Mirqab Capital from Qatar and China's Power Construction Corporation – a subsidiary of Sinohydro Resources Limited.{{cite news|last1=Shoh Han|first1=Tih|title=Chinese and Qatari firms to build coal power plant in Pakistan|url=http://www.scmp.com/business/china-business/article/1761506/chinese-firm-us209-billion-pakistan-power-plant-deal|access-date=17 December 2015|work=South China Morning Post|date=9 April 2015}}{{cite news|last1=Shih|first1=Toh Han|title=Chinese firm in US$2.09 billion Pakistan power plant deal|url=http://www.scmp.com/business/china-business/article/1761506/chinese-firm-us209-billion-pakistan-power-plant-deal|access-date=17 December 2015|work=South China Morning Post|date=9 April 2015}} Pakistan's NEPRA and SinoHydro agreed to set the levelized tariff for electricity purchased from the consortium at 8.12 US cents/kWh.{{cite news|last1=Kiani|first1=Khaleeq|title=Nepra approves upfront tariff for Port Qasim plant|url=http://www.dawn.com/news/1163424|access-date=17 December 2015|work=Dawn|date=14 February 2015}} The first 660 MW reactor was commissioned in November 2017.{{Cite web|url=https://www.thenews.com.pk/print/250848-pm-opens-over-1-300-mw-port-qasim-coal-fired-power-project|title=PM opens over 1,300 MW Port Qasim coal-fired power project|website=The News International|access-date=27 February 2018}}
=Liquified natural gas=
Liquefied natural gas (LNG) projects are also considered vital to CPEC. The Chinese government has announced its intention to build a $2.5 billion, 711-kilometre gas pipeline from Gwadar to Nawabshah in the province as part of CPEC.{{cite news|last1=Bhatti|first1=Sohail Iqbal|title=Chinese company to build LNG, gas pipeline projects in Pakistan|url=http://www.dawn.com/news/1209970/chinese-company-to-build-lng-gas-pipeline-projects-in-pakistan|access-date=6 December 2015|publisher=Dawn News|date=30 September 2015}} The pipeline is designed to be part of the 2,775-kilometre-long Iran–Pakistan gas pipeline, with the 80-kilometre portion between Gwadar and the Iranian border to be connected once sanctions against Tehran are eased. Iran has already completed a 900-kilometre portion of the pipeline on its side of the border.
The Pakistani portion of the pipeline is to be constructed by the state-owned China Petroleum Pipeline Bureau.{{cite news|last1=Bhatti|first1=Sohail|title=Chinese company to build LNG, gas pipeline projects in Pakistan|url=http://www.dawn.com/news/1209970/chinese-company-to-build-lng-gas-pipeline-projects-in-pakistan|access-date=2 February 2016|work=Dawn|date=30 September 2015}} It will be {{convert|42|in|m|abbr=off}} in diameter and have the capacity to transport {{convert|1e9|cuft|m3}} of liquefied natural gas per day, with an additional {{convert|500e6|cuft|m3}} capacity when the planned offshore LNG terminal is completed.{{cite news|title=Financial bid for Gwadar LNG Terminal to be opened this week|url=http://www.pakistantoday.com.pk/2015/11/08/business/financial-bid-for-gwadar-lng-terminal-to-be-opened-this-week/|access-date=6 December 2015|work=Pakistan Today|date=8 November 2015}} The project will not only provide gas exporters with access to the Pakistani market but will also allow China to secure a route for its own imports.{{cite journal|last1=Kamal|first1=Maha|title=Dynamics of Natural Gas Pricing: The Critical Need For a Natural Gas Hub in South Asia|journal=Journal of International Affairs|date=Fall–Winter 2015|volume=69|issue=1|page=81}}
The project should not be confused with the $2 billion, 1,100-kilometre North-South Pipeline liquefied natural gas pipeline, which is being constructed with Russian assistance between Karachi and Lahore, and is anticipated to be completed by 2018.{{cite news|title=Russia and Pakistan to construct $2bn gas pipeline|url=http://www.hydrocarbons-technology.com/news/newsrussia-and-pakistan-to-construct-2bn-gas-pipeline-4697028|access-date=6 December 2015|publisher=Hydrocarbons Technology|date=19 October 2015}} Nor should it be confused with the planned $7.5 billion TAPI Pipeline, a project involving Turkmenistan, Afghanistan, Pakistan, and India.
Other LNG projects, currently under construction with Chinese assistance and financing, will augment the scope of CPEC but are neither funded by nor officially considered a part of it. The 1,223 MW Balloki Power Plant, under construction near Kasur, is being built by China's Harbin Electric Company with financing from China's EXIM Bank. In October 2015, Prime Minister Nawaz Sharif also inaugurated the construction of the 1,180 MW Bhikhi Power Plant near Sheikhupura.{{cite news|last1=Zain|first1=Ali|title=PM Nawaz inaugurates 1180 MW Bhikhi Power Plant in Sheikhupura|url=http://en.dailypakistan.com.pk/pakistan/pm-nawaz-inaugurates-1180mw-bhikki-power-plant-in-sheikhupura/|access-date=11 December 2015|work=Daily Pakistan|date=9 October 2015}} This plant is being jointly constructed by China's Harbin Electric Company and General Electric from the United States.{{cite news|title=GE and Harbin to Provide Large, High-Efficiency Gas Power Plant to Help Meet Energy Demand in Pakistan|url=http://www.businesswire.com/news/home/20151014005988/en/GE-Harbin-Provide-Large-High-Efficiency-Gas-Power|access-date=11 December 2015|publisher=Business Wire – A Berkshire Hathaway Company|date=14 October 2015}} It is expected to be Pakistan's most efficient power plant and will provide enough power for an estimated 6 million homes. The facility became operational in May 2018.{{Cite web|url=https://nation.com.pk/22-May-2018/1-180mw-bhikki-plant-starts-full-power-generation|title=1,180MW Bhikki plant starts full power generation|date=22 May 2018|website=The Nation}}
="Early Harvest" projects=
As part of the "Early Harvest" scheme of CPEC, over 10,000 megawatts of electricity-generating capacity is to be developed between 2018 and 2020. While some "Early Harvest" projects will not be completed until 2020, the government of Pakistan plans to add approximately 10,000 MW of energy-generating capacity to Pakistan's electric grid by 2018 through the completion of projects that complement CPEC.
Although not officially under the scope of CPEC, the 1,223 MW Balloki Power Plant and the 1,180 MW Bhikki power plant were both completed in mid-2018.{{Cite web|url=https://dieselgasturbine.com/1223-mw-plant-up-in-pakistan/|title=1223 MW Plant Up In Pakistan|date=31 July 2018}} Along with the 969 MW Neelum–Jhelum Hydropower Plant, completed in summer 2018, and the 1,410 MW Tarbela IV Extension Project, completed in February 2018,{{Cite news|url=https://tribune.com.pk/story/1645651/2/|title=Tarbela 4th extension project starts power production – The Express Tribune|date=27 February 2018|work=The Express Tribune|access-date=27 February 2018}} this will result in an additional 10,000 MW being added to Pakistan's electricity grid by the end of 2018 through a combination of CPEC and non-CPEC projects.{{cite news|title=Pakistan orders completion of two hydel projects by June|url=http://www.siasat.com/news/pakistan-orders-completion-two-hydel-projects-june-926919/|access-date=23 March 2016|work=The Siasat Daily|date=5 March 2016}} A further 1,000 MW of electricity will be imported to Pakistan from Tajikistan and Kyrgyzstan as part of the CASA-1000 project, which is expected to be launched in 2018.{{Cite news|url=https://www.azernews.az/region/126770.html|title=Tajik Energy Ministry: CASA-1000 project implementation to be launched this year|date=7 February 2018|work=AzerNews.az|access-date=27 February 2018}}
==Table of projects==
class="wikitable sortable" style="text-align:center" |
style="vertical-align:bottom;"
! "Early Harvest" energy project{{cite web|title=NATIONAL ASSEMBLY SECRETARIAT: "UNSTARRED QUESTIONS AND THEIR REPLIES"|url=http://www.na.gov.pk/uploads/documents/questions/1449731759_575.pdf|access-date=13 March 2016|pages=5–6|date=10 December 2015}} ! Capacity ! Location !Status |
Pakistan Port Qasim Power Project.
| 1,320 MW (2 x 660 MW plants) | Sindh |Operational |
Thar-l Project
| 1,320 MW (4 x 330 MW plants) | Sindh |Operational |
Thar-ll Project and coal mine
| 1,320 MW (2 x 660 MW plants) | Sindh |Operational |
Sahiwal Coal Power Project
| 1,320 MW (2 x 660 MW plants) | Punjab |Operational |
Rahimyar Khan coal power project
| 1,320 MW (2 x 660 MW plants) | Punjab |Operational |
Quaid-e-Azam Solar Park
| 1,000 MW | Punjab |Operational |
Suki Kinari Hydropower Project
| 884 MW | Khyber Pakhtunkhwa |Operational |
Karot Hydropower Project
| 720 MW{{Cite web|url=http://dailytimes.com.pk/545420/karot-hydropower-plant-to-be-put-into-commercial-operation/|title = Karot Hydropower Plant to be put into commercial operation|date = 24 January 2020}}{{cite news|last1=Tiezzi|first1=Shannon|title=China Powers up Pakistan: The Energy Component of the CPEC|url=https://thediplomat.com/2016/01/china-powers-up-pakistan-the-energy-component-of-the-cpec/|access-date=13 March 2016|agency=The Diplomat|date=13 January 2016}} | Punjab |Operational |
China Power Hub Generation Company
| 2X660 MW | Balochistan |Operational |
Thar Engro Coal Power Project
| 660 MW (2 x 330 MW plants) | Sindh |Operational |
Gwadar coal power project
| 300 MW | Balochistan |Operational |
UEP Windfarm
| 100 MW | Sindh |Operational |
Dawood wind power project
| 50 MW | Sindh |Operational |
Sachal Windfarm
| 50 MW | Sindh |Operational |
Sunnec Windfarm
| 50 MW | Sindh |Operational |
Matiari to Lahore Transmission Line
| 660 kilovolt | Sindh and Punjab |Operational |
Other areas of cooperation
The CPEC announcement encompassed not only infrastructure projects but also areas of cooperation between China and Pakistan.
= Agriculture and aquaculture =
CPEC includes provisions for cooperation in water resource management, livestock, and other agricultural fields. The plan encompasses projects such as agricultural information systems, storage and distribution of agricultural equipment, mechanization, demonstration and machinery leasing, and fertilizer production. Specifically, it aims to produce 800,000 tons of fertilizer and 100,000 tons of bio-organic fertilizer.{{Cite web|url=http://tribune.com.pk/story/1172199/one-belt-one-road-pakistan-unveils-long-term-cpec-cooperation-plan/|title=Pakistan unveils long-term CPEC cooperation plan – The Express Tribune|date=29 August 2016|access-date=30 August 2016}}{{Cite web|url=http://tribune.com.pk/story/1100259/cpec-to-introduce-technology-in-agriculture/|title=CPEC to introduce technology in agriculture – The Express Tribune|date=9 May 2016|access-date=30 August 2016}} The framework also includes cooperation in remote sensing (RS) and geographical information systems (GIS), food processing, pre-and post-harvest handling and storage of agricultural produce, and the selection and breeding of new animal breeds and plant varieties, including fisheries and aquaculture.{{Cite web|url=https://www.thenews.com.pk/print/494263-let-s-teach-them-to-fish|title=Let's teach them to fish|website=The News International}}
=Science and technology=
As part of CPEC, the two countries signed an Economic and Technical Cooperation Agreement,{{cite news |title=New Gwadar International Airport |website=cpec.gov.pk |url=http://cpec.gov.pk/project-details/33 |access-date=17 June 2022}} and pledged to establish the China-Pakistan Joint Cotton Bio-Tech Laboratory. They also committed to creating the China-Pakistan Joint Marine Research Center in collaboration with the State Oceanic Administration and Pakistan's Ministry of Science and Technology. Additionally, Pakistan and China have agreed to cooperate in the field of space research.
In February 2016, the two countries agreed to establish the Pak-China Science, Technology, Commerce and Logistic Park near Islamabad at an estimated cost of $1.5 billion.{{cite news|title=Logistic, Tech Park to be built for $1.5 billion as part of CPEC|url=http://tribune.com.pk/story/1052973/cpec-logistic-tech-park-to-be-built-for-1-5-billion/|access-date=11 March 2016|work=The Express Tribune|date=23 February 2016}} The park will be situated on 500 hectares, which will be provided by Pakistan to China's Xinjiang Production and Construction Corps, with all investments expected to come from the Chinese side over the course of ten years.
In May 2016, construction began on the $44 million 820-kilometer-long Pakistan-China Fiber Optic Project, a cross-border Optical Fiber cable that will enhance telecommunication and the ICT industry in the Gilgit-Baltistan, Khyber Pakhtunkhwa, and Punjab regions, while offering Pakistan a fifth route for transmitting telecommunication traffic.{{cite news|title=PM inaugurates Pakistan-China Fiber Optic project|url=http://dailytimes.com.pk/pakistan/19-May-16/pm-to-inaugurate-fiber-optic-project-in-gilgit-baltistan|access-date=19 May 2016|work=The News|date=19 May 2016}}{{Cite web |title=Cross Border Optical Fiber Cable |url=http://cpec.gov.pk/project-details/40 |website=cpec.gov.pk |publisher=China-Pakistan Economic Corridor (CPEC) Official Website}} It will be extended to Gwadar.{{Cite web|url=https://tribune.com.pk/story/1756458/2-optic-fibre-cable-connecting-pakistan-china-inaugurated-today/|title=Optic fibre cable connecting Pakistan, China to be inaugurated today|date=13 July 2018|website=The Express Tribune}}{{cite web |url=http://asia.nikkei.com/Spotlight/Belt-and-Road/China-builds-Digital-Silk-Road-in-Pakistan-to-Africa-and-Europe |title=China builds Digital Silk Road in Pakistan to Africa and Europe |date=29 January 2021 |website=asia.nikkei.com |publisher=NIKKEI Asia |access-date=16 June 2021 }}{{Cite web|url=https://dunyanews.tv/en/Business/537976-Rs12.13bn-released-for-CPEC-projects-under-PSDP-2019-20|title=Rs12.13bn released for CPEC projects under PSDP 2019–20|publisher=Dunya News|date=14 February 2008 }}
In May 2019, the Vice Presidents of China and Pakistan decided to launch a Huawei Technical Support Center in Pakistan.
CPEC includes the establishment of a pilot project for Digital Terrestrial Multimedia Broadcast for Pakistan Television Corporation through a Chinese grant at the Rebroadcast Station (RBS) in Murree.{{Cite web |title=Pilot Project of Digital Terrestrial Multimedia Broadcast (DTMB) |url=http://www.cpec.gov.pk/project-details/41 |website=cpec.gov.pk |publisher=China-Pakistan Economic Corridor (CPEC) Official Website}} ZTE Corporation will collaborate with Pakistan Television Corporation on research and development of digital terrestrial television technologies, staff training, and content creation. This collaboration will include partnerships with Chinese multinational companies in various areas, including television sets and set-top boxes, as part of international cooperation.{{Cite web|url=http://www.digitaltvnews.net/?p=29171|title=ZTE to provide DTMB broadcasting infrastructure for Pakistan's PTV|website=Digital TV News}}
Chinese Security Forces Deployed in Pakistan: Strategic Move Raises Regional Concerns
The deployment, carried out under a newly signed bilateral security framework between Beijing and Islamabad in early 2024, is reportedly aimed at safeguarding Chinese nationals working on high-stakes infrastructure projects under the China–Pakistan Economic Corridor (CPEC).
The first contingent, consisting of over 60 Chinese security personnel, has been stationed in Pakistan’s Sindh province—home to key components of the multibillion-dollar CPEC initiative. This includes the Thar coal power plants, where an estimated 6,500 Chinese engineers and workers are currently employed. Overall, more than 30,000 Chinese nationals are working on various CPEC projects across Pakistan.
Read More[https://stocknews.store/chinese-security-forces-deployed-in-pakistan-strategic-move-raises-regional-concerns/]
Finance
=Concessionary loans=
Approximately $11 billion worth of infrastructure projects being developed by the Pakistani government will be financed at an interest rate of 1.6%, after Pakistan successfully lobbied the Chinese government to reduce the rate from an initial 3%.{{cite news|last1=Haider|first1=Mehtab|title=China converts $230m loan for Gwadar airport into grant|url=http://www.geo.tv/article-198450-China-converts-230m-loan-for-Gwadar-airport-into-grant|access-date=16 December 2015|publisher=Geo TV News|date=23 September 2015}} Loans will be dispersed by the Exim Bank of China, China Development Bank, and ICBC.{{cite news|url=http://www.brecorder.com/market-data/stocks-a-bonds/0/1223449/|title=Economic corridor: China to extend assistance at 1.6 percent interest rate|date=3 September 2015|work=Business Recorder|access-date=6 March 2016|url-status=dead|archive-url=https://web.archive.org/web/20151117081205/http://www.brecorder.com/market-data/stocks-a-bonds/0/1223449/|archive-date=17 November 2015}} For comparison, loans for previous Pakistani infrastructure projects financed by the World Bank carried interest rates between 5% and 8.5%,{{cite web|url=https://finances.worldbank.org/Loan-and-Credit-Administration/IBRD-Statement-of-Loans-Latest-Available-Snapshotconc/sfv5-tf7p?|title=World Bank Group Finances|work=World Bank Group}} while interest rates on market loans approach 12%.{{cite web|title=Lending interest rate (%)|url=http://data.worldbank.org/indicator/FR.INR.LEND|publisher= The World Bank}}
The loan money will be used to finance projects planned and executed by the Pakistani government. Portions of the approximately $6.6 billion Karachi–Lahore Motorway are already under construction.{{cite news|title=Chinese railway company wins bid for Karachi-Lahore motorway|url=http://tribune.com.pk/story/1007391/chinese-railway-company-wins-bid-for-karachi-lahore-motorway/|access-date=16 December 2015|publisher=Express Tribune (Pakistan)|date=10 December 2015|ref=In March this year, Prime Minister Nawaz Sharif performed the ground-breaking ceremony for the Karachi-Lahore Motorway project}} The $2.9 billion phase, which will connect Multan to Sukkur over a distance of 392 kilometers, has also been approved,{{cite news|title=Govt's borrowing frenzy continues|url=http://www.pakistantoday.com.pk/2015/11/27/news/govts-borrowing-frenzy-continues/|access-date=16 December 2015|work=Pakistan Today|date=27 November 2015}} with 90% of costs financed by the Chinese government at concessionary interest rates, while the remaining 10% will be financed by the Public Sector Development Programme of the Pakistani government.{{cite news|last1=Rana|first1=Shahbaz|title=ECNEC approves construction of 387 km leg of Karachi-Lahore motorway|url=http://tribune.com.pk/story/730784/ecnec-approves-construction-of-387-km-leg-of-karachi-lahore-motorway/|access-date=16 December 2015|date=3 July 2014}} In May 2016, the $2.9 billion loan received final approvals from the Government of the People's Republic of China on 4 May 2016, and will be provided as concessionary loans with an interest rate of 2.0%. The National Highway Authority of Pakistan reported that contractors arrived on site soon after the loan received final approval.
