understanding socio-economic evolution of cpec in...

Socio-Economic Evolution ofCPEC in Pakistan

Understanding

OBORONE BELT – ONE ROAD

Belt & Road Initiative

presented by

Aasim Siddiqui

Chairman - All Pakistan Shipping Association (APSA)

BELT & ROAD INITIATIVE

The

OBOR

In October 2013, President Xi proposed building a close-

knit China-ASEAN community and offered guidance on

constructing a 21st Century Maritime Silk Road to

promote maritime cooperation, to finance infrastructure

construction and promote regional interconnectivity and

economic integration.

The 21st-Century Maritime Silk Road is designed to go

from China's coast to Europe through the South China

Sea and to the Indian Ocean in one route, and from

China's coast through the South China Sea to the

South Pacific

The Silk Road Economic Belt concept was introduced by

Chinese President Xi Jinping during his visit to

Kazakhstan in September 2013 and suggested that

China and Central Asia may cooperate to build a Silk

Road Economic Belt.

The Silk Road Economic Belt focuses on bringing

together China, Central Asia, Russia and Europe (the

Baltic) linking China with the Persian Gulf and the

Mediterranean Sea through Central Asia

A GAME CHANGERBELT & ROAD INITIATIVE

SILK ROAD ECONOMIC BELT MARITIME SILK ROAD

US$1TRILLIONChinese Investment for ‘Belt & Road’ Initiative

70% Global Populationliving along the belt 55% World GNP

present in the route 75% KnownEnergy Resources

35YEARS

To Celebrate Along 100th Anniversary of China by 2049

US$2.5 TRILLIONChinese Trade Growth In Next Decade

Accelerating the Trade Growth

ECONOMIC

CORRIDORSBELT & ROAD INITIATIVE

3 CHINA-CENTRAL ASIA-WEST ASIA ECONOMIC CORRIDOR (CCWAEC)

4 CHINA-INDOCHINA PENINSULA ECONOMIC CORRIDOR (CICPEC)

2 NEW EURASIA LAND BRIDGE ECONOMIC CORRIDOR (NELB)

5 CHINA-PAKISTANECONOMIC CORRIDOR (CPEC)

CHINA-MONGOLIA-RUSSIAECONOMIC CORRIDOR (CMREC)1

6 CHINA-BANGLADESH-INDIA-MYANMARECONOMIC CORRIDOR (BCIMEC)

ONE BELTLAND LOCKEDREGIONAL CONNECTIVITY

SHORT JOURNEYLEAD TIME EFFICIENCY

ENROUTE MARKETSRAIL & ROAD

ONE ROAD CHEAP TRANSPORTSHIPPING

MORE CARGO IN ONE GOTEUs

TIME FLEXIBLECARGO

INVESTMENTS

NORTHERNSECTION

CENTRAL SECTION

SOUTHERNSECTION

Energy

Rail

Road

Gwadar Port

Fibre Optics

38

10.79

6.10

0.79

0.04

US$ 62 BILLIONCHINESE INVESTMENT IN KEY PROJECTS

US$ Billion

CHINA-PAKISTAN ECONOMIC CORRIDOR

Energy Projects

Efficient Transport Linkages

Employing Local Labour Force

Vocational Training &

Skill Development

Investments & Projects

Health CareFacilities for

Locals

New Economic

Zones

ImprovingPer Capita Income

Global Investments withDomestic Growth & Prosperity

EconomicUplift

CPEC Driven…


Public PrivatePartnerships

CPEC Driven GrowthCHINA-PAKISTAN ECONOMIC CORRIDOR

YearGDP

Growth Rate

Tax Revenue(PKR Million)

Stock Exchange Index(PSX)

Length of Roads (km)

InstalledCapacity of Electricity

(MW)

