Pak-China Economic Corridor

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Presenters:Areej Fatima 131Tehniyat Abrar 121Ayman Tariq 143Muqaddssa Tahir 123

Pak-China RelationsPakistan gained Independence (1947) The communist rebels won the war against nationalist government in October 1949 led by Mao Zedong.Pakistan And China Relationship Began in 1950 as Pakistan was the first Muslim country to establish relations with China. Pakistan helped China to build relations with the Muslim world.

Pak-China RelationsDiplomatic relations between Pakistan and China were established on 21 May 1951.In 1960s , relations improved, largely as a result of border dispute between India and China.China had a war with India over Border dispute in 1962. China won some of Indias land in March 1963.Pakistan cedes the Trans-Karakoram Tract to China.

Pak-China RelationsEarly in 1963 Pakistan and China announced a series of trade agreements.China granted Pakistan a $60 million interest free loan and soon became the worlds largest purchaser of Pakistani cotton.In august 1963 PIA began regular flights to China.

Pak-China RelationsIn 1964 China made a statement supporting Pakistan's policy in Kashmir.Pakistan supported Chinas entry in UNUSA was supporting Taiwan as the legitimate ruler of China. During the 1965 war with India, China supplied military aid to Pakistan and applied diplomatic relation on India to prevent it attacking Pakistan positions.

Pak-China RelationsDuring 1966-71, when Western counties stopped their arms supply to Pakistan. China gave military aid including aircrafts and equipments.China supplied machinery worth of 15 million rupees for the Heavy Mechanical Complex in Taxila.

Pak-China RelationsIndo-Pak war in 1971, China did not supported Pakistan openly as Soviet Union supported India. Because China could not take steps as this would risk the war with Soviet Union.

Pak-China RelationsIn 1972, Bhutto visited China and it was agreed that many of the loans previously made by China to Pakistan should become grants.China sent Pakistan 60 MiG-19 fighters and 100 T-54 and T-59 tanks as part of a new $300 million economic and military aid package which Mr. Bhutto was said to have negotiated during his visit.

Pak-China RelationsPakistan helps the U.S. arrange the 1972 Nixon visit to China.

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1978 The Karakoram HighwayThe karakoram highway is also known as the China-Pakistan friendship highway,is one of the highest paved international roads in the world.It starts from Havelian and winds through many beautiful spots such as Mansehra, Thakot, Abbottabad, Besham, Pattan, Sazin, Chils, Gilgit Baltistan and Hunza, connecting China's Xinjiang region with Pakistan's GilgitBaltistan region in Khyber Pakhtunkhwa at an altitude of 4,693 m/15,397 ft.

1978 The Karakoram Highway It was started in 1959 and was completed and opened to the public in 1979. About 810 Pakistanis and about 200 Chinese workers lost their lives,mostly in landslides and falls, while building the highway. The Chinese workers who died during the construction are buried in the Chinese cemetery in Gilgit. The route of the KKH traces one of the many paths of the ancient Silk Road.

1978 The Karakoram HighwayThe road has a length of 1,300 km (800 mi): Pakistan: 887 km (551 mi) and China: 413 km (257 mi). it was started in 1959 and was completed in 1986 after 27 years of construction.The fearless road builders of China and Pakistan took almost 20 years to complete this 805-mile long highway which has been stretched over the hills, gorges, valleys and rivers.

1980s afghan guerillas fighting Soviet forces With help from China and many Moslem nations, the United States led a huge international operation over the last eight years to arm the Afghan guerrillas with the weapons they needed to drive the Soviet Army from their country.The operation is one of the biggest ever mounted by the Central Intelligence Agency, according to American officials and foreign diplomats.

1980s - Afghan guerillas fighting Soviet forcesIndeed, Congress was continually prodding the C.I.A., the Joint Chiefs of Staff and the State Department to provide more support for the Afghan guerrillas, who limped along with relatively ineffective weapons until they got Stinger antiaircraft missiles in September 1986.