The China Development Bank will finance $920 million for the reconstruction of the 487-kilometer portion of the Karakoram Highway between Burhan and Raikot.{{cite news|last1=Rana|first1=Shahbaz|title=Eastern corridor route: Pakistan, China to sign infrastructure financing deals|url=http://tribune.com.pk/story/870524/eastern-corridor-route-pakistan-china-to-sign-infrastructure-financing-deals/|access-date=6 December 2015|work=The Express Tribune|date=16 April 2015}}{{cite news|last1=Kiani|first1=Khaleeq|title=Chinese firms to get contracts for two CPEC projects|url=http://www.dawn.com/news/1200203|access-date=16 December 2015|agency=Dawn News|date=13 August 2015}} An additional $1.26 billion will be lent by the China Exim Bank for the construction of the Havelian to Thakot portion of this 487-kilometer stretch of roadway, to be dispersed as low-interest rate concessionary loans.
$7 billion of the planned $8.2 billion overhaul of the Main Line 1 railway is to be financed by concessionary loans extended by China's state-owned banks.{{cite news|title=$8.2b railtrack upgrade project wins go-ahead|url=http://tribune.com.pk/story/1119229/8-2b-railtrack-upgrade-project-wins-go-ahead/|access-date=9 August 2016|work=The Express Tribune|date=9 June 2016|quote=According to the project documents, the cost of upgrading Pakistan Railways existing Mainline (ML-I) and establishment of a dry port near Havelian is $8.2 billion, which the Chinese government will finance with a $7 billion concessionary loan.}}
The long-planned 27.1 km $1.6 billion Orange Line of the Lahore Metro is regarded as a commercial project, and does not qualify for the Exim Bank's 1.6% interest rate. It will instead be financed at a 2.4% interest rate{{cite news|last1=Siddiqui|first1=Ahmed Hussain|title=CPEC projects: status, cost and benefits|url=http://www.dawn.com/news/1194014|access-date=6 December 2015|work=Dawn|date=13 July 2015}} after China agreed to reduce interest rates from an originally planned rate of 3.4%.{{cite news|last1=Rana|first1=Shahbad|title=Concessionary loan from China: After Metro bus, Lahore could see Metro train|url=http://tribune.com.pk/story/881406/govt-gives-preliminary-approval-for-rs165-2b-lahore-metro-train-project/|access-date=6 December 2015|work=The Express Tribune|date=5 May 2015}}
The $44 million Pakistan-China Fiber Optic Project, an 820 km long fiber optic wire connecting Pakistan and China, will be constructed using concessionary loans at an interest rate of 2%, rather than the 1.6% rate applied to other projects.{{cite web|url=http://www.brecorder.com/market-data/stocks-a-bonds/0/1223449/|title=Economic corridor: China to extend assistance at 1.6 percent interest rate|work=Business Recorder|date=3 September 2015|author=Naveed Butt|url-status=dead|archive-url=https://web.archive.org/web/20151117081205/http://www.brecorder.com/market-data/stocks-a-bonds/0/1223449/|archive-date=17 November 2015}}
=Interest-free loans=
In August 2015, the government of China announced that concessionary loans for several projects in Gwadar totaling $757 million would be converted to 0% interest loans. The projects now financed by these 0% interest loans include the $140 million East Bay Expressway project, the installation of breakwaters in Gwadar costing $130 million, a $360 million coal power plant in Gwadar, a $27 million project to dredge berths in Gwadar harbor, and a $100 million 300-bed hospital in Gwadar. As a result, Pakistan only has to repay the principal on these loans.
In September 2015, the government of China also announced that the $230 million Gwadar International Airport project would no longer be financed by loans, but would instead be constructed with grants, which the government of Pakistan will not be required to repay.
=Private consortia=
Energy projects worth $15.5 billion are to be constructed by joint Chinese-Pakistani firms rather than by the governments of China or Pakistan. The Exim Bank of China will finance these investments at 5–6% interest rates, while the government of Pakistan will be contractually obliged to purchase electricity from these firms at pre-negotiated rates.
For example, the 1,223 MW Balloki Power Plant does not benefit from the concessionary loan rate of 1.6% because it is not being developed by the Pakistani government. Instead, it is considered a private sector investment, with its construction undertaken by a consortium of Harbin Electric and Habib Rafiq Limited, which won the bid against international competitors.{{cite news|title=Chinese-led consortium termed lowest bidder for power project|url=http://www.dawn.com/news/1210939|access-date=5 February 2016|publisher=Dawn|date=5 October 2015}} Chinese state-owned banks will provide loans to the consortium at an interest rate of 5%,{{cite news|title=PM performs groundbreaking of 1,223 MW plant|url=http://www.dawn.com/news/1218917/pm-performs-groundbreaking-of-1223mw-plant|access-date=5 February 2016|work=Dawn|date=11 November 2015}} while the Pakistani government will purchase electricity at the lowest bid rate of 7.973 cents per unit.
=ADB assistance=
The Hazara Motorway is considered a crucial part of the route between Gwadar and China. However, M-15 will not be financed by CPEC funds. Instead, it will be funded by the Asian Development Bank.
The N70 project, while not officially part of CPEC, will connect CPEC's Western Alignment to the Karachi-Lahore Motorway at Multan. It will be financed as part of a $195 million package by the Asian Development Bank, announced in May 2015, which aims to upgrade the N70 National Highway and N50 National Highway. In January 2016, the United Kingdom's Department for International Development announced a $72.4 million grant for roadway improvements in Balochistan, reducing the total Asian Development Bank loan from $195 million to $122.6 million.
The M-4 Motorway between Faisalabad and Multan is not financed by the Chinese government as part of CPEC. Instead, it will be the first infrastructure project partially financed by the Asian Infrastructure Investment Bank, with co-financing from the Asian Development Bank for a total of approximately $275 million. Portions of the project will also be funded by a $90.7 million grant announced in October 2015 by the government of the United Kingdom for the construction of the Gojra-Shorkot section of the M4 Motorway project.
Impact
As of early 2024, CPEC is the most developed land corridor of the BRI.{{Cite book |last1=Curtis |first1=Simon |title=The Belt and Road City: Geopolitics, Urbanization, and China's Search for a New International Order |last2=Klaus |first2=Ian |publisher=Yale University Press |isbn=9780300266900 |location=New Haven and London |publication-date=2024}}{{Rp|page=42}} CPEC runs through twelve cities with over one million inhabitants and eighteen cities with populations over 100,000.{{Rp|page=42}}
On 8 January 2017, Forbes claimed that CPEC is part of China's vision to shape the rules of the next era of globalization and keep its export and investment engines running for years to come.{{Cite news|url=https://www.forbes.com/sites/panosmourdoukoutas/2017/01/08/china-wants-russia-to-calm-india-and-save-cpec/|title=China Wants Russia To Calm India And Save CPEC|last=Mourdoukoutas|first=Panos|newspaper=Forbes|access-date=6 February 2017}}
According to China's premier, Li Keqiang, Pakistan's development through the project might "wean the populace from fundamentalism".
In part because of the impact of CPEC, former EU diplomat Bruno Maçães describes the BRI as the world's first transnational industrial policy, as it extends beyond national policy to influence the industrial policy of other states.{{Rp|page=165}}
=Pakistani economy=
The CPEC is considered a landmark project in the history of Pakistan, representing the largest investment the country has attracted since its independence and the largest by China in any foreign country.{{cite web |title=CPEC Documentary in Urdu 🇵🇰{{!}}🇨🇳 China-Pakistan Economic Corridor |url=https://www.youtube.com/watch?v=-PCfMSziCTU |access-date=2 January 2019 |via=YouTube |publisher=PTV Parliament}}{{cite web |date=17 December 2016 |title=Essay on China Pakistan Economic Corridor |url=https://www.studybix.com/cpec-opportunities-challenges/ |url-status=dead |archive-url=https://web.archive.org/web/20170402083322/https://www.studybix.com/cpec-opportunities-challenges/ |archive-date=2 April 2017 |access-date=1 April 2017}} CPEC is considered economically vital to Pakistan, helping to drive its economic growth.{{cite journal |author=Usman W. Chohan |date=May 2015 |title=Geostrategic Location and the Economic Center of Gravity of the World |url=https://www.mcgill.ca/channels/news/geostrategic-location-and-economic-center-gravity-world-249376 |journal=McGill University Economic Publications}} The Pakistani media and government have called CPEC investments a "game and fate changer" for the region,{{cite news |date=21 April 2015 |title=Pakistan media hails Chinese investments as 'game-changer' |url=http://economictimes.indiatimes.com/news/international/world-news/pakistan-media-hails-chinese-investments-as-game-changer/articleshow/46997993.cms |access-date=21 April 2015 |newspaper=The Times of India}}{{cite news |date=21 April 2015 |title=One-on-one meeting between Mamnoon Hussain and his Chinese counterpart was followed by delegation level talks. |url=http://www.radio.gov.pk/newsdetail/75915/1 |url-status=dead |archive-url=https://web.archive.org/web/20150924084114/http://www.radio.gov.pk/newsdetail/75915/1 |archive-date=24 September 2015 |access-date=21 April 2015 |publisher=Radio Pakistan}} with both China and Pakistan aiming for the massive investment plan to transform Pakistan into a regional economic hub and further deepen the ties between the two countries.{{cite news |date=21 April 2015 |title=MUCH OF INVESTMENT, $35 BILLION OF WHICH WILL GO TO ENERGY PROJECTS, WILL BE IN FORM OF DISCOUNTED LOANS. |url=http://newsweekpakistan.com/china-launches-massive-investment-plan-in-pakistan/ |access-date=21 April 2015 |publisher=Newsweek Pakistan}} Approximately one year after the announcement of CPEC, Zhang Baozhong, chairman of China Overseas Port Holding Company, told The Washington Post that his company planned to spend an additional $4.5 billion on roads, power, hotels, and other infrastructure for Gwadar's industrial zone, representing one of the largest sums of foreign direct investment into Pakistan.
As of early 2017, Pakistan faced regular energy shortfalls of over 4,500 MW, resulting in routine power cuts of up to 12 hours per day, which were estimated to reduce its annual GDP by 2–2.5%. The Financial Times noted that these electricity shortages are a significant hindrance to foreign investment, and that Chinese investments in Pakistani infrastructure and power projects are expected to create a "virtuous cycle," making the country more attractive for foreign investment across various sectors.{{cite news |last1=Fingar |first1=Courtney |date=11 March 2016 |title=Pakistan's FDI: fuelled by China |url=http://www.ft.com/intl/cms/s/3/88e071b8-e6e4-11e5-a09b-1f8b0d268c39.html |access-date=13 March 2016 |work=Financial Times}} The World Bank considers the poor availability of electricity to be a major constraint to both economic growth and investment in Pakistan.
The impact of Chinese investments in the energy sector became evident by December 2017, when Pakistan achieved a surplus in electricity production. The Pakistani Federal Minister for Power Division, Awais Leghari, announced the complete end of power cuts in 5,297 out of a total of 8,600 feeders. He also claimed that the country's electricity production had increased to 16,477 megawatts, which was 2,700 megawatts more than the demand.{{cite web |title=Pakistani Govt announces no load-shedding at 5297 feeders across Pakistan |url=https://www.geo.tv/latest/170496-end-of-load-shedding-from-5000-from-tonight-awais-leghari |access-date=18 December 2017 |publisher=Geo News |quote=Pakistani Govt announces no load-shedding at 5297 feeders across Pakistan.}}
Pakistan's large textile industry has been severely impacted by prolonged power cuts, leading to the shutdown of nearly 20% of textile factories in Faisalabad due to power shortages.{{cite news |last1=Rana |first1=Imran |date=2 May 2015 |title=Complaint registered: Energy crisis crippling textile sector |url=http://tribune.com.pk/story/879426/complaint-registered-energy-crisis-crippling-textile-sector/ |access-date=17 February 2016 |publisher=The Express Tribune}} The CPEC's "Early Harvest" projects are expected to address these power shortages by 2018, increasing Pakistan's power generation capacity by over 10,000 megawatts. With improved infrastructure and energy supplies, the Pakistani government anticipates that economic growth rates will reach 7% by 2018.{{cite news |date=17 February 2016 |title=Pakistan Sees Growth Surging to 7% as China Invests Billions |url=https://www.bloomberg.com/news/articles/2016-02-18/pakistan-sees-growth-surging-to-7-as-china-invests-billions |access-date=13 March 2016 |publisher=Bloomberg News}}
Former Pakistan Prime Minister Shaukat Aziz stated in May 2016 that the predicted economic growth from CPEC projects would help stabilize Pakistan's security situation.{{cite news |last1=Hartogs |first1=Jessica |date=17 May 2016 |title=China-Pakistan railroad will help curb extremism: Ex-Pakistan PM |url=https://www.cnbc.com/2016/05/18/china-pakistan-railroad-will-help-curb-extremism-ex-pakistan-pm.html |access-date=19 May 2016 |publisher=CNBC}} The World Bank has also identified security concerns as a hindrance to sustained economic growth in Pakistan.{{cite web |title=Pakistan Overview |url=http://www.worldbank.org/en/country/pakistan/overview |access-date=19 May 2016 |publisher=World Bank |quote=Pakistan faces significant economic, governance and security challenges to achieve durable development outcomes. The persistence of conflict in the border areas and security challenges throughout the country affect all aspects of life in Pakistan and impedes development.}}
According to Chinese Foreign Ministry Spokesperson Hua Chunying, the corridor will "serve as a driver for connectivity between South Asia and East Asia." Mushahid Hussain, chairman of the Pakistan-China Institute, told China Daily that the economic corridor "will play a crucial role in the regional integration of 'Greater South Asia', which includes China, Iran, Afghanistan, and stretches all the way to Myanmar." When fully built, the corridor is expected to generate significant revenue from transit fees levied on Chinese goods, amounting to several billion dollars per annum.{{cite news |date=4 March 2016 |title=AWARDS Change is afoot in Pakistan's banking sector |url=http://www.worldfinance.com/banking/change-is-afoot-in-pakistans-banking-sector |access-date=11 March 2016 |agency=World Finance}} The Guardian noted that "The Chinese are not just offering to build much-needed infrastructure but also to make Pakistan a key partner in its grand economic and strategic ambitions."{{cite news |date=22 April 2015 |title=China president arrives in Pakistan to sign £30bn 'land corridor' agreement |url=https://www.theguardian.com/world/2015/apr/20/china-president-xi-jinping-pakistan-land-corridor-agreement |access-date=22 April 2015 |newspaper=The Guardian}}
Moody's Investors Service has described the project as "credit positive" for Pakistan. In 2015, the agency acknowledged that while much of the project's key benefits would not materialize until 2017, it believed that some of the economic corridor's benefits would likely begin accruing even before then.{{cite web |date=3 March 2015 |title=Sovereign ratings: Pak-China economic corridor a 'credit positive', says Moody's |url=http://tribune.com.pk/story/846730/sovereign-ratings-pak-china-economic-corridor-a-credit-positive-says-moodys/ |work=The Express Tribune}} The Asian Development Bank stated, "CPEC will connect economic agents along a defined geography. It will provide a connection between economic nodes or hubs, centered on urban landscapes, where large amounts of economic resources and actors are concentrated. They link the supply and demand sides of markets."{{cite web |last1=Brunner |first1=Hans-Peter |date=August 2013 |title=What is Economic Corridor Development and What Can It Achieve in Asia's Subregions? |url=http://www.adb.org/sites/default/files/publication/100110/reiwp-117-economic-corridor-development.pdf |work=ADB Working Paper Series on Regional Economic Integration |number=117}} On 14 November 2016, Hyatt Hotels Corporation announced plans to open four properties in Pakistan, in partnership with the Bahria Town Group, citing CPEC investment as the reason behind the $600 million investment.{{Cite news |date=14 November 2016 |title=Hyatt (H) Reveals Large-Scale Expansion Plans in Pakistan |url=http://www.nasdaq.com/article/hyatt-h-reveals-large-scale-expansion-plans-in-pakistan-cm708448 |access-date=14 November 2016 |publisher=NASDAQ}}
On 12 March 2017, a consortium of Pakistani broker houses reported that Pakistan would end up paying $90 billion to China over a span of 30 years, with annual average repayments of $3–4 billion per year after fiscal year 2020. The report further stated that CPEC-related transportation would earn Pakistan $400–500 million per annum and could increase Pakistani exports by 4.5% annually until fiscal year 2025.{{Cite news |date=12 March 2017 |title=Pakistan will be paying China $90b against CPEC-related projects – The Express Tribune |url=https://tribune.com.pk/story/1352995/pakistan-will-paying-china-90b-cpec-related-projects/ |access-date=12 March 2017 |work=The Express Tribune}}
= Chinese economy =
CPEC has been a significant factor in helping China improve its position in global value chains.{{Rp|page=42}}
The importance of CPEC to China is reflected in its inclusion in China's 13th five-year development plan.{{cite news |date=23 November 2015 |title=CPEC made part of China's 13th 5-year development plan: Weidong |url=http://www.pakistantoday.com.pk/2015/11/23/business/cpec-made-part-of-chinas-13th-5-year-development-plan-weidong |access-date=6 March 2016 |work=Pakistan Today}}{{cite news |date=21 April 2015 |title=China's landmark investments in Pakistan |url=http://tribune.com.pk/story/873627/chinas-landmark-investments-in-pakistan/ |access-date=21 April 2015 |newspaper=The Express Tribune}} CPEC projects will provide China with an alternative route for energy supplies and a new trade route for Western China. Pakistan stands to gain from infrastructure upgrades and a more reliable energy supply.{{cite web |title=CPEC has changed economic outlook of Pakistan, S Asia |url=https://www.thenews.com.pk/print/169458-CPEC-has-changed-economic-outlook-of-Pakistan-S-Asia |website=The News International}}{{cite web |last=Chaudhary |first=Asif |date=5 December 2016 |title=What Pakistan gains from CPEC |url=https://www.pakistantoday.com.pk/2016/12/04/what-pakistan-gains-from-cpec/}}
=CPEC and the "Malacca dilemma"=
The Straits of Malacca provide China with its shortest maritime route to Europe, Africa, and the Middle East.{{cite news|title=Is China-Pakistan 'silk road' a game-changer?|url=https://www.bbc.com/news/world-asia-32400091|access-date=17 February 2016|issue=22 April 2015|publisher=BBC News}} Approximately 80% of its Middle Eastern energy imports also pass through the Straits of Malacca.{{cite journal|last1=Ramachandran|first1=Sudha|title=China-Pakistan Economic Corridor: Road to Riches?|journal=China Brief (The Jamestown Foundation)|date=31 July 2015|volume=15|issue=15|url=http://www.jamestown.org/programs/chinabrief/single/?tx_ttnews%5Btt_news%5D=44233&cHash=ca403ad0c1bccb4a37fcbfb723d59029|access-date=17 February 2016}} As the world's largest oil importer, energy security is a major concern for China, especially since current sea routes used for importing Middle Eastern oil are frequently patrolled by the United States Navy.{{citation needed|date=April 2024}}
If China were to face hostile actions from the United States{{Who|date=June 2021}}, energy imports through the Straits of Malacca could be disrupted, potentially threatening the Chinese economy—a scenario often referred to as the "Malacca dilemma". Besides the vulnerabilities in the Straits of Malacca, China is also reliant on sea routes that pass through the South China Sea, near the disputed Spratly and Paracel Islands, which are sources of tension among China, Taiwan, Vietnam, the Philippines, and the United States.{{cite news|title=Exclusive: China sends surface-to-air missiles to contested island in provocative move|url=https://www.foxnews.com/world/exclusive-china-sends-surface-to-air-missiles-to-contested-island-in-provocative-move/|access-date=17 February 2016|publisher=Fox News|date=16 February 2016}} The CPEC project aims to allow Chinese energy imports to bypass these contentious areas, offering an alternative route through the west and potentially reducing the likelihood of confrontation between the United States and China.{{cite web|last1=Alam|first1=Omar|title=China-Pakistan Economic Corridor: Towards a New 'Heartland'?|url=http://isnblog.ethz.ch/international-relations/china-pakistan-economic-corridor-towards-a-new-heartland|publisher=International Relations and Security Network|access-date=17 February 2016|date=21 December 2015}} However, there is evidence suggesting that pipelines from Gwadar to China would be very costly, face significant logistical challenges, including difficult terrain and potential terrorism, and would have minimal impact on China's overall energy security.{{cite journal|last1=Garlick|first1=Jeremy|title=Deconstructing the China-Pakistan Economic Corridor: pipe dreams versus geopolitical realities|journal=Journal of Contemporary China|volume=27|issue=112|pages=519–533|doi=10.1080/10670564.2018.1433483|year=2018|s2cid=158778555}}
{{Quote box
| quote = China's stake in Gwadar will also allow it to expand its influence in the Indian Ocean, a vital route for oil transportation between the Atlantic and the Pacific. Another advantage to China is that it will be able to bypass the Strait of Malacca. As of now, 60 percent of China's imported oil comes from the Middle East, and 80 percent of that is transported to China through this strait, the dangerous, piracy-rife maritime route through the South China, East China, and Yellow Seas.
