CHINA PAKISTAN ECONOMIC CORRIDOR (CPEC)
The CPEC is an ongoing development mega project which aims to connect Gwadar
Port of Pakistan to China’s northwestern region of Xinjiang, via a network of
highways, railways and pipelines. The economic corridor is considered central to
China–Pakistan relations and will run about 2700 km from Gwadar to Kashghar.
China-Pakistan Economic Corridor and its connectivity with Central Asia, Middle
East and Africa will help to shape entire region. Overall construction costs are
estimated around $46 billion, with the entire project expected to be completed
in several years.
The Corridor is an extension of China’s proposed 21st century Silk Road
initiative. This is the biggest overseas investment by China announced so far
and the corridor is expected to be operational within three years. The corridor
will be a strategic game changer in the region and would go a long way in making
Pakistan a richer and stronger entity.
The investment on the corridor will transform Pakistan into a regional economic
hub. The corridor will be a confidence booster for investors and attract
investment not only from China but other parts of the world as well. Other than
transportation infrastructure, the economic corridor will provide Pakistan with
telecommunications and energy infrastructure.
The Ministry of Planning, Development & Reform (MPD&R) is the focal Ministry for this
engagement whereas its counterpart in China is National Development and Reform
MAIN COMPONENTS OF CORRIDOR:
Gwadar ( including port and
city and Gwadar region socio-economic development)
Energy (Coal, Hydel, Wind,
Solar, LNG , Transmission)
(Road, Rail, Aviation)
Investment & Industrial
Cooperation (Gwadar Free Zone and other industrial parks to be finalized)
Any other area of interest
Table given below summarizes the number of projects identified so far along
with estimated cost under CPEC:
No. of Projects
Estimated Cost (Million $)
For further details please visit the website of Ministry of
Planning, Development & Reform i.e.
DIVERSE INVESTMENT OPPORTUNITIES
People to people
Enhance Security and
stability of the region
INDUSTRIAL COOPERATION UNDER CPEC
BOI is an active member of working group
on Industrial parks/ special economic zones of the CPEC which is mandated to
identify potential feasible sites for consideration by Joint Working Group. BOI,
in consultation with all stakeholders, has identified potential sites in all
provinces from Khunjrab to Gwadar to establish Special Economic Zones alongside
the corridor. Each economic zone will target specific products and services
based on the availability of local raw material, work force and other such
factors. Establishment of these zones will attract local & foreign investments
and generate huge employment.
BOI AS A PARTNER IN CPEC AND ITS SUSTAINABILITY:
The Board of Investment (BOI), being
central facilitation point for all investors, has been entrusted to promote and
facilitate investment including CPEC projects.
BOI provides assistance
throughout the investment cycle. Investor Facilitation Centre’s have been
established in Islamabad and all provincial capitals to facilitate local and
foreign investors. BOI as a focal point provides information and assistance for
speedy materialization of investment projects.
Apart from facilitating
projects, BOI’s role is also important in the context of visa facilitation and
opening up of branch offices and liaison offices of entities. Permission of BOI
is mandatory for opening of branch or liaison office in Pakistan. BOI also
recommends Work Visas to expatriates working in foreign and local companies in
BOI’s role is crucial for
materialization and sustainability of the projects being started and to be
started under CPEC. BOI welcomes Chinese and other local and foreign investors
interested to invest in the country under CPEC or any other initiative.