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Ma’am Asia Karim
Now-a-days States have defined their interests and have reshaped their
policies because they have realized that it is not possible for them to
defend their interests with their own capacities. High-level talks and
diplomatic consultations are the hallmark of ever-growing cooperation
among states in multi-faceted fields such as industrial ventures,
infrastructure and development programmes, defense, commerce and
related area of the economy
In recent years, both China and Pakistan have been making concerted efforts to
revive the historic Silk Road which is one of the oldest known trade route in the
world and will provide a route for trade from Kashgar (China) to Gwadar (Pakistan).
China-Pakistan Economic Corridor plan will help Pakistan to become one of the most
strategically important countries in the region.
What is CPEC?
CPEC is an infrastructural project
Benefit of Pakistan’s geographic position
The China-Pakistan Economic Corridor (CPEC) is a 3,000-
kilometer network of roads, railways and pipelines to transport
oil and gas from southern Pakistan's Gwadar Port to Kashgar city,
northwestern China's Xinjiang Uygur autonomous region
CPEC intends to revive the ancient Silk Road with a focus
on infrastructure, and constitutes the strategic framework of
The project links China's strategy to develop its western
region with Pakistan's focus on boosting its economy,
including the infrastructure construction of Gwadar Port,
together with some energy cooperation and investment
It also involves road and railway construction including an
upgrade of the 1,300-km Karakoram Highway, the highest
paved international road in the world which connects China
and Pakistan across the Karakoram Mountains.
to reduce China's routes of oil and gas imports from Africa and the Middle East by
thousands of kilometers, making Gwadar a potentially vital link in China's supply
To lay the foundation for regional cooperation, improving economic growth, offering
trade diversifications, investing in transportation, mining and energy sectors and
creating political flexibility
To create new infrastructure and free trade zones
to create regional stability in South Asia.
to create a primary gateway for trade between China and Africa and the
It is expected that this corridor will help cut the 12,000 kilometer route which
Middle East oil supplies must now take to reach the Chinese ports.
The “One Belt one Road” Project consists of three routes, southern, central
and northern route
• begins from Guangzhou
• moves towards western parts of China and connects Kashgar with
Pakistan at Kunjarab
• starts from Shanghai and links the country to Tashkent, Tehran and
onwards to Bandar Imam Khomeini Port of Iran on the Persian Gulf
• starts from Beijing, passes through Russia, and links it to European
It stretches as far back as the Musharraf era.
This idea speculated for many years, gained traction in May 2013 when Chinese
Premier Li Keqiang emphasized the construction of the CPEC during his visit to
Pakistani Prime Minister Nawaz Sharif visited Beijing and signed eight agreements
approximately costing $18 billion that included building around 200 kilometers
tunnels for the CPEC. Pakistan’s President Mamnoon Hussain visited China in
February 2014 to discuss the plans of the corridor. In the same year, Pakistan’s Prime
Minister Nawaz Sharif again visited China and signed 19 agreements with China.
At that time, the Chinese banks and companies pledged over US$ 45.6 billion
for energy and infrastructure projects along the corridor
2006 : Hu Jintao's first visit to Pakistan.
2014: Xi was to visit Pakistan again during his South Asia trip to
Maldives, Sri Lanka and India. It was postponed due to political
unrest in Pakistan.
During his visit, a total of 51 agreements were signed between
China and Pakistan having worth of $46 billion which also
included the development of China Pakistan Economic Corridor.
The $46 billion investment China intends to commit to Pakistan
under the CPEC is impressive.
The amount exceeds all foreign direct investment Pakistan has
received in the past several years, and is considerably more
than all the aid Pakistan has received from the US since 9/11.
Infrastructure of CPEC is the construction period for which is
from 2014 to 2030
The China–Pakistan Economic Corridor
(CPEC) is a ongoing development
Infrastructure project which aims to
transform the Pakistani economy by
connecting Gwadar Port in southwestern
Pakistan to China’s northwestern region of
Xinjiang, via a network of Roads, railways
and pipelines to transport oil, gas and other
essential Natural resources.
once the corridor is
completed it will expand the
number of trade routes
between China, the Middle
East and Africa.
1-Internal and External Challenges:
•security situation and
India, Israel and the US are unhappy. Already one
can notice sudden upsurge in the acts of terror in
the three restive regions and activation of certain
NGOs and think tanks all trying to air misgivings
and create fear psychosis.
some political parties like ANP, Baloch nationalists, PkMAP
raised serious objections to the CPEC project
Security concerns have been the most critical
challenge to the CPEC and both Pakistan and
China have been trying to meet these. An arc of
militancy stretches from Xinjiang to Gwadar
consisting of groups like the Tehreek-e-Taliban
Pakistan (TTP), Lashkar-e-Jhangvi (LeJ), Daesh
(ISIS),Balochistan Liberation Army (BLA),
Balochistan Liberation Front (BLF) and the
militant wings of some political parties.