| source = Council on Foreign Relations{{cite journal|url=http://www.foreignaffairs.com/articles/143227/syed-fazl-e-haider/a-strategic-seaport|first=Syed|last=Fazl-e-Haider|title=A Strategic Seaport – Is Pakistan Key to China's Energy Supremacy?|journal=Foreign Affairs|date=5 March 2015|access-date=23 April 2015}}
| width = 70%
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=Access to western China=
The CPEC Alignments will enhance connectivity to the restive Xinjiang region, boosting its potential to attract both public and private investment. The project is central to China–Pakistan relations, as evidenced by its inclusion in China's 13th five-year development plan. Additionally, CPEC will support China's Western Development plan, which targets Xinjiang as well as the neighboring regions of Tibet and Qinghai.{{cite news|last1=Malhotra|first1=Aditi|title=CPEC and China's Western Development Strategy|url=http://southasianvoices.org/cpec-and-chinas-western-development-strategy/|access-date=17 February 2016|publisher=South Asian Voices|date=8 June 2015}}
Beyond reducing China's reliance on the Sea of Malacca and South China Sea routes, CPEC will offer a shorter and more cost-effective route for energy imports from the Middle East. Currently, the sea route to China is approximately 12,000 kilometers long, while the distance from Gwadar Port to Xinjiang is about 3,000 kilometers, with an additional 3,500 kilometers from Xinjiang to China's eastern coast. Consequently, CPEC is expected to significantly shorten shipping times and distances for Chinese imports and exports to the Middle East, Africa, and Europe.
=Route to circumvent Afghanistan=
{{Main|Quadrilateral Traffic in Transit Agreement}}
Negotiations to establish an alternate route to the Central Asian republics via China began before the announcement of CPEC. The Afghanistan–Pakistan Transit Trade Agreement of 2010 granted Pakistan access to Central Asia through Afghanistan; however, the agreement has not been fully implemented. The Quadrilateral Agreement on Traffic in Transit (QATT), first proposed in 1995 and signed in 2004 by China, Pakistan, Kazakhstan, and Kyrgyzstan, aimed to facilitate transit trade among these countries, excluding Afghanistan.{{cite news|title=Trade through land routes|url=http://www.dawn.com/news/1202356|access-date=23 January 2016|work=Dawn|date=24 August 2015}} Despite the signing of the QATT, its full potential was never realized, primarily due to inadequate infrastructure links between the four countries before the announcement of CPEC.
During Afghan President Ashraf Ghani's visit to India in April 2015, he stated, "We will not provide equal transit access to Central Asia for Pakistani trucks," unless the Pakistani government included India in the 2010 Afghanistan–Pakistan Transit Trade Agreement.{{cite news|last1=Haidar|first1=Suhasini|title=Pakistan must open Wagah for trade: Ghani|url=http://www.thehindu.com/news/national/pakistan-must-open-wagah-for-trade-ghani/article7155457.ece|access-date=17 February 2016|work=The Hindu|date=30 April 2015}} The current Transit Trade Agreement allows Afghanistan to access the Port of Karachi for export trade with India and permits Afghan goods to be transited to any border of Pakistan. However, it does not grant Afghan trucks the right to cross the Wagah Border or allow Indian goods to be exported to Afghanistan through Pakistan.{{cite news|title=Pakistan reluctant to include India in APTTA|url=http://www.dawn.com/news/1225298|access-date=17 February 2016|work=Dawn|date=10 December 2015}} Due to ongoing tensions between India and Pakistan, the Pakistani government was hesitant to include India in trade negotiations with Afghanistan, resulting in limited progress between the Afghan and Pakistani sides.
In February 2016, the Pakistani government announced its intention to bypass Afghanistan entirely in its efforts to access Central Asia. The plan involved reviving the QATT to allow Central Asian states to reach Pakistani ports via Kashgar, rather than through Afghanistan,{{cite news|title=Government to revive quadrilateral accord with China: Dastgir|url=http://www.brecorder.com/market-data/stocks-a-bonds/0/15703/|access-date=17 February 2016|work=Business Recorder|date=12 February 2016|archive-date=11 March 2016|archive-url=https://web.archive.org/web/20160311002136/http://www.brecorder.com/market-data/stocks-a-bonds/0/15703/|url-status=dead}} thus avoiding the need to rely on a politically unstable Afghanistan as a transit corridor. In early March 2016, the Afghan government reportedly agreed to allow Pakistan to use Afghanistan as a corridor to Tajikistan, having dropped its previous demands for reciprocal access to India via Pakistan.{{cite news|title=Afghanistan ready to grant Pakistan access to Central Asia|url=http://www.pakistantoday.com.pk/2016/03/04/business/afghanistan-ready-to-grant-pakistan-access-to-central-asia/|access-date=6 March 2016|work=Pakistan Today|date=4 March 2016}}
=Alternate route to Central Asia=
Leaders of various Central Asian republics have expressed interest in linking their infrastructure networks to the CPEC project through China. During Pakistani Prime Minister Nawaz Sharif's visit to Kazakhstan in August 2015, Kazakh Prime Minister Karim Massimov conveyed Kazakhstan's desire to connect its road network to CPEC.{{cite news|title=Kazakhstan shows willingness to join CPEC project|url=http://www.thenews.com.pk/print/14270-kazakhstan-shows-willingness-to-join-cpec-project|access-date=23 January 2016|work=The News|date=26 August 2015}} In November 2015, during Tajikistan President Emomali Rahmon's visit to Pakistan, he expressed his government's interest in joining the Quadrilateral Agreement on Traffic in Transit to use CPEC as a route for imports and exports to Tajikistan, bypassing Afghanistan.{{cite news|last1=Bhutta|first1=Zafar|title=Pakistan could turn into a transit trade hub|url=http://tribune.com.pk/story/996406/pakistan-could-turn-into-a-transit-trade-hub/|access-date=23 January 2016|work=The Express Tribune|quote="During a visit to Pakistan in the middle of this month, Tajikistan President Emomali Rahmon praised the China-Pakistan Economic Corridor (CPEC), insisting the project would facilitate economic and trade links between Pakistan and Tajikistan as well as other Central Asian states. Prime Minister Nawaz Sharif, on his part, made an offer to Tajikistan to use Pakistan's seaports for imports and exports as these provide the shortest route for movement of goods. The premier backed Tajikistan's request for being part of the Quadrilateral Agreement on Traffic in Transit among China, Kazakhstan, Kyrgyzstan, and Pakistan – an arrangement that will further improve regional connectivity."}} This request received political support from the Pakistani Prime Minister.
The Chinese government has already upgraded the road linking Kashgar to Osh in Kyrgyzstan via the Kyrgyz town of Erkeshtam. Additionally, a railway between Urumqi, China, and Almaty, Kazakhstan, has been completed as part of China's One Belt One Road initiative.{{cite news|title=Belt and road initiative|url=http://www.thedailystar.net/op-ed/belt-and-road-initiative-78331|access-date=23 January 2016|work=The Daily Star|date=9 May 2015}} Numerous land crossings already exist between Kazakhstan and China. The Chinese government has also announced plans to lay railway tracks from Tashkent, Uzbekistan, towards Kyrgyzstan, with onward connections to China and Pakistan.{{cite news|last1=Pantucci|first1=Raffaello|title=The tangled threads in China's Silk Road strategy|url=http://www.businessspectator.com.au/article/2016/2/12/politics/tangled-threads-chinas-silk-road-strategy|access-date=17 February 2016|publisher=Business Spectator|date=12 February 2016|quote=Similarly, in Uzbekistan, the plan to develop train lines from Tashkent through Ferghana to Kyrgyzstan points to a project that will help develop faster train links across Central Asia to China.}} Furthermore, the Pamir Highway provides Tajikistan access to Kashgar via the Kulma Pass. These connections complement the CPEC project by offering Central Asian states access to Pakistan's deepwater ports, effectively bypassing Afghanistan, which has been plagued by civil war and political instability since the late 1970s.
=Comparison to Chabahar Port=
In May 2016, Indian Prime Minister Narendra Modi and Iranian President Hassan Rouhani signed a series of twelve agreements in Tehran. India agreed to refurbish one of Chabahar's ten existing berths and reconstruct another at the Port of Chabahar.{{cite news|title=India, Iran moving forward on redeveloping Chabahar port|url=http://www.joc.com/port-news/international-ports/india-iran-move-forward-redevelopment-chabahar-port_20160509.html|access-date=30 June 2016|agency=The Journal of Commerce|date=9 May 2016|quote=According to the provisional deal, IPGPL will refurbish a 640-meter (2,100-foot) container handling facility through the deployment of new equipment, including four rail-mounted gantry cranes, 16 rubber-tire gantry cranes, two reach stackers, and two empty handlers. For the rebuilding of a 600-meter (1,969-foot) multi-purpose berth at Chabahar, Indian authorities will invest in six mobile harbor cranes, 10 forklifts, and 10 trailers.|archive-date=14 July 2016|archive-url=https://web.archive.org/web/20160714212058/http://www.joc.com/port-news/international-ports/india-iran-move-forward-redevelopment-chabahar-port_20160509.html|url-status=dead}} This upgrade aims to facilitate the export of Indian goods to Iran, with potential onward connections to Afghanistan and Central Asia.{{cite news|title=India to invest $500 million on Chabahar port in Iran for easy access to Afghanistan, Europe|url=http://indiatoday.intoday.in/story/india-to-invest-500-million-on-chabahar-port-in-iran-for-easy-access-to-afghanistan-europe/1/675781.html|access-date=24 May 2016|work=India Today|date=24 May 2016}} As of February 2017, the project has been delayed, with both Iran and India blaming each other for the hold-ups.{{cite news|last1=Ghoshal|first1=Devjyot|title=Unending wait for Chabahar: India and Iran squabble over a key port, under Trump's long shadow|url=https://qz.com/903581/unending-wait-for-chabahar-india-and-iran-squabble-over-a-key-port-under-us-president-trumps-long-shadow/|access-date=8 February 2017|work=Quartz|date=6 February 2017|quote=Nine months on, Chabahar seems dead in the water: The Indian and Iranian governments are now squabbling over delays, even as newly-elected US president Donald Trump's hawkish stance towards Tehran threatens to hamstring the project. The ongoing diplomatic finger-pointing is a curious affair. Indian officials insist that New Delhi has $150 million ready for disbursement but the Iranians haven't completed the paperwork necessary to release the funds, The Economic Times newspaper reported. The Iranians told the newspaper that the delay was from the Indian side, without explaining further.}}
A segment of the Indian media referred to it as "a counter to the China-Pakistan Economic Corridor,"{{cite news|last1=Gupta|first1=Shishir|title=Why the Chabahar Port agreement kills two birds with one stone|url=http://www.hindustantimes.com/analysis/why-the-chabahar-port-agreement-kills-two-birds-with-one-stone/story-1l2NGMuzJDI6GaUHjaPR7M.html|access-date=24 May 2016|work=The Hindustan Times|date=23 May 2016}} although the total financial value of the projects has been noted to be significantly lower than that of CPEC.{{cite news|title=How significant is India's $500 million deal with Iran?|url=http://www.csmonitor.com/World/Global-News/2016/0524/How-significant-is-India-s-500-million-deal-with-Iran|access-date=28 May 2016|work=The Christian Science Monitor|date=24 May 2016|quote=But India's additional investment pales in comparison to China's pledge of $46 billion to develop the Pakistani port of Gwadar, not even {{convert|125|mi|km|disp=sqbr|-1}} from Chabahar, along with an accompanying network of railways, pipelines, and roads to connect with western China.}}
As part of the twelve memorandums of understanding signed by the Indian and Iranian delegations, according to the text released by India's Ministry of External Affairs, India will extend a $150 million line of credit through the Exim Bank of India.{{cite web|title=List of Agreements/MOUs signed during the visit of Prime Minister to Iran (May 23. 2016)|url=http://www.mea.gov.in/bilateral-documents.htm?dtl/26841/List+of+AgreementsMOUs+signed+during+the+visit+of+Prime+Minister+to+Iran+May+23+2016|publisher=Ministry of External Affairs (India)|access-date=26 May 2016|quote=MoU between EXIM Bank and Iran's Ports and Maritime Organization [PMO] on current specific terms for the Chabahar Port project. This MoU is intended for the purpose of credit of USD 150 million for Chabahar port. Mr. Yaduvendra Mathur, Chairman, EXIM Bank H. E. Mr. Saeednejad, Chairman of Ports and Maritime Organization of Iran.}} Additionally, India Ports Global signed a contract with Iran's [https://web.archive.org/web/20160924211345/http://www.abiports.com/index.php?lang=en Aria Banader] to develop berths at the port,{{cite web|title=List of Agreements/MOUs signed during the visit of Prime Minister to Iran (May 23. 2016)|url=http://www.mea.gov.in/bilateral-documents.htm?dtl/26841/List+of+AgreementsMOUs+signed+during+the+visit+of+Prime+Minister+to+Iran+May+23+2016|publisher=Ministry of External Affairs (India)|access-date=26 May 2016|quote=6. Bilateral contract on Chabahar Port for port development and operations between IPGPL [India Ports Global Private Limited] and Arya Banader of Iran. The contract envisages development and operation for 10 years of two terminals and 5 berths with cargo handling [multipurpose and general] capacities.}} at a cost of $85 million{{cite news|title=India, Iran and Afghanistan sign Chabahar port agreement|url=http://www.hindustantimes.com/india/india-iran-afghanistan-sign-chabahar-port-agreement/story-2EytbKZeo6zeCIpR8WSuAO.html|access-date=24 May 2016|work=The Hindustan Times|date=24 May 2016}} over a period of 18 months.{{cite news|title=Five things about Chabahar Port and how India gains from it|url=http://economictimes.indiatimes.com/news/politics-and-nation/five-things-about-chabahar-port-and-how-india-gains-from-it/articleshow/52400399.cms|access-date=24 May 2016|work=The Economic Times|date=23 May 2016}}
Under the agreement, India Ports Global will refurbish a 640-meter-long container handling facility and reconstruct a 600-meter-long berth at the port. Additionally, India agreed to extend a $400 million line of credit for the import of steel to construct a rail link between Chabahar and Zahedan.{{cite web|title=List of Agreements/MOUs signed during the visit of Prime Minister to Iran (May 23. 2016)|url=http://www.mea.gov.in/bilateral-documents.htm?dtl/26841/List+of+AgreementsMOUs+signed+during+the+visit+of+Prime+Minister+to+Iran+May+23+2016|publisher=Ministry of External Affairs (India)|access-date=26 May 2016|quote= Confirmation Statement between EXIM Bank and Central Bank of Iran This confirms the availability of credit up to INR 3000 crore for the import of steel rails and implementation of Chabahar port.}} Moreover, India's [http://www.ircon.org/ IRCON] and Iran's [http://www.cdtic.ir/ Construction, Development of Transport and Infrastructure Company] {{Webarchive|url=https://web.archive.org/web/20160520054629/http://www.cdtic.ir/? |date=20 May 2016 }} signed a memorandum of understanding regarding the construction and financing of the Chabahar to Zahedan rail line, with a total cost estimated at $1.6 billion.{{cite news|title=List of Agreements/MOUs signed during the visit of Prime Minister to Iran (May 23. 2016)|url=http://www.mea.gov.in/bilateral-documents.htm?dtl/26841/List+of+AgreementsMOUs+signed+during+the+visit+of+Prime+Minister+to+Iran+May+23+2016|access-date=26 May 2016|agency=Ministry of External Affairs (India)|quote=MoU between IRCON and Construction, Development of Transport and Infrastructure Company (CDTIC) of Iran MoU will enable IRCON to provide requisite services for the construction of Chabahar-Zahedan railway line which forms part of transit and transportation corridor in trilateral agreement between India, Iran and Afghanistan. Services to be provided by IRCON include all superstructure work and financing the project (around USD 1.6 billion).}}
India's Highways and Shipping Minister, Nitin Gadkari, suggested that the free trade zone in Chabahar has the potential to attract investments of over $15 billion in the future.{{cite news|title=India commits huge investment in Chabahar|url=http://www.thehindu.com/news/national/narendra-modis-iran-visit-nitin-gadkari-says-india-to-invest-rs-1-lakh-crore-in-chabahar/article8636035.ece|access-date=24 May 2016|work=The Hindu|date=23 May 2016}} However, he emphasized that such investments are dependent on Iran offering India natural gas at a rate of $1.50 per million British Thermal Units—a price significantly lower than the $2.95 per million British Thermal Units currently offered by Iran.{{cite news|title=India may invest Rs 2 lakh crore at Chabahar port in Iran: Nitin Gadkari|url=http://articles.economictimes.indiatimes.com/2015-10-08/news/67999413_1_chabahar-port-union-minister-nitin-gadkari-urea-plant|archive-url=https://web.archive.org/web/20151117172851/http://articles.economictimes.indiatimes.com/2015-10-08/news/67999413_1_chabahar-port-union-minister-nitin-gadkari-urea-plant|url-status=dead|archive-date=17 November 2015|access-date=24 May 2016|work=The Economic Times|date=8 October 2015|quote=""India is ready to invest Rs 2 lakh crore at Chabahar SEZ in Iran but the investments would depend on gas prices as India wants it to be lowered," Gadkari said... On talks on supply of natural gas, Gadkari said that Iran has offered gas to India at $2.95 per million British thermal unit to set up urea plant at the Chabahar port but India is negotiating the gas price, demanding lowering the same... India, which imports around 8–9 million tonnes of the nitrogenous fertiliser, is negotiating for a price of $1.5 per mm [million] Btu with the Persian Gulf nation in a move which if successful will see a significant decline in the country's Rs 80,000 crore subsidy for the soil nutrient."}} The two countries also signed a memorandum of understanding to explore the possibility of establishing an aluminum smelter at a cost of $2 billion,{{citation needed|date=July 2021}} as well as a urea processing facility in Chabahar,{{cite news|title=India, Iran ink pact to develop Chabahar port, aluminium plant|url=http://www.business-standard.com/article/economy-policy/india-iran-ink-pact-to-develop-chabahar-port-aluminium-plant-116052300759_1.html|access-date=24 May 2016|work=Business Standard|date=23 May 2016}} though these investments are also contingent upon Iran providing low-cost natural gas for their operation.{{cite news|title=India, Iran ink pact to develop Chabahar port, aluminium plant|url=http://www.business-standard.com/article/economy-policy/india-iran-ink-pact-to-develop-chabahar-port-aluminium-plant-116052300759_1.html|access-date=25 May 2016|work=Business Standard|date=23 May 2016|quote=state-owned Nalco signed an MoU to look at possibility of setting up a 0.5 million tonne aluminium smelter at Chabahar free trade zone provided Iran gives cheap natural gas.}}
India, Iran, and Afghanistan also signed an agreement aimed at simplifying transit procedures between the three countries. Although there is a desire to bypass Pakistan to strengthen economic ties between Iran and India, Indian goods bound for Iran do not currently require transit through Pakistan. These goods can be exported via Bandar Abbas, where India maintains a diplomatic mission.{{cite news|title=Undeterred India for moving ahead with Iran|url=http://www.thehindu.com/news/national/undeterred-india-for-moving-ahead-with-iran/article2947231.ece|access-date=24 May 2016|work=The Hindu|date=1 March 2012}} Bandar Abbas is also considered a crucial node on the North–South Transport Corridor, which has been supported by India and Russia since 2002.Tembarai Krishnamachari, Rajesh. {{usurped|1=[https://web.archive.org/web/20130301080034/http://southasiaanalysis.org/paper829 "Entente Tri-parti : Triangular Alliances Involving India"]}}, South Asia Analysis Group, Paper 829, Nov 2003.{{cite news|title=North-South Corridor from Russia to India to compete with Suez Canal|url=http://rbth.com/business/2016/04/12/north-south-corridor-from-russia-to-india-to-compete-with-suez-canal_584017|access-date=24 May 2016|agency=Russia Beyond the Headlines|date=12 April 2016}} Additionally, Indian goods can be imported and transported across Iran via Bandar-e Emam Khomeyni, near the Iraqi border.
