China Pakistan Economic Corridor (CPEC) | Updates & Discussions

[Kompromat]

China and Pakistan to step up cooperation on building oil pipelines, rail links

Beijing: China and Pakistan are expected to step up their efforts to build oil pipelines and railroads linking the two countries following, a Chinese think-tank said on Thursday.

"Both nations are expected to step up their cooperation on building the oil pipeline and railroads linking the two countries,&[HASHTAG]#8221[/HASHTAG]; Wang Dehua, of the Shanghai Institute for International Strategic Studies said on Chinese Premier Li Keqiang's visit to Pakistan.

Besides consolidating political ties, a major objective for Li's visit was to seek closer economic and trade cooperation, he said.In an interview with Pakistani media, Li had said, &[HASHTAG]#8220[/HASHTAG];There is still great potential for the relationship, suggesting both sides focus more on carrying out prioritized energy development and power generation, and the building of a China-Pakistan economic corridor."

The shape of a China-Pakistan energy corridor has been given a boost since a Chinese company took over operation of Pakistan's Gwadar port in February. "Closer cooperation with Pakistan would also improve the opening up and economic development of western China, in terms of linking to the Indian Ocean," Wang said.

Wang Xu, a researcher in South Asian studies at Peking University, said the Pakistani manufacturing sector will be greatly boosted and updated if China can transfer some of its factories to its neighbour.


China and Pakistan to step up cooperation on building oil pipelines, rail links

@yzd Khaifa @Mosamania

I guess, your crude will be offloaded on Gwadar in the near future,instead of being shipped to Shanghai.

 

[Argus Panoptes]

These proposed links are good in theory, but will fail miserably in practice even if somehow they are realized, and even for that the chances are slim to none.

 

[Kompromat]

These proposed links are good in theory, but will fail miserably in practice even if somehow they are realized, and even for that the chances are slim to none.

Chinese don't talk business without a reason.

 

[Argus Panoptes]

Chinese don't talk business without a reason.

Yes, but please note that the source of that planted story is ambiguous, and therefore doubtful.

I have solid technical, financial and logistical reasons on my side for saying what I have said above.

 

[PakPrinciples]

These proposed links are good in theory, but will fail miserably in practice

Why would the links fail?

Pipelines are by far the cheapest method to transport oil/gas and no other method compares.

Rail is actually cheaper to transport goods than via sea as per a 2002 US Department of Transportation report. I want to post the link but for some reason the site is having problems with it so if anyone wants it I'll be more than happy to PM it.

Basically it stated that the cost to ship per ton mile via rail was $0.03 vs. $0.10 for water

If anything these projects will be very successful.

However, Pakistan and China will probably need to control the flow of people back/forth across the border.

 

[farhan_9909]

So the total route from gwadar to Kashgar is 3217km vis a vis 18000km through sea

It takes close to 2 months per trip between china and Gulf

While at max if the rail link is made it will take few days.if road route than almost 1 week
if pipeline than 1-2days

Hence Gwadar in return will offer China

*Cheaper Route
*6-7 times shorter route
*will reach china within 1 week be it rail or road vis a vis 2 months through sea


It will offer Pakistan

*Development of Balochistan and specially Gwadar
*Possible naval base of PLAN beyond 2020.hence more secure coastline of Pakistan
*Economic Boom to Pakistan

Tajikistan and central Asia

*Tajikistan already has completed construction on there side of road
*Has also expressed willingness to join the Gwadar-kashgar railway line.
*More central asian countries can get access to Gwadar against through Tajikistan

 

[Argus Panoptes]

So the total route from gwadar to Kashgar is 3217km vis a vis 18000km through sea

It takes close to 2 months per trip between china and Gulf

While at max if the rail link is made it will take few days.if road route than almost 1 week
if pipeline than 1-2days

Hence Gwadar in return will offer China

*Cheaper Route
*6-7 times shorter route
*will reach china within 1 week be it rail or road vis a vis 2 months through sea


It will offer Pakistan

*Development of Balochistan and specially Gwadar
*Possible naval base of PLAN beyond 2020.hence more secure coastline of Pakistan
*Economic Boom to Pakistan

Tajikistan and central Asia

*Tajikistan already has completed construction on there side of road
*Has also expressed willingness to join the Gwadar-kashgar railway line.
*More central asian countries can get access to Gwadar against through Tajikistan

But please keep in mind that from Lanzhou to Kashgar is about 3100 km, given that Lanzhou eastward is very well connected already.