1986 China and Pakistan nuclear co-operation agreementZulfikar Ali Bhutto made the first request to China to help Pakistan to develop nuclear weapon capabilities to match Indias budding program when he was foreign minister in 1965, but China at that time was non- committal.In 1976 he urged the Chinese again to oblige, and this time they agreed to supply Pakistan with blueprints for a fission weapon around or before 1983.

1986 China and Pakistan nuclear co-operation agreementChina joined the International Atomic Energy Agency (IAEA) in 1984. China supplied M-11 missiles to Pakistan and maintained that this was within the Missile Technology Control Regime. In 1986,China concluded a comprehensive nuclear cooperation agreement with Pakistan. Chinese scientists began assisting Pakistan with the enrichment of weapons grade uranium, and China reportedly also transferred tritium gas to Pakistan, which could be used to achieve fusion in hydrogen bombs and boost the yield of atomic bombs.

300 megawatt nuclear plant built in punjabChashma Nuclear Power Plant reactors and other facilities are being built and operated by the Pakistan Atomic Energy Commission (PAEC) with Chinese support under the approval and guidelines of International Atomic Energy Agency.In November 2006, The International Atomic Energy Agency approved an agreement with the Pakistan Atomic Energy Commission for new nuclear power plants to be built in the country with Chinese assistance.

1980s - Afghan guerillas fighting Soviet forcesThey used the missiles to shoot down armored Soviet helicopter gunships, and as a result, the guerrillas and their supply caravans have been able to move with much less fear of being attacked from the air. Cost Totals $2 Billion.China, which has a short border with Afghanistan, ''worked hand in glove with the United States'' in supplying the guerrillas with rocket launchers and other weapons, according to a military officer who served at the American Embassy in Beijing..''

300 megawatt nuclear plant built in punjabThe Chashma Nuclear Power Plant (CHASNUPP) or Chashma Nuclear Power Complex, near Chashma Colony and Kundian town, Mianwali District, Punjab, Pakistan, is a commercial nuclear power plant consisting of two operating units (CHASNUPP-I and CHASNUPP-II), two units under construction (CHASNUPP-III and CHASNUPP-IV).

300 megawatt nuclear plant built in punjabThe 35-member Board of Governors of the IAEA unanimously approved the safeguards agreement for any future Nuclear Power Plants that Pakistan will be constructing.

1996 Chinese President Jiang Zemin pays a state visit to PakistanPresident of peoples republic of China Jiang Zemin paid a four day official visit to Pakistan 1 to 4 december.The visit was aimed at boosting bileteral relationship between China and pakitan.

1996 Chinese President Jiang Zemin pays a state visit to PakistanMr Jiang Zemin, in a statement at the airport said thatit has been proved that China-Pakistan friendship not only conforms to the fundamental interests of the two countries and peoples but also contributes to the maintenance of peace and stability of south asia and asia at large.

1996 Chinese President Jiang Zemin pays a state visit to PakistanIn his address, chinese president Jiang Zemin said history had proved and would continue to prove that China and Pakistan were true friends who have stood together through thick and thin and shared weal and woe.

1996 Chinese President Jiang Zemin pays a state visit to PakistanThe two president also exchange views on the afghan issue.Mr.Zemin called to remove the imbalance so as to further strengthen trade cooperation.

2001A joint-ventured Chinese-Pakistani tank, theMBT-2000(Al-Khalid) MBT is completed.US$20 million were reportedly spent on the indigenous development of the Al-Khalid tanks over a period of eight years.

2002The building of theGwadardeep sea port begins, with China as the primary investor.2007, the port was inaugurated byParvez Musharraf after four years of construction, at a cost of $248million

2003Pakistan and China signed a $110 million contract for the construction of a housing project on Multan Road in Lahore

2007TheSino-Pakistani joint-venturedmultirolefighter aircraft, the JF-17 Thunder(FC-1 Fierce Dragon) is formally rolled out

2008In April 2008, the Beijing Olympic torch relay took place in Islamabad in Pakistan Sports Complex in the southeastern part of the Pakistani capital.Thousands of soldiers and police were deployed to the sports complex, which is also a project constructed in mid-1980s with Chinese assistance.

