ONE BELT ONE ROAD CHINA PAKISTAN ECONOMIC CORRIDOR Abdul Qadir Memon Consul General of Pakistan Hong Kong SAR
ONE BELT ONE ROAD
CHINA PAKISTAN
ECONOMIC CORRIDOR
Abdul Qadir Memon
Consul General of Pakistan
Hong Kong SAR
OBOR Features
Expanding the market: Easier access to
Chinese products
Creating regional growth
Creating land and maritime link to developing
neighboring countries and beyond
Lower cost of transportation
Ensure Energy/resource security
Develop western regions of China
OBOR Funding
Up to US$240 billion fund for OBOR related
projects:
China’s Silk Road infrastructure fund: US$40 billion
Asian Infrastructure Investment Bank (AIIB): US$100
billion
New Development Bank of the BRICS countries (NDB):
US$100 billion
OBOR Corridors
1. China - Pakistan Economic Corridor
2. China - Mongolia - Russia Economic Corridor
3. Bangladesh - China - India - Myanmar Economic Corridor
4. New Asia-Europe Continental Bridge
5. China - Central Asia - West Asia Economic Corridor
6. China – Indochina Peninsula Economic Corridor
Bilateral MoU
Prime Minister Muhammad Nawaz Sharif’s visit to China in July 2013 –
his first official overseas trip since assuming office – marked a new phase
in the development of the relationship by putting economic cooperation
and connectivity squarely at the center of the bilateral agenda
CPEC – Institutional Structure
Joint Cooperation Committee
(Co-Chaired by Minister PDR and Vice Chairman
NDRC)
Planning
Joint Working Group
Energy
Joint Working Group
Transport Infrastructure
Joint Working Group
Gwadar
Joint Working Group
Industrial Parks/Economic Zones
Joint Working Group (To be formulated)
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Badin
GwadarThattaKarachi
Tharparkar
Tando Muhammad Khan
Dadu
Sibi
Uthal
Kohlu
Kalat
MultanVehari
Kachhi
Chagai
Washuk
Quetta
Nushki
Kharan
Turbat
Barkhan
Lodhran
Matiari Sanghar
Umerkot
Mastung
Panjgar
Khuzdar
Khanewal
Rajanpur
Kashmore
Jamshoro
Jacobabad
Shikarpur
Hyderabad
Pakpattan
BahawalpurDera Bugti
Mirpur Khas
Muzaffargarh Bahawalnagar
Rahim Yar Khan
D.G.Khan
Naushahro Feroze
Dir
Swat
TankWana
Zhob
Hangu
Bannu Karak
Swabi
Okara
Kasur
Jhang
Bajaur
Attock
Mardan
Layyah
Jhelum
Gujrat
Lahore
Ziarat
Chitral
Bhakkar
Shan
gla
Narowal
SailkotKhushab
Chiniot
SahiwalLoralai
Malakand
PeshawarNowshera
Mansehra
Mianwali
Sargodha
Sheerani
Charsadda
Hafizabad
Musa Khel
Abbottabad
IslamabadRawalpindi
Gujranwala
Faisalabad
Lakki Marwat
NankanaSahib
Qila Abdullah
T.T.SinghQila
Saifullah
Mindi Bahauddin
D.I.Khan
QambarShahdadkot
Dera Murad Jamali
Shaheed Benazirabad
Bagh
Neelum
Mirpur
Ghizer
Diamir
Astore
Hattian
GhancheKohistan
Muzaffarabad
Bhimber
Gojra
Nag
Hoshab
Chaman
Taftan
Chakothi
Kalam
BesimaRatoDero
DaryaKhan
Awaran
Surab
Battagram
Raikot
Pishin
Khairpur
H
MashkaiH
H Wadh
Sakrdu
N5
N110
S3
S1
N105
N305
N125
N120
N95
N85
N55
N70
N65
N50
N45
N40
N30
N25
N15
N10
M8
N155N255
M8
N75
N80
S2
N655
N35
China – Pakistan Economic Corridor
GWADAR – KHUNJRAB ROUTES
N5
N85
N10
N5
Larka
na
Chakwal
Khunjrab
National Highways
LEGEND
National Highways Total Length: 12,131 Km
N55
N55
N50
N25
Sukkur
M3
M4
M2
M1
M9
Long Term Alignment
Western PassageKhunjrab – Gwdar = 2,459
Km
Eastern PassageKhunjrab – Gwdar = 2,769
Km
Central PassageKhunjrab – Gwdar = 2,542
Km
KKH (N-35)Khunjrab – Burhan 784
Km
Bin Qasim Port14
Progress of CPEC
6th JCC held in Beijing, Dec 29, 2016,
expressed satisfaction over the progress of
CPEC projects
Two new projects for each province added in
CPEC
