PAK CHINA ECONOMIC CORRIDOR
PAK CHINA ECONOMIC CORRIDOR
PRESENTED BY: NABEEL ARIF
Pakistan–China relations began in 1950 Strategic alliance was formed in 1972 and economic
co-operation began in 1979
China has invested $20 billion in various projects
Mega infrastructural projects in Pakistan Gwadar Port, the Coastal-Highway linking Karachi with Gwadar,
Karakoram Highway, the Chashma nuclear power plants, and a number of hydro-power projects.
PAK CHINA ECONOMIC
CORRIDOR
HISTORY OF PAK CHINA RELATIONS
PAK CHINA ECONOMIC CORRIDOR
PAK-CHINA ECONOMIC CORRIDOR
The kkh was started in 1959 and was completed in 1979 (open to the public since 1986 )
Length 1,300 km (Pakistan 887 km ) China 413 km
It connects China's Xinjiang region with Pakistan's Gilgit–Baltistan and Khyber Pakhtunkhwa regions
Major cities Hasanabdal, Abbottabad, Thakot, Chilas, Gilgit, Aliabad, Sust, Khunjerab Pass, Kashgar
The importance Karakoram Highway Chinese companies Tourism in Pakistan Transportations
PAK CHINA ECONOMIC CORRIDOR
The KKH highly contribute economic activities of both countries export and import
*Economic Gateway Gwadar On 8 September 1958 prince Aga khan karim purchased the Gwadar enclave from
Oman for $3 million, and gave it to Pakistan and it officially became part of Pakistan
Gwadar Port is located at the mouth of the Persian Gulf
Gwadar is a planned free trade port
Gwadar Port is a strategic developed jointly by the both countries
National Highway Authority (NHA) began construction of the 653 km-long Makran Coastal Highway linking Gwadar with Karachi,
In 2004, Pakistan's NHA began construction of the 820-km long M8 motorway linking Gwadar with Ratodero in Sindh province Turbat, Hoshab, Awaran and Khuzdar
In 2007 Civil Aviation Authority of Pakistan acquired 6,000 acres (17-24 km2) to
construct a new greenfield airport, at an estimated cost of Rs 7.5 billion.
GWADAR ECONOMIC ZONE GDA was established to promote industrial
activities in mega port city of Gwadar
China focused on the fast-track construction of roads, other infrastructure and public buildings
In 2013, Gwadar Port operations were officially handed over to China,
To connect china with Gwadar through railway track has already begun PAK CHINA ECONOMIC CORRIDOR
Outflow of goods from western China and Central Asia through Gwadar
PAK CHINA ECONOMIC CORRIDOR
CURRENT PAK-CHINA ECONOMIC CORRIDOR DEVELOPMENT
Gwadar-Khunjerab-Kashgar rail network Gwadar-Khunjerab-Kashgar rail network
connecting the maximum number of population through a network of highways and railways
six-lane motorway to be built from Karachi to Lahore. MoU’s signed with China
PAK CHINA ECONOMIC CORRIDOR
OBJECTIVE OF PAK-CHINA ECONOMIC CORRIDOR Increase the volume of trade between
Pakistan and china
Take full advantage of preferential trade agreement(PTA) and free trade agreement (FTA)
Increase export to china, recently export to china is $3.14 billion
PAK CHINA ECONOMIC CORRIDOR
OBJECTIVE OF PAK-CHINA ECONOMIC CORRIDOR Pakistan and china are second largest
partners in south Asia, this will help to retain partnership
Widen Karakorum high way and open new economic corridor from china to Gwadar
Approximately reduce 10000 km distance and it is the shortest route
PAK CHINA ECONOMIC CORRIDOR
PAK CHINA ECONOMIC CORRIDOR
OBJECTIVE OF PAK-CHINA ECONOMIC CORRIDOR
Expand trade with Afghanistan and it help both countries to play their role in post-2014 Afghanistan
Expand trade with Russia by providing trade route till Gwadar port
Development of infrastructure along Pakistan
PAK CHINA ECONOMIC CORRIDOR
OBJECTIVE OF PAK-CHINA ECONOMIC CORRIDOR China access to the Indian Ocean with
the aim of widening its geopolitical influence and military presence in the region
