China Pakistan Economic Corridor (CPEC): A Corridor for Success or Uncertainity for India, Pakistan and China.

Jagpal Mann


The 3,000 km-long China–Pakistan Economic Corridor (CPEC) consisting of highways, railways, and pipelines is the latest irritant in the India–China relationship. CPEC is clutch of projects valued at $51 billion project which aims at rapidly expanding and upgrading Pakistan’s infrastructure and strengthening the economic ties between the People’s Republic of China (China) and Pakistan. It includes building roads, laying railway lines and pipelines to carry oil and gas. CPEC eventually aims at linking the city of Gwadar in South Western Pakistan to China’s North Western region Xinjiang through a vast network of highways and railways.The proposed project will be financed by heavily-subsidised loans, that will be disbursed to the Government of Pakistan by Chinese banking giants such as Exim Bank of China, China Development Bank, and the Industrial and Commercial Bank of China.The CPEC, once completed is expected to cut short the trade route for China’s oil imports by 6000 miles. It is expected to open up a brand-new strategic gateway for China to tap into African, West Asian and South Asian trade.The CPEC is expected to give the flagging Pakistan economy a shot in the arm too. About 90 per cent of the total outlay for this project will be funded by the consortium of Chinese banks and the balance 10 per cent by Pakistan. Reports claim that this project will likely add about 7 lakh direct jobs between



2015 and 2030 and add about 2-2.5 percentage points to the Pakistani GDP.Besides the potential for growth, power and jobs, Pakistan also expects the CPEC to bind it in an even tighter embrace with close friend China, giving it greater strategic leverage with both India and the United States in the Indian Ocean region.

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