Under the Afghanistan–Pakistan Transit Trade Agreement, Afghan goods can be transported through Pakistan for export to India; however, Indian goods cannot be exported to Afghanistan via Pakistan.{{cite web|title=Afghanistan Pakistan Transit Trade Agreement 2010|url=http://www.commerce.gov.pk/APTTA/APTTA.pdf|publisher=Pakistan Ministry of Commerce|access-date=7 March 2016|page=28|quote=Pakistan will facilitate Afghan exports to India through Wagha. Afghan cargo will be off loaded on to Indian trucks back to back at Wagha and the trucks on return will not carry Indian Exports.|archive-url=https://web.archive.org/web/20161105174922/http://www.commerce.gov.pk/APTTA/APTTA.pdf|archive-date=5 November 2016|url-status=dead}} Once Chabahar is fully operational, Indian exporters will potentially be able to export goods to Afghanistan, a country with an annual gross domestic product of approximately $60.6 billion.{{cite news|title=Afghanistan 2016 |work=Index of Economic Freedom|url=https://www.heritage.org/index/country/afghanistan |archive-url=https://web.archive.org/web/20160601004332/https://www.heritage.org/index/country/afghanistan |url-status=unfit |archive-date=1 June 2016 |access-date=24 May 2016|agency=The Heritage Foundation}}
Following the agreement's signing, Iran's ambassador to Pakistan, Mehdi Honerdoost, mentioned that the deal was "not finished" and that Iran would be open to including both Pakistan and China in the project.{{cite news|title=Chabahar deal 'not finished'; Pakistan, China welcome, says Iran|url=http://indianexpress.com/article/world/world-news/chabahar-deal-port-india-iran-afghanistan-pakistan-china-trilateral-agreement-2822346/|access-date=27 May 2016|work=The Indian Express|date=27 May 2016}} He clarified that Chabahar Port was not intended to compete with Pakistan's Gwadar Port,{{cite news|title=Gwadar and Chabahar not enemy ports: Iranian ambassador|url=http://www.pakistantoday.com.pk/2016/05/27/national/gwadar-and-chabahar-not-enemy-ports-iranian-ambassador/|access-date=27 May 2016|agency=Pakistan Today|date=27 May 2016|quote=Ahmed Safee, a research fellow at the ISSI, quoted the Iranian envoy as saying that the deal is still on the table for both Pakistan and China, assuring that 'Chabahar is not a rival to Gwadar'. The ambassador added that both are sister ports, and Chabahar port authorities would extend cooperation to Gwadar. "The deal is not finished. We are waiting for new members. Pakistan, our brotherly neighbours and China, a great partner of the Iranians and a good friend of Pakistan, are both welcome," said the envoy.}} and noted that both Pakistan and China were invited to participate in the project before India, but according to Pakistani media, neither country expressed interest in joining.{{cite news|last1=Yousaf|first1=Kamran|title=Iran offers Pakistan to join Chabahar port deal|url=http://tribune.com.pk/story/1111479/iran-offers-pakistan-join-chabahar-port-deal/|access-date=27 May 2016|work=The Express Tribune|date=27 May 2016|quote=Honardost went on to say that Pakistan and China were offered to join the Chahbahar port development deal before India. However, both Pakistan and China did not show any interest, he added.}}{{cite news|title=Chabahar deal 'not finished'; Pakistan, China welcome, says Iran|url=http://indianexpress.com/article/world/world-news/chabahar-deal-port-india-iran-afghanistan-pakistan-china-trilateral-agreement-2822346/|access-date=27 May 2016|work=The Indian Express|date=27 May 2016|quote=The offer to cooperate had first been extended to Pakistan and then China, implying neither had expressed interest, he said while speaking on Pakistan-Iran relations at the Institute of Strategic Studies in Islamabad (ISSI)}}
However, the Iranian ambassador eventually clarified that Iran does not view Chabahar as a project capable of rivaling CPEC, stating, "Iran is eager to join CPEC with its full capabilities, possibilities, and abilities."{{cite web|title=Iran eager to join CPEC|url=https://www.dawn.com/news/1311031|website=Dawn News|date=27 January 2017|access-date=2 June 2017}}
In July 2020, Pakistani media outlet The News International reported that the Iranian government had removed India from a long-stalled rail project, opting instead to sign a comprehensive deal with China.{{Cite web|url=https://www.thenews.com.pk/print/686927-iran-drops-india-from-chabahar-rail-project|title=Iran drops India from Chabahar rail project|website=The News International|access-date=23 August 2020}}
This report was later refuted by the Iranian government, which clarified that India’s investments were never connected to the railway project in the first place.{{Cite web|url=https://www.aljazeera.com/news/2020/07/iran-drops-india-key-rail-project-citing-funding-delays-200715063259623.html|title=Iran denies 'dropping' India from key railway project|publisher=Al Jazeera|access-date=23 August 2020}}{{Cite news|url=https://timesofindia.indiatimes.com/india/iran-dismisses-report-of-dropping-india-from-chabahar-railway-project/articleshow/76991582.cms|title=Iran dismisses report of 'dropping' India from Chabahar railway project |website=The Times of India|date=16 July 2020 |access-date=23 August 2020}}
=Environment=
Pakistan is already facing significant challenges from climate change and global warming, with about 5,000 of its glaciers melting at an alarming rate. The country is also experiencing extreme weather patterns and seasonal shifts in recent years.{{cite journal |author1=Mehwish Qayyum Durani |author2=Muhammad Bashir Khan |year=2018 |title=The Environmental Impact of The China-Pakistan Economic Corridor (CPEC): A Case Study |journal=Abasyn Journal of Social Sciences |volume=11 |issue=1 |pages=201–221 |issn=1998-152X}}
The coal-based power plants under the China–Pakistan Economic Corridor (CPEC) are not aligned with Pakistan's green policy. It is estimated that by 2030, carbon dioxide emissions from CPEC projects will total 371 metric tonnes, with 56% of these emissions coming from the energy sector. CPEC also anticipates a daily commute of 7,000 trucks, potentially emitting 36.5 million tons of {{CO2}}.{{cite journal |author1=Abdul Waheed |author2=Thomas Bernward Fischer |author3=Muhammad Irfan Khan |date=May 2021 |title=Climate Change Policy Coherence across Policies, Plans, and Strategies in Pakistan—Implications for the China–Pakistan Economic Corridor Plan |url=https://link.springer.com/content/pdf/10.1007/s00267-021-01449-y.pdf |journal=Environmental Management |volume=67 |issue=5 |pages=793–810 |doi=10.1007/s00267-021-01449-y |issn=0364-152X |pmc=8032581 |pmid=33730192 |access-date=30 December 2022}}
Since 2021, under growing pressure due to being the world's largest polluter, China has shifted its focus from coal-based energy investments in Pakistan to renewable energy. This shift aims to promote a more "green" image of CPEC.{{Cite web |last=Jillani |first=Shahzeb |date=23 November 2022 |title=Analysis: China's shifting energy investments in Pakistan, from coal to renewables |url=https://www.dawn.com/news/1722458 |access-date=28 November 2022 |website=Dawn|location=Pakistan}}
Security issues
The Pakistan Army has assumed responsibility for the security of CPEC employees and investors, strengthening the relationship between China and Pakistan. However, the areas through which the corridor passes are plagued by conflict, with Chinese workers frequently targeted in regions where Islamic jihadists and Baloch separatist forces are active. The Pakistani Taliban has also threatened to attack China's Belt and Road route unless a "tax" is paid.{{Cite news |last=Lateef |first=Samaan |date=25 November 2023 |title=Pakistani Taliban threatens to attack China's Belt and Road route unless 'tax' paid |url=https://www.telegraph.co.uk/world-news/2023/11/25/pakistan-taliban-demands-tax-china-extortion-belt-road/ |access-date=13 April 2024 |work=The Telegraph|issn=0307-1235}}
=Security forces=
Pakistan Navy and Chinese Navy ships are to jointly guard the safety and security of the trade corridor, as Pakistan seeks to expand the role of its maritime forces.{{Cite web|url=https://www.ndtv.com/world-news/chinese-navy-ships-to-be-deployed-at-pakistans-gwadar-port-1630354|title=Chinese Navy Ships To Be Deployed at Gwadar Port: Pak Official|publisher=NDTV}} From December 2016, Pakistan's Navy established a special task force, "TF-88," to ensure maritime security for trade.{{cite web|url=http://www.dawn.com/news/1302102/pakistan-navys-special-task-force-88-set-up-to-guard-gwadar-ports-sea-lanes|title=Pakistan Navy's special 'Task Force-88' set up to guard Gwadar port's sea lanes|date=13 December 2016}}{{Cite web|url=http://www.radio.gov.pk/13-Dec-2016/pakistan-navy-establishes-special-task-force-tf-88-for-protection-of-gwadar-port|title=Pakistan Navy's special task force for CPEC maritime security inaugurated|access-date=13 December 2016|archive-date=20 December 2016|archive-url=https://web.archive.org/web/20161220103654/http://www.radio.gov.pk/13-Dec-2016/pakistan-navy-establishes-special-task-force-tf-88-for-protection-of-gwadar-port|url-status=dead}} The Chairman of the Parliamentary Committee on CPEC confirmed that Sindh province will dispatch 2,000 police officers, Punjab will dispatch 5,000 police officers, and the Pakistani Army will deploy 12,000 troops to safeguard the route.that the army will deploy 12,000 troops to protect CPEC. China plans to transfer four ships to the Pakistan Maritime Security Agency, including two ships named PMSS Hingol and PMSS Basol.{{Cite web|url=http://dunyanews.tv/en/Pakistan/370365-Two-maritime-patrol-vessels-arrive-at-Gwadar-Port-|title=Two maritime patrol vessels arrive at Gwadar Port from China|publisher=Dunya News|date=14 February 2008}} For territorial security, Pakistan has formed the Special Security Division.{{Cite web|url=http://dunyanews.tv/en/Pakistan/371562-Special-security-division-formed-for-CPECs-securi|title=Special security division formed for CPEC's security|publisher=Dunya News|date=14 February 2008}} Pakistan plans to train 12,000 security personnel to protect Chinese workers on the corridor.{{cite news|url=https://www.bloomberg.com/news/articles/2015-04-01/pakistan-s-sharif-seeks-energy-deals-during-china-visit|title=Pakistan Wants to Become China's Newest Superhighway to Europe|publisher=Bloomberg News|date=1 April 2015}}{{cite web|url=http://tribune.com.pk/story/861078/economic-corridor-12000-strong-force-to-guard-chinese-workers/|title=Economic corridor: 12,000-strong force to guard Chinese workers|date=30 March 2015|newspaper=The Express Tribune}}{{cite web|url=https://www.reuters.com/article/pakistan-china-idUSL4N0XI2NE20150421|title=Xi hails Pakistan security help in China; Pakistan vows more|work=Reuters|date=21 April 2015}} As of August 2015, 8,000 Pakistani security officials were deployed for the protection of over 8,100 Chinese workers in Pakistan.{{cite web|url=http://tribune.com.pk/story/873889/army-assigned-security-of-chinese-engineers/|title=Army assigned security of Chinese engineers|date=22 April 2015|newspaper=The Express Tribune}} Maqbool Ahmed, an investigative journalist from the now-closed Herald, reported large-scale land acquisition involving tens of thousands of acres near a lagoon in Gwadar by the Pakistani Navy for building a massive garrison to secure maritime security.{{cite news|author1=Maqbool Ahmed|date=September 2018|title=The mysterious case of land acquisitions in Balochistan|work=Herald|url=https://herald.dawn.com/news/1398696|access-date=4 November 2022}}
As part of CPEC, Pakistan has strengthened its international engagement in foreign policy with China, Iran, the USA, Turkey, and Malaysia, focusing on maritime economy aspects related to CPEC.{{Cite web|url=http://dunyanews.tv/en/Pakistan/364850-Pakistan-to-host-international-conference-on-marit|title=Pakistan to host international conference on maritime economy|publisher=Dunya News|date=14 February 2008}} Iranian President Rouhani expressed his intention for Iran to join CPEC during a meeting at the UN.{{cite web|url=http://www.dawn.com/news/1285404|title=Iran wants to be part of CPEC, says Rouhani|first=Syed Sammer|last=Abbas|date=22 September 2016}} Russia has also expressed support for CPEC.{{cite news|url=http://economictimes.indiatimes.com/news/international/world-news/russia-supports-china-pakistan-economic-corridor-project-russian-envoy-alexey-y-dedov/articleshow/56037725.cms|title=Russia supports China-Pakistan Economic Corridor project: Russian envoy Alexey Y Dedov|first=Sachin|last=Parashar|date=19 December 2016|newspaper=The Economic Times}}{{cite web|url=http://www.hindustantimes.com/world-news/china-hands-over-2-ships-to-pak-navy-to-secure-gwadar-port/story-jTYPQRLhQdY6AlRpmIWHXL.html|title=China hands over 2 ships to Pak navy to secure Gwadar port|date=15 January 2017}}
The Special Security Division, led by a major general, will comprise nine army battalions and six wings of civil armed forces. Additionally, the Gwadar Security Task Force, commanded by a Brigadier, will be established. These security measures for Chinese projects are estimated to cost a total of Rupees 10 billion as of 2015. The Chief of Army Staff visited the CPEC Security headquarters in February 2016 and pledged that "the security forces are ready to pay any price" for the successful completion of CPEC projects. The NEPRA in Pakistan has expressed concerns about the rapid increase in security expenditures for power projects under CPEC, which it deems to be "dark."{{cite news |author1=Khurram Husain |title=Hidden costs of CPEC |url=https://www.dawn.com/news/1286698/hidden-costs-of-cpec |access-date=30 December 2022 |newspaper=Dawn |date=29 September 2016 |location=Pakistan}}
=Baloch militants=
The Balochistan National Party (Mengal) (BNP-M), the Baloch National Front (BNF), the Baloch Republican Party, and militant organizations such as the Balochistan Liberation Front, the Balochistan Liberation Army, and the Baloch Republican Army have raised objections to CPEC.{{cite news |author1=Kiyya Baloch |date=17 December 2014 |title=Can China's Gwadar Port Dream Survive Local Ire? |work=The Diplomat |url=https://thediplomat.com/2014/12/can-chinas-dream-of-a-pakistan-port-survive-local-ire/ |access-date=4 November 2022}} There have been instances of attacks on and killings of Chinese nationals associated with CPEC.{{cite news |author1=Kiyya Baloch |title=Chinese Operations in Balochistan Again Targeted by Militants |url=https://thediplomat.com/2015/03/chinese-operations-in-balochistan-again-targeted-by-militants/ |access-date=4 November 2022 |work=The Diplomat |date=27 March 2015}} Many Baloch prefer autonomy and control over their own local resources rather than foreign mega projects.
