PAK CHINA ECONOMIC CORRIDOR

Abdul Ghani Shahzaib 16FMBA2E006 Business & Electronic Communication Sir, Shahab Shiekh PAK CHINA ECONOMIC CORRIDOR

PAK-CHINA ECONOMIC CORRIDOR The Karakorum highway was started in 1959 and was completed in 1979 (open to the public since 1986 ) Length 1,300 km (Pakistan 887 km ) China 413 km It connects China's Xinjiang region with Pakistan's Gilgit–Baltistan and Khyber Pakhtunkhwa regions Major cities Hasanabdal, Abbottabad, Thakot, Chilas, Gilgit, Aliabad, Sust, Khunjerab Pass, Kashgar The importance Karakoram Highway Chinese companies Tourism in Pakistan Transportations PAK CHINA ECONOMIC CORRIDOR

The KKH highly contribute economic activities of both countries export and import PAK CHINA ECONOMIC CORRIDOR

Economic Gateway Gwadar On 8 September 1958 prince Government of Pakistan purchased the Gwadar enclave from Oman for $3 million and officially became part of Pakistan Gwadar Port is located at the mouth of the Persian Gulf Gwadar is a planned free trade port Gwadar Port is a strategic developed jointly by the both countries National Highway Authority (NHA) began construction of the 653 km-long Makran Coastal Highway linking Gwadar with Karachi, In 2004, Pakistan's NHA began construction of the 820-km long M8 motorway linking Gwadar with Ratodero in Sindh province Turbat, Hoshab, Awaran and Khuzdar In 2007 Civil Aviation Authority of Pakistan acquired 6,000 acres (17-24 km2) to construct a new greenfield airport, at an estimated cost of Rs 7.5 billion.

CURRENT PAK-CHINA ECONOMIC CORRIDOR DEVELOPMENT Gwadar-Khunjerab-Kashgar rail network Gwadar-Khunjerab-Kashgar rail network connecting the maximum number of population through a network of highways and railways six-lane motorway to be built from Karachi to Lahore. MoU’s signed with China PAK CHINA ECONOMIC CORRIDOR

OBJECTIVE OF PAK-CHINA ECONOMIC CORRIDOR Increase the volume of trade between Pakistan and china Take full advantage of preferential trade agreement(PTA) and free trade agreement (FTA) Increase export to china, recently export to china is $3.14 billion Pakistan and china are second largest partners in south Asia, this will help to retain partnership Widen Karakorum high way and open new economic corridor from china to Gwadar Approximately reduce 10000 km distance and it is the shortest route PAK CHINA ECONOMIC CORRIDOR

PAK CHINA ECONOMIC CORRIDOR

OBJECTIVE OF PAK-CHINA ECONOMIC CORRIDOR Expand trade with Afghanistan and it help both countries to play their role in post-2014 Afghanistan Expand trade with Russia by providing trade route till Gwadar port Development of infrastructure along Pakistan China access to the Indian Ocean with the aim of widening its geopolitical influence and military presence in the region Job opportunities and economic development in Baluchistan Increase Chinese investment, Pakistani investment in china will also be encouraged PAK CHINA ECONOMIC CORRIDOR

OBJECTIVE OF PAK-CHINA ECONOMIC CORRIDOR Regional peace, prosperity and elevate the life of poor people of south Asia Enhance trade among Pakistan, China, Gulf States, Central Asia and Africa China is interested to extend the Iran-Pakistan pipeline to its western territory PAK CHINA ECONOMIC CORRIDOR

ADVANTAGES OF PAK-CHINA ECONOMIC CORRIDOR Can benefit new emerging regional cooperation Save time, cost and freight charges Facilitate trade, have Economic Zone en-route and will allow reaping of full benefits of development, economic and social uplift Increase the economic collaboration between both countries by connecting western china to Gwadar Regional stability in Asia as well as whole world Pakistan economy will Boost

DISADVANTAGES: FTA leads to threat for local markets and local manufacturers Disturb of local industries Difficult to compete chine’s product in market Dependent to China PAK CHINA ECONOMIC CORRIDOR

Huge difference between Balance of payment Trade deficit Pakistan-China trade increased by 17.6% to a total of US$ 12.4 billion in 2012. China export to Pakistan is 9.3billion Pakistan’s export to china is 3.14billion PAK CHINA ECONOMIC CORRIDOR

DISADVANTAGES: Focus on import rather than Domestic production Threat for potential group Due to free trade agreement with china leads to lack of competition. PAK CHINA ECONOMIC CORRIDOR

Recommendation: Pakistan should create stability In its terrority to implementation on that plan To make positive balance of trade Pakistan should increase exports Agriculture products Textile products Leather PAK CHINA ECONOMIC CORRIDOR

Recommendations Implementations of agreements should be addressed Should provide latest technology Think tank should collaborate by both countries Implementations of agreements should be addressed PAK CHINA ECONOMIC CORRIDOR

Recommendations Make efforts to diversify market in China Security issues, law and order system are main obstacles in the way of Pak-china economic corridor Pakistan should develop the training centers and Chinese language centers in order to make effective communications PAK CHINA ECONOMIC CORRIDOR

PAK CHINA ECONOMIC CORRIDOR Conclusion Natural Gateway for China Positive response by both countries through mutual cooperation Both countries are keen to enhance trade activities PAK CHINA ECONOMIC CORRIDOR

CONCLUSION: Infrastructural improvement and Development of Dams Stability of economy by investment in different sectors “our friendship is “higher than the mountains, deeper than the oceans, stronger than steel, dearer than eyesight, sweeter than honey”. PAK CHINA ECONOMIC CORRIDOR

PAK CHINA ECONOMIC CORRIDOR