CPECJob

CreationCPEC Strategic Phases

2014 4.1% 2.2530,474

(24 Jul, 2014 4:00 pm)263,755 23,530 - CPEC Announcement

2015 4.1% 2.5836,156

(1 Jan, 2015 4:00 pm)265,404 23,759 400 CPEC MoU Signed

2016 4.6% 3.1133,228

(30 Dec, 2016 4:00 pm)265,905 25,878 16344 CPEC Investments

2017 5.4% 3.3652,876

(24 May, 2017 4:00 pm)267,002 26,188 34429 CPEC Developments

2018 5.8% 3.8446,580

(9 April, 2018 4:00 pm)268,935 33,454 5649

CPEC Driven EconomicGrowth

Economic corridor: 22 projects worth $29.5 billion being executedChinese companies working at CPEC projects have provided over 100,000 jobs to local people

CPEC ImpactCHINA-PAKISTAN ECONOMIC CORRIDOR

Energy Projects

4549 MW Added

Motorways

2464 KMAdded

Jobs Over

100,000Generated

Pak-China FTA

90% Open Access to Chinese Market

Economic Zones

7851Acre Approved

Travel Time

60%Reduced

Private Sector

100Freight Trains

Energy Projects

Energy Projects (Coal)

COMPLETED (3300 MW @ US$ 6289.4 million)1. Port Qasim Coal Power Project of 1320 MW of $1.912 billion (April 2018)2. Sahiwal Coal Power project of 1320 MW at cost of $1.912 billion (October 2017)3. Engro Thar Block II Coal fired Power Plant of 660MW at cost of $ 995.4 million (Mar 2019)4. Surface mine in block II of Thar Coal field, 3.8 million tons/year at cost of US$ 1.47 billion (Dec 2018)

IN-PROGRESS* (5580 MW)1. SSRL Thar Coal Block-I of 1320 MW at cost of US$ 3.21 billion 2. CPHGC Thar Coal Power Project of 1320 MW at cost of US$1912.2 million3. Gwadar Coal Project of 300MW (cost of project not announced yet)4. Thar Mine Mouth Oracle Power Plant ( 1320MW) & surface mine (cost of project not announced yet)5. Rahimyar Khan imported fuel Power Plant 1320 MW (cost of project not announced yet)


Energy Projects

Energy Projects (Wind)

Completed (249 MW @ US$ 646.65 million)1. Hydro China Dawood Wind Farm(Gharo, Thatta) of 49.5 MW at cost of US$ 112.65 million (Apr 2017)2. UEP Wind Farm (Jhimpir, Thatta) of 99 MW at cost of US$ 250 million (Jun 2017)3. Sachal Wind Farm (Jhimpir, Thatta) of 49.5 MW at cost of US$ 134 million (Apr 2017)4. Three Gorges Wind Power Project of 100 MW at cost of US$150 million (Jul 2018)

In Progress (100 MW)1. Cacho 50MW Wind Power Project of 50 MW2. Western Energy (Pvt.) Ltd. of 50MW

Energy Projects (Solar)

Completed (1000 MW @ US$ 1.3 billion)1. Quaid-e-Azam 1000MW Solar Park (Bahawalpur) Quaid-e-Azam of 1000 MW

at cost of US$ 1.3 billion (Aug 2016)


Energy Projects

Energy Projects (Hydro)

In Progress (2870 MW)1. Suki Kinari Hydropower Station, Naran,Khyber Pukhtunkhwa of 870 MW at cost of US$1.7 billion (Dec 2022)2. Karot Hydropower Station of 720 MW at cost of US$1.69 billion (Dec 2021)3. Kohala Hydel Project, AJK of 1100 MW at cost of US$ 2.36 billion (2025)4. Phandar Hydropower Station of 80 MW (cost of project not announced yet)5. Gilgit KIU Hydropower of 100 MW (cost of project not announced yet)

Energy Projects (Transmission Line)

In Progress (US$ 3.15 billion)1. Matiari to Lahore ±660kV HVDC Transmission Line Project at cost of US$ 1.65 billion (Mar 2021)2. Matiari (Port Qasim) —Faisalabad Transmission Line Project at cost of US$ 1.5 billion (2019)


Rail Development

In-Progress

▪ Expansion and reconstruction of existing Line ML-1 (1872 kms of track) at cost of US$ 8.17 billion (Dec 2022)