Prior to CPEC, Balochistan had experienced multiple nationalist and separatist insurgencies. However, investments in the province have led to a significant reduction in separatist activities and increased local integration into the workforce at Gwadar. Despite this, Pakistan accuses India of supporting the anti-CPEC agenda, citing evidence such as the alleged Indian spy Kulbhushan Jadhav, who was apprehended in Balochistan on 3 March 2016. Information about Jadhav was subsequently presented to the United Nations.{{cite web|url=http://www.outlookindia.com/article/raw-is-training-600-balochis-in-afghanistan/231032|title=RAW Is Training 600 Balochis in Afghanistan|date=24 April 2006|work=Outlook}} In 2016, exiled Baloch nationalist Hyrbyair Marri warned that the safety of Chinese nationals working on the project could not be guaranteed,{{cite web|url=http://www.indiatvnews.com/news/world-india-must-extend-support-to-freedom-struggle-of-balochistan-hyrbyair-marri-339009|title=India must extend support to our freedom struggle: Baluchistan separatist leader Hyrbyair Marri|publisher=India TV | date=12 July 2016|access-date=13 July 2016|last = Singh |first = Raj}} although violence in the region peaked in 2013 before sharply declining.{{cite news|title=Balochistan sees 'substantial drop' in violence |url = https://tribune.com.pk/story/947842/balochistan-sees-substantial-drop-in-violence/|access-date=9 February 2017|work=The Express Tribune|date=31 August 2015}}{{NoteTag|Which Pakistan alleges are supported by Indian intelligence services. Between 2014 and 2015, acts of terrorism in the province decreased by 50%, with sharp declines also noted in deaths, kidnappings, and sectarian killings.{{cite news|title=Good performance: Balochistan witnesses 50% decline in sectarian violence|url=https://tribune.com.pk/story/986698/good-performance-balochistan-witnesses-50-decline-in-sectarian-violence/|access-date=9 February 2017|work=The Express Tribune|date=7 November 2015|quote=Official documents show that acts of terrorism as well as sectarian and targeted killings have gone down by 50 per cent in Balochistan over the last two years under Chief Minister Dr Abdul Malik Baloch's administration.}}}}
The Pakistani government reported that over 800 Baloch militants surrendered to security forces in 2016 following the launch of a reconciliation program,{{cite news|title=More than 800 suspected militants have surrendered in Balochistan during past year|url=http://www.dawn.com/news/1312069|access-date=10 February 2017|work=Dawn|date=1 February 2017}} including over 200 at a single ceremony in November 2016.{{cite news|title=202 militants surrender arms to Baluchistan CM|url=http://nation.com.pk/national/08-Nov-2016/202-militants-surrender-arms-to-balochistan-cm|access-date=9 February 2017|work=The Nation|date=8 November 2016}} Balakh Sher Badini, a senior commander of the Balochistan Liberation Army, surrendered to Pakistani forces in January 2017.{{cite news|title=Top BLA commander surrenders|url=http://nation.com.pk/editors-picks/10-Jan-2017/top-bla-commander-surrenders|access-date=9 February 2017|work=The Nation|date=10 January 2017}} Shortly thereafter, another 21 militants from the Balochistan Republican Army, including 3 commanders, also surrendered.{{cite news|title=Mass surrender: Up to 24 militants lay down weapons|url=https://tribune.com.pk/story/1303194/mass-surrender-24-militants-lay-weapons/|access-date=9 February 2017|work=The Express Tribune|date=22 January 2017}} A few days later, high-ranking militant commander Lal Din Bugti surrendered along with 6 other commanders.{{cite news|title=Top Baloch rebel commander, others surrender|url=http://nation.com.pk/national/29-Jan-2017/top-baloch-rebel-commander-others-surrender|access-date=9 February 2017|work=The Nation|date=29 January 2017}} By 2017, separatist violence in the province had decreased significantly, making these groups much less of a threat compared to Islamist militants.{{cite news|title=Pakistani Security Forces Credited For Decline in Militant Attacks|url=http://www.rferl.org/a/pakistani-security-forces-credited-decline-militant-attacks-balochistan-terrorist-attacks/28222966.html|access-date=9 February 2017|date=10 January 2017}}
Pakistan faced Taliban insurgent violence that largely began in 2008 during the rule of General Pervez Musharraf. China reportedly expressed concern that militant groups in Xinjiang could collaborate with Tehrik-i-Taliban militants in Pakistan.{{cite web|url=https://money.cnn.com/2015/04/20/news/economy/pakistan-china-aid-infrastucture/|title=Pakistan lands $46 billion investment from China|date=20 April 2015|publisher=CNN}}[http://www.ndtv.com/india-news/chinese-troops-will-be-positioned-in-pakistan-security-agencies-to-government-1286550 Chinese Troops Will Be Positioned In Pakistan, Security Agencies Tell Government] 13 March 2016 In 2014, Pakistan launched Operation Zarb-e-Azb to eradicate Tehrik-i-Taliban militants from Pakistani territory, following an attack on Karachi's airport and the 2014 Peshawar school massacre, in which terrorists from Tehrik-i-Taliban killed 148 school children.
Following the launch of Operation Zarb-e-Azb, violence in Pakistan has drastically declined.{{cite news|title=Violence-related fatalities in Balochistan, Punjab increased in 2016|url=http://www.dawn.com/news/1306301|access-date=9 February 2017|work=Dawn|date=4 January 2017}} In 2016, the number of deaths from acts of violence was the lowest since the current wave of violence began in 2007,{{cite news|title=Pakistan violence drops significantly in 2016: report|url=https://www.yahoo.com/news/pakistan-violence-drops-significantly-2016-report-153016049.html|access-date=9 February 2017|agency=Agence France-Presse|date=3 January 2017|archive-date=4 January 2017|archive-url=https://web.archive.org/web/20170104160621/https://www.yahoo.com/news/pakistan-violence-drops-significantly-2016-report-153016049.html|url-status=dead}} with total fatalities dropping nearly 66% compared to 2014. Acts of terrorist violence fell 75% between 2014 and 2016.{{cite news|title=FEATURES Pakistan is winning its war on terror|url=http://www.spectator.co.uk/2016/12/pakistan-is-winning-its-war-on-terror/|agency=The Spectator (UK)|date=31 December 2016}} According to the [http://www.satp.org/ South Asia Terrorism Portal], civilian fatalities from terrorist attacks in 2013 stood at 3,001, while the number had declined to 612 by 2016,{{cite web|title=Fatalities in Terrorist Violence in Pakistan 2003–2017|url=http://www.satp.org/satporgtp/countries/Pakistan/database/casualties.htm|website=South Asia Terrorism Portal|access-date=9 February 2017}} the lowest number since 2005.
=Uyghur militants=
In the 1980s, Uyghurs from China crossed into Pakistan to enroll in Madrassas. With training and arms provided by the Chinese government, they fought the Soviets in Afghanistan. Upon returning to China, many joined violent Uyghur nationalist groups.{{cite journal |author1=Beckley |first=Michael |author-link=Michael Beckley (political scientist) |date=22 February 2012 |title=China and Pakistan: Fair-Weather Friends |url=https://www.yalejournal.org/publications/china-and-pakistan-fair-weather-friends |journal=Yale Journal of International Affairs |volume=7 |issue=1 |access-date=30 December 2022}} Pakistani intelligence agencies have conducted crackdowns on Uyghur militants from the Islamic State returning from Syria and the East Turkistan Islamic Movement (ETIM), as well as Baloch rebel groups targeting CPEC projects. They claim that hostile Indian intelligence agencies are involved in training thousands of militants formerly affiliated with Taliban factions. Nearly 30,000 Chinese workers are employed in about 280 Chinese-funded projects, with nearly 35,000 security personnel deployed.{{cite news |author1=Zahid Gishkori |date=3 April 2018 |title=Pakistan mounts secret raids in hunt for Chinese militants |work=The News International |location=ISLAMABAD |url=https://www.thenews.com.pk/print/299777-pakistan-mounts-secret-raids-in-hunt-for-chinese-militants |access-date=30 December 2022}}
= Alleged Indian subversion =
CPEC passes through the disputed region of Kashmir, where Indian and Pakistani border guards have occasionally exchanged fire across the Line of Control.{{cite web|last=Panda|first=Ankit|url=https://thediplomat.com/2014/07/india-faces-off-with-pakistan-china-on-disputed-kashmir-borders/|title=India Faces off With Pakistan, China on Disputed Kashmir Borders|work=The Diplomat|date=18 July 2014|access-date=23 April 2015}}{{cite web|url=http://www.globalpost.com/article/6522036/2015/04/20/india-pakistan-border-guards-violate-cease-fire-kashmir-border|title=India, Pakistan border guards violate cease-fire on Kashmir border|agency=Xinhua News Agency|date=20 April 2015|access-date=23 April 2015}} However, no CPEC project is located near the Line of Control. Chinese intelligence agencies have reportedly shared information with Pakistani authorities regarding alleged efforts by India's Research and Analysis Wing (RAW) to undermine CPEC.{{cite news|url=http://tribune.com.pk/story/890650/raw-at-frontline-to-sabotage-economic-corridor-china-warns-pakistan/|title=RAW at frontline to sabotage Economic Corridor, China warns Pakistan|newspaper=The Express Tribune|date=22 May 2015|access-date=2 June 2015}} In March 2016, Pakistan reported that it had arrested Kulbhushan Yadav, whom it claims is a RAW spy, alleging that he entered Pakistan from Iran specifically to destabilize regions in Baluchistan in collaboration with terrorist organizations like Tehrik-i-Taliban and the Baloch Liberation Army (BLA) to hinder CPEC projects.{{cite news|title=Indian was seeking to disrupt CPEC|url=http://www.brecorder.com/market-data/stocks-a-bonds/0/29043/|archive-url=https://web.archive.org/web/20160507114850/http://www.brecorder.com/market-data/stocks-a-bonds/0/29043/|url-status=dead|archive-date=7 May 2016|access-date=1 April 2016|work=Business Recorder|date=26 March 2016}}{{original research inline|date=June 2021}} India has denied the claim, stating that Yadav was "kidnapped last year from Iran, and his subsequent presence in Pakistan has never been credibly explained."{{cite web|url=https://www.ndtv.com/india-news/kulbhushan-jadhav-kidnapped-from-iran-no-evidence-against-him-says-india-1679674|title=Kulbhushan Jadhav Kidnapped From Iran, No Evidence Against Him, Says India|publisher=NDTV}} In April 2016, former Chief of Army Staff General Raheel Sharif accused RAW of destabilizing Pakistan in an attempt to disrupt CPEC projects.{{cite news|title=India out to sabotage CPEC: Raheel|url=http://www.dawn.com/news/1251784|access-date=19 May 2016|work=Dawn|date=13 April 2016}} Pakistan's Secretary of Defense Lieutenant General Alam Khattak also stated in April 2016 that Yadav's arrest indicated Indian interference in CPEC, further alleging that RAW, in collaboration with Afghanistan's National Directorate of Security, had established a special espionage unit with the express intent of sabotaging CPEC.{{cite news|title=RAW runs special cell to sabotage CPEC, says secretary defence|url=http://www.dawn.com/news/1251860|access-date=20 May 2016|work=Dawn|date=14 April 2016}} India brought the case to the International Court of Justice (ICJ), which stayed the execution of the sentence passed by the Pakistani military court. In its July 2019 verdict, the ICJ found that Pakistan had violated the Vienna Convention on Diplomatic Relations and directed Pakistan to provide consular access to Yadav.{{Cite web|first=Prabhash K.|last=Dutta|date=17 July 2019|title=ICJ verdict on Kulbhushan Jadhav: What went in India's favour and against|url=https://www.indiatoday.in/india/story/icj-judgment-on-kulbhushan-jadhav-what-went-in-india-s-favour-and-against-1570566-2019-07-17|access-date=27 June 2021|website=India Today}}{{Cite web|url=https://www.icj-cij.org/public/files/case-related/168/168-20190717-JUD-01-00-EN.pdf|title=Jadhav Case Judgment of 17 July 2019 by International Court of Justice}}
List of major projects
class="wikitable" | |||
colspan="2" | Gwadar projects | Estimated cost | Status | Notes |
---|---|---|---|
colspan="2" | Gwadar Port
| 300 US $ million |{{Yes|Partially completed}} |Phase 1 is complete, and Phase 2 is under construction.{{cite news|date=15 April 2015|title=China gets 40-year rights at Pakistani port|newspaper=The Jakarta Post|url=http://www.thejakartapost.com/news/2015/04/15/china-gets-40-year-rights-pakistani-port.html|access-date=24 April 2015}} Tax exemptions for the port and Free Zone were notified in the Finance Act 2020. Forty-six enterprises have been registered for investment in the Free Zone. Three companies have started production. The first imports and exports cargo by M/s HKSUN was received in the Gwadar Free Zone on 7 April 2021. Development of 2nd phase (2,221 acres) started in July, 2021.{{Cite web |title=Development of Port and Free Zone |url=https://cpec.gov.pk/project-details/36 |access-date=2024-10-06 |website=cpec.gov.pk}} | |||
colspan="2" | East Bay Expressway
| 179 US $ million |{{Yes|Completed}} | |||
colspan="2" |Pak China Friendship Hospital
|100 US $ million |{{Yes|Completed}} |Completed and inaugurated on 5 December 2023.{{Cite web |title=Gwadar Gets Pak-China Friendship Hospital and Desalination Plant |url=https://www.pakistantoday.com.pk/2023/12/05/gwadar-achieves-milestone-with-desalination-plant-and-pak-china-hospital-projects/ |access-date=11 December 2023 |website=Pakistan Today|date=5 December 2023 }} | |||
colspan="2" |1.2 MGD Sea Water Desalination Plant
|12.7 US $ million |{{Yes|Completed}} |The project implementation began in 2021 and was successfully completed on 7 November 2023. | |||
colspan="2" |Pak China Technical And Vocational Institute
|10 US $ million |{{Yes|Completed}} |This project aimed to create a state-of-the-art vocational and technical training institute in Gwadar. It was completed in October 2021.{{Cite web|title=Pak-China vocational institute opens in Gwadar|url=https://www.dawn.com/news/1649616|access-date=4 October 2021|website=Dawn|location=Pakistan|date=2 October 2021}} | |||
colspan="2" | New Gwadar International Airport
|230 US $ million |{{Yes|Completed}} |Construction work began on 31 October 2019. The new airport was inaugurated on October 15, 2024.{{Cite web |date=2024-10-14 |title=China's premier inaugurates a Beijing-funded airport at the start of a Pakistan trip |url=https://apnews.com/article/pakistan-china-sco-meeting-6ae9bd89b84eef5c5fe9675f324c689c |access-date=2024-11-30 |website=AP News |language=en}}{{Cite web |title=Gwadar airport's new inauguration date unveiled |url=https://arynews.tv/gwadar-airports-new-inauguration-date-unveiled/ |access-date=11 December 2023 |website=arynews.tv|date=22 September 2023 }} | |||
Road/railway projects
!Length (Km) !Estimated cost !Status !Notes | |||
Gwadar-Turbat-Hoshab (M-8)
|193 |Rs. 13 billion |{{Yes|Completed}} |Completed in 2016, it will connect the western, central and eastern routes of CPEC with the Gwadar Port.{{Cite web|title=western-route|url=http://cpec.gov.pk/western-route|access-date=12 June 2020|website=cpec.gov}}{{Cite web|title=PM inaugurates Gwadar-Hoshab (M-8) portion of CPEC|url=https://tribune.com.pk/story/1039480/nawaz-inaugurates-gwadar-hoshab-m-8-portion-of-cpec|access-date=3 October 2021|website=The Express Tribune|date=3 February 2016}} | |||
Surab-Hoshab (N-85)
|449 |Rs. 17.97 billion |{{Yes|Completed}} |The N85 highway connects Hoshab to Sorab and serves as a crucial link in the western route of CPEC. | |||
Zhob – Quetta (Kuchlak) (N-50)
|305 |Rs. 66.8 billion |{{Yes|Under construction}} |Tendering for construction work of two sections is completed and contractor mobilized whereas the remaining three sections tendering will process soon.{{Cite web|title=Zhob – Quetta (Kuchlak) (N-50)|url=http://cpec.gov.pk/project-details/86|access-date=3 November 2021|website=cpec.gov.pk}} | |||
Reconstruction of the Karakoram Highway Phase II
|118 |1,315 US $ million |{{Yes|Completed}} |The 118 km Thakot-Havelian section was completed in March 2020.{{Cite web|title=KKH Phase II (Thakot -Havelian Section)|url=http://cpec.gov.pk/project-details/28|access-date=12 June 2020|website=cpec.gov}} | |||
Multan-Sukkur Motorway (M-5)
|392 |2,889 US $ million |{{Yes|Completed}} |Inaugurated on 5 November 2019, the 392 km Sukkur to Multan Motorway is a critical component of the Peshawar to Karachi Motorway route.{{Cite web|url=http://cpec.gov.pk/project-details/29|title=Peshawar-Karachi Motorway (Multan-Sukkur Section)|website=cpec.gov|access-date=21 September 2018}} | |||
Abdul Hakeem-Lahore Motorway (M-3)
|230 | |{{Yes|Completed}} |The project was completed and inaugurated on 30 March 2019. | |||
Hakla D.I Khan Motorway
|285 |Rs. 122.2 billion |{{Yes|Completed}} |Part of the western alignment of CPEC, the project was completed and inaugurated on 5 January 2022.{{Cite web|title=Hakla – D.I Khan Motorway|url=http://cpec.gov.pk/project-details/84|access-date=7 January 2022|website=cpec.gov.pk}} | |||
Khuzdar-Basima Road N-30
|106 |19.19 billion rupees |{{Yes|Completed}} |The project was completed in June 2023.{{Cite web |title=NHA completes key link road in Balochistan |url=https://gwadarpro.pk/1671059081853239297/nha-completes-key-link-road-in-balochistan |access-date=29 January 2024 |website=gwadarpro.pk}} | |||
Orange Line (Lahore Metro)
|27 |1,626 US $ million |{{Yes|Completed}} |The project was completed and inaugurated on 25 October 2020.{{Cite news|title=Orange Line – Lahore|publisher=BBC News|date=26 October 2020|url=https://www.bbc.com/news/world-asia-54692488|access-date=29 October 2020}} | |||
Upgradation of Karachi–Peshawar Line ML-1
|1,872 |6,808 US $ million |{{Yes|Under Construction}} |The entire track from Karachi to Peshawar is set to be doubled, with the speed of passenger trains raised from 65/110 km/h to 160 km/h. The project was approved by ECNEC on 5 August 2020.{{Cite web|title=Expansion And Reconstruction of Existing Line ML-1|url=http://cpec.gov.pk/project-details/30|access-date=7 October 2020|website=cpec.gov.pk}} | |||