Most of these groups may not have an
enmity with China itself but rather intend
to attacks the Chinese interests like the
CPEC as a means to deal with the
Militants trying to disrupt construction of an
"economic corridor" linking China with Pakistan's
coast have killed 44 workers since 2014.
The army has created division of 10,000 man
special force for protecting the development
projects. The new force, named the Special
Security Division, is comprise on nine army
battalion and six wings of paramilitary forces, the
Rangers and the Frontier Corps to focus
specifically on protecting CPEC projects and
FWO, which is owned by the Pakistani army, has
been awarded the bulk of road-building contracts
in Baluchistan and other volatile areas in Pakistan.
India’s Views about CPEC
According to one widespread theory which
explains India’s stance over CPEC suggests
that thanks to the CPEC, the Gwadar
seaport could turn into China’s naval base
in the Indian Ocean. Thus, China would be
able to monitor Indian and U.S. naval
activities, which Beijing perceives as a
threat to its interests.
For India, CPEC is a thorn in its paw. They have put their heads
together to work out new strategies to block the project forward march.
RAW has opened a special office in Delhi and has been allotted $300
million to disrupt CPEC.
“The unsuspecting submarine was detected and localized south of Pakistani coast on Nov
14,” statement issued by Pakistan Navy. According to navy officers submarine was on
intelligence mission to gather data they wanted to disturb the implementation of CPEC as
the date coincided with the first fleet leaving Gwadar port under CPEC.
Anti-submarine expert retired Commodore Zafar Iqbal speculates that the submarine may
have been attempting to get near the coast for delivering saboteurs or weapons supply for
When Pakistan’s central bank governor
publicly states that he does not understand
the composition of financing for the
projects, we have a real problem.
Survival of Local industry:
we also need to understand the
potentially long run negative
impact it shall have on
Pakistan’s industrial sector. The
goods from China will likely
flood Pakistan’s market more
rapidly, which will potentially
slow down or in worse case
cripple the local industry.
CPEC is considered economically vital to Pakistan in helping it drive economic
growth. The Pakistani media and government have called CPEC investments a
"game and fate changer" for the region, while both China and Pakistan intend
that the massive investment plan will transform Pakistan into a regional
economic hub and further boost the deepening ties between the two countries.
Benefits specifically For
Consequences regarding China Pakistan
Economic corridor are of great concern.
Viewing with a 360 approach and reviews
of the analyst, CPEC is a ground breaking
initiative for Baluchistan. Baluchistan has
been left far behind the other provinces,
having a poor literacy rate, unstable
administration, unemployment and worst
infrastructure. CPEC is spark of boom for
Baluchistan, progressing its infrastructure,
economy and coping it up in advancement
with other provinces.
Benefits for China
For China the corridor brings unlimited benefits,
when the construction of the corridor will be
completed, it will expand the number of trade
routes between China, Africa and the Middle
East. Energy security is a prime concern for
China, as it is the world’s biggest energy
consumer and importer, and oil pipelines
crisscrossing through Pakistan would reduce the
travel time by a significant amount.
51 total signed projects
Some already initiated
Some are pending
CPEC completion is
divided into several
The first phase being the completion of
Gwadar International Airport and major
developments of Gwadar Port.
This phase is expected to be
completed by the year 2017.
The project also includes
1. the expansion of Karakoram
Highway- the road that connects
China with Pakistan
2. placement of fiber-optic line ensuring
better communication between the
It is estimated that if all the planned
projects are implemented, the value of
those projects would exceed all foreign
The agreements and MOUs signed
Economic and technical cooperation agreement between China and
Exchange of notes of feasibility study of the demonstration project of
Exchange of notes on provision of anti-narcotics equipment.
Exchange of notes on provision of law enforcement equipment.
Exchange of notes on feasibility study of Gwadar hospital
MoU on provision of Chinese governmental concessional loan for
second phase up-gradation of the Karakorum Highway (Havelian to
MOU on provision of Chinese governmental concessional loan for
Karachi-Lahore Motorway (Multan to Sukkur).
MoU on provision of Chinese governmental concessional loan for
Gwadar port East Bay Expressway Project.
MoU on provision of Chinese governmental concessional loan for
Gwadar international airport.
Protocol on banking services to agreement on trade in services.
MoU on provision of material for tackling climate change.