These rail and road links are important for us, but nowhere near the strategic importance for China that is being portrayed. And the oil pipeline across the Karakorums is a pipedream.

 

[ThePublicMenace]

this projects of rail and road were signed during premiers visit i believe.When he was talking about making pak an economic corridor.The chinese premier emphasized on early and wuick completion of these projects.

 

[Kompromat]

Pakistan, China sign MoU, Senate body told ​

Staff Report


ISLAMABAD: The Senate’s Standing Committee on Finance was informed on Wednesday that Pakistan and China have signed a Pak-China Economic Corridor for linkage of both countries through road and rail.

Pak-China Economic Corridor: Memorandum of Understanding between the two countries has been signed during Chinese prime minister’s recent visit to Pakistan, whereby Planning Commissions of both countries have agreed to undertake improved linkages and arrangement of financing for these projects, Planning Commission secretary informed the committee.

The secretary was responding to a question raised by Senator Talha Mehmood who was of the view that China is developing its industrial infrastructure rapidly in Kashgar and it is estimated that there would be $20 billion economic activity through Pakistan land route between China via Pakistan to the rest of the world. If, Pakistan intends to benefit from this huge economic activity, Pakistan’s economic managers should immediately complete the infrastructure for strong linkage through rail and road with China.

The secretary informed that road construction from Burhan to Khunjrab Pass is under implementation for linkage with China, and Asian Development Bank (ADB) is financing the project. ADB mission is arriving in Pakistan by the end of this month to review the progress on the project. He mentioned that ADB has placed a condition of payment of land acquisition to only real owners, however, the government has decided to pay compensation to all who are occupying the land at present. Pakistan would request the ADB mission to relax the condition relating to compensation so as to complete the land acquisition process in Punjab and Khyber Pakhtunkhwa where some 44 villages have to be acquired to this road project. Conclusive talks with ADB mission would be held in this regard by the end of this month.

National Highway Authority (NHA) chairman informed the meeting about the progress on Attabad Lake Project. He informed that experts from United States, China and Japan have proposed solutions for development of infrastructure at Attabad Lake. They have proposed for construction of two tunnels and construction of four-kilometre road for restoration of road linkage with China. Under one proposal if the water level in Attabad Lake is reduced by 20 metres and tunnels are constructed this would cost Rs 51 billion and in case the water level is reduced by 30 metres and tunnels are constructed then the project cost would come down to Rs 25 billion. FWO is implementing the project to bring water level down and water level had came down but the with the recent rains, it has again increased by 29 metres in the lake, it is hoped that water level will be brought down by 30 metres by the end of December 2013. It was informed that on January 2012, with the major land slide Attabad Lake came into being with water level at 200 metres in it.

Pak-India trade: Senator Muzafar Hussain Qureshi raised the issue of influx of Indian commodities into Pakistani markets and their negative impact on Pakistan’s farming community. He was of the opinion that there is a huge difference between input cost of farming community in Pakistan and India. Due to lower input cost in India they are exporting their commodities in Pakistan and Pakistan’s farming community is facing difficult times due to these agriculture imports from India.

The senator proposed to impose additional taxes and duties on the imports of agriculture commodities from India so as to make Pakistani agriculture products compatible in terms of price with Indian agriculture products. Senator Ilyas Bilour was of the opinion that although the input cost in India is low but the prices of agriculture products being imported from India are also low as compared with Pakistani products.