Energy projects
!Capacity (MW) !Estimated cost !Status !Notes | |||
Kohala Hydropower Project
|1,100 |2,400 US $ million |{{Coming soon|In planning}} |Financial close (FC) under progress.{{Cite web|url=http://cpec.gov.pk/project-details/23|title=Kohala Hydel Project, AJK|access-date=23 August 2018}} | |||
Azad Pattan Hydropower Project
|701 |1,600 US $ million |{{Coming soon|In planning}} |Financial close (FC) under progress.{{Cite web|title=Azad Pattan Hydel Project, AJK|url=http://cpec.gov.pk/project-details/91|access-date=7 October 2020|website=cpec.gov.pk}} | |||
Dawood wind power project
|50 |112.65 US $ million |{{Yes|Completed}} |Commercial operation date (COD) was 5 April 2017. The project is fully operational.{{cite news|url=http://cpec.gov.pk/project-details/11|title=Hydro China Dawood 50 MW Wind Farm (Gharo, Thatta)|date=10 March 2016|access-date=7 August 2018}} | |||
Karot Hydropower Project
|720 |1,720 US $ million | {{Yes|Completed}} |Completed and fully operational as of 29 June 2022.{{Cite web |title=Karot Hydropower Station |url=https://tribune.com.pk/story/2364053/cpecs-karot-hydropower-plant-put-into-full-commercial-operation |access-date=3 July 2022 |website=tribune.com.pk/|date=30 June 2022 }} | |||
Port Qasim Power Project
|1,320 |1,912 US $ million |{{Yes|Completed}} |The project was completed on 25 April 2018.{{cite news|url=http://cpec.gov.pk/project-details/1|title=2×660 MW Coal-Fired Power Plants at Port Qasim Karachi|access-date=7 August 2018}} | |||
Quaid-e-Azam Solar Park
|1,000 |1,301 US $ million |{{Yes|Partially completed}} |The first phase is complete, generating 400 MW of electricity. The 600 MW expansion is under implementation. | |||
Sahiwal Coal Power Project
|1,320 |1,912 US $ million |{{Yes|Completed}} | |||
UEP Wind Farm
|99 |250 US $ million |{{Yes|Completed}} |Commercial operation date (COD): 16 June 2017. Operational.{{Cite web|url=http://cpec.gov.pk/project-details/12|title=UEP 100MW Wind Farm (Jhimpir, Thatta)|website=The Express Tribune|access-date=7 August 2018}} | |||
Sachal Wind Farm
|50 |134 US $ million |{{Yes|Completed}} |Commercial operation date (COD) achieved on 11 April 2017. Operational.{{Cite web|url=http://cpec.gov.pk/project-details/13|title=Sachal 50 MW Wind Farm (Jhimpir, Thatta)|access-date=7 August 2018}} | |||
Three Gorges Second and Third Wind Power Projects
|100 |150 US $ million |{{Yes|Completed}} |Commercial operation date (COD) attained on 9 July 2018. Operational.{{Cite web|url=http://cpec.gov.pk/project-details/24|title=Three Gorges Second Wind Power Project Three Gorges Third Wind Power Project|access-date=23 August 2018}} | |||
Hubco Coal Power Project
|1,320 |1,912 US $ million |{{Yes|Completed}} |COD is 14 August 2019. Fully operational.{{Cite web|url=http://cpec.gov.pk/project-details/6|title=CPHGC 1,320MW Coal-Fired Power Plant, Hub, Balochistan|website=cpec.gov.pk|access-date=5 September 2019}} | |||
Suki Kinari Hydropower Project
|870 |2,000 US $ million |{{Yes|Completed}} |Project completed on 13 September 2024.{{Cite web |date=27 September 2023 |title=Suki Kinari Hydropower Station, Naran, Khyber Pukhtunkhwa |url=https://cpec.gov.pk/project-details/15 |access-date=2024-10-06 |website=cpec.gov.pk}} | |||
Coal Power Project of Engro Powergen Limited at Thar Block-II
|660 |995 US $ million |{{Yes|Completed}} |The commercial operation date (COD) is 10 July 2019. It is currently in operation.{{Cite web|url=http://cpec.gov.pk/project-details/3|title=Engro Thar Block II 2×330MW Coal fired Power Plant|website=cpec.gov.pk|access-date=5 September 2019}} | |||
Coal Power Project of Shanghai Electric at Thar Block-I
|1,320 |1,440 US $ million |{{Yes|Completed}} |The project was completed on 5 February 2023.{{Cite web |title=SSRL Thar Coal Block-I 6.8 mtpa & Power Plant(2×660MW) (Shanghai Electric) |url=http://cpec.gov.pk/project-details/9 |access-date=7 February 2023 |website=cpec.gov}} | |||
Coal Power Project of Thar Energy Limited at Thar Block-II
|330 |498 US $ million |{{Yes|Completed}} |The project successfully achieved its commercial operations date on 1 October 2022.{{Cite web |title=Another coal-fired 330MW ThalNova power plant synchronized with national grid |url=https://hubpower.com/wp-content/uploads/2022/10/TEL_330MW_COD.pdf |access-date=7 February 2023 |website=hubpower.com}} | |||
Coal Power Project of Thal Nova Power Limited at Thar Block-II
|330 |498 US $ million |{{Yes|Completed}} |Operational. Synchronized with the national grid on 30 December 2022. | |||
Other energy projects
!Capacity !Cost !Status !Notes | |||
Matiari to Lahore HVDC Transmission Line (878 km)
|4,000 MW |1,658 US $ million |{{Yes|Completed}} |The project was completed in September 2021.{{Cite web|title=Matiari to Lahore ±660kV HVDC Transmission Line Project|url=https://www.thenews.com.pk/print/886507-matiari-lahore-transmission-line-becomes-operational|access-date=3 October 2021|website=The News International}} This state-of-the-art transmission line is designed to evacuate 4,000 MW of power from coal power plants being developed in the Thar coal field to national grid stations in the central part of the country. | |||
Matiari to Faisalabad transmission line
| 660 kilovolt | 1.95 US $ Billion |{{Yes|Completed}} | Phase - 1 has been completed. | |||
Open Pit Mine of SSRL in Block-I of Thar Coal Field
|7.6 million tons / year |1,080 US $ million |{{Yes|Completed}} |On 31 January 2022, the first shovel of lignite coal was extracted at the mine.{{Cite web |title=First shovel of coal in Thar Block 1 huge step forward |url=https://www.geo.tv/latest/396787-first-shovel-of-lignite-coal-is-huge-step-forward-ceo-ssrl |access-date=29 July 2022 |website=geo.tv}} This will enable the mine-mouth coal power project by Shanghai Electric to generate 1,320 MW of electricity. | |||
Open Pit Mine of SECMC in Block-II of Thar Coal Field
|7.6 million tons / year |630 US $ million |{{Yes|Completed}} |Thar Block-II unearthed coal on 10 June 2018.{{Cite web|url=http://cpec.gov.pk/project-details/4|title=Surface Mine in Block II of Thar Coal Field, 3.8 Million Tons/Year|website=cpec.gov|access-date=21 July 2018}} The coal is supplied to the 660 MW Engro Powergen Limited coal power project, the 330 MW TEL coal power plant, and the 330 MW Thal Nova coal power plant at the site. On 10 October 2022, the project achieved a major milestone by completing phase II of mine expansion and announcing the Commercial Operations Date (COD) for the 7.6 million tons per annum (MTPA) mine expansion, up from the 3.8 MTPA under phase I. The mine capacity is set to increase to 12.2 million tons per year by June 2023.{{Cite web |title=Thar Block II Expansion Set To Become Cheapest Fuel Source For Pakistan |url=https://www.secmc.com.pk/models/thar-block-ii-expansion-set-to-become-cheapest-fuel-source-for-pakistan/ |access-date=29 July 2022 |website=secmc.com.pk}}{{Cite web |title=SECMC Reaches Milestone Production of 7.6m Tons in Phase 2 of Expansion |url=https://www.secmc.com.pk/models/secmc-reaches-milestone-production-of-7-6m-tons-in-phase-2-of-expansion/ |access-date=8 February 2023 |website=secmc.com.pk}} | |||
colspan="2" |Special Economic Zones
!Area !Status !Notes | |||
colspan="2" |Rashakai Economic Zone, M-1, Nowshera
|702 Acres |{{Yes|Launched}} |The Rashakai Special Economic Zone (SEZ) in Khyber Pakhtunkhwa was launched in June 2021, marking the start of phase II of CPEC. | |||
colspan="2" |Dhabeji Special Economic Zone
|1530 Acres |{{Yes|Launched}} |Groundbreaking of Dhabeji SEZ was held on 15 July 2023 and development work is in progress. | |||
colspan="2" |Allama Iqbal Industrial City, Faisalabad
|3217 Acres |{{Yes|Launched}} |Numerous national and international enterprises have been allotted plots in the SEZ, and a few companies have already started construction work. | |||
colspan="2" |Bostan Industrial Zone
|1000 Acres |{{Yes|Launched}} |Phase 1 has been launched for the allotment of industrial plots. |
Cancelled projects
class="wikitable sortable" style="text-align:center" |
style="vertical-align:bottom;"
! Projects ! Capacity ! Location ! Notes |
Gadani Power Project
| 6,600 MW (10 x 660 MW plants) | Balochistan | |
Rahimyar Khan coal power project
| 1,320 MW (2 x 660 MW plants) | Punjab |
Muzaffargarh coal power project
| 1,320 MW (2 x 660 MW plants) | Punjab |
Imported Coal Based Power Project at Gwadar
|330 MW |Gwadar |
Challenges
=Political, legal and social risks=
Political instability in Pakistan often leads to frequent changes in leadership and military interference in civilian government. Such instability jeopardizes agreements made by previous leaders, increasing uncertainty in the commercial environment and undermining investment reliability and ease of doing business. This risk is further compounded with foreign investments and workers involved. The country's flawed legal system promotes substandard construction practices, illegitimate bidding, corruption, breached contracts, unethical discrimination, and irregularities in laws. Additionally, crime, extortion, kidnapping, armed conflict, terrorist attacks, extremism, civil unrest, nationwide strikes, protests, riots, and mass expropriations pose significant obstacles to the timely and successful completion of projects.{{cite journal |author1=Amer Rajput |author2=Ahsen Maqsoom |author3=Syed Waqas Ali Shah |author4=Fahim Ullah |author5=Hafiz Suliman Munawar |author6=Muhammad Sami Ur Rehman |author7=Muhammad Sami Ur Rehman |title=Impact of Political, Social Safety, and Legal Risks and Host Country Attitude towards Foreigners on Project Performance of China Pakistan Economic Corridor (CPEC) |journal=Buildings |year=2022 |volume=12 |issue=6 |doi=10.3390/buildings12060760 |series=Towards Smart Tech 4.0 in the Built Environment: Applications of Disruptive Digital Technologies in Smart Cities, Construction, and Real Estate |page=760 |location=Department of Management Sciences, COMSATS University Islamabad|doi-access=free }}
In 2021, local residents of Gwadar protested against the perceived threat to their livelihoods due to illegal fishing in local waters, allegedly by Chinese trawlers.{{cite news |author1=Shah Meer Baloch |date=20 August 2021 |title=Protests in Pakistan erupt against China's belt and road plan |work=The Guardian |location=Islamabad |url=https://www.theguardian.com/environment/2021/aug/20/water-protests-in-pakistan-erupt-against-chinas-belt-and-road-plan |access-date=3 November 2022}} In 2023, the provincial government conducted a crackdown on illegal trawlers after months of protests, leading to the return of marine life.{{Cite web |date=16 January 2023 |title=Govt takes action against illegal fishing in Gwadar |url=https://tribune.com.pk/story/2396296/govt-takes-action-against-illegal-fishing-in-gwadar?amp=1 |access-date=26 January 2023 |website=The Express Tribune}}
Known for its dominance over civil institutions and democratic rule,{{Cite web |last=Schwemlein |first=James |year=2019 |title=Strategic Implications of the China-Pakistan Economic Corridor |publisher=US Institute of Peace |url=https://www.jstor.org/stable/resrep20244}} China sought to enlist Pakistan's military in a leading role to ensure the successful completion of projects amid political infighting over the ownership of corridor projects.{{Cite news |date=21 July 2016 |title=China urges Pakistan to give army lead role in Silk Road project |work=Financial Times |url=https://www.ft.com/content/5eea66c0-4ef9-11e6-8172-e39ecd3b86fc |access-date=10 January 2023}} During Nawaz Sharif's tenure, many projects were launched in Punjab Province, a significant stronghold for the PML-N leader. Upon assuming power, Imran Khan pressured China to focus on developing the Rashakai SEZ in Khyber Pakhtunkhwa Province, a stronghold for the PTI leader.{{Cite web |last=Bennett-Jones |first=Owen |date=3 August 2021 |title=Who benefits more? |url=https://www.dawn.com/news/1638510 |access-date=10 January 2023 |website=Dawn|location=Pakistan}} Official statistics from 2017 showed that out of 330 CPEC-related projects in Pakistan, 176 were in Punjab Province, while Balochistan had only 8 projects allocated.{{Cite web |date=27 January 2017 |title=Six concerns PML-N government must address about CPEC |url=https://tribune.com.pk/story/1308699/six-concerns-pml-n-government-must-address-cpec |access-date=10 January 2023 |website=The Express Tribune}} During the 2018 national election campaign, Imran Khan criticized alleged corruption in previous government contracts related to CPEC.{{Cite news |date=9 September 2018 |title=Pakistan rethinks its role in Xi's Belt and Road plan |work=Financial Times |url=https://www.ft.com/content/d4a3e7f8-b282-11e8-99ca-68cf89602132 |access-date=10 January 2023}} Skeptics have questioned the efficient use of foreign funds for infrastructure development given the level of corruption.{{Cite web |date=20 April 2015 |title=China president in Pakistan to sign £30bn 'land corridor' agreement |url=http://www.theguardian.com/world/2015/apr/20/china-president-xi-jinping-pakistan-land-corridor-agreement |access-date=10 January 2023 |website=The Guardian}} In 2017, China temporarily halted the release of funds for three projects due to corruption reports.{{Cite web |last=Raza |first=Syed Irfan |date=5 December 2017 |title=Three CPEC projects hit snags as China mulls new financing rules |url=https://www.dawn.com/news/1374532 |access-date=10 January 2023 |website=Dawn|location=Pakistan}}
In February 2023, it was predicted that the cost of dredging Gwadar Port would be five times higher than initially estimated. Officials attributed the cost overruns to the Gwadar Port Authority (GPA) and the Ministry of Maritime Affairs, which had developed the dredging project the previous year at an estimated cost of Rs 1 billion for the delivery and diversion of a few 50,000 DWT cargo ships due to navigational challenges. However, costs were later revised based on a comprehensive study conducted by the Pakistan Navy, followed by competitive bidding.{{Cite web |last=Kiani |first=Khaleeq |date=8 February 2023 |title=Gwadar port dredging to cost five times more |url=https://www.dawn.com/news/1735981 |access-date=17 February 2023 |website=Dawn|location=Pakistan}}
The delay in maintenance dredging over several years could have serious repercussions, including potential penalties and damages imposed on the GPA by the Concession Holder due to loss of business.
=Pakistani economic crisis=
{{see also|2022–2023 Pakistani economic crisis}}
The worst economic crisis in Pakistan's history since 2022 raises doubts about whether CPEC can achieve its development goals.{{Cite web |title=The Current Situation in Pakistan |url=https://www.usip.org/publications/2023/01/current-situation-pakistan |archive-url=https://archive.today/20250306220623/https://www.usip.org/publications/2023/01/current-situation-pakistan |url-status=dead |archive-date=6 March 2025 |access-date=3 June 2023 |website=United States Institute of Peace}}
=Geopolitical conflict=
{{see also|United States foreign policy toward the People's Republic of China}}
Criticism
Kaiser Bengali, a senior economist previously associated with the Benazir Income Support Programme (BISP) and who has led research institutions such as the Social Policy and Development Centre (SPDC) in Karachi and the Sustainable Development Policy Institute (SDPI) in Islamabad, has highlighted that no feasibility study was conducted for CPEC. He also pointed out the negative economic implications of tax exemptions granted to Chinese products and noted that an Environmental Impact Assessment was not performed to address the environmental costs of CPEC.
=Chinese intent=
Although initially announced for commercial purposes, the potential for port infrastructure projects to evolve into well-equipped military naval bases in the future cannot be ruled out.{{Cite web |title=CPEC: Boon or Bane for Pakistan? |url=https://thediplomat.com/2016/11/cpec-boon-or-bane-for-pakistan/ |access-date=13 January 2023 |website=thediplomat.com}}{{Cite journal |last1=Khan |first1=Muhammad Zahid Ullah |last2=Khan |first2=Minhas Majeed |year=2019 |title=China-Pakistan Economic Corridor: Opportunities and Challenges |journal=Strategic Studies |volume=39 |issue=2 |pages=67–82 |doi=10.53532/ss.039.02.00112 |jstor=48544300 |s2cid=248707532 |issn=1029-0990|doi-access=free }} Early indications of military involvement in this ambitious project began emerging in 2015.{{Cite news |date=12 October 2015 |title=China's Great Game: Road to a new empire |work=Financial Times |url=https://www.ft.com/content/6e098274-587a-11e5-a28b-50226830d644 |access-date=13 January 2023}} In 2018, The New York Times speculated about China's military interests in Pakistan, suggesting it might be more than just an economic project with peaceful intentions. Beijing-based military analysts and high-ranking officials have highlighted the geostrategic importance of Gwadar Port, hinting at the need for a naval base similar to the one China established in Djibouti.{{Cite web |date=5 January 2018 |title=First Djibouti ... now Pakistan tipped to have Chinese naval base |url=https://www.scmp.com/news/china/diplomacy-defence/article/2127040/first-djibouti-now-pakistan-port-earmarked-chinese |access-date=13 January 2023 |website=South China Morning Post}}{{Cite web |last=Iwanek |first=Krzysztof |title=No, Pakistan's Gwadar Port Is Not a Chinese Naval Base (Just Yet) |url=https://thediplomat.com/2019/11/no-pakistans-gwadar-port-is-not-a-chinese-naval-base-just-yet/ |access-date=13 January 2023 |website=thediplomat.com}} However, when asked about Pakistan's offer to turn Gwadar into a PLA naval base,{{Cite web |title=China and Pakistan: Fair-Weather Friends |url=https://www.yalejournal.org/publications/china-and-pakistan-fair-weather-friends |access-date=13 January 2023 |website=Yale Journal of International Affairs |date=22 February 2012}} a spokeswoman for the Chinese Ministry of Foreign Affairs denied any such plans, stating, "I have not heard of it. It's my understanding that this issue was not touched upon."