Framework agreement on cooperation on major
communications infrastructure project.
MoU on cooperation between NDRC of China and Ministry of
Planning Development and Reform of Pakistan.
MoU on Pro Bono Projects in the Port of Gwadar Region.
MoU on establishment of China-Pakistan joint cotton bio-tech
Framework agreement between the National Railway
Administration, China and the Ministry of Railways, Pakistan on
joint feasibility study for up-gradation of ML1 and establishment
of Havelain dry port of Pakistan Railways
Protocol on the establishment of China-Pakistan joint marine research center.
MoU on cooperation between the State Administration of Press, Publication, Radio, Films and Television of
China and Ministry of Information, Broadcasting and National Heritage of Pakistan.
Triple party agreement between China Central Television and PTV and Pakistan Television Foundation on the
re-broadcasting of CCTV-NEWS/CCTV -9 Documentary in Pakistan.
Protocol on establishment of sister cities relationship between Chengdu city Sichuan Province of PRC and
Protocol on establishment of sister cities Relationship between Zhuhai city, Guangdong province and Gwadar
Protocol on establishment of sister cities relationship between Karamay City, XianjianUgur, and Gwadar city.
Framework agreement between NEA and MoPNR on Gwadar-Nawabshah LNG terminal and pipeline project.
Commercial contract on Lahore Orange Line Metro Train Project.
Agreement on financing for Lahore Orange line Metro Train project.
MoU on financing for KKH up-gradation Phase-2 (Havelian to Takot), KLM, Gwadar east bay expressway,
Gwadar international airport projects.
Financing agreement relating to the 870MW hydro-electric Suki Kinari hydropower project between EXIM
Bank of China, Industrial and Commercial Bank of China Limited and SK Hydro (Private) Limited.
Financing cooperation agreement between the EXIM Bank of China and Port Qasim Electric Power Company
(Private) Limited (on Port Qasim 2x660MW coal-fired power plant).
Framework facility agreement for 720MW Karot hydropower project between China Development Bank
Corporation, EXIM Bank of China and Karot Power Company (Private) Limited.
Term sheet of the facility for Zonergy 9×100 MW solar project in Punjab between China Development Bank
Corporation, EXIM Bank of China and Zonergy Company limited
Drawdown agreement on Jhimpir wind power project between UEP Wind Power (Private) Limited as borrower and
China Development Bank Corporation as lender.
Terms and conditions in favor of Sindh Engro Coal Mining Company for Thar Block II 3.8Mt/a mining Project, Sindh
province, Pakistan arranged by China Development Bank Corporation.
Terms and conditions in favor of Engro Powergen Thar (Private) Limited, Sindh province, Pakistan for Thar Block II
2x330MW coal fired power project arranged by China Development Bank Corporation.
Framework agreement of Financing Cooperation in Implementing the China-Pakistan Economic Corridor between
China Development Corporation and HBL.
MoU(A memorandum of understanding ) with respect to cooperation between Wapda and CTG.
MoU among PPIB, CTG, and Silk Road Fund on Development of Private Hydro Power Projects.
Facility operating agreement for Dawood Wind Power project between ICBC and PCC of China and HDPPL.
Framework agreement for promoting chinese investments and industrial parks development in Pakistan between ICBC
and HBL on financial services corporation.
The financing term sheet agreement for Thar Block –I between ICBC, SSRL.
Energy strategic cooperation framework agreement between Punjab province and China Huaneng Group.
Framework agreement on the China Pakistan Economic Corridor Energy Project Cooperation.
Cooperation agreement between Sino-Sindh Resources (Pvt) Ltd and Shanghai Electric Group for Thar Coalfield Block
I Coal-Power integrated Project in Pakistan.
Cooperation agreement for Matiyari-Lahore and Matyari (Port Qasim)-
Faisalabad Transmission and Transformation Project between National
Transmission Distribution Company (NTDC) and National Grid of China.
Implementation Agreement on Port Qasim Coal fired Power Plant between
Power China and Government of Pakistan.
Facility Agreement for the Sahiwal Coal-fired Power Plant Project between
industrial and Commercial Bank of China Limited, Huaneng Shandong
Electricity limited and Shandong Ruyi Group.
Cooperation agreement on Hubco Coal-fired Power Plant Project between
CPIH and Hubco Power Company.
Facilitation Agreement on Salt Range Coal-fired Power Project between
CMEC and Punjab Government.
MoU between NUML Pakistan and Xinjiang Normal University, Urumqi China
for Cooperation on Higher Education.
Agreement on collaboration on establishment of NUML International Center
of education (NICE) between NUML Pakistan and Xinjiang Normal University,
Industrial and Commercial Bank of China, Lahore Branch.
