What is China Pakistan Economic corridor (CPEC) ? Its Pros and Cons?

What is China Pakistan Economic Corridor (CPEC) ?

China Pakistan Economic Corridor (CPEC) is a collection of various projects which are under construction throughout Pakistan, originally valued $46 billion but now worth $62 billion.

(CPEC) is estimate to complete in 2030.

Brief Details of CPEC Projects:

1) 1100 km long motorway will be built between Karachi and Lahore.                                                 

2) Karachi-Peshawar railway line will be                

upgraded..

3)  Karakorum Highway between Rawalpindi 

and Chinese border will be overhauled.

4)  More than $11 billion required to upgrade

good transportation network.

5)  More than $33 billion is estimated for the projects related to energy sector.

6) $2.5 billion for the gas pipeline between 

Gwadar and Nawabshah.

Advantages of CPEC to Pakistan:

1)  It will boost the economic growth to 2-2.5 %.

2)  Almost 2.3 million jobs will be generated through CPEC.

3)  As Pakistan is suffering in Energy sector, so CPEC is investing more in Energy related projects.

4)  CPEC will modernize our transport infrastructure.

Disadvantages of CPEC to Pakistan:

1) As Chinese Banks finance CPEC with good amount of interest rate and Pakistan is already in too much Debt and it will be very difficult for Pakistan to return debt related to CPEC.

2) Because of CPEC lots of Chinese brands gets in the Pakistani market and Pakistani manufacturers  will suffer a loss.

Benefits of CPEC to China:

1) Huge interest rate, As CPEC originally values $46 billion, now it worth $ 62 billion ( As Pakistan has taken $62 billion from China).

2) As china is a big importer of oil via Dubai-Shanghai-Urumqi route which is a distance of 12000 km. Oil pipeline between Gwadar and Kashgar will make that distance to 3600 km which is very beneficial to China.

3) Only Chinese companies got the Projects as bids were one sided.