“WHAT IS CPEC ITS IMPORTANCE AND PROS &CONS”

SUBJECT: STRATEGIC LOGISTICS ASSIGNEMENT

GROUP: RANGEELY
DATE: 24-02-2019
MEMBERS: KHUWAJA HABIB UDDIN
M.Areeb Amin
M.Farrukh Rashid
The China-Pakistan Economic Corridor is for Pakistan and will bring many benefits to all
Pakistanis including the peoples from the western parts and with the hard work of both sides; the
CPEC is being absolutely implemented. CPEC is an important consent reached by the Chinese
and Pakistani governments and of great implication in complement bilateral connectivity,
improving Pakistani people’s existence and development realistic economic and trade
cooperation. CPEC is about access from the Arabian Sea to central Asia, China, and other Asian
countries. Gwadar is a gate and Pakistan is a bridge to connect many Asian countries to trade with each
other. Central Asia is the next big source of global energy, oil, and gas after the Middle East and for this
Gwadar is the gate. Therefore, the next big source of the world is dependent on Central Asia for energy
resource and CPEC route is the best. China is having a strategic issue in the Indian Ocean as well as in
South Chinese Ocean and CPEC is the best option to be back up now. So, for the Chinese strategic
relations with Pakistan will be strengthened. Gwadar importance is big as compared to neighboring trade
center because of its deep seaport right at the heart of Asia’s growing economies, Pakistan, China and
Central Asia, maybe India and Afghanistan etc. Therefore, its geographical location is much better in
terms of trade and for trading routes. The estimate shows that manufacturing outsourcers from all over the
world will come to Pakistan as being the center having deep seaport Gwadar. The Companies who are
outsourcing their manufacturing to China and India will come to Pakistan.. The new transit and trade
facilities will not only upgrade and expand the existing Pakistani infrastructure, but it will also provide
China win an alternate transit and trade route in a cost-effective manner to broader global regions rapidly
as well as the infrastructure of China. The aim of the project is to connect China’s north-western region
of Xinjiang to Gwadar port of Baluchistan. When completed, Pakistan will be having a massive new
network of roads, highways, railways and pipelines. The road will be approximately 2700 kilometers
distance from Gwadar to Kashgar. The motorway is also a part of this project, which will be about 1100
kilometers long stretching from Lahore to Karachi in addition to the Karakorum highway from Kashgar
via Khunjrab Pass to Islamabad.

The CPEC is not only about the infrastructure of (trains roads, and pipeline) it will also connect Europe
and Central Asian countries with the region providing a higher level of development, as well as cultural
exchanges between China and Pakistan. The work on the project has already begun, but some problems
associated with the route have caused to stop the project for a while related to the sensitivities of some
provinces in Pakistan. It is to seek peace and settlement in Pakistan for the smooth running of the project
and take benefit mutually. CPEC will produce the equal opportunities for all region of Pakistan; he further
mentioned that the CPEC is not only one road project but multi-sectoral projects such as energy,
infrastructure, Gwadar and industrial sector in the country. For the smooth functioning of the project,
Pakistan Army is playing its part in providing security to the project. The CPEC will restore Pakistan’s
economic growth of the early 1960s which led economists at the time to predict that the country would be
one of the futures leading economic powers in Asia. CPEC has a high value for both countries China and
Pakistan. Due to CPEC the connectivity will open up west China to the south and contribute to “One Belt
One Road” initiative policy. The establishment of communication from Kashgar to Gwadar has been
agreed to be completed by 2030. Chinese Government is trying to utilize the entire necessary supporting
role to enable the environment for the open economic system and logistic system in the regional vision of
CPEC. The CPEC not only for 1China and Pakistan but will also benefit the surrounding countries.
Pakistan will increase its economic growth through this project and it is the right initiative for both
countries – China and Pakistan. CPEC is envisioned as a corridor of peace, prosperity and development.
Although facing a lot of challenges, the Project has a significant potential of promising future. The people
of Pakistan were adversely affected in the past due to inadequate opportunities and lack of right decisions.
CPEC sketched the world attention to the new development and growth of the economy, and this will be
the real prosperity for the both countries and will promise future for the region/the world. The Prime
Minister of Pakistan held a meeting of the political leadership; all parties supported the CPEC project as
well as they warmly welcome to the Chinese investment. It is seemed to be a breakthrough for Pakistan’s
development and successful completion of the CPEC may generate three to four times more profit than
their investment. The Corridor will boost up economic development and create new business and job
opportunities which will help in the alleviation of poverty and improve the infrastructure, the energy
requirements, workforce development and economic progress. CPEC is viewed as a game changer for
both China-Pakistan and the entire region; economic development and regional integration will be
enhanced through connectivity and partnership. It will have a positive impact on the living standard of the
common people in the region by providing numerous opportunities of cooperation and development. It
will boost the trade and investment, exploration of mineral resources and increase the strategic and
economic location of Pakistan. On the other hand, the project is important for China’s perspective as
“flagship project”. It will provide the shortest route to the Middle East, Africa and Europe, thus further
boosting up the economy. The accomplishment of the CPEC will help China to counter the US
dominance and will also get the chance to develop its north-western province Xinjiang, which is an
underdeveloped area. In Xinjiang separatist movement has started by Uyghurs. Thus, China wants to
develop the socio-economic framework of that region. Only in this way, China can curtail aggressive
sentiments against its central government. With the announcement of China’s Belt and Road policy and
the China-Pakistan Economic Corridor (CPEC) as its flagship project starting from China’s Kashgar city
and ending in Gwadar city of Baluchistan province of Pakistan, the construction of which started in 2015,
has brought Pakistan’s above defined economic and strategic significance to the forefront. The B&R and
CPEC projects are very important for China, Russia, the CARs’ trade and for the trade of other countries
of the world for the reasons described above and for using the shortest and the most economical land
based route from China, CARs and Russia to South Asia, West Asia, Middle East, African countries,
Europe and the US as well. The construction and the completion of the CPEC will not only boost
Pakistan’s trade and investment- based economic development it will also further enhance Pakistan’s
strategic significance as all the aforementioned regional counties will be trading through its territory,
using the CPEC. Pakistan’s strategic significance is also very valuable for the US and the world for
successfully fighting the war on terror for peace and stability in this region, to enable these to benefit
from the CPEC, although the US is failing to recognize Pakistan’s strategic significance in this context,
but in view of Pakistan’s peace and economic-related policies, China and Russia do recognize this.

