China-Pakistan Economic Corridor
A Game-Changer for the Region
By Harold Murphy
对于汶川地震后巴基斯坦对我国灾区的援助，很多人可能还记忆犹新。当时巴基斯坦是向中国灾区捐赠帐篷最多的国家之一，帐篷总数已超过两万顶。地震发生两天后，巴基斯坦总统穆沙拉夫即亲临中国驻巴大使馆，向中国人民表示亲切慰问，他说：“中国兄弟需要什么东西，我们就提供什么东西。”。穆沙拉夫表示，巴基斯坦遭遇南亚大地震后，中国的援助令巴基斯坦人民“记忆犹新”。这个将“中国是巴基斯坦的坚定盟友”写在小学课本上的国家，被我们亲切地称为“巴铁”。这就足见两国双边关系是多么地友好坚固。2013年5月，李克强总理访问巴基斯坦时提出“中巴经济走廊”远景规划。初衷是加强中巴之间交通、能源、海洋等领域的交流与合作，加强两国互联互通，促进两国共同发展。中巴经济走廊通过全方位、多领域的合作，有助于进一步密切和强化中巴全天候战略合作伙伴关系。它以瓜达尔港、能源、交通基础设施和产业合作为重点，既是中国“一带一路”倡议的样板工程和旗舰项目，也为巴基斯坦的发展提供了重要机遇，是中巴开展务实合作共同打造“命运共同体”的关键内容。
中巴经济走廊是具有针对性的“双赢”战略。从巴国方面看，“中巴经济走廊”建设将直接为当地民众提供大量工作机会，有效改善巴国基础设施滞后，助力巴国改善电力供给，推动巴国渔业、农产品、纺织等产品“走出去”，推动巴基斯坦摆脱经济困境的重大机遇。从中国方面看，“中巴经济走廊”带动了沿线一大批能源、电力、公路、铁路等基建重大项目，自然成为中企关注的焦点；中巴商贸、物流、教育等方面将迎来良好的合作机遇。从中巴能源需求看，“中巴经济走廊”从陆路开辟了通向中东的门户，以此为枢纽可把中国、波斯湾和阿拉伯海连接起来，开辟一条绕过马六甲海峡的内陆能源通道。
总体而言，“中巴经济走廊”有着举足轻重的战略意义。它可以拓展运输新通道，保障能源安全；促进经贸合作，带动经济发展，并扩大地缘影响力。是惠及双边的战略合作。
The China-Pakistan Economic Corridor, or CPEC, is an extensive and ambitious group of construction projects in Pakistan, which include the construction of railways, railroads, special economic zones and energy plants, as well as cooperation in the fields of agriculture, technology and science between China and Pakistan. Initially established on 22nd May, 2013, the economic corridor which is valued at $62 billion is still under construction.
Image: China's Proposed New Silk Roads, connecting Europe, Africa and Asia. The Kashgar-Gwadar route is indicated in brown, allowing for faster interaction with the Arabian Peninsula, Europe and Africa.Â
The main objective of CPEC is to modernize Pakistan and its economy and part of the projects - that have been used to transport Chinese cargo to Gwadar Port - are already operational.
CPEC Contribution to Pakistan's Economy
The anticipated impact of CPEC on Pakistan's economy is enormous. Even the initial CPEC value of $46 billion equals to almost 20% of Pakistan's GDP and has the same value as all foreign direct investments in the country since 1970. According to Pakistani officials, CPEC will create more than 2 million new jobs until 2030 and add 2-2.5% to the country's GDP growth.
CPEC is the largest investment Pakistan has attracted since independence, and the largest project undertaken by China in any foreign country. It is expected to be a game-changer for the region and is likely to transform Pakistan into a regional economic hub.
Motorway and Railway Projects
Construction of highways and railways is a major part of the China-Pakistan Economic Corridor in order to rapidly modernize Pakistan's transportation network. Projects include connection of seaports in Karachi and Gwadar with China and Central Asia, a motorway between the cities of Karachi and Lahore, while other parts of the transportation network will be completely rebuilt and modernized.
Image: The Kashgar Railway Route, shown in brown, to connect China with Pakistan’s seaports
The main railway line between Karachi and Peshawar will be rebuilt for train speeds up to 160 km per hour and the whole railway network will be extended to also include China's Southern Xinjiang Railway.
Energy Projects
Energy infrastructure has long been a major problem for Pakistan's economy, wherein shortages amount to around 4,500MW. Pakistan's energy shortfalls have led to power cuts of up to 12 hours per day and this has negatively impacted the country's economic growth by an estimated 2% annually.
Modernization and upgrade of the existing energy infrastructure by CPEC is expected to generate over 10,000MW of energy by the end of 2018.
The main source of energy will be generated from fossil fuels, although projects that utilize renewable energy sources such as wind-power, hydroelectric and solar farms are also part of the project.
Agriculture, Science and Technology Projects
CPEC also includes projects in fields other than transport and energy infrastructure. For example, cooperation in the field of agriculture is proposed which includes distribution of agricultural equipment and mechanization and fertilizer production projects.
Science and technology projects are guided by a special Economic and Technical Cooperation Agreement signed between China and Pakistan. Projects in this field include oceanic and space research, technology and logistic parks such as the 500-hectare “Pak-China Science, Technology, Commerce and Logistic Park” near Islamabad, and construction of a $44 million Pakistan-China Fiber Optic Project to upgrade Pakistan's telecommunication network.
Financing of CPEC Projects
Many of the projects proposed under CPEC are based on concessionary loans, such as the infrastructure projects worth $11 billion. Loans will be provided by Industrial and Commercial Bank of China, Exim Bank of China and China Development Bank at an interest rate of 1.6%.
Several projects under the CPEC enjoy interest-free loans for Pakistan, such as the construction of the East Bay Expressway, energy power plants, hospitals etc.
However, some energy projects which total $15.5 billion are constructed by Chinese-Pakistani firms and don't fall under the 1.6% interest rate for projects developed by Pakistan's government. An example is the Balloki Power Plant which is considered a private sector investment, financed by Chinese banks at subsidized rates, while Pakistan has the obligation to purchase electricity at a prespecified price.
The following table shows a list of approved CPEC projects in future:
Conclusion
The China-Pakistan Economic Corridor is a game-changer for Pakistan, but it will also allow China to interact with various parts of Asia, the Gulf countries and Africa through a cheaper and more secure way. CPEC is also considered as a major plank of Xi Jinping's Belt and Road Initiative and is potentially the initiation of the Silk Road to connect Europe, Asia and Africa.