Energization of 100 MW solar power plants at Quad-i-Azam solar park, Bahawalpur.
FM 98 Dosti Channel studio PBC-CRI, Islamabad.
Demonstration project of DTMB Broadcasting in Pakistan.
China Cultural center Pakistan.
China-Pakistan Joint Research Center for small hydropower, Islamabad.
China-pakistan cross-border optical fiber cable system project.
Metro rail transit system on the Orange Line in Lahore.
Ground breaking of following power projects was also jointly done
1- Karot 720 MW Hydropower project.
2- Dawood 50 MW Wind-power project.
3- Sachal 50 MW Wind-power project.
4- Zonergy 900 MW solar project.
5- Jhimpir 100 MW Wind-power project.
1. All political parties should express full support for the
implementation of China Pakistan Economic Corridor.
2. .The government should share all details of CPEC project with
all the political parties of all the provinces. The government
should discuss the benefits and challenges of this multi- dollar
project with all the provinces.
3. The Pakistani government should provide full support and
assistance to foreign workers of different CPEC projects.
4. The government should provide security to the foreign workers
on different projects of CPEC.
5. The government should not delay work on CPEC because it
can provide space to the terrorists and militants to create
hurdles in the smooth construction of this project.
This project is beneficial for both countries both have their own vested
interests but so far it is mutually beneficial. It is an example of Good
international relations. No matter how sincere both countries are with this
project or contract they still facing problems in its implementation whether
problems are internal or external. We have a lot of pressure from
international arena as well and also have to tackle with conspiracies. We
know very well that which countries like India and USA are trying by
different means to disturb this progress but yet we have to deal
diplomatically so that we can progress in peace. This project has its own
importance for both countries and we can complete by taking different
measures and through policies.
• BCIM EC
• HISTORICAL BACKGROUND
• BCIM FORUM
• KOLKATA TO KUNMING CAR RALLY
• THE RATIONALE
• KEY POINTS BEHIND BCIM EC
• BENEFITS OF BCIM EC
The Bangladesh–China–India–Myanmar Forum for
Regional Cooperation (BCIM) is a sub-regional
organisation of Asian nations aimed at greater
integration of trade and investment between the four
•This interconnectedness would facilitate the cross-border flow of people
and goods, minimize overland trade obstacles, ensure greater market
access and increase multilateral trade.
•The proposed corridor will cover 1.65 million square kilometres,
encompassing an estimated 440 million people in China & apos;s Yunnan
province, Bangladesh, Myanmar, and Bihar in Northern India through the
combination of road, rail, water and air linkages in the region.
The idea of establishing closer economic cooperation within the BCIM
region , was first developed by Professor Rehman Sobhan.
Two of his pioneering works in this context where he articulated his vision
1.“Transforming Eastern South Asia: Building Growth Zones for
Economic Cooperation” and
2.“Rediscovering the Southern Silk Route: Integrating Asia’s Transport
The pioneering ideas of Professor Sobhan had informed and motivated the
platform which he helped establish, which later came to be known as the
•BCIM integration through multi-modal transport connectivity
could reduce transaction costs, stimulate trade and investment
and consequently accelerate growth and poverty alleviation in
•Identification and implementation of concrete projects could
enhance intra-regional trade, stimulate flow of investment and
deepen people to people connectivity.
• The institutions which took the lead role in convening the first meeting in
Kunming in 1999 were :
1.The Centre for Policy Dialogue (CPD) from Bangladesh,
2.Centre for Policy Research (CPR) from India
3.Yunnan Academy of Social Sciences in Kunming, China
4.from the Myanmar side it was the Ministry of Trade which represented the
• The objective of the Kunming initiative was to create an opportunity for key
stakeholders from the four countries to come together to discuss and identify
initiatives that could contribute to deepening of cooperation among the four
BCIM countries, in various areas.
• Over the years, the Kunming initiative developed into what
came to be popularly known as the BCIM Forum.
• Successive BCIM Forums, held annually, made a seminal
contribution in raising awareness about the potential benefits
accruing from the BCIM cooperation.
• Along with non-governmental actors government
representatives also began to take an active part in the Forums.
• The eleven BCIM Forums, organised in rotation in the four countries.
• Members of delegation to the various BCIM Forums included academics
and experts, trade and business leaders, members of parliament, and in
more recent Forums, high level government officials.
•the Kolkata to Kunming (K2K) Carry Rally, with active support from the
four BCIM governments, played an important role in taking the idea of BCIM
cooperation from concept to action.
