“CGSS is a Non-Profit Institution with a mission to help

improve policy and decision-making through analysis and

research”

Copyright © Center for Global & Strategic Studies (CGSS)

All rights reserved

Printed in Pakistan

Published in April, 2017

ISBN 978 969 7733 05 7

Please do not disseminate, distribute or reproduce, in whole or part, this report

without prior consent of CGSS

CGSS
Center for Global & Strategic
Studies, Islamabad

3rd Floor, 1-E, Ali Plaza, Jinnah Avenue, Islamabad, Pakistan

Tel: +92-51-8319682
Email: info@cgss.com.pk Web: www.cgss.com.pk
 Abstract

Belt & Road Initiative (BRI) is a massive project which can be termed as a revival of the Ancient Silk Road in order to
materialize the Prophecy of Asian Century through the economic expansion and infrastructural build-up by China. The project
comprises of two major components that are: 21st Century Maritime Silk Route (MSR) and Silk Road Economic Belt (SREB)
which is further distributed in six overland economic corridors where China-Pakistan Economic Corridor (CPEC) is one
significant corridor. The project holds massive importance for China in particular and all the other stakeholders in general and
will provide enormous opportunity for the socio-economic as well as the infrastructural development of many countries across
the globe. The rationale behind China’s massive investment in this project is to attain global domination through geopolitical
expansions. China’s economic activities and investment are directed to the promotion of global trade. Although the
commencement of the project met with skeptical views as for few specific countries, it is China’s strategic policy to upsurge and
enhance its military and economic presence in the World especially in the Indian Ocean and emerge as an economic giant by
replacing USA’s superpower status. However, the China-Pakistan Economic Corridor (CPEC) being the most important in terms
of its strategic location caters the attention of many countries who are willing to become a part of this gigantic project. CPEC
will provide China with direct access to the warm waters of Indian Ocean along with the deep sea port in Gwadar. The
development of this project will provide Pakistan with an opportunity to overcome its dire need of infrastructural and economic
development. Therefore China and Pakistan must try to overcome all the obstacles that are hindering the progress of such an
important project which has yielded a win-win solution for both the states.
Table of Contents

Introduction.................................................................................................................................................. 1
Ancient Silk Routes ...................................................................................................................................... 1
Belt & Road Initiative (BRI) ........................................................................................................................ 2
21st Century Maritime Silk Road (MSR) ..................................................................................................... 5
Route of Silk Road Economic Belt (SREB) .................................................................................................. 5
China - Mongolia - Russia Economic Corridor (CMREC) ........................................................................ 6
New Eurasian Land Bridge (NELB) ........................................................................................................... 7
China - Indo - China Peninsula Economic Corridor (CICPEC) ............................................................... 8
The Bangladesh - China - India - Myanmar Economic Corridor (BCIMEC) .......................................... 9
China-Pakistan Economic Corridor (CPEC) ............................................................................................. 9
Introduction by the merchants for trade and commercial purposes in the

The movement of human beings from place to place for the ancient world.

purpose of trade and exchange of goods, skills, and ideas is The Silk Road consisted of two trade routes one from
a survival skill adopted since centuries. Even in the past, the Mediterranean to Central Asia and the second was from
Eurasia was crisscrossed with the routes of communication Central Asia to China. The Silk Road expanded from China
and trade paths. through different countries including India, Asia Minor,

Center for Global & Strategic Studies

Britain, Mesopotamia, Rome, Greece, Egypt, and the
Belt & Road Initiative (BRI) initiative is a gigantic project
African continent. Whereas a major proportion of trade
that consists of both land and sea routes to expand the global
carried out through sea trade routes through which many
free trade to attain the economic development across the
trade goods reached Rome via Mediterranean and the goods
world. The project is the revival of the Ancient Silk Road
from the Central Asia found their way to Japan via the
between China and rest of the world. BRI will connect
Pacific Ocean.1
different regions for trade liberalization and globalization
that will not only help China to emerge as a superpower but
will also help the participating countries to overcome the
economic, social, and political discrepancies that are causing
a great deal of disruption in the progress and economic
development of these countries.

