What is CPEC- Details, Benefits, Projects, Development and Map
CPEC is an acronym of China Pakistan Economic Corridor. There are multiple projects of infrastructural development going on all over Pakistan. This project has really high value and because it is strengthening the economy so the worth is increasing day after day. A new network for transportation is developed to facilitate the projects going on. Multiple energy projects are also initiated. The main purpose behind all these projects is to develop a successful transportation system connecting China and Western Asia. All this will be done through Gwadar port in Pakistan. Most of the people are not familiar with what is CPEC. It is basically a project for developing some special zones for economic development.
Benefits of CPEC
CPEC is of great benefit, especially for Pakistani Economy. This is a project that will benefit Pakistan a lot by boosting the economic activities. The main benefit is because of the route it provides for transportation. Pakistan is located on the south Asia route to provide help in carrying goods. It can have benefit in the form of fees and tariffs when the freight passes through this route. The annual revenue generated by this project will be about 70 billion dollars just in the form of tariffs. The funding of multiple projects including Gas pipeline and power generation takes place by this money. The help in the completion of Pak-Iran gas pipeline is also taking place with this money. The details of all the other projects will be discussed in this article.
CPEC benefits in the fields of software development as well as manufacturing are a lot. Many fuel manufacturing companies will also be developed on the route of CPEC to facilitate the energy needs. The Chinese exports of amount more than 2 trillion dollars will go this route. The amount generates by this project will bring high speculation in the economy of Pakistan. An increase in foreign exchange reserves will occur and the export level will also increase.
The development of the transportation system is really important mainly the infrastructure of roads needs to be developed. Some of the projects occurring in this time to improve the system are here.
- The KKH phase one will be constructed also known as Thakot and Havalian The length of this section is about 118 KM. the estimated cost occurring on this project is of 1,305 million US dollars.
- Another project will take place from Multan to Sukkur. This is a subpart of Peshawar to Karachi motorway. This road will have a length of 392 KM and the cost incurred in the construction of this highway will be 2,846 million US dollars.
- Khuzdar and Basima road is a project that is of N – 30. It will have the length of about 110 KM. the estimated cost of this project is just 80 million dollars.
- Up gradation is also necessary for some of the roads that are not in good working condition. The up gradation of phase 1 for D.I. Khan to Zhob road will take place. Its length will be 210 kilometers. Cost occurring on this project will be 195 million dollars.
- Thakot to Raikot N – 35 is another road that will be completed. This is a project of 136 kilometers that will be completed. The amount allocated for this project is 719.8 million dollars.
These are the projects in road sector that will take place to facilitate CPEC project. This will make the road infrastructure of Pakistan stronger. The transportation will become a lot easier by making these roads functioning properly.
Projects in Rail sector
Railway sector in Pakistan has gone through many problems in recent years. A lot of development is required to make this sector strong. Some major changes in this sector will bring a lot of development on the railway lines. The existing line of ML – 1 will be reconstructed and expanded. The expansion of 1,872 kilometers will take place on this line. The estimated cost incurring on this expansion will be about 8,172 million dollars. Another railway project will be from Havelian. This will be constructed on Havelian Dry port in the form of twenty-foot units. Other changes will occur to increase the capacity of Pakistan railway. The existing capacity of railways is not enough to carry all the passengers and cargo.
Developments in Energy Sectors
A lot of developments are taking place in the energy sector of Pakistan to improve the capacity of generating more electricity. The growing needs of energy sector need to be recognized. The existing deficit in this sector needs to be compensated. A large portion is allocated to the field of energy generation as well as transmission of energy lines. Major projects including Engro Thar coal-fired project, Qasim Coal-fired project, and Dawood wind farm are made to generate energy. Some of these projects like Dawood wind farm are completed while some are still under construction. These projects will cover a lot of energy needs in Pakistan. Most of these projects are handled by the energy producing firms in China. It is expected that these units will be completed soon.
The route map of this project goes through Gwadar in Pakistan. The link of this port will be made to the Xinjiang in China. A large network of infrastructure that is also a part of Silk Road will be completed by the help of this project. The major trade link among China and other member countries will be created through this 3,000-kilometer long network. Many pipelines, highways, and railway links will be created along with the generation of electricity facilities. The strategic location of Pakistan will be exploited in this way by connecting the world. The western Pakistan will be connected by Quetta and Zhob. The development in the regions of Balochistan and Khyber Pakhtunkhwa will take place. The route is made in a way that it will go through all the provinces of Pakistan bringing huge development in the infrastructure and other underdeveloped areas.