Senator Haji Adeel supported giving Most Favoured Nation Status to India but linked it with appropriate protection with local agriculture and industry. Senator Sughra Imam was of the opinion that there should be a national policy for the agriculturists in Pakistan. The committee decided to refer this issue for a decision to standing committees of foreign affairs and commerce.

Parliamentary committee: Senator Humayun Khan Mandokhel proposed to the committee to set up parliamentary committee for the oversight of the appointment of CEOs and MDs in the State Owned Enterprises. The committee agreed for recommending setting up of the committee for the purpose.


Daily Times - Leading News Resource of Pakistan

 

[Kompromat]

Updated...............

 

[Argus Panoptes]

...................
Pak-China Economic Corridor: Memorandum of Understanding between the two countries has been signed during Chinese prime minister’s recent visit to Pakistan, whereby Planning Commissions of both countries have agreed to undertake improved linkages and arrangement of financing for these projects, Planning Commission secretary informed the committee.

The secretary was responding to a question raised by Senator Talha Mehmood who was of the view that China is developing its industrial infrastructure rapidly in Kashgar and it is estimated that there would be $20 billion economic activity through Pakistan land route between China via Pakistan to the rest of the world. If, Pakistan intends to benefit from this huge economic activity, Pakistan’s economic managers should immediately complete the infrastructure for strong linkage through rail and road with China.

.......................

It is important to note that the MoUs are only for planning and feasibility studies with no concrete financing sources, and I quote: "If, Pakistan intends to benefit from this huge economic activity, Pakistan’s economic managers should immediately complete the infrastructure for strong linkage through rail and road with China" places the onus entirely on us, not China.

 

[Edevelop]

ISLAMABAD - Prime Minister (PM) Nawaz Sharif on Friday stressed establishing state of the art railway tracks and expressway to connect China with Pakistan through Khunjrab, Gwadar and Karachi, which he said, will usher in a new era of economic prosperity for both countries and the entire region.“Projects to benefit maximum number of population of the region will be pursued that will enhance economic activities, provide jobs and change the destiny of millions,” observed Sharif in a meeting held at the PM’s office.

Minister for Planning and Development Ahsan Iqbal briefed the meeting on projects that were underway and areas for future projects with the Chinese government, including railway network, energy sector and road networks. The PM said he had held in-depth discussions on the proposed projects with the Chinese premier, during his recent visit to Pakistan and was happy to note that the Chinese government was equally interested in the project.

“We want concrete projects and tangible results to benefit the people of Pakistan and China,” added the premier.He further said the project was in the greater interest of China as it will reduce distance inside the Chinese territory thus resulting in reduction of cost of transportation and giving access to Chinese trade with India, central Asia and the whole region. Sharif highlighted that the future belonged to this region due to its huge potential, thick population and massive business opportunities

He directed the Ministry of Railways to submit solid proposals for building new railway tracks to facilitate fast moving trains for passenger and cargo services, before a delegation leaves for China in a couple of days. He, however, asked for “out of the box” thinking and doable projects to be identified that could benefit maximum number of people.

The PM proposed to work on Havelian-Ratodero-Gwadar-Karachi-Quetta and Havelian-Islamabad-Lahore railway track and expressways that would substantially enhance trade activities and open this region to China and the world.

He also directed the planning and development division for identification of economic zones alongside the proposed railway and expressway.The PM underlined the importance of special economic zones and converting Gwadar into an international city and economic hub to bring prosperity for the people of Balochistan and the country.

He said missing links in existing roads and railway tracks must be built but the need of the day is to establish new linkages to connect China with Pakistan and give access for Chinese trade to India, central Asia etc.Minister for Information Broadcasting and National Heritage Pervaiz Rashid, Minister for Railways Khawaja Saad Rafiq, secretaries for railways, communication, EAD, CDA chairman and other senior officials were also present in the briefing.​

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Pak-China road, rail link to change region

 

[Edevelop]

New government’s first delegation to China to depart soon

ISLAMABAD: Prime Minister Nawaz Sharif has decided to send his government’s first delegation to China, signalling an increased emphasis on a regional approach for tackling national issues.