BRI in its full potential is a promising change in the global 1

dynamics of power that will shift the power equilibrium in
China’s favor causing a security dilemma for the United
States of America (USA) and its allies who are already .Map of the Silk Road – Land Route in red and Ocean Routes
perceiving threats from the Chinese economic expansion. in Blue Source: NASA

This paper has highlighted different aspects of Belt & Road Later on, the export of other goods also started through the
Initiative (BRI) initiative by China through putting a great ancient Silk Road where more than the trade of Silk other
emphasize on China-Pakistan Economic Corridor, which is goods also started to take up prominent proportion in the
one of the six economic corridors under BRI and due to the total trade which included: Olives, Olive Oil, Spices, as well
strategic location of Pakistan this project is of utmost as human resource which was in high demand to carry out
importance for both Pakistan and China. labor work. China used to export things like Jade, Silver, and
Iron. However, China was not the only country which
Ancient Silk Routes attained benefits through this route, other countries such as
Formally established during the Han Dynasty of China (206 India and the European states also become a part of this trade
BC–220 AD), Silk Road is one of the oldest trade routes in route to export things like Ivory, spices and oyster shells.
the world. The Silk Road is closely associated with China
and has a long history of political and economic success. It With the growth of trade via Silk Road the nomadic people

was a network of various trade routes that were a linkage of Central Asia attained access to the global economy and

between China and various Asian countries and were used international markets.

1
Mark, J. J. (2014, march 28). Silk Road. Retrieved from
Ancient History Encyclopedia :
http://www.ancient.eu/Silk_Road/
 Silk is one of the most luxurious fabric and has been language, art, philosophy, science and technology in fact
exclusively associated with China as Chinese held expertise almost all the component of civilization were exchanged
in processing silk the techniques adopted in culturing the silk through the Silk route. The trade of paper and gunpowder
worms is unique. China closely guarded these techniques which were also a Chinese invention had a vital cultural
because economic benefits by the Silk production was the impact on other cultures and empires. Coming on to the
lion's share of China’s economy. However, in the 7th century, negative aspect of this route usually plague and other
the West succeeded in identifying these techniques. Silk was diseases also traveled through this route, for instance, the
Center for Global & Strategic Studies

the most preferred commodity for the merchants in those Bubonic Plague in 542 AD and Black Death in the years
days especially from the Central Asian region. Therefore, 1346-1353 traveled to Europe through this Silk route. The
they used horses, hides (animal skin), furs, and luxurious closure of Silk Road forced merchants to use the sea routes
items such as Jade and Ivory in exchange of Silk to China. that played an important role in initiating the age of
Other commodities traded through the silk route were discovery between the years 1453-1660 CE (Common Era)
Carpets, Jewels, Amber, Metals, Dyes, Drugs, and Glass. that ultimately led to the beginning of a global community
The traders also introduced new commodities to the Chinese referred to as globalization today.4
such as Cucumbers, Figs, Alfalfa, Walnuts, Pomegranates,
Chinese Trade Patterns
and Sesame Seeds, apart from that, skills such as the making
of wine using grapes were also introduced to the Chinese. According to an estimate by the Economic Complexity
Hence, this is how the exchange of trade commodities and Index (ECI), China is the largest trade economy in the world
skills transferred from one region to another. 2 and ranked as the 38th most complex economy. In the year
2
2015, China’s exports and imports were $2.37 Trillion and
During the time period of Han dynasty, the Central Asian
$1.27 Trillion respectively, and its Gross Domestic Product
nomadic tribes started attacking the trade caravans which led
(GDP) was $11 Trillion in the same year. With the advent of
to the closure of borders. The trade was then resumed during
technology now the Chinese exports comprise of
the Tang Dynasty from 618 AD until 760 AD when the Tang
Computers, Broadcasting Equipment, Telephones,
Dynasty lost its control over the western part. The trade on
Integrated Circuits and Office machine parts. The bulk of the
the Silk Road reached its zenith during the Yuan Dynasty
Chinese trade is directed towards the countries such as
(1271-1368), at that time China was heavily dependent on
Japan, United States of America (USA), Germany, Hong
its silk trade. During his rule, Genghis Khan unified a large
Kong, South Korea and other Asian regions including South
empire of China by conquering all the small states. Slaves,
and Central Asia.5
medicines, precious stones and perfumes were exchanged
for silk. The routes were ceased when the Ottoman Empire
Belt & Road Initiative (BRI)
boycotted the trade with the west.3 Belt & Road Initiative (BRI) initiative is a revival of the

