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.Gwadar ( including port and city and Gwadar region socio-economic development)
2.Energy (Coal, Hydel, Wind, Solar, LNG , Transmission)
3.Transport Infrastructure (Road, Rail, Aviation)
4.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
- 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
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, QillaSaifullah, Zhob, D.I. Khan, Mianwali, Balkasar, HasanAbdal, 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.
- China Pakistan Economic Corridors (CPEC)
Phone:(+92) 51 9208952
Fax:(+92) 51 9212792
Email:
- The Ministry of Planning, Development & Reform (MPD&R)
Email:
Phone:(+92) 51-9209442
Fax:(+92) 51-9201777
- Board of Investment (BOI)
Phone:(+92) 51-922 4101
Fax : (+92) 51-921 5554
Email :