continueThe Agreement on Trade in Services was signed in Wuhan, China on the occasion of the visit of President of Pakistan to China on 21st February 2009. After signing of this Agreement Pakistan has a comprehensive Free Trade Agreement with China covering Trade in Goods, Investments and Trade in Services. Negotiations on Trade in Goods and Investment were concluded and the Agreement was signed on November 24, 2006 during the visit of H.E HU. Jintao, President of China to Islamabad. The Agreement was concluded after five Rounds of negotiations with China on 3rd December 2008.

continue The F-22P or Zulfiqar-class frigate is a general purpose frigate built by China and Pakistan for the Pakistan Navy(PN). Design and construction of the F-22P started after a $750m deal was signed in 2005 between Pakistan's Ministry of Defence Production (MoDP) and China Shipbuilding Trading Co (CSTC).

continueThe deal involved an order for construction of four F-22P frigates for the Pakistan Navy's fleet. The first of the frigates, PNS Zulifqar, was delivered in September 2009.The second frigate, PNS Shamsheer, was launched in October 2008. It was commissioned into the Pakistan Navy in December 2009. The third frigate, PNS Saif, was launched in May 2008 and was delivered in September 2010. The fourth frigate in class, PNS Aslat was built at Karachi Shipyard and Engineering Works under a technology transfer agreement signed with China. It was delivered to the Pakistan Navy in April 2013.

continueThe deal involved an order for construction of four F-22P frigates for the Pakistan Navy's fleet. The first of the frigates, PNS Zulifqar, was delivered in September 2009.The second frigate, PNS Shamsheer, was launched in October 2008. It was commissioned into the Pakistan Navy in December 2009. The third frigate, PNS Saif, was launched in May 2008 and was delivered in September 2010. The fourth frigate in class, PNS Aslat was built at Karachi Shipyard and Engineering Works under a technology transfer agreement signed with China. It was delivered to the Pakistan Navy in April 2013.

continueThe deal involved an order for construction of four F-22P frigates for the Pakistan Navy's fleet. The first of the frigates, PNS Zulifqar, was delivered in September 2009.The second frigate, PNS Shamsheer, was launched in October 2008. It was commissioned into the Pakistan Navy in December 2009. The third frigate, PNS Saif, was launched in May 2008 and was delivered in September 2010. The fourth frigate in class, PNS Aslat was built at Karachi Shipyard and Engineering Works under a technology transfer agreement signed with China. It was delivered to the Pakistan Navy in April 2013.

continueThe deal involved an order for construction of four F-22P frigates for the Pakistan Navy's fleet. The first of the frigates, PNS Zulifqar, was delivered in September 2009.The second frigate, PNS Shamsheer, was launched in October 2008. It was commissioned into the Pakistan Navy in December 2009. The third frigate, PNS Saif, was launched in May 2008 and was delivered in September 2010. The fourth frigate in class, PNS Aslat was built at Karachi Shipyard and Engineering Works under a technology transfer agreement signed with China. It was delivered to the Pakistan Navy in April 2013.

continueThe deal involved an order for construction of four F-22P frigates for the Pakistan Navy's fleet. The first of the frigates, PNS Zulifqar, was delivered in September 2009.The second frigate, PNS Shamsheer, was launched in October 2008. It was commissioned into the Pakistan Navy in December 2009. The third frigate, PNS Saif, was launched in May 2008 and was delivered in September 2010. The fourth frigate in class, PNS Aslat was built at Karachi Shipyard and Engineering Works under a technology transfer agreement signed with China. It was delivered to the Pakistan Navy in April 2013.

continueThe deal involved an order for construction of four F-22P frigates for the Pakistan Navy's fleet. The first of the frigates, PNS Zulifqar, was delivered in September 2009.The second frigate, PNS Shamsheer, was launched in October 2008. It was commissioned into the Pakistan Navy in December 2009. The third frigate, PNS Saif, was launched in May 2008 and was delivered in September 2010. The fourth frigate in class, PNS Aslat was built at Karachi Shipyard and Engineering Works under a technology transfer agreement signed with China. It was delivered to the Pakistan Navy in April 2013.

continueThe deal involved an order for construction of four F-22P frigates for the Pakistan Navy's fleet. The first of the frigates, PNS Zulifqar, was delivered in September 2009.The second frigate, PNS Shamsheer, was launched in October 2008. It was commissioned into the Pakistan Navy in December 2009. The third frigate, PNS Saif, was launched in May 2008 and was delivered in September 2010. The fourth frigate in class, PNS Aslat was built at Karachi Shipyard and Engineering Works under a technology transfer agreement signed with China. It was delivered to the Pakistan Navy in April 2013.