Job opportunities and economic development in Baluchistan
Increase Chinese investment, Pakistani investment in china will also be encouraged
PAK CHINA ECONOMIC CORRIDOR
OBJECTIVE OF PAK-CHINA ECONOMIC CORRIDOR Regional peace, prosperity and
elevate the life of poor people of south Asia
Enhance trade among Pakistan, China, Gulf States, Central Asia and Africa
China is interested to extend the Iran-Pakistan pipeline to its western territory
PAK CHINA ECONOMIC CORRIDOR
ADVANTAGES OF PAK-CHINA ECONOMIC CORRIDOR Can benefit new emerging regional cooperation
Save time, cost and freight charges
Facilitate trade, have Economic Zone en-route and will allow reaping of full benefits of development, economic and social uplift
Increase the economic collaboration
between both countries by connecting western china to Gwadar
Regional stability in Asia as well as whole world
Pakistan economy will Boost PAK CHINA ECONOMIC CORRIDOR
ADVANTAGES OF PAK-CHINA ECONOMIC CORRIDOR
ADVANTAGES OF PAK-CHINA ECONOMIC CORRIDOR
Pakistan can avail great opportunities from chine’s 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
PAK CHINA ECONOMIC CORRIDOR
PAK CHINA ECONOMIC CORRIDOR
FTA leads to threat for local markets and local manufacturers
Disturb of local industries
Difficult to compete chine’s product in market
Increase the ratio of unemployment
Dependent to China
DISADVANTAGES:
Huge difference between Balance of payment Trade deficit
PAK CHINA ECONOMIC CORRIDOR
Pakistan-China trade increased by 17.6% to a total of US$ 12.4 billion in
2012.
China export to Pakistan is
9.3billion
Pakistan’s export to china is 3.14billion
9.2
3.14
Trade Deficit
DISADVANTAGES:
PAK CHINA ECONOMIC CORRIDOR
Focus on import rather than Domestic production
Threat for potential group
Due to free trade agreement with china leads to lack of competition.
Recommendation:
PAK CHINA ECONOMIC CORRIDOR
Pakistan should create stability In its terrority to implementation on that plan
To make positive balance of trade Pakistan should increase exports
Agriculture products Textile products Leather
Precious stone
Sports goods
Textiles products
Maintain favorable balance of trade
RECOMMENDATION:
PAK CHINA ECONOMIC CORRIDOR
• Restriction on that commodities which is harmful for our industries
• To make a frame work to use Domestic currency for trade (barter system)
• Develop auto industries rather than focusing on import parts.
PAK CHINA ECONOMIC CORRIDOR
RecommendationsShould provide
latest technology
Think tank should
collaborate by both countries
Implementations of
agreements should be addressed
RECOMMENDATION:
Pakistan should implement and handle policies up to the mark
Utilization of raw material and value added
process should be done in Pakistan
PAK CHINA ECONOMIC CORRIDOR
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Recommendations
Make efforts to diversify market in China
Security issues, law and order system are main obstacles in the way of Pak-china economic corridor
Pakistan should develop the training centers and Chinese language centers in order to make effective communications
PAK CHINA ECONOMIC CORRIDOR
CONCLUSIONNatural Gateway for China
Positive response by both countries through mutual cooperation
Both countries are keen to enhance trade activities
PAK CHINA ECONOMIC CORRIDOR
PAK CHINA ECONOMIC CORRIDOR
CONCLUSION:Infrastructural improvement and Development
of Dams
Stability of economy by investment in different sectors
“our friendship is “higher than the mountains, deeper than the oceans, stronger than steel, dearer than eyesight, sweeter than honey”.
Thank you PAK CHINA ECONOMIC CORRIDOR
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