CPEC
China-Pakistan Economic Corridor
China-Pakistan Economic Corridor is a comprehensive framework for regional defined connectivity. CPEC will not only benefit China and Pakistan but will also have a positive impact on neighboring countries like Iran, Afghanistan, India, Central Asian Republic, and the region. The enhancement of geographical linkages will be improved i.e. Road, Rail and Air transportation system with frequent and free exchanges of growth. Apart from this, benefits would include enhancement in people to people contact, cultural and regional exchange of knowledge, higher flow of trade and businesses, production of more energy which will result in well connected, integrated region with increased development and prosperity for both nations on a long-term basis.
China Pakistan Economic Corridor is journey towards economic regionalization in the globalized world. It has founded peace, development and stability for both countries.
China Pakistan Economic Corridor is a hope for better region of the future with peace, development and growth of economy.
CPEC Significance and Potential
China-Pakistan Economic Corridor has Significance in relation to the advancement of the region.
Potential areas of cooperation/development would include:
- Regional Connectivity
- Transport Infrastructure
- Energy Hub
- Logistic Hub
- Trade & Commerce
- Peace & development of region
- Connectivity/Harmonization/Integration of civilizations
- Diverse Investment opportunities
- Industrial Cooperation
- Financial Cooperation
- Agricultural Cooperation
- Tourism
- Educational linkage
- Human resource development
- Health Care
- People to people contact
- Increase in livelihood opportunities
- Enhance Security and stability of the region
Relationship between CPEC and China Power Hub Generation Company Limited (Pvt.) Limited
China Power Hub Generation Company, (CPHGC) is a joint venture project company setup by The Hub Power Company (HUBCO) and China Power International Holding Ltd (CPIH). With an estimated cost of approx. US$ 2 billion, the project is one of the largest coal based power projects being constructed under China Pakistan Economic Corridor (CPEC). CPEC is much beyond the trade route for Pakistan. Apart from building crucial infrastructure for the long-term needs of Pakistan, CPEC project would assist bridging the energy gap which is the major impediment to the steady economic growth of Pakistan.
Availability of affordable energy for the industries in developing countries like Pakistan is the top priority of the government as it wants to see economic turnaround in the country. Energy production and affordable availability to the industries is the key to long-term industrial growth.
Project will contribute 9 Billion kWh of cheaper electricity annually into the National Grid, and it will support 4 Million Pakistani household in yearly power consumption. One of the biggest issues of power sector in Pakistan is the expensive power generation, cheap electricity production through coal will help reducing the power sector deficit and ultimately bring down the circular debt.
Currently, China Power International Holding Limited (CPIH) has 74% share while The Hub Power Company (HUBCO) has 26% share in CPHGC. The project would consume an estimated 3.8 million tons of coal per annum. A Dedicated Jetty Terminal would also be constructed alongside the power plants to import coal directly to the plant from the sea.