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. Overall construction costs are estimated around $46
billion, with the entire project expected to be completed in several 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.
MAIN COMPONENTS OF CORRIDOR:
1.
2.
3.
4.
Gwadar ( including port and city and Gwadar region socio-economic development)
Energy (Coal, Hydel, Wind, Solar, LNG , Transmission)
Transport Infrastructure (Road, Rail, Aviation)
Investment & Industrial Cooperation (Gwadar Free Zone and other industrial parks to be
finalized)
Table given below summarizes the number of projects identified so far along with estimated cost
under CPEC:
Sr. No.
Sector
No. of Projects
Estimated Cost
(Million $)
01
Energy
21
33,793
02
Transport
Infrastructure
4
9,784
03
Gwadar
8
792.62
DIVERSE INVESTMENT OPPORTUNITIES
1. Industrial Cooperation
2. Financial Cooperation
3. Agricultural Cooperation
4. Tourism
5. Educational linkage
6. Human resource development
7. Health Care
8. People to people contact
9. Increase in livelihood opportunities
10. Enhance Security and stability of the region
The immediate outcome of CPEC has been a rapid rise in property values along the arteries of
movement in suburban and rural areas. This has been particularly true for Havelian (the second
largest municipality in Abbottabad District) where a dry port is being built and substantial FDI
has been reported in the acquisition of residential and commercial plots in the adjoining areas.
In Gwadar, a number of housing schemes and commercial buildings are under construction. As a
result, land prices have almost tripled and the port city is expected to soon become one of the
most in-demand real estate investment destinations in Asia. The Government of Balochistan, as
well as private builders, have also launched housing schemes with modern facilities and
amenities, as well as recreational projects to cater to the demand for well-equipped residential
community projects by Chinese expatriates.
The Gwadar-Kashgar route will pass through Turbat, Panjgur, Besima, Surab, Kalat, Mastung,
Quetta, Qilla Saifullah, Zhob, D.I. Khan, Mianwali, Balkasar, Hasan Abdal, Abbottabad and
Gilgit. The acquisition of land for constructing road networks in these areas is underway and
mainly supervised by the Government of Pakistan. The development of this extensive road
network will ensure that previously isolated areas in Gwadar will be easily accessible, further
contributing to an increase in prices. Several railway line projects are also planned along the
route.
As a result of all this, there has been a corresponding increase in investment and development of
retail projects. Furthermore, builders and developers in Faisalabad, Lahore and Multan have
reported increased investor interest in properties there, due to which they expect prices to
experience a further boost as more CPEC projects are announced and approved.
Another crucial avenue for CPEC-driven real estate business and investment is the planned
development of SEZs. Eight such Zones are to be built, with one each in the four provinces, as
well as in AJK, FATA, Gilgit-Baltistan and Islamabad capital territory. The exact location of
these zones has not been finalised and consultations with provincial governments are underway.
These Zones will serve as primary hubs of industrial activity in the country.
CPEC is poised to give tremendous boost to the real estate industry in Pakistan, which even
otherwise, has a promising outlook, given that a 2.8% annual population growth rate (source:
Federal Bureau of Statistics, 2016) entails that more housing projects will need to be established.
Keeping in view the investment opportunities being created through CPEC, the Overseas
Pakistanis are advised to take advantage. For more information contact the following officials/
links.
1. China Pakistan Economic Corridors (CPEC)
Phone: (+92) 51 9208952
Fax: (+92) 51 9212792
Email: [email protected]
http://www.cpec.gov.pk
2. The Ministry of Planning, Development & Reform (MPD&R)
Email: [email protected]
Phone: (+92) 51-9209442
Fax: (+92) 51-9201777
http://www.pc.gov.pk/
3. Board of Investment (BOI)
Phone: (+92) 51-922 4101
Fax : (+92) 51-921 5554
Email : [email protected]
http://boi.gov.pk/.