As discussed above, while the construction of the CPEC enhances Pakistan’s strategic and economic
significance for the whole world, Pakistan’s CPEC-related significance for China and Russia is of
particular importance. Whereas the CPEC project is further solidifying Pakistan’s strategic and economic
relations with its longtime strategic partner, China, the CPEC is also a major economic factor that is
bringing Russia closer to Pakistan. This is evident from Russia’s support to Pakistan in its aspired role in
the Afghan peace, its signing of a $2 billion gas pipeline deal with Pakistan in 2015, its support to
Pakistan for becoming a full member of the Shanghai Cooperation Organization in 2016, Moscow’s
selling of four Mi-35 combat helicopters to Pakistan, Russia’s holding of anti-terror military drills with
Pakistan, signing of a $10-billion offshore gas pipeline deal with it and signing of another significant
agreement for the training of Pakistani troops in Russia.
In view of the above, since CPEC is central in enhancing Pakistan’s strategic and economic significance
in the eyes of the world and especially for China and Russia, Pakistan should focus on the construction of
the CPEC so that it is completed on time, to make use of its trade and investment-related benefits and to
further cement its relations with the interested countries of the world with a special focus on China and
Russia.

ADVANTAGES

1-Pakistani Labor will get jobs.

2-Pakistani products will be exported to China.
3-Pakistan will no longer depend on West.
4-Pakistani Products will also be easily transported to markets that have no access, right now.
5-Pakistani students will get an easy access to China education system.
6-Gwadar port constructed under CPEC is a transit hub for the central Asian republics.
7-It provide profit to enhance the economy of country
8-It also increase bilateral relation between Pakistan and the other countries
9-it increase the number of jobs and decrease the unemployment of country
10-it provide a balance of rupee with dollar
11-it will combine the parts of country and modify the internal structure of security of Pakistan
12-it provide a chance to the people of Pakistan to introduce their products throughout the world
13-it will also increase the export of country, which is in too declined form today
14-it also provide a way to make CHINA- PAKISTAN friendship strongest
15-it provide benefit to other countries for trade through safe route
DISADVANTAGES

1-China will find an access to interlock countries this may increase the numbers of Chinese Products, this
will depress Pakistani Businesses.
2-China national language is Chinese, Pakistan National language is Urdu, and this will create a huge
communication gap.
3-Pakistani market is not capable to cope with the increasing demand of the raw materials needed for this
project.
4- A number of technical people in Pakistan are too low, so China has to use his own labor (As usual) to
cope with increasing demand.
5- 62bn dollar, a debt to poor economy of Pakistan which too much weak to bear it
6- It will increase the influence of chines market in Pakistan
7- It can crash the small manufacturing of Pakistan completely.
8- It can become a challenge for the Pakistan's national security
9- It has increases the western pressure on Pakistan

Conclusion

The free network of highways, free power projects, huge amount of jobs, and easy connectivity between
all provinces of Pakistan. If someone still doubts the project then I can only pity such thinking.
Baluchistan is going to be a prosperous and developed place. But it’s a coin, Pakistan can make a heap of
such coins. All you need to do is, to utilize this opportunity in something meaningful. But, keep in
mind, CPEC is an opportunity, we have to work hard to maximize the benefits of this project.