The Silk Road was not only important for the trade of ancient Chinese Silk Road in order to materialize the

commercial goods, but it was also significant for the spread prophecy of the Asian Century. BRI is a string of projects

of Buddhism and exchange of architecture, culture, that connects the Baltic Sea with the Pacific Ocean via roads,

2 4
About the Silk Road. (n.d.). Retrieved from United Mark, J. J. (2014, march 28). Silk Road. Retrieved from
Nations Educational Scientific and Cultural Organization Ancient History Encyclopedia :
(UNESCO): http://en.unesco.org/silkroad/about-silk-road http://www.ancient.eu/Silk_Road/

3 5 http://atlas.media.mit.edu/en/profile/country/chn/
http://www.chinahighlights.com/silkroad/history.htm
railway network, and sea lanes for free trade. The “Grand this grand vision of BRI where high-speed railway projects
Dream” was unveiled during the visit of the Chinese have been initiated. However, a major chunk of the Grand
President to Kazakhstan and Indonesia in the year 2013. Chinese Dream covers the region of Asia where countries
from the Central Asia, Middle Eastern States, and the South-
The One Belt One Road is a gigantic project that has catered East Asian States have readily accepted the economic
the interests of many countries across the world, and with the development proposals of China. The Asian countries which
enormous expansion of this venture, it can be speculated that are a part of BRI includes; Brunei, Cambodia, Indonesia,

Center for Global & Strategic Studies

the project will be proficient and beneficial for China and Laos, Malaysia, Myanmar, Philippines, Singapore,
other stakeholders. China is planning to invest its $3.2 Thailand, Timor-Leste, Vietnam, Bangladesh, Bhutan,
Trillion in Foreign Exchange Reserves to increase its India, Maldives, Nepal, Pakistan, Sri Lanka, Afghanistan,
influence over different countries and regions across the Armenia, Azerbaijan, Georgia, Iran, Kazakhstan,
world. Kyrgyzstan, Mongolia, Tajikistan, Turkmenistan,
Uzbekistan, Bahrain, Iraq, Israel, Jordan, Kuwait, Lebanon,
The project will cost approximately $21.1 Trillion. The
Oman, Palestine, Qatar, Saudi Arabia, Syria, Turkey, UAE,
project will elevate the economic standings of the 65
Yemen. Furthermore, China and Russia are also
participating states to the zenith of progress and
collaborating under the BRI initiative by developing the
development that constitutes about 80 percent population of
Siberia gas pipeline project.
the world.

Recently China is going to launch a high-speed railroad

Being the official policy, BRI is deemed as the part of
project that will cost approximately $6 Billion it will connect
3
China’s global economic strategy by the National
Vientiane; the capital city of Laos to China. Besides that,
Development and Reform Commission and the Ministries of
another rail project has been finalized in Indonesia.
Foreign Affairs.

China is also planning to establish two railway projects in

The essence of Chinese involvement through BRI is based
India; the first one is from Mumbai to New Delhi and the
on loan financing rather than aid or Foreign Direct
second one is from New Delhi to Chennai.6
Investment (FDI) making it an important factor for, both,
creditors and debtors. Under the vision of BRI, China is massively investing in Sri
Lanka for the development of deep seaport to facilitate trade.
The beneficiaries of this Belt & Road Initiative (BRI)
The investment will mainly direct towards the infrastructural
initiative includes countries from all continents. African
development to provide China with a formal base to further
countries such as Tanzania, Zimbabwe, Nigeria, South
enhance its naval presence in the Indian Ocean.
Africa, Congo, Chad, Mozambique, Malawi, Sudan, and
Kenya have accepted to become a part of the BRI. The Once this BRI initiative fully materializes, it will have a
Eastern and Central European countries such as Albania, remarkable impact on the economic development of
Bulgaria, Bosnia and Herzegovina, Belarus, Croatia, Czech participant countries along its roadmap.
Republic, Latvia, Lithuania, Macedonia, Moldova,
Montenegro, Romania, Russia, Serbia, Slovakia, Slovenia, Being home to about 20 percent population of the world,
Ukraine, Estonia, Poland and Hungary are also the part of China has successfully managed to become the largest

