CPEC- China Pakistan Economic Corridor


CPEC was visualized in mid-2013 and launched on April 20, 2015, by Chinese President Xi-Jinping and Pakistani Prime Minister Nawaz Sharif, signed MOU of 51 agreements with the total worth of $64 billion in Pakistan by 2030, which comprises loans, investments and grants.

CPEC, a set of projects under China’s Belt and Road Initiative (BRI), marks a new era of economic ties in a bilateral relationship historically defined by security cooperation. Pakistan’s economy clearly needs reform to better serve its people.

It starts on the Pakistani Arabian Sea port of Gwadar, in Balochistan province, climbs along the Karakoram highway through the Khunjerab pass in Gilgit-Baltistan, before crossing into the Kashgar prefecture in China’s Xinjiang region.

Projects under CPEC

About 3,000-km network of highways, motorways, railways and pipelines to transport oil and gas from southern Pakistan’s Gwadar Port to Kashgar city, northwestern China’s Xinjiang Uygur autonomous region. The CPEC will reduce China’s routes of oil and gas imports from Africa and the Middle East by thousands of kilometers, making Gwadar Port a potentially vital link in China’s supply chain.

Highlights Areas of some Projects under CPEC
  • Infrastructure
    • Sea & Dry Ports
    • Refineries
    • Laboratories/Research centers
    • Industries like Economic zones
    • Oil & Gas Pipe Lines
    • Electric Transmission Line
  • Motorways /Highways
  • Railways Line
  • Entergy / Power Sector project
    • Atomic Energy
    • Coal
    • Solar
    • Hydro
  • Technology
    • Fiber Optic
    • IT Parks
  • Electronic Media re-broadcasting
  • Exchange Educational Programs
  • Tourism
  • Banking
  • Housings

Specialized Economic Zones (SEZs)

Special economic zones were integral to China’s 1980s economic reforms, subject to free-market and export-oriented policies and measures such as tax benefits and preferential treatment of foreign investment. 

For CPEC, Pakistan’s GSP+ access to the EU will likely attract Chinese investors and producers, as will tax rebates and other incentives. If Pakistani producers and labour benefit, the zones, coupled with pro-export and growth reforms, could indeed create opportunities for Pakistan. Specialized Economic Zones (SEZs) would expand Pakistan’s industrial base and assist in diversifying its export basket.

There are nine SEZs

Nine (9) out of 37 Proposed SEZs are prioritized to set up along the CPEC routes, which are listed below.

(1) SEZs Name Rashakai Economic Zone, Location-Nowshera (KPK) Khyber Pakhtunkhwa.  Objectives: Promote industrialization in KPK through optimally priced, world-class industrial infrastructure in the province, which enables industrial investment, job creation and economic uplift. Type of Industry: Garment & Textile Products,Home Building Materials,Electronics & Electrical Appliances,Automobile and Mechanical Equipment

(2) SEZs Name China Special Economic Zone, Location– Dhabeji, Thatta, Sindh. Objectives:Facilitate the potential investors of China and other countries to either start new enterprises or transfer their facilities to Pakistan. Type of Industry: Steel-Foundries, Automotive and Auto parts, Chemical & Pharmaceuticals, Consumer Electronics Engineering, Textile& Garments,Warehousing Building Material FMCG.

(3) SEZs Name Bostan Industrial Zone, Location-Pishin, Baluchistan. Objectives:Promote Industrialization & Warehouses facilities in Baluchistan Province. Type of Industry: Fruit Processing, Agriculture machinery, Pharmaceutical, Motor Bikes Assembly, Chromites, Cooking Oil, Ceramic industries, Ice and Cold storage,Electric Appliance, Halal Food Industry.

(4) SEZs Name Allama Iqbal Industrial CityLocation-Faisalabad, Punjab. Objectives: Promoting further industrialization in Punjab with state of art Industrial Zone. Type of Industry:Textile, Steel, Pharmaceuticals, Engineering,Chemicals, Food Processing, Plastics, Agriculture Implements.

(5) SEZs Name ICT Model Industrial Zone, Location-Islamabad. Objectives: Industrialization & Warehouses facilities. Type of Industry:Steel, Food Processing, harmaceutical & Chemicals, Printing and Packaging, Light Engg.

(6) SEZs Name Development of Industrial Park Location-Pakistan Steel Mills Land at Port Qasim near Karachi. Objectives:Promoting further industrialization in Sindh. Type of Industry:  Steel, Auto & allied, Pharma,Chemical, Printing and Packaging & Garments.

(7) SEZs Name Special Economic Zone Location- Mirpur, Azad Jammu Kashmir (AJK), Objectives: Industrialization in AJK, Type of Industry:Mix industry.

(8) SEZs Name Mohmand Marble City, Location-Formerly FATA Now under KPK, Objectives: Marble Industry Type of Industry: Marble Industry.

(9) SEZs Name Moqpondass SEZ, Location- Gilgit-Baltistan, Objectives: Industrialization, Precious stones & Warehouses facilities. Type of Industry: Marble / Granite, Iron Ore Processing, Fruit Processing, Steel Industry, Mineral Processing Unit, Leather Industry.

Detail of CPEC Projects

Overview of Benefits of PEC for Both Countries

CPEC is road to success of economic development of China and Pakistan. CPEC has potential to transform the socio-economic landscape of Pakistan. China is the central point of mechanism to the West and Pakistan’s central point of mechanism to the Central, West, and South Asia bothers regional and global aspiring is a supreme leader.