• The rally which covered a 3000 km journey had followed the route: Kolkata-
Jessore-Dhaka-Sylhet-Silchar-Imphal-Ka Lay-Mandalay-Ruili-Tengchong -
•CPD had organised a grand reception for the eighty participants of the Rally
who travelled in 20vehicles and arrived in Dhaka on February 23, 2013.
They were received by Bangladesh’s Minister for Communication with the
event attracting wide media coverage
The Car Rally will be remembered as a key milestone in promoting the idea
of BCIM-wide cooperation and BCIM economic corridor. The rally also
identified the parts of the route where investments were needed to establish
and operationalise the K2K route.
Several regional groupings have successfully developed and
implemented the idea of economic corridor by:
• building multimodal transport networks, setting up special
• establishing industrial clusters,
• export processing zones and business hubs
• and by developing a diverse range of other economic
•Viewed from the perspective of Bangladesh and Myanmar,
deepening of BCIM cooperation should be of special interest to
these two countries. It would offer them an opportunity to
benefit from greater access in the growing markets of China and
•Closer cooperation within the BCIM region would create new
opportunities for Bangladesh and Myanmar to significantly
enhance their exports to the BCIM region.
The key concept behind the BCIM initiative was that
by harnessing the comparative advantage in the
respective member countries, each nation could
significantly benefit through the operationalisation of
crucial infrastructure connectivity and BCIM-wide
India can invest in potential sectors such as the electrical
machinery and equipment, vegetable, agro processing,
automobiles, textiles, etc. in the manufacturing front and
software, pharmaceuticals, hospital and medical equipment,
tourism among others in services.
China also has highlighted five core areas where it wants to
invest - energy exploration, power generation, agriculture,
industry, and transportation.
• By developing connectivity with China, India, and Myanmar by roads, rail
and other ways, Bangladesh can transform itself into a part of an industrial
nexus and commercial hub linking up South and Southeast Asia.
• Indo-Bangladesh connectivity could be strengthened through rail link
between Akhaura and Agartala providing a direct railway route between
Bangladesh and the North-Eastern States of India thus generating almost
50 percent savings in travel.
• Economic co-operation with Myanmar would spell benefits for
Bangladesh in many ways. Myanmar is setting up special economic zones
offering investment incentives which may allow Bangladeshi firms to
exploit the improving investment climate of its neighbor.
• Stronger trade, investment, and people-to-people linkages between the
two countries could also set the ground for peaceful and sustainable
resolution of issues like the Rohingya question.
• The BCIM initiative would also open up new avenues of cross border
energy trading for Bangladesh.
• The four countries have four different religious and cultural make-ups;
yet shared legacies could bring them closer. If the road and rail routes
are set up, tourists from neighboring countries could travel to
Bangladesh easily and at a low cost.
• Bangladesh has to brace itself for getting a chunk of the tourism
markets of India, China, and Myanmar which would generate revenue,
jobs, and socio-economic development while promoting a better country
• The 1.1 billion young people in the four countries can be brought closer
with stronger connectivity.
• Connectivity would spur faster economic growth in the region and would
cascade into stronger co-operation between South and Southeast Asia.
• Bangladesh stands to avail manifold opportunities through leveraging
the connectivity options for realizing concrete and substantial gains in
• The BCIM-EC building will truly be successful if there is collaboration
on strategies, policies, plans and measures for co-operation thus bringing
about common development and mutual benefits for all the countries.
• Access to numerous markets in Southeast Asia.
• Improvement of transport infrastructure.
• Creation of industrial zones.
CONSTRUCTION OF INDUSTRIAL ZONE HAVE
1. It will lead to industrial transfer boosting industries such as
processing, manufacturing and commerce logistics.
2. As labor costs rise in China, labor-intensive industries such as
texila and agro processing will eventually be shifted out of
China. These industries will need to be transferred to new
regions with lower labor costs. Companies operating in China will
likely give priority to the trade corridor region given its established
infrastructure, improved logistics and ease of access.
India’s isolated eastern and north-eastern states also stand to gain by
higher trade and connectivity with China and the rest of Asia.
• Armed Insurgencies in Myanmar.
• Cross-border communication of general people of Bangladesh
• Lack of full confidence between China and India.
• Bangladesh and Myanmar may work for reducing the mistrust
between China and India, making it easier for these two Asian giants to
cooperate with each other in order to make the BCIM-EC a reality.
• Moreover, taking a step towards genuine solution regarding the
Rohingya (Bengali) issue would likely to normalize relation between
people of Bangladesh and Myanmar.
• As Bangladesh and Myanmar governments have good relations, a
good relation between the general mass from both sides would help to
make progressive ideas like BCIM-EC to become operational and,