Observers have also pointed out that by involving nations in its megaprojects, China has silenced its allies, including Pakistan, on the mistreatment of Uyghurs. This is notable as those who are vocal about the religious aspects of conflicts in Palestine, Kashmir, or the Rohingya do not highlight or raise the issue of human rights violations against the Uyghurs.{{cite news |author1=Junaid Jahangir |author-link=Junaid Jahangir |date=3 August 2022 |title=Is China Pakistan's Friend? |work=The Friday Times |url=https://www.thefridaytimes.com/2022/08/03/is-china-pakistans-friend/ |access-date=7 November 2022}} In 2022, many countries, including Pakistan, voted against and rejected another motion by Western countries seeking debate on China's treatment of Uyghur Muslims and human rights violations.{{cite news |author1=Emma Farge |title=U.N. body rejects debate on China's treatment of Uyghur Muslims in blow to West |url=https://www.reuters.com/world/china/un-body-rejects-historic-debate-chinas-human-rights-record-2022-10-06/ |access-date=7 November 2022 |work=Reuters|date=7 October 2022 |location=Geneva}}
The fibreoptic project aims to support the terrestrial distribution of broadcast television in Pakistan and will collaborate with Chinese media for the "dissemination of Chinese culture." The CPEC plan anticipates extensive and deep penetration into most sectors of Pakistan's economy and society by Chinese enterprises and culture. Access to the full supply chain of the agrarian economy is a top priority for the Chinese.
Christine Fair, a professor at Georgetown University, has described CPEC as "Colonizing Pakistan to Enrich China".{{Cite news |last=Tharoor |first=Ishaan |date=10 August 2018 |title=Pakistan may be the next victim of China's new 'imperialism' |url=https://www.washingtonpost.com/world/2018/08/10/pakistan-may-be-next-victim-chinas-new-imperialism/ |access-date=13 April 2024 |newspaper=The Washington Post|issn=0190-8286}} However, Christine Fair's work has been accused of having anti-Pakistan prejudice{{cite news|url=https://www.thenews.com.pk/print/96617-US-professors-anti-Pak-agenda|title=US professor's anti-Pak agenda?|work=The News|date=February 7, 2016|access-date=September 6, 2016}}{{cite book|title=Prejudice Dominates Christine Discourse|work=Islamabad Policy Research Institute|first=Khalid|last=Chandio|date=May 6, 2015}}{{cite news|url=http://www.dawn.com/news/729946/an-unfair-comment|title=An unFair comment|work=Dawn|first=Murtaza|last=Haider|date=June 27, 2012|access-date=September 6, 2016}} including her efforts to downplay US drone strikes in Pakistan.
{{cite news|url=https://www.thenation.com/article/georgetown-professor-drones-are-not-killing-innocent-civilians-pakistan/|title=Georgetown Professor: 'Drones Are Not Killing Innocent Civilians' in Pakistan|work=The Nation|date=May 10, 2010|access-date=September 6, 2016|first=Jeremy|last=Scahill}}{{cite news|url=https://www.theatlantic.com/international/archive/2013/01/yes-pakistanis-really-do-hate-americas-killer-drones/272468|title=Yes, Pakistanis Really Do Hate America's Killer Drones|work=The Atlantic|date=January 24, 2013|access-date=September 6, 2016|first=Conor|last=Friedersdorf}}{{cite web|url=http://www.merip.org/drones-us-propaganda-imperial-hubris|title=Drones, US Propaganda and Imperial Hubris|work=Middle East Research and Information Project|first=Sarah|last=Waheed|date=January 25, 2013|access-date=September 6, 2016}}
In 2022, Twitter suspended fake accounts operated from Pakistan, identified in a report by the Indian non-profit organization Digital Forensics, Research and Analytics Centre (D-FRAC). The report claimed these accounts were involved in disinformation campaigns regarding CPEC and spreading "false Chinese narratives regarding CPEC."{{Cite web |title=DFRAC EXCLUSIVE: Fake handles from Pakistan misleading Twitteratis in the name of CPEC |url=https://dfrac.org/en/2022/05/14/pakistani-fake-accounts-misleading-twitteratis-in-the-name-of-cpec/ |access-date=13 January 2023 |website=dfrac.org|date=14 May 2022 }}
=Debt trap=
CPEC is seen as the main plank of China's Belt and Road Initiative.{{cite news |date=8 September 2017 |title=Massive Chinese investment is a boon for Pakistan |newspaper=The Economist |url=https://www.economist.com/news/asia/21728619-china-pakistan-economic-corridor-project-carries-risks-massive-chinese-investment-boon |access-date=8 September 2017}} Should the initial $46 billion worth of projects be implemented, their value would be roughly equivalent to all foreign direct investment in Pakistan since 1970,{{cite journal |last1=Rakisits |first1=Claude |date=Fall 2015 |title=A Path to the Sea: China's Pakistan Plan |url=http://www.worldaffairsjournal.org/article/path-sea-china%E2%80%99s-pakistan-plan |url-status=usurped |journal=World Affairs Journal |archive-url=https://web.archive.org/web/20160306234054/http://www.worldaffairsjournal.org/article/path-sea-china%E2%80%99s-pakistan-plan |archive-date=6 March 2016 |access-date=6 March 2016}} and would be equal to 17% of Pakistan's 2015 gross domestic product.{{cite news |last1=Khan |first1=Bilal |date=3 December 2015 |title=Pakistan's economy is turning a corner |agency=Standard Chartered Bank |url=https://www.sc.com/BeyondBorders/pakistan-economy/ |access-date=14 March 2016}} The external debt of Pakistan has surged significantly after accepting this Chinese offer.
Chinese monetary offers for Pakistan under CPEC consist of both Debt and Equity.
According to World Bank researchers, "Chinese lenders require strict confidentiality from their debtors and do not release a granular breakdown of their lending."{{cite web |author1=Sebastian Horn |author2=Carmen Reinhart |author3=Christoph Trebesch |title=China's overseas lending and the war in Ukraine |url=https://cepr.org/voxeu/columns/chinas-overseas-lending-and-war-ukraine |website=cepr.org |publisher=Centre for Economic Policy Research (CEPR) |access-date=2 November 2022 |date=11 April 2022}} In 2015, Ashraf Mahmood Wathra, the Governor of the Central Bank of Pakistan, stated, "I don't know out of $46 billion, how much is debt, how much is equity and how much is in kind"{{cite book |author1=Ume Farwa |author2=Ghazanfar Ali Garewal |editor1-last=Vargas |editor1-first=Soraya Caro |title=Economic Corridors in Asia: Paradigm of Integration? A Reflection for Latin America |date=June 2020 |publisher=Universidad del Externado |jstor=j.ctv1rcf2bf |isbn=9789587903812 |url=https://www.jstor.org/stable/j.ctv1rcf2bf |access-date=22 July 2022}} and expressed uncertainty about the debt implications of CPEC.{{cite journal |author1=Andrew Small |title=CPEC IN MOTION |journal=Research Report: Returning to the Shadows: China, Pakistan, and the Fate of CPEC |date=September 2020 |page=29 |url=https://www.jstor.org/stable/resrep27627.6 |access-date=22 July 2022 |publisher=German Marshall Fund of the United States}}
It is estimated that the Debt component will be serviced at 7–8% interest per annum, while the equity component is expected to deliver an estimated ROE of 17% per annum. However, the Pakistan government claims that Chinese loans will be repaid over 20–25 years at a rate of 2% interest.{{cite news |author1=Khurram Husain |title=CPEC cost build-up |url=https://www.dawn.com/news/1302328 |access-date=30 December 2022 |date=15 December 2016 |location=Pakistan}} Pakistan has already started negotiating debt relief from China due to difficulties in repaying the loan and is seeking more favorable payment terms for the projects under CPEC.{{cite news |date=1 May 2020 |title=High-risk countries approach China for debt relief |work=Dawn |location=ISLAMABAD |url=https://www.dawn.com/news/1553610 |access-date=2 November 2022}}
As of 2022, Pakistan owes China about $30 billion, accounting for nearly 30% of its foreign debt.{{cite news |author1=Faseeh Mangi |title=China's Funding to Pakistan Stands at 30% of Foreign Debt |url=https://www.bloomberg.com/news/articles/2022-09-02/china-s-funding-to-pakistan-stands-at-30-of-foreign-debt |access-date=2 November 2022 |publisher=Bloomberg News |date=2 September 2022}}
Many of the nations China has partnered with have a history of political instability, military intervention in governance, problems of law and order, rampant corruption, lack of transparency, and limited entrepreneurial culture. As a result, critics refer to these projects as "a neo-colonial scheme" and "a debt trap" for many nations.
==Parallels with Sri Lanka==
Observers have drawn comparisons with the 2022 economic turmoil in Sri Lanka resulting from the inability to repay{{cite news |date=10 January 2022 |title=Sri Lanka asks China to restructure repayment of debt |work=Dawn |location=Colombo |url=https://www.dawn.com/news/1668588 |access-date=2 November 2022}} $6 billion in loans used for a Chinese-led port and airport project in Hambantota. Sri Lankan authorities settled the debt by ceding control of the port and around 15,000 acres of land to China on a 99-year lease. Citing examples from Malaysia to Colombia involved in the Belt and Road Initiative, the opacity of Chinese ventures has led to accusations that such projects foster corruption and mismanagement, risking the natural resources and sovereignty of participating nations.{{cite news |author1=Hanan Zaffar |date=16 November 2016 |title=CPEC: Boon or Bane for Pakistan? |work=The Diplomat |url=https://thediplomat.com/2016/11/cpec-boon-or-bane-for-pakistan/ |access-date=4 November 2022}}{{cite news |author1=Ishaan Tharoor |date=10 August 2018 |title=Pakistan may be the next victim of China's new 'imperialism'|newspaper=The Washington Post |url=https://www.washingtonpost.com/world/2018/08/10/pakistan-may-be-next-victim-chinas-new-imperialism/ |access-date=2 November 2022}} This situation is reminiscent of the Gwadar Port, which is also under a 40-year lease to Chinese control.
=Financial implications=
According to official statistics, 20% of CPEC financing is debt-based,{{Cite web|url=https://www.telegraph.co.uk/china-watch/business/cpec-not-debt-trap-pakistan/|archive-url=https://web.archive.org/web/20190427195839/https://www.telegraph.co.uk/china-watch/business/cpec-not-debt-trap-pakistan/|url-status=dead|archive-date=27 April 2019|title=Editorially integrated partnerships with the Telegraph}} while 80% consists of investments in joint ventures (JVs) between Pakistan and China,{{Cite web|url=https://www.dawn.com/news/1457315|title=CPEC: govt seeks more joint ventures|first=Khaleeq|last=Kiani|date=14 January 2019|website=Dawn|location=Pakistan}} with initial estimates suggesting the project would create 40,000 jobs for local Pakistanis and 80,000 jobs for Chinese workers. However, later reports indicated that, in some cases, China has brought in its own prisoners as workers, depriving local Pakistanis of opportunities.{{cite web |author1=Owen Bennett-Jones |title=Who benefits more? |url=https://www.dawn.com/news/1638510 |work=Dawn |access-date=2 November 2022 |date=3 August 2021}} Official statistics suggest a return of US$6 to 8 billion per annum from taxes such as road and bridge tolls. The total CPEC loan represents 6% of Pakistan's GDP; however, many commentators and some governments have criticized the project as a debt trap.{{cite web |author1=Uzair Younus |title=Pakistan's Growing Problem with its China Economic Corridor |url=https://www.usip.org/publications/2021/05/pakistans-growing-problem-its-china-economic-corridor |archive-url=https://web.archive.org/web/20210526190734/https://www.usip.org/publications/2021/05/pakistans-growing-problem-its-china-economic-corridor |url-status=dead |archive-date=26 May 2021 |website=United States Institute of Peace |publisher=The United States Institute of Peace |access-date=2 November 2022 |location=Washington, DC |date=26 May 2021}} Nevertheless, officials argue that 3.5% of Pakistani GDP is lost annually due to poor transportation networks, which the CPEC investment aims to improve, thereby offsetting any potential lag in Pakistan's growth statistics. Economic analysts have noted tangible benefits of the initiative, including a reduction in major energy shortages that previously hindered economic growth.{{Cite web|url=https://www.thenews.com.pk/print/370347-energy-subsidies-efficiency-must-for-growth|title=Energy subsidies, efficiency must for growth|website=The News International}} On 14 January 2020, Pakistan operationalized Gwadar Port for Afghan transit trade.{{Cite web|url=https://www.geo.tv/latest/267451-gwadar-port-starts-handling-afghan-transit-trade-report|title=Gwadar port starts handling Afghan transit trade: report|website=geo.tv}} On 31 May 2021, Gwadar Port became fully operational, with online booking available for the delivery of goods.{{cite news |author= |title=Gwadar Port fully operational: Asim Saleem Bajwa |url=http://dunyanews.tv/en/Pakistan/603998-Gwadar-Port-fully-operational:-Asim-Saleem-Bajwa |publisher=Dunya News |location=Gwadar, Balochistan |date=31 May 2021 |access-date=2 June 2021}}
In addition to the aforementioned issues, some sources have suggested that the interest rates for CPEC-related loans might be high. The Indian newspaper Daily News and Analysis indicated that Pakistan may have unwittingly accepted loans "offered at very high rates of interest",{{cite news|title=Future of China-Pakistan Economic Corridor bleak?|url=http://www.dnaindia.com/money/report-future-of-china-pakistan-economic-corridor-bleak-2116685|access-date=16 December 2015|work=Daily News and Analysis|date=21 August 2015}} although the actual interest rates were negotiated before acceptance and are typically around 1.6%. In comparison, previous Pakistani infrastructure projects financed by the World Bank carried interest rates between 5% and 8.5% and often came with additional conditions.{{Cite web|url=https://dailytimes.com.pk/557494/strings-attached-to-top-aid-receiving-countries/|title=Strings attached to top aid receiving countries|date=13 February 2020|website=Daily Times|access-date=25 April 2020}}
Several articles in Pakistan have criticized the project's finances as being shrouded in mystery, with one article suggesting that "there is far too much secrecy and far too little transparency".{{cite web|title=CPEC transparency|url=http://www.dawn.com/news/1220396|work=Dawn|date=18 November 2015|access-date=16 December 2015}} The Private Power and Infrastructure Board has also been accused of irregularities in the approval process for coal power plants and the tariffs at which Pakistan is contractually obliged to purchase electricity from those plants,{{cite news|title=Letters of intent, support: PPIB causes huge losses by granting extension|url=http://www.brecorder.com/fuel-a-energy/193:pakistan/1234889:letters-of-intent-support:-ppib-causes-huge-losses-by-granting-extension?date=2015-10-09|access-date=19 February 2016|work=Business Recorder|date=9 October 2015|archive-date=9 March 2016|archive-url=https://web.archive.org/web/20160309131243/http://www.brecorder.com/fuel-a-energy/193:pakistan/1234889:letters-of-intent-support:-ppib-causes-huge-losses-by-granting-extension?date=2015-10-09|url-status=dead}} with particular concern regarding potential irregularities in the tariff approved for the 300 MW coal power plant to be built in Pind Dadan Khan by China Machinery Engineering Corporation.{{cite news|title=Nepra accepts tariff petition of Chinese firm for power plant|url=http://nation.com.pk/business/01-May-2015/nepra-accepts-tariff-petition-of-chinese-firm-for-power-plant|access-date=20 February 2016|work=The Nation|location=Pakistan|date=1 May 2015}}
In December 2017, it was reported that, according to the Gwadar Port agreement, Chinese companies would receive 91% of the revenue, while the Gwadar Port Authority would receive only 9%. That month, a seven-member delegation of Senators from Balochistan visited China. Upon returning, all the Senators issued press statements and unequivocally claimed that Balochistan would not benefit from CPEC. Senator Kabir Muhammad Shahi also claimed that while 60% of the funds are allocated for power generation, other than 300 MW for Gwadar Port, not even 1 MW would be allocated to Balochistan.{{cite news |last= Aamir|first= Adnan|date=31 December 2017|title=The Baloch's concerns|url=https://www.thenews.com.pk/tns/detail/564674-balochs-concerns|newspaper=TNS}}{{cite news |last= Aamir|first= Adnan|date=7 December 2017|title=Claims of Development from CPEC are Delusions: Senators from Balochistan|url=https://balochistanvoices.com/2017/12/claims-development-cpec-delusions-senators-balochistan/|newspaper=Balochistan Voices}}
=Trade imbalance=
Local traders in Pakistan have expressed reservations about CPEC.{{cite news |author1=Salman Abduhu |title=Traders express reservations over CPEC |url=https://www.nation.com.pk/06-Jan-2017/traders-express-reservations-over-cpec |access-date=30 December 2022 |work=The Nation |date=6 January 2017 |location=Lahore}} Chinese exports through the Karakoram Highway have entered the domestic Pakistani market at lower prices due to the higher cost of production in Pakistan.{{cite news|last1=Rafi|first1=Salman|title=CPEC could be an expensive albatross around Pakistani necks|url=https://asiatimes.com/article/cpec-expensive-albatross-around-pakistani-necks/|access-date=2 August 2017|work=Asia Times|date=31 July 2017}} It has also been speculated that CPEC may replace Pakistani exports with Chinese goods in external markets. The increasing import of automobiles, weapons, home appliances, and agricultural products from China is a major concern for the disproportionately high trade deficit.
=Baloch nationalists=
Resistance from impoverished locals in the Balochistan region's Gwadar is a major hurdle for this project. The region is rich in minerals, but this wealth is not reflected in the lives of its impoverished residents,{{cite news |author1=Shah Meer Baloch |title=CPEC: A Bad Deal for the Baloch People? |url=https://thediplomat.com/2015/12/cpec-a-bad-deal-for-the-baloch-people/ |access-date=4 November 2022 |work=The Diplomat |date=30 December 2015}} who struggle with basic necessities such as clean drinking water, reliable power supply, education, and healthcare. Government neglect regarding poverty and unemployment has contributed to the rise of religious extremism. The lack of consultation before implementing the plan and the denial of employment opportunities to locals, due to the hiring of workers from other provinces, has increased hostility.
