CPEC
- Launched | 2015 | $62-billion CPEC project.
- CPEC: part of China’s Belt and Road Initiative (BRI).
- CPEC: The 3,000-kilometre infrastructure network.
- CPEC: loaned and built/to be build by China.
- Why: to connect Gwadar and Karachi ports to Xinjiang through road.
CPEC-II dead?
- May 2024: the 13th Joint Cooperation Committee (JCC) meeting | Pakistan requested for Chinese investment (through loans) worth over USD17 billions for infrastructure projects.
- Pakistani Prime Minister Shehbaz Sharif: in China | June 4 to June 8.
- Why: was expecting major Chinese investment under CPEC-II.
- Why: was looking at revival of almost dead CPEC.
- The China-Pakistan Economic Corridor was expected to be formally launched.
- Outcome: Pakistan only could get some modest support.
- Nikkei: “China rebuffs Pakistan’s Sharif on new BRI investment.”
- Outcome: 32-point joint statement | with no new deals.
- Just verbal assurances: “forging an ‘upgraded version’ of CPEC by jointly building a growth corridor, a livelihood-enhancing corridor, an innovation corridor, a green corridor and an open corridor.”
Some modest gains (but not CPEC phase 2)
- Main-Line-1 (ML-1) railway project: $6.7-billion loan | to be given in stages | and only for its first phase | not a new project | to modernize colonial era rail line | from Karachi to Peshawar.
- Upgradation of a part of Karakoram Highway: Thakot – Raikot section to make it weather-free | not commutable in winters due to heavy snowfall | the highway connects China to Pakistan.
- But no response to Pakistan’s demand of Chinese investments (through loans) worth over USD17 billion.
The USD17+ billion hopes failed
- 9 energy and infrastructure projects in Pakistan.
- Diamer Basha dam
- Mainline-I project of the Pakistan Railways (funding only first phase).
- Azad Patan power project
- Kohala hydropower project
- Gwadar coal-fired power plant
- Panjgor-Mashkoor road
- Hyderabad-Sukkur motorway
- Zhob – Quetta road
- Quetta-Karachi road
CPEC-I already a failed initiative?
- CPEC Phase 1 Chinese Investment | through loans | USD28 billion.
- 95 projects | USD33 billion investment in energy sector.
- 21 power projects proposed | 24 transportation projects proposed | 9 SEZs proposed.
- 14 power projects done (8500 megawatts) | 2 under construction | 5 are on papers so far.
- 6 transportation projects done | 13 are on papers so far.
- Out of 9 SEZs proposed | 4 are under construction so far.
- Job generation promised: 2 million+ | generated so far | not even 250,000 | Pak government data.