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An Introduction Into CPEC’s Long-Term Plan And Challenges

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cpec-mapMost structural weaknesses of Pakistan’s economy, which are hampering its journey towards prosperity and inclusive growth, could be addressed in the next 10 to 15 years, if the country is able to achieve the targets outlined in the long-term plan of the China-Pakistan Economic Corridor (CPEC).

A look at the draft of the long-term plan (LTP) 2016-30 gives an impression that Prime Minister Nawaz Sharif has truly called the CPEC a fate changer for the country. The plan has been framed by China, which is yet another reason to believe that it will not remain a pipedream.

In a series of articles, Chinese approach to the CPEC revealed in the LTP draft. However, the document could be revised as it is currently being negotiated.

According to the draft, the economic corridor will boost Pakistan’s national output by 1.5% from 2016 to 2020 and by another 1% from 2020 to 2030.

From 2016 to 2020, trade between China and Pakistan will grow 24% and bilateral direct investment will rise 25%. Industrial value addition should exceed 1.5% and 500,000 to 800,000 new jobs will be created.

The length of newly built or upgraded roads and railways should reach 3,871 km and 1,529.7 km respectively. The electricity generated by newly built sources will reach 19.785 million kilowatts and the length of optical fibre cable will stretch to 2,084 km.

However, these outcomes depend on successful implementation of the CPEC strategic framework. Political wrangling over the CPEC by both ruling and opposition parties may deprive the country of the benefits of industrialisation and orderly urbanisation – the two key objectives of the long-term plan.

 “International, interwoven domestic, ethnic and religious factors might give rise to terrorist activities and affect the secure environment for corridor construction,” note Chinese planners. They say global powers shifting their focus to this region might create uncertain influence.

Scope of the corridor

The National Development and Reform Commission (NDRC) and China Development Bank (CDB) have designed the draft plan, which highlights the scope of the corridor and may address concerns over the western route.

The CPEC spans the Xinjiang Uygur autonomous region and the entire Pakistan in the spatial range. The corridor is divided into a core area and a radiation area, which indicates the levels, range and layout of the construction and development.

“The core area includes Kashgar, Tumshuq, Atushi and Akto of Kizilsu Kirghiz of Xinjiang, and Corps Tumshuq, most of Islamabad capital territory, Punjab and Sindh, and some areas of Gilgit-Baltistan, Khyber-Pakhtunkhwa and Balochistan,” says the draft report.

The radiation area includes areas other than the core ones within the spatial scope of the CPEC. Most of Balochistan and Khyber-Pakhtunkhwa fall in the radiation area.

Corridor routes

Chinese authorities have explained in detail the CPEC routes passing through Pakistan, which they describe as “one belt, three passages, two axes and five functional zones”.

One belt refers to the strip to be formed by an important arterial traffic route in China and Pakistan, which lies in the core area of the corridor. This northeast-southwest strip starts from Kashgar, passes through Taxkorgan, Khunjerab Pass, Islamabad and Lahore, and ends in Sukkur where it is divided into two routes heading to Karachi and Gwadar on the Arabian seacoast.

One belt will cover a cluster of industries, population and cities.

The post An Introduction Into CPEC’s Long-Term Plan And Challenges appeared first on Pakistan Construction & Quarry.

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