2010-20112010- Pakistan and China conduct a joint anti-terrorism drill.In July and August 2010,China donates $260 million in dollars to flood hit Pakistan and sends 4 military rescue helicopters to assist in rescue operations.2010- Wen Jiabaovisits Pakistan. More than 30 billion dollars worth of deals were signed.2011 - Pakistan and China celebrated Pak-China Friendship Year at the occasion of 60th anniversary of bilateral Pak-China relations.

2011-20122011 - Pakistan is expected to buy air to air SD 10 missiles from China for its 250 JF 17 thunder fighter fl.In June 2012, President of Pakistan Asif Ali Zardari ninth times visited China and attended 12th Shanghai Cooperation Organization (SCO). In2012,therewerehigh levelexchangesofvisitsfromboth states.

Pak-China Foreign PolicyPakistan's relations with the PRC became stronger; since then, the two countries have regularly exchanged high-level visits resulting in a variety of agreements.Favourable relations with China have been a pillar of Pakistan's foreign policy.The PRC and Pakistan also share a close military relation.Substantial investment from China in Pakistani infrastructure.

Pak-China Foreign PolicyThe most important factors of the foreign policy between Pakistan and China are:Sino-Pak agreementPak-China Business Forum Free Trade AgreementAgreement on Early Harvest ProgrammeCPEC (China-Pak Economic Corridor)

Sino-Pak AgreementThe Sino-Pak agreement was signed on March 2, 1963 between the governments of Pakistan and China establishing the border between those countries.The Sino-Pak relationship is mainly based on four important pillars:political trust and understandingnational defence cooperationeconomic cooperation.people-to-people contacts

Pak-China Business ForumsCOMSATS Institute of Information and Technology is organizing this program.It is to promote University and Industry collaborations.Five Pak-China business forums have been conducted:Pak-China business forum 2012Pak-China business forum 2013Pak-China business forum 2014Pak-China business forum 2015Pak-China business forum 2016

Free Trade AgreementFree trade agreement was signed between the Peoples Republic of China and Pakistan. It was concluded in 2006 and entered into effect in July, 2007.Trade volume due to agreement between the two states was $13 billion in 2013, and reached to $20 billion by 2015.By 2012 the source of imports was overall 15% from the whole world as compared to 9.8% in 2006.

Agreement on Early harvest Programme(AEHP)The Agreement on Early Harvest Programme (EHP) between Pakistan and China is operational with effect from 1st January 2006.The Early Harvest Programme (EHP) is a mini fast track prelude to the FTA under negotiation.Both Pakistan and China have increased market access for each other on items of significant commercial interests.The EHP has provided duty free access to a substantial number of products within next two years.

Economic Gateway Gwadar On 8th September 1958 Aga khan Karim purchased the Gwadar enclave from Oman for $3 million , and gave it to Pakistan and it officially became the part of Pakistan. Gwadar Port is a warm-water, deep-sea port situated on the Arabian Sea at Gwadar in Balochistan province of Pakistan.Gwadar is a planned free trade port. National Highway authority (NHA) began construction of the 653 km-long Makran Coastal Highway linking Gwadar with Karachi.48

China-Pakistan Economic Corridor (CPEC)

The ChinaPakistan Economic Corridor (CPEC) is an ongoing development megaproject which aims to connect Gwadar port in southwestern Pakistan to Chinas northwestern region of Xinjiang, via a network of highways, railways and Pipeline to transport oil and gas.49