6 Khattak, A. R. (2016, August 24). BRI and CPEC.

Retrieved from Dawn :
https://www.dawn.com/news/1279479
 economy in the world regarding its purchasing power, The BRI contains several important mega-projects and has
surpassing the United States of America. China is still two major components which are: the 21st Century Maritime
considered to be a developing nation, but through its forward
thinking, it has attained great opportunities for the
exploration of economic resources globally with the help of
a massive working class. Contrary to that, the developed
countries such as the US and Western European countries
Center for Global & Strategic Studies

have already seemed to have exploited their human as well

as natural resources for progress and development.
However, China still has a cushion to maneuver its strategic
policy disguised in economic investments across the globe.

China is well aware of its strengths and weaknesses.

Therefore, the country has now shifted its focus towards the
Silk Road (MSR) and the Silk Road Economic Belt (SREB);
development of infrastructure for sustainable growth and
the former is a sea route plan which links different seaports,
expansion. The (BRI) project has drawn China to develop
and the latter is the overland network of rail and roads
infrastructure for new markets and establish good economic
network.
and strategic economic relations with the countries of Asia,
Europe, Africa, and Latin America to create a mutually
beneficial situation. BRI is financed by the Asian
Infrastructure Investment Bank (AIIB). 7

7
http://issi.org.pk/wp-
content/uploads/2015/12/Shafei_Moiz_and_Tan_and_Sume
ra_3435_SS_41_20142015.pdf
21st Century Maritime Silk Road (MSR)

Maritime Silk Road (MSR) is one of the two components of communication infrastructure which will include a web of
the Belt & Road Initiative (BRI) project. The route will connections through roads, highways, and railways routes. It
encompass a string of different sea ports hence, making an comprises of six corridors which are as follow:
exclusive maritime route which originates from the Guangxi
Zhuang Autonomous Region in South Central China near the 1) China - Mongolia - Russia Economic Corridor

Center for Global & Strategic Studies

border of Vietnam and Yunnan province in southwestern (CMREC)

China and will connect various sea ports throughout its route 2) New Eurasian Land Bridge (NELB)

that will start from the South China Sea, and will be passing 3) The China - Central and West Asia Economic

through the Andaman Sea, the Bay of Bengal, the Arabian Corridor (CCWAEC)

Sea, the Persian Gulf and will end at the Baltic Sea. 4) China - Indo - China Peninsula Economic Corridor
(CICPEC)
Route of Silk Road Economic Belt (SREB) 5) The Bangladesh - China - India - Myanmar
Economic Corridor (BCIMEC)
The Silk Road Economic Belt (SREB) is the second 6) China-Pakistan Economic Corridor (CPEC) 8
component of BRI project that comprises of overland

BRI with both Silk Road Economic Belt and Maritime Silk Road Initiatives9

“If you want to be rich, you must build roads” is an old infrastructure and revamping of ports. All of this is actually
Chinese proverb which explains the entire mindset behind directed towards the development of a regional economy
the establishment of such an extensive road and railway which China will lead to fulfilling the mantra of “Asian

8 9
https://www.linkedin.com/pulse/chinas-6-magical- http://investin.pk/index.php/2017/01/17/one-belt-one-
economic-corridors-one-belt-road-silk-syed-gilani road/
 Century.” The funding for the project will be rendered from This skeptic behavior and trepidations by these states will
different sources including Asia Infrastructure and not only trigger and bolster the Military and Naval
Investment Bank (AIIB), the BRICS New Development capabilities of China but will also enhance the strategic
Bank, the China- ASEAN Interbank Association, SCO competencies of its allies.
Interbank Association and the Silk Road Fund.
China - Mongolia - Russia Economic Corridor (CMREC)
The Belt & Road Initiative (BRI) initiative will have a China is considering to build a new platform for the
Center for Global & Strategic Studies