Salient Features• increase in speed from 65km per hour to105km per hour to 120km/h to 160 km/h• increase in line capacity from 34 to 171 trains each way per day• increase in freight volumes from 6 to 35 million tons per year by 2025• increase in passenger trains from 20 to 40 each way per day • increase in railway share of freight transport volume from the current less than 4% to 20%

▪ Havelian Dry port at cost of US$ 65 million


Rail Development

Block Train (Public Private Partnership)

▪ Private Sector

Salient Features• increase in speed from 65km per hour to105km per hour to 120km/h to 160 km/h• increase in line capacity from 34 to 171 trains each way per day• increase in freight volumes from 6 to 35 million tons per year by 2025• increase in passenger trains from 20 to 40 each way per day • increase in railway share of freight transport volume from the current less than 4% to 20%

▪ Havelian Dry port at cost of US$ 65 million


Road Development

CompletedSurab-Hoshab (N-85) project Gwadar-Turbat-Hoshab (M-8)

In-Progress (1582 km)KKH Phase-II (Thakot-Havelian) road of 118 km at cost of $1.315 billion (March 2020)Karachi-Peshawar Motorway (Mutlan-Sukkur section 392 km) at cost of $ 2.889 billion (Aug 2019)Hakla-DI Khan Motorway (285 km) (December 2019)Zhob-Quetta (331 km)Khuzdar-Basima Road N-30 (110 km) at cost of PKR 19.19 billionKKH Thakot-Raikot N35 remaining portion (136 Km) at cost of PKR 8.15 billionUpgradation of D.I.Khan (Yarik) - Zhob, N-50 Phase-I (210 km) at cost of US$ 195 million


Road DevelopmentCHINA-PAKISTAN ECONOMIC CORRIDOR

Motorway Length (km) Route Year of Completion CPEC Development

M-1 155 Peshawar-Islamabad 2007

M-2 367 Islamabad-Lahore 1997

M-3 230 Lahore-Abdul Hakeem 2018

M-4 286 Pindi Bhatian-Multan 2018

M-5 387 Multan-Sukkur 2019 (April)

M-6 296 Sukkur-Hyderabad 2019

M-7 270 Dadu-Hub TBA

M-8 892 Rotodero-Gwadar 2017

M-9 136 Hyderabad-Karachi 2017

M-10 57 Karachi-Northern By-Pass 2007

M-11 89 Sialkot-Lahore 2018

M-13 81 Swabi-Chakdarah 2018

M-14 280 Hakla-Dera Ismail Khan 2019

Out of 3526 km (13 motorways) around 2464 km (9 motorways) was completed on fast-track during CPEC Regime compared to 522 km (2 motorways) which were completed in 10 years

Gwadar Port Development

CompletedDevelopment of Free Zone Phase-I inaugurated in Jan 2018 (Total Cost US$32 million)

In-Progress• Gwadar East-Bay Expressway (19 km) at cost of US$ 168 million (Oct 2020)• New Gwadar International Airport at cost of US$230 million on an area of 18 sq. km• Construction of Breakwaters at a cost of US$ 123 million • Dredging of berthing areas & channels at cost of US$ 27 million• Necessary facilities of fresh water treatment, water supply and distribution at a cost of US$130 million• Pak China Friendship Hospital at cost of US$100 million• Pak-China Technical and Vocational Institute at Gwadar at a cost of US$ 10 million• Gwadar Smart Port City Master Plan at a cost of US$ 4 million• Bao Steel Park, petrochemicals, stainless steel and other industries in Gwadar• Development of Gwadar University (Social Sector Development)• Gwadar Livelihood Project


Free Trade Agreements (FTA)

It will be redressing the trade imbalance between the two countries, which stood at US$9.7 billion last year


China would open up

90% of its market for Pakistani goods

Pakistan would share

65%of its market with

Chinese exports

CPEC EmploymentCHINA-PAKISTAN ECONOMIC CORRIDOR

In Global Supply Chain

BringingEfficiency

ONE BELT – ONE ROAD (OBOR)

THANK YOU

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