The Project was proposed by Chinese premier Li Keqiang during his visit to Pakistan in May 2013. The Pak-China Economic Corridor was inaugurated in Islamabad on 27 August 2013. The vision for the economic corridor stretches far back as Musharraf era.It effectively promote the Economic and Social development of Pakistan.50

On 20 April 2015, Pakistan and China signed an agreement to commence work on the $46 billion on 51 Projects with approximately $28 billion in immediate projects and the rest allocated for projects in the gas or oil pipeline. Major Projects Sales Energy ($33.8 billion) Infrastructure ($11.8 billion) Communication ($44 Million) Cotton biotech research Economics.51

Energy Projects

Wind Energy Jhimpir wind Power project Dawood Wind Power Project Coal Power Plant Hubco Coal-fired Power Plant Project Development of Private Hydro Power Projects Nuclear Power Plant Kanupp-II, Kanupp-III. Coal Power Plant Zonergy 9x100 MW solar project in Punjab Hydro Power Plant 720MW Karot Hydropower Project Development of Private Hydro Power Projects52

Infrastructure Projects Gwadar Port up gradation Lahore Karachi Motorway Havelian-Khunjerab RailwayHazara MotorwayGwadar International Airport Lahore Orange Lane Metro53

Objectives of CPEC Increase the volume of trade between Pakistan and China. Take full advantage of (PTA) Preferential Trade Agreement and (FTA) Free Trade Agreement. Increase export to China, recently export to China is $3.14 billion. Pakistan and China are second largest partners in south Asia, this will help to retain partnership. Widen Karakoram Highway and open new economic corridor from China to Gwadar. 54

Approximately reduce 10000 km distance and it is the shortest route. Shortest route from Western China to Gwadar.

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Advantages Of CPEC Pakistan economy will Boost. Pakistan can avail great opportunities from chines expert in various sectors like energy ,Technology and Education sector. Create new employment opportunities. Pakistan and china both collectively target the half of the population of the world ,it will provide great opportunity for both countries to expend their market .56

Issues between Pakistan and ChinaThe ETIM is a Waziri based Mujahedeen organization that is said to be allied with Taliban, which has received funding from rogue elements in ISI.18 July 2011 Hotan attack in Xinjiang, suspected Pakistani involvement.The U.S. war on terror has the wary of U.S. influence in the region.

Pakistan is U.S. ally and major recipient of US military and economic aid, china is obligated to step up its support in order to maintain its influence in the region.Close Relation of China and India is the threat for Pakistan.Indian textile and agricultural exports to China might negatively impact Pakistan's exports to China.If China decides to support India in UN, then the Pakistan position will become weak and the Kashmir issue will become impossible to resolve.

ConclusionBoth states are enjoying deep diplomatic, defence, economic and cultural ties.Pakistan needs China in the field of defence, nuclear and economic development.Chinese investment is playing important role to uplift Pakistans economy.

China can fulfill its need from Pakistans Gwadar port through safe and cheap trading routes linked with rich natural resources countries.Pak-China relation is not only on the political level but people of both the countries share a deep and special bond. It is clear from the Chinese President visits of Pakistan.

RecommendationsRelationship of two countries with continue to grow if we ensure fusion of all the three pillars of relations:-StrategicEconomicPeople-to-people exchangeIndian involvement in Afghanistan is harming Pakistans core interests. Pakistan needs to align its policy with China to counter balance Indian influence in Afghanistan.

China is not ready to annoy the U.S; it would not allow its support for Pakistan to impinge on its relations with Washington. Strategic planners of Pakistan should factor this limitation in their national strategic calculus.Security of Chinese personnel working on various projects in Pakistan should be ensured.Western and Indian media is projecting Pakistan-China relations in a negative way. Pakistan and China should take active measures to counter this campaign.

China offers scholarship program for Pakistani Students, Pakistan should initiate such program on reciprocal basis.China suggested alternative energy generation technologies; Pakistan should seek Chinese help in acquiring the capability of making nuclear power plants.Pakistan needs to make deliberate effort for maintaining friendly relations with China; continuation of high profile friendship should not be taken for granted.