significant impact on China and other participants of this economic development between China, Russia, and
mega project where China will be at the forefront of the Mongolia. The trilateral economic corridor is one of the six
connectivity between different regions of Asia and will put trade corridors that China is deeming to develop under the
together trade investment mechanisms by keeping the routes BRI initiative.
viable and through up-gradation of Infrastructure. BRI will
be the dawn of Asian Century by triggering a change in The construction of the China-Mongolia-Russia Economic

global power dynamics through a major policy shift by Corridor would connect China’s Silk Road Economic Belt

different countries. to Russia’s transcontinental rail plan and Mongolia’s Prairie

Road program. The establishment of high-speed rail link is
Skeptical Views about BRI still just an idea. The CMREC will cost $230 Billion, and a
high-speed railway line project will link Beijing and
There are many countries who are skeptical about the Moscow through the Mongolian capital Ulaanbaatar via a
6 development and success of BRI. They are of this view that high-speed railway line project. It would reduce 7000-km
the Chinese benevolence and all economic activities of journey from six days to just two days. The China -
China are to achieve global dominance. The growing Mongolia - Russia Economic Corridor (CMREC) would
influence and economic presence of China in the shape of bring economic benefits to all the participating countries and
investments and loans to various countries especially in the will serve as a major boost to the economic advancement of
backyard of United States of America (USA) which is Latin Eurasia. It will also boost the cooperation among the
America is perceived as a major threat to the West and participating countries in railways, roads, energy resources,
especially the USA. Therefore, the USA is trying to counter logistics, transportation and agricultural sectors.
China’s growing influence through a containment policy.
Although it is clearly evident that it is not easy to deter China
from pursuing its “Grand Dream” as now it has become an
economic giant which has support from almost half of the
World.

This growing economic and strategic influence of China

across the globe is perceived as a threat to the US hegemony
and is a matter of concern for the US allies such as India and
Japan who are quite skeptic and suspicious about the
progress and development of BRI due to the dwelling
conflict of interest between China and these countries.
The Route of China-Mongolia-Russia Economic Corridor
(CMREC)
New Eurasian Land Bridge (NELB)

The New Eurasian Land Bridge (NELB) is also known as

The China - Central and West Asia Economic Corridor
the Second Eurasia Land Bridge. The aim of the project is to
(CCWAEC
create an uninterrupted connection between major cities of
China, such as Lianyungang, Chongqing, Lanzhou, Xian, The China-Central and West Asia Economic Corridor

Wuhan, and Urumqi to the Western European cities like (CCWAEC) is considered to be developed under the BRI.
The project would run from Xinjiang province of China via

Center for Global & Strategic Studies

Rotterdam and Duisburg in Germany. Using the Chinese
internal railway system under this corridor, the Chinese Alashankou, on the China-Kazakhstan border, to join the

goods will reach Xinjiang, and from there the route will existing railway networks between Central Asia and the

cross Kazakhstan, Russia, Belarus, Poland and the Czech Middle East. The corridor will cover the Central Asian

Republic ultimately reaching the shore of Atlantic Ocean. Countries of Kyrgyzstan, Kazakhstan, Uzbekistan,

The main objective of the NELB is to promote inter-state Tajikistan, Turkmenistan, and Afghanistan as well as Iran

cooperation by strengthening railway connectivity through and Turkey. The corridor is in the developmental phase

high-speed rail technology. The NELB is directed towards where the different parts of the corridor are under

establishing a connection between Moscow and Beijing construction, and some had already been constructed based

through a high-speed railway line that would be 4350 miles on the individual efforts of the participating countries. For

long which will shorten the traveling time from six days to instance, the Kamchiq Tunnel in Central Asia and the

two days only. The project is expected to cost more than Angren-Pap railway line in Uzbekistan have successfully
been completed with the assistance from the China Rail
$230 billion.10 Whereas, in the latest news, a train carrying 7
goods to London reached in 21 days which is the shortest Group Limited to enhance the connectivity between China

recorded time until now. and Central Asia. Furthermore, in September 2016 a railway
connection was also inaugurated between China and
Afghanistan which will shorten the traveling time.
CCWAEC will also help in supplying the Central Asian gas
reserves to China through China-Central Asia Gas
Pipeline.11

