The China-Pakistan Economic Corridor is the trade gateway for China to the deep sea of Pakistan, which will be very beneficial for the economies of both the countries, after its construction.
Pakistan and China are not only the atomic powers of the world, but also they have good economic relations. China has invested in many projects in Pakistan, for the development of Pakistan. China always wants a strong and developed Pakistan. For making this friendship relation more strong, the Chinese President Xi Jinping is coming to Pakistan in the month of April, 2015. During his tour to Pakistan, many mega-projects will be signed between the governments of both sides, in which one of the most important and valued project is the project of China-Pakistan Economic Corridor.
China-Pakistan Economic Corridor is the project of highways, railways and pipelines for the transportation of oil, gas and to continue many other trades. This corridor will prove itself as the economic gateway for China to the Middle East and Africa. Kashgar,China will be the starting point of the highway and its destination will be Gwadar,Pakistan. The route of this highway will pass through all the provinces of Pakistan, including AJK and Gilgit Baltistan. The total length of the highway is being estimated up to 3,000km and cost of $45 billion is the initial estimated cost of this mega-project. This project is expected to be completed up to 2030.
The finance for China-Pakistan Economic Corridor will be provided by both the countries, instead of taking financial from the international banks. Hence, the financial from the banks can be taken, according to the need of time.
The concept of this project was given by the Chinese Premier Li Keqiang. Later on, this project was appreciated and supported by the Chinese President Xi Jinping, Asif Ali Zardari (former Pakistani President) and the PM of Pakistan Mian Nawaz Sharif.
This project is strategically very important and beneficial for the economies of both the countries. After its completion, China would have access to the Middle East and Africa, through the Gwadar Port of Pakistan. In exchange, China will start the development projects in Pakistan and will help Pakistan to get rid of the energy crisis. Hence, the economy of Pakistan will get established.
As 40% of the world’s oil is extracted from the Gulf region and for its transportation, Persian Gulf is being used. So China wants to be the part of this trade, by using Gwadar Port. Beside this, China will look after the activities of India and America in the Indus Ocean.
In exchange, China will make Gwadar, an economic hub of Pakistan and also of the whole the region. China is also upgrading the Karakoram highway, which was built in 1979. Many development projects are completed and many are being started by China in Pakistan, like metro bus service in Islamabad-Rawalpindi, Multan, Gujranwala, Faisalabad and Karachi, Orange-Line metro train in Lahore etc. The project of Karachi-Lahore motorway is under-construction and it will be completed in the near future. The length of this motorway is 1240km and China is cooperating Pakistan in the construction of this motorway. The Islamabad-Hazara motorway is being constructed with the cooperation of China. Moreover, the route of China-Pakistan Economic Corridor will be the reason of development in the areas adjacent to it.
Published on http://www.pkviral.com/benefits-of-china-pakistan-economic-corridor/