History of the China-Pakistan Economic Corridor
While the Karakoram Highway was being built, plans for a China-Pakistan Economic Corridor originated in the 1950s. Chinese interest in Gwadar harbor in Pakistan came back in 2002, and work was finished in 2006. However, the port was closed as a result of political unrest in Pakistan. The agreement to improve connectivity between Chinese Premier Li Keqiang and Pakistani President Zardari in 2013 resulted in the signing of a memorandum of understanding for a long-term strategy.
CPEC Announcement
Chinese President Xi Jinping went to Pakistan to officially sign the China-Pakistan Economic Corridor (CPEC) deal. Fast-tracked “Early Harvest” projects totaling $28 billion are included in the $46 billion agreement, which represents around 20% of Pakistan’s yearly GDP and was developed by the end of 2018. To connect seaports in Gwadar and Karachi with northern Pakistan as well as locations further north in western China and Central Asia, the CPEC has constructed a massive network of roads and trains.
Later Developments of CPEC
To extend the China-Pakistan Economic Corridor (CPEC), with an emphasis on boosting energy-producing capacity, China and Pakistan signed 20 agreements for a combined $1.6 billion in 2015.
- The agreement included partnership in space exploration as well.
- China declared in 2016 that it would invest an additional $8.5 billion in Pakistan, of which $4.5 billion would be used to upgrade the country’s main railway line and $4 billion would be used to build transmission lines and an LNG plant.
- The direct rail line and marine freight service between China and Pakistan were initiated in November 2016 with the arrival of the first cargo train from China in Gwadar.
- There were around $14 billion worth of projects underway as of September 2017.
- Pakistan declared in 2022 that hydropower would be the main energy source for CPEC projects in the future.
- Pakistan accepted the CPEC Authority’s theoretical dissolution in 2022.
China-Pakistan Economic Corridor (CPEC)
The China-Pakistan Economic Corridor (CPEC) is a 3,000-kilometer-long network of infrastructure projects that links China’s Xinjiang region to Pakistan’s Gwadar Port in Balochistan. The main goal of the China-Pakistan Economic Corridor is to make a secure and shorter path for China to get energy from the Middle East.
Instead of using the current route through the Straits of Malacca, which could be blocked during a war, this new corridor provides an alternative way for China to meet its energy needs and support its economy.
In this article, we will look into the background of the China-Pakistan Economic Corridor (CPEC), its history, developments, challenges, and impact in detail. We will also discuss the projects under the China-Pakistan Economic Corridor (CPEC) and the CPEC Map.
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Table of Content
- What is China-Pakistan Economic Corridor (CPEC)?
- History of the China-Pakistan Economic Corridor
- China-Pakistan Economic Corridor Map
- China-Pakistan Economic Corridor (CPEC) Projects
- Impacts of China-Pakistan Economic Corridor on India
- Challenges with China-Pakistan Economic Corridor
- Recent Developments on China-Pakistan Economic Corridor (CPEC)
- Way Forward – China-Pakistan Economic Corridor
- China-Pakistan Economic Corridor UPSC