Some Baloch nationalists oppose the large-scale development projects envisioned by CPEC, fearing that such developments will lead to local residents "losing control" over natural resources.{{cite journal|last1=Taneja|first1=Pradeep|title=Trouble Ahead: The China-Pakistan-India Triangle|journal=Australian Institute of International Affairs|date=2 February 2016|url=http://www.internationalaffairs.org.au/australian_outlook/trouble-ahead-the-china-pakistan-india-triangle/|access-date=14 May 2016}} Others allege that CPEC is a "conspiracy" intended to encourage the settlement of migrants from other regions of Pakistan, thereby rendering the ethnic Baloch a minority in the province.{{cite web|url=https://thediplomat.com/2014/12/can-chinas-dream-of-a-pakistan-port-survive-local-ire/|title=Can China's Gwadar Port Dream Survive Local Ire?|author=Kiyya Baloch, The Diplomat|work=The Diplomat}}
In response to the Pakistani Government's announcement of its intent to issue resident cards to the city's inhabitants as a security measure to prevent the movement of firearms into the city,{{cite news|title=Gwadar to be made weapon-free city|url=http://www.dawn.com/news/1216753|access-date=13 May 2016|work=Dawn}} former Chief Minister of Balochistan province, Akhtar Mengal, suggested at a political rally in November 2015 that the execution of CPEC projects and the resident card policy would eventually result in ethnic Baloch being denied entry into the city.{{cite news|title=Punjab to reap CPEC benefits: Mengal|url=http://tribune.com.pk/story/996575/punjab-to-reap-cpec-benefits-mengal-page-9/|access-date=5 February 2016|work=The Express Tribune|date=23 November 2015}} The resident card measure would require any non-resident visitor to the city to register at designated security checkpoints prior to entering by road, without any reference to ethnicity. However, the former Chief Minister clarified that he would not oppose development projects in the province that he believed would improve the plight of local residents. Shortly thereafter, the Pakistani government announced its intention to establish a training institute named Pak-China Technical and Vocational Institute at Gwadar, which is to be completed at a cost of 943 million rupees, to train local residents to operate machinery at the port.
Indian analyst Athar Hussain, the director of the Asia Research Centre at London School of Economics, has expressed concerns that CPEC is "likely to bring more development to regions that are already developed, instead of poor areas such as Balochistan."{{cite news |title=CPEC Designed to Bring Profit to China, Not Pakistan, Say Experts on Balochistan |access-date=20 July 2017 |work=Outlook|url=https://www.outlookindia.com/newswire/story/cpec-designed-to-bring-profit-to-china-not-pakistan-say-experts-on-balochistan/972450 |archive-url=https://web.archive.org/web/20170720113401/https://www.outlookindia.com/newswire/story/cpec-designed-to-bring-profit-to-china-not-pakistan-say-experts-on-balochistan/972450 |archive-date=20 July 2017 |date=20 July 2017|location=London}} Burzine Waghmar, a member of the Centre for the Study of Pakistan at SOAS, University of London, suggested that CPEC projects are not targeted towards benefiting the indigenous Baloch population and will accelerate human rights violations in the province.
In December 2016, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) released a report stating that, given the rate at which Chinese nationals were migrating to Balochistan for the CPEC project, the Chinese population could outnumber the Baloch by 2048. This raised concerns about the potential marginalization of Baloch citizens.{{cite news |last= Yousafzai|first= Fawad|date=29 December 2016|title=Chinese to outnumber Baloch natives by 2048|url=https://nation.com.pk/29-Dec-2016/chinese-to-outnumber-baloch-natives-by-2048|newspaper=The Nation}}{{Cite web|url=http://pu.edu.pk/images/journal/pols/pdf-files/13-v26_2_19.pdf|title=Balochistan, Baloch and the China-Pakistan Economic Corridor|publisher=Journal of Political Studies}}
=Concerns of Gwadar residents=
Access to traditional fishing zones and subsistence fishing practices, involvement and hiring of local people in developmental projects, curbing interference by security forces in daily affairs, easing navigation through checkpoints and surveillance installations, and ensuring access to proper healthcare and quality education are among the demands of Gwadar residents.{{cite news |author1=Dr Noman Ahmed |title=Gwadar imbroglio |url=https://www.dawn.com/news/1729827 |access-date=4 January 2023 |newspaper=Dawn |date=4 January 2023 |location=Karachi}}
While nationalists openly oppose CPEC, some local leaders and residents of Gwadar have also expressed concerns about the project. The head of Gwadar's local fishermen's association stated in an interview with NBC News, "Development is good, China is our great friend, this CPEC thing sounds amazing, but don't forget that this is our land, first."{{cite news|title=Gwadar Port Project Reveals China's Regional Power Play|url=https://www.nbcnews.com/news/world/gwadar-port-project-reveals-chinas-regional-power-play-n558236|access-date=13 May 2016|publisher=NBC News|date=2 May 2016}} Some residents doubt they will see any of the benefits promised by CPEC, while others fear they will be evicted from their homes to make way for infrastructure projects.{{cite news|last1=Khan|first1=Sattar|title=Gwadar – Pakistan's impoverished colony or an economic hub?|url=http://www.dw.com/en/gwadar-pakistans-impoverished-colony-or-an-economic-hub/a-19185999|access-date=14 May 2016|publisher=Deutsche Welle|date=14 April 2016}}
In response to these concerns, Lt. General Amer Riaz, who heads security operations in the province, stated that locals would not be deprived of benefits and that Gwadar residents would have "the first right to everything."{{cite news|title=Gwadar Port Project Reveals China's Regional Power Play|url=https://www.nbcnews.com/news/world/gwadar-port-project-reveals-chinas-regional-power-play-n558236|access-date=13 May 2016|publisher=NBC News|date=2 May 2016|quote="Lt. General Amer Riaz, the powerful military commander who watches over Balochistan, is tasked with ensuring that Gwadar, CPEC and Pakistan's Chinese benefactors survive security threats. He tried to assuage these concerns. 'There is going to be no deprivation of the locals,' he said. 'Folks here have the first right to everything. We must ensure that there is transparency and justice in this very critical and expensive project.'"}} Pakistan's Minister of Planning, National Reforms, and Development, Ahsan Iqbal, further stated in May 2016 that Gwadar residents would be regarded as "main stakeholders" in the city's master plan and that fishermen would specifically be accommodated by the plan.{{cite news|title=Hurdles in Gwadar Port development removed: minister|url=http://www.pakistanherald.com/news/10838/17-may-2016/hurdles-in-gwadar-port-development-removed(col)-minister|access-date=19 May 2016|work=Pakistan Herald|date=18 May 2016|archive-date=11 June 2016|archive-url=https://web.archive.org/web/20160611085700/http://www.pakistanherald.com/news/10838/17-may-2016/hurdles-in-gwadar-port-development-removed(col)-minister|url-status=dead}} The developer of Gwadar Port, COPHC, has also announced that it will assist Gwadar's fishermen in boosting the region's seafood industry by developing programs to improve the quality of local seafood.{{cite news|title=China, Pakistan Ready New Cargo Port|url=https://www.voanews.com/a/china-pakistan-ready-new-cargo-port/3285375.html|access-date=6 July 2016|publisher=Voice of America|date=14 April 2016}}
=KP provincial assembly=
Some planning aspects and technicalities associated with the CPEC route have been criticized in political forums and by the media.{{Cite journal|title=Opinion {{!}} An Unequal Equation? CPEC Development and Pakistan's Political Mindset|url=http://www.indrastra.com/2016/09/OPINION-Unequal-Equation-CPEC-Development-and-Pakistan-s-Political-Mineset-002-09-2016-0044.html|journal=IndraStra|issn=2381-3652}} The Provincial Assembly of Khyber Pakhtunkhwa adopted a resolution against the alleged decision of the central government to change the multibillion-dollar project's route by diverting it away from Khyber Pakhtunkhwa province.{{cite web|url=http://www.dailytimes.com.pk/national/07-Feb-2015/kashghar-gwadar-trade-route-kp-assembly-passes-unanimous-resolution-against-proposed-changes|title=Kashghar-Gwadar trade route: KP Assembly passes unanimous resolution against proposed changes|work=Daily Times|location=Pakistan}}
The federal Minister of Planning, Development, and Reform, Ahsan Iqbal, formally denied any change in the alignment.{{cite web|url=http://tribune.com.pk/story/874049/politicians-hit-out-at-unfair-pakistan-china-economic-corridor/|title=Politicians hit out at 'unfair' Pakistan-China Economic Corridor|date=22 April 2015|work=The Express Tribune}}{{cite web|url=http://www.thenews.com.pk/Todays-News-13-35746-KP-Assembly-threatens-to-resist-any-change-in-route|title=KP Assembly threatens to resist any change in route|date=7 February 2015|newspaper=The News International |location=Pakistan}}{{cite news|url=http://tribune.com.pk/story/832574/pak-china-economic-corridor-senators-issue-ominous-warning-over-route-change/|title=Pak-China Economic Corridor: Senators issue ominous warning over route change|date=4 February 2015|newspaper=The Express Tribune|access-date=23 April 2015}} Dr. Ahmad Rashid Malik, a senior research fellow at the Institute of Strategic Studies Islamabad (ISSI), described the route controversy as "baseless and an unfounded reality...".{{cite news|title=Route alignment controversy|url=http://nation.com.pk/columns/20-Feb-2015/route-alignment-controversy|access-date=21 April 2015|magazine=The Nation}} In response to these objections, the Chinese government issued a statement in 2015 urging Pakistani political parties to resolve their differences over the project.{{cite news|title=CPEC and security of Chinese engineers|url=http://www.pakistantoday.com.pk/2016/05/09/business/cpec-and-security-of-chinese-engineers-2/|access-date=19 May 2016|agency=Pakistan Today|date=9 May 2016}}
= Indian objections =
India's objections to Chinese activity in Pakistan-administered Kashmir date back to the 1970s, when the People's Liberation Army built the Karakoram Highway, linking China's far-western province of Xinjiang with northern Pakistan.{{cite web |author1=C. Raja Mohan |date=10 July 2013 |title=The Great Game Folio |url=https://carnegieendowment.org/2013/07/10/great-game-folio/ge5v |archive-url=https://web.archive.org/web/20130817015926/http://carnegieendowment.org/2013/07/10/great-game-folio/ge5v |url-status=dead |archive-date=17 August 2013 |access-date=30 December 2022 |publisher=Carnegie Endowment for International Peace}}
The Government of India, which shares tense relations with Pakistan, objects to the CPEC project as upgrade works on the Karakoram Highway are taking place in Gilgit-Baltistan, territory that India claims as its own. During Indian Prime Minister Narendra Modi's visit to China in 2015, Indian Foreign Minister Sushma Swaraj reportedly told Chinese Communist Party General Secretary Xi Jinping that projects passing through Gilgit-Baltistan are "unacceptable" as they involve construction in claimed territory.{{cite news |title=PM Modi told China, Pakistan economic corridor unacceptable: Sushma Swaraj |publisher=Zee News |issue=31 May 2015 |url=http://zeenews.india.com/news/india/pm-modi-told-china-pakistan-economic-corridor-unacceptable-sushma-swaraj_1605173.html |access-date=26 January 2016}}{{cite news |date=1 June 2015 |title=China-Pakistan Economic Corridor 'unacceptable', Modi tells China |work=The Express Tribune |url=http://tribune.com.pk/story/895611/china-pakistan-economic-corridor-unacceptable-modi-tells-china |access-date=2 June 2015}} India's Foreign Secretary Subrahmanyam Jaishankar also confirmed that the issue had been raised with the Chinese government during the trip.{{cite news |date=13 May 2015 |title=India Lodges Protest over Chinese Investments in PoK |work=The New Indian Express |url=http://www.newindianexpress.com/nation/India-Lodges-Protest-over-Chinese-Investments-in-PoK/2015/05/13/article2811562.ece |archive-url=https://web.archive.org/web/20151205180537/http://www.newindianexpress.com/nation/India-Lodges-Protest-over-Chinese-Investments-in-PoK/2015/05/13/article2811562.ece |url-status=dead |archive-date=5 December 2015 |access-date=10 March 2016}} Swaraj reiterated this stance during an August 2016 meeting with Chinese Foreign Minister Wang Yi, stating that India would "resolutely oppose" the corridor in Kashmir.{{cite news |date=14 August 2016 |title=India raises CPEC, NSG concerns with top Chinese envoy |work=The Express Tribune |url=http://tribune.com.pk/story/1162015/india-raises-cpec-nsg-concerns-top-chinese-envoy/ |access-date=14 August 2016}}
India did not initially object to major Chinese-sponsored upgrade works on the Karakoram Highway after a 2010 earthquake, though it did object to the presence of Chinese troops in the region who were sent to guard Chinese workers.{{cite news |last1=Jha |first1=Saurav |date=7 September 2010 |title=China's Kashmir Gambit Raises Stakes in India-Pakistan Dispute |agency=World Politics Review |url=http://www.worldpoliticsreview.com/articles/6339/chinas-kashmir-gambit-raises-stakes-in-india-pakistan-dispute |access-date=5 May 2017}}
India also did not object to the construction of the Mangla Dam, undertaken with World Bank funding and British technical assistance in Azad Kashmir—a region India claims as its own territory. India even maintained that the Wullar Barrage project in Indian-administered Kashmir, which Pakistan regards as a violation of the Indus Water Treaty, would ultimately be beneficial for the Mangla Dam.{{cite book |last1=Vajpeyi |first1=Dhirendra K. |url=https://books.google.com/books?id=eVfScU1AgSwC&q=mangla+dam+objection&pg=PA124 |title=Water Resource Conflicts and International Security: A Global Perspective |date=2011 |publisher=Lexington Books |isbn=9780739170847 |page=124 |access-date=2 June 2017}} India similarly did not object to construction at the Neelum–Jhelum Hydropower Plant in Kashmir, which has been under construction with Chinese assistance since 2008. In 1991, India did not raise objections to its construction.{{cite book |last1=Misra |first1=A. |url=https://books.google.com/books?id=Yk7JAAAAQBAJ&q=neelum+jhelum+dam+india&pg=PA168 |title=India-Pakistan: Coming to Terms |date=2010 |publisher=Palgrave |isbn=9780230109780 |access-date=2 June 2017}}
Following the 2005 Kashmir earthquake, large-scale infrastructure reconstruction took place across northern Kashmir with the assistance of South Korean, Turkish, and Saudi firms.{{cite news |last1=Peerzada |first1=Ashiq |title=China has established its presence across PoK |work=The Hindu |url=http://www.thehindu.com/news/china-has-established-its-presence-across-pok/article7608736.ece |access-date=2 June 2017}} Chinese companies participated in 14 post-earthquake reconstruction projects in the disputed region, worth $6 billion.{{cite news |last1=Chengappa |first1=Bidanda |date=15 November 2011 |title=Why China is setting up military bases in PoK |work=Daily News and Analysis |url=http://www.dnaindia.com/analysis/comment-why-china-is-setting-up-military-bases-in-pok-1612612 |access-date=2 June 2017}} India did not object to these works, despite the fact that infrastructure near the militarily sensitive Line of Control was upgraded.
Indian objections to Chinese construction work in Gilgit-Baltistan arose in 2011 in response to a Chinese complaint regarding a joint Indian-Vietnamese oil exploration project in the disputed South China Sea.{{cite news |date=16 September 2011 |title=Keep off PoK, India warns China |work=The Times of India |url=http://timesofindia.indiatimes.com/india/Keep-off-PoK-India-warns-China/articleshow/10000158.cms |access-date=5 May 2017}} The influential Institute for Defence Studies and Analyses, a think tank funded by the Indian Ministry of Defence,{{cite news |date=16 August 2015 |title=India's most influential think-tanks |work=The Hindustan Times |url=http://www.hindustantimes.com/india/india-s-most-influential-think-tanks/story-emb0db2lmqltL8pKeYuZiL.html |access-date=5 May 2017}} in 2011 called for India to begin raising objections to Chinese projects in the region at the "international level."{{cite news |date=21 October 2011 |title=Increasing Chinese Footprint in India's North West: What should India do? |agency=Institute for Defence Studies and Analyses |url=http://idsa.in/idsacomment/IncreasingChineseFootprintinIndiasNorthWest_msingh_211011 |access-date=5 May 2017}}
See also
{{Portal|China|Pakistan|Engineering}}
- Bangladesh-China-India-Myanmar Economic Corridor
- Central Asia Regional Economic Cooperation Program
- China–Pakistan relations
- Khyber Pass Economic Corridor
- Maritime Silk Road
- One Belt, One Road initiative
- Quadrilateral Traffic in Transit Agreement
- String of Pearls (Indian Ocean)
- The China-Pakistan Economic Corridor of the Belt and Road Initiative (book)
Notes
{{NoteFoot}}
References
{{Reflist}}
External links
- [http://cpec.gov.pk/ Official CPEC website (Government of Pakistan)]
- {{cite journal |last1=Samrez Salik |first1=Muhammad |title=China-Pakistan Economic Corridor: A Perspective from Pakistan |journal=Asian Journal of Middle Eastern and Islamic Studies |year=2018 |volume=12 |issue=2 |pages=142–154 |doi=10.1080/25765949.2018.1481619|s2cid=158441766 |ref=none}}
- {{cite news |url = https://www.dawn.com/news/1333101/exclusive-cpec-master-plan-revealed|title=Exclusive: CPEC master plan revealed |website = Dawn|location=Pakistan |date=15 May 2017 |access-date=15 May 2017|first=Khurram|last=Husain |ref=none}}
- Rafiq, Arif, [https://web.archive.org/web/20171120213156/https://www.usip.org/sites/default/files/2017-10/pw135-the-china-pakistan-economic-corridor.pdf "The China-Pakistan Economic Corridor: Barriers and Impact,"] United States Institute of Peace, October 2017.
- [https://www.crisisgroup.org/asia/south-asia/pakistan/297-china-pakistan-economic-corridor-opportunities-and-risks "China-Pakistan Economic Corridor: Opportunities and Risks"], International Crisis Group, 29 June 2018.
{{China–Pakistan Economic Corridor}}
{{One Belt, One Road}}
{{China–Pakistan relations}}
{{DEFAULTSORT:China-Pakistan Economic Corridor}}
Category:Belt and Road Initiative
Category:China–Pakistan relations
Category:Economic development programs
Category:Investment in Pakistan
Category:Proposed transport infrastructure in Pakistan