Two Economic Zones for each province
prioritized for early action
First Trade Convoy
Special Security Division
Trade Convoy18
Operationalization of CPEC through launching
of first ever mega trade convoy, transporting
goods from Kashger to Gwadar, November
2016
Opportunities in Pakistan
20
CPEC
Parallel Economic Activity
Allied Opportunities of CPEC Projects
Projects outside CPEC
Proposed Special Economic Zones22
Region No of SEZs
Khyber Pakhtunkhwa (KP) 17
Balochistan 9
Sindh 4
Punjab 4
Gilgit-Baltistan 1
Islamabad Capital Territory 1
AJK 2
FATA 1
TOTAL 39
SEZs Incentives
Developers
one time duty exemption for plant and equipment
imported into for the development operation and
maintenance of a SEZ entity;
exemption from all taxes on income accruable in
relation to the development and operation of the SEZ
for a period of ten years
Zone Enterprises
exemption from custom duties and taxes on imports of
plant and equipment into the SEZ for installation
therein;
exemption from all taxes on income for a period of ten
years
23
GSP plus- unexplored potential24
Under GSP Plus Scheme, products produced
in Pakistan can be exported to European
market free of duty
Duty free access in EU coupled with low cost
of production in Pakistan, will give competitive
advantage to China, if Joint Ventures are
established and production base is shifted to
Pakistan
27
Shanghai
Karachi
China
Pakistan
Gwadar
Beijing Kashgar
Persian Gulf
Present Route for Oil Cargo to Upper
China (10,500 Km)27
Criticism on CPEC
Colonialism/Imperialism
Influx of Chinese population
Debt burden
Infant industry competition
Opportunities for Hong Kong
Infrastructure
“Many Hong Kong contractors are ranked very
high on a global scale and have the qualities and
resources to pursue infrastructure opportunities
along the belt and road”
Finance
raise funds for the Asian Infrastructure Investment
Bank (AIIB) via bond offerings, developing yuan
products, or providing project financing for
individual companies
Energy Projects -Under
Implementation
No. PROJECTS MW
1 Port Qasim Electric Company Coal Fired, Sindh 1320
2 Sahiwal Coal-fired Power Plant, Punjab 1320
3 ENGRO Thar Coal-fired, Thar, Sindh 1320
4 HUBCO Coal Power Plant, Balochistan 660
5 Gwadar Coal Power Project (Final stage of discussions) 300
6Surface Mine in Block II of Thar Coal field, 6.5 Metric Ton
Per Annum, Thar Sindh
7 Quaid-e-Azam Solar Park, Bahawalpur, Punjab 300
8 UEP Wind Farm, Jhimpir, Sindh 100
9 Dawood Wind Farm, Bhambore, Sindh 50
10 Sachal Wind Farm, Jhimpir, Sindh 50
11 Suki Kinari Hydropower Station, KPK 870
12 Karot Hydropower Station, AJK & Punjab 72037
Transport Infrastructure38
No. PROJECTS KM
Roads
1 KKH Phase II (Thakot- Havelian Section) 118
2 Peshawar-Karachi Motorway (Multan-Sukkur Section) 392
Rail Sector Projects
3Expansion and reconstruction of existing Line ML-1
and establishment of Havelian Dry Port1,872
Gwadar Projects 39
No. PROJECTS
1 Gwadar - Free Economic Zone
2 Eastbay Expressway
3 Gwadar International Airport
4 Construction of Breakwaters
5 Dredging of berthing areas & channels
6 Infrastructure for Free Zone & EPZs port related industries
7 Necessary Facilities of Fresh Water Treatment and Supply
8 300 MW Coal Fired Power Plant
9 Pak China Friendship Hospital at Gwadar
10 Technical and Vocational Institute at Gwadar
11 Gwadar Smart Port City Master Plan
Other Projects 40
No. PROJECTS
1 Cross Border Optical Fiber Cable
2Digital Terrestrial Multimedia Broadcast
(Pilot project completed)