The Route of New Eurasian Land Bridge (NELB)

10 http://www.iags.org/Luft_BRI.pdf 11
http://www.iags.org/Luft_BRI.pdf
Center for Global & Strategic Studies

The Route of China-Central and West Asia Economic Corridors (CCWAEC)

China - Indo - China Peninsula Economic Corridor Chinese city of Nanning. From there, additional

(CICPEC) connectivity nodes would be extended to the major

The China-Indo-China Peninsula Economic Corridor economic hubs of Guangzhou and Hong Kong, thus forming
8 a web connecting ten cities with a cumulative population of
(CICPEC) is also known as Nanning-Singapore Economic
Corridor. The project aims at connecting eight major cities over 50 million. The CICPEC reflects China’s strategic

which include: Kuala Lumpur, Singapore, Phnom Penh, decision to create an outlet to the South China Sea from its

Bangkok, Ho Chi Minh City, Hanoi, Vientiane, and the southwestern provinces.12

The Route of China-Indochina Peninsula Economic Corridor (CICPEC)

12
http://www.iags.org/Luft_BRI.pdf
 BCIMEC the traveling distance will reduce to 400-700 KM,
The Bangladesh - China - India - Myanmar Economic hence, reducing the traveling cost and time of the traded
Corridor (BCIMEC) goods and will provide a gateway to the landlocked areas of
The conceptualization of Bangladesh- China-India- India and China as well.
Myanmar Economic Corridor (BCIMEC) is deemed at
gaining significant advantages via sub-regional economic The project will be a combination of rail and road networks

cooperation. Being a multi-model corridor the project as well as the air and sea ports which will incorporate

Center for Global & Strategic Studies

contains expressway which will be the first of its kind that approximately 440 million inhabitants of the Bangladesh,

will join India and China, passing through Bangladesh and Myanmar, Yunnan province of China and West Bengal in

Myanmar. The project received the formal endorsement in India. This region produces about one-tenth of the total GDP

the year 2013 following the government level visits between of the world. After the operationalization of this corridor,

the respective countries. BCIMEC will facilitate an interconnected cross-border

movement by seamless connectivity and will help to
mitigate trade impediments by ensuring smooth access to
the intra-regional markets and will enhance multilateral
trade.14

The commencement of this project is specifically in the

interest of Bangladesh and Myanmar which have been
experiencing a fragile economy along with a huge trade
9
deficit with the neighboring powerhouses China and India.
For instance, in the fiscal year of 2013, the exports and
The route of Bangladesh-China-India-Myanmar Economic imports of Bangladesh to India were $564 Million and $474
13
Corridor (BCIMEC) Million respectively while with China, the exports
accumulated to $458 Million and imports accumulated to
The initiation of multi-model transport project is envisaged
$6310 Million dollars. It is pertinent to mention the fact that
to accumulate access to the global markets for trade purposes
the bilateral trade between China and India in the year 2015
by establishing exclusive economic zones. Other objectives
carried an accumulated worth of $100 Billion.
of the project includes: abolition of non-Tariff barriers,
infrastructural development, joint exploration and The BCIMEC will receive investments from Asian
development of mineral, water and other natural resources, Development Bank (ADB), World Bank (WB), Islamic
facilitation of trade to develop efficient demand and supply Development Bank (IDB), and Japan, who has lately started
chains, attracting the investment from the neighboring BRIC showing a keen interest in this multi-pronged project.
countries, and establishment of cordial relations through
people to people contact to attain comparative advantages China-Pakistan Economic Corridor (CPEC)
hence making it a win-win situation for all the participating China-Pakistan Economic Corridor (CPEC) is part of the
countries. great vision of Belt & Road Initiative (BRI) initiative. BRI
targets the Western Asia, Gulf States, the Central Asian
Currently, the intra-state trade in India and China covers a
Republics and Eastern Europe through CPEC. The
distance of 1600 KM and 2000 km respectively. Under the