The delegation will be led by the Minister for Planning and Development, Ahsan Iqbal, and will comprise the PM’s adviser on foreign affairs and officials from various economic ministries.

Both sides are expected to hold discussions on areas of mutual cooperation, especially in the fields of economics and regional security, the two biggest problems faced by Pakistan, officials said.

While talking to The Express Tribune, Iqbal said the purpose of the visit was to hold preliminary discussions and come up with a framework for cooperation that serves the interests of both nations. He said the delegation will visit China on the invitation of China’s National Development and Reforms Commission (NDRC), and will exchange proposals for initiating projects.

Officials said both sides will exchange ideas, which will later be converted into projects when PM Sharif visits China sometime in the near future. However, the PM’s visit dates have not yet been finalised.

The delegation’s visit is a follow-up to the discussions that took place between PM Sharif and Chinese Premier Li Keqiang during the latter’s visit to Pakistan last month, when both sides agreed to establish a regional trade corridor.

China is keen to now sign agreements rather than mere Memorandums of Understanding (MoU), as Islamabad is perceived as too slow to work on agreed common goals, officials said.

During the Chinese premier’s visit, both sides had signed a MoU to conduct a feasibility study and come up with a concrete plan for connecting both countries through rail and road links.

PM Sharif, in his maiden speech, had said that Islamabad and Beijing keenly desire to implement the Gwadar-Khunjerab-Kashgar rail and road network, which is aimed at connecting Gwadar with China and making the former a free port.

During discussions, both leaders had also agreed to constitute a task force to pursue the common agenda and implement it within the next five years. It is expected that Pakistan’s Planning Commission and China’s NDRC will host the task force.

The successful implementation of the Gwadar-Khunjerab-Kashgar rail network will help China secure oil supplies and commercial routes on the Indian Ocean, furthering its plans to secure yet another strategic energy and trade corridor in the region.

Pakistan is hoping to benefit from China, which is now the world’s second-largest economy and is poised to take over the top slot from the US by 2020. The plan is to create a trade corridor that largely hinges on China’s willingness to give a mix of grants and concessionary loans to construct the infrastructure, officials added.

The inclusion of PM’s Adviser on Foreign Affairs Tariq Fatemi in the delegation points to the fact that Pakistan may also approach China for the resolution of outstanding issues in the wake of the US withdrawal from the region.

New government

 

[Argus Panoptes]

Both the stories above are typical planted B.S. with no real substance.

The following para is illustrative:

"Pakistan is hoping to benefit from China, which is now the world’s second-largest economy and is poised to take over the top slot from the US by 2020. The plan is to create a trade corridor that largely hinges on China’s willingness to give a mix of grants and concessionary loans to construct the infrastructure, officials added."

Source: http://www.defence.pk/forums/econom...rridor-updates-discussions.html#ixzz2WwsMbJay

Translation: "We will start our begging from China to get anything built. Let's hope and pray they agree."

 

[Menace2Society]

This project is realistic and will happen I have no doubts.

Work will begin at some point this year. It will probably take 5-7 years to get it fully functional.

This corridor is strategically important for China as it is linked with their future growth so they have a vested interest.

The economic benefits of this will be huge for the local populations where the road and rail are going through. Will allow them to have jobs and acquire new skills they can put to use after work is complete. Gwadar will rise into a Singapore/Valencia style hub of trade and commerce. It will develop into a beautiful seaside city with great views, beaches and resorts. The economic impact on Pakistan as a whole will be huge, more liquidity, jobs, taxes, more skilled workforce. Prosperity to the remote areas, a new middle class will start emerging. As people become content in life there will be no need to fight anymore so there will be peace. This will snowball into further investment from other countries and before you know it there are other huge projects being started all around the country creating even more jobs. With a constant stream of investment the snowball can become as big as we want it to become.

This will happen 10-15 years from after this project is complete.

By 2030-2035 Pakistan will look like this so patience, we are nearly there.