13http://www.thedailystar.net/bcim-economic-corridor-an- Daily Star : http://www.thedailystar.net/bcim-economic-

emerging-opportunity-15533 corridor-an-emerging-opportunity-15533
14Rahman, M. (2015, March 08). BCIM-economic

Corridor: An emerging opportunity . Retrieved from The

 Map 1
investments under China-Pakistan Economic Corridor
(CPEC) will be directed towards the infrastructural build-up
of road and railway networks as well as energy projects.
Pakistan is an energy hungry country due to the fact that it is
experiencing population boom and increased economic
development. Following maps, elaborate the road, and
railway networks map 1 and map 2 respectively under
Center for Global & Strategic Studies

CPEC. The third map illustrates the CPEC Fiber Optic

Project

Map 2 Map 3

10
The CPEC is a framework for achieving regional economic integration but will also encourage academic and
connectivity. It will not only benefit Pakistan and China but cultural exchange between different countries.15
carries promising ventures for other regional states such as
Afghanistan, Iran, and Central Asian Republics (CARs). The Initially, China pledged to invest $46 Billion for CPEC in

project is directed towards the enhancement of geographical the energy and infrastructural developmental projects in the

linkages through the improvement of rail, road, and marine following manner:

transportation system. China-Pakistan Economic Corridor is

Center for Global & Strategic Studies

deeming to create mutually beneficial prospects through the
economic regionalization. It will not only enhance the

11

The Investment in different projects under CPEC16

Pakistan is an important economic as well as military ally of happenings in the international arena, and always sound
China. The historical cordial relations based on the warm and sweet. China has emerged as the largest trading
friendship between China and Pakistan is a mutual partner of Pakistan over the last few years and has always
geopolitical advantage for both the states. The relations supported Pakistan in economic and military issues.
between Pakistan and China are independent of the current

15 16
http://cpec.gov.pk/introduction/1 http://china-trade-
research.hktdc.com/resources/MI_Portal/Article/BRI/2016/
04/474089/1460080496674_SSRNid2710352.pdf
 China-Pakistan Economic Corridor (CPEC) being a part of Pakistan since 1970. The CPEC will have a compound
Belt & Road Initiative (BRI) initiative is of great strategic economic impact on Pakistan which is already in dire need
importance for China as it will offer direct access to the of projects for the infrastructural development.
warm waters of the Indian Ocean and will also provide a
geographical proximity to the Oil enriched the Middle
Eastern States.
Center for Global & Strategic Studies

Being a flagship project of China’s Belt & Road Initiative

(BRI) initiative, China-Pakistan Economic Corridor (CPEC)
own special significance due to its strategic location that no
other project can match. CPEC is the only corridor that is
connected to another corridor and provide the landlocked
countries with and an opportunity to access the sea. It also
provides China with direct access to the warm waters of
Indian Ocean and offers a deep sea port in Gwadar. The
corridor has enormous importance for China because it will
keep Chinese trade with Africa, Middle East, and other
western states unhindered. China is striving to tackle the
menace of terrorism in Pakistan through massive investment
12 in the economy and infrastructural development which can
be a key disruptor of the whole development process of this
mighty project worth billions of dollars.

The China-Pakistan Economic Corridor will pass through

the western provinces of Pakistan which are KP and
Baluchistan. In KP the construction of KKH and Suki Kinari
Hydropower Station under CPEC is in progress. Cross-
border Fiber Optical project also passes through KP. In
Baluchistan the development of Burhan-D.I. Khan and
Quetta-Sorab roads, Gwadar International Airport, Gwadar
economic zone, Gwadar coal-fired power plant and HUBCO
coal-fired power plant are in progress. 17

No other state have ever invested so massively in Pakistan

as China is doing with an investment of 46 billion dollars for
the development projects, not even the USA which has been
very benevolent regarding providing aid packages to
Pakistan cannot match the enormous investments by China.
The investment in CPEC will equalize with the cumulative
influx of Foreign Direct Investment (FDI) that have come to

17
http://www.cpecinfo.com/pci-cpec-founder
13

Center for Global & Strategic Studies