Home Introduction of China-Pakistan Economic Corridor

Introduction of China-Pakistan Economic Corridor

China-Pakistan Economic Corridor (CPEC) is a proper structure made for the connection between the two countries. The corridor (CPEC) is not beneficial just for the two countries but also for the surround countries like, Afghanistan, India, Iran, Central Asian Republic and the entire region. This will result in the improvement of the connections of the two countries by improvement in their basic road, air and railway transport framework. With this corridor there will be a free exchange of growth in terms of enhanced contact between the people of the two countries, the understanding among the people of two countries would be done through academic platforms and use of regional and cultural activities. More trade and business between the two countries will lead to ideal business terms and high production which will be resulting in improvement in the cooperation. Eventually a well-structured region with a common purpose to create peace and development grounds in the region.

CPEC is going to create an economic regionalization in the world as it is based on the achievement of peace, mutual development programs which will end up being a win-win model for the entire area.

CPEC is based on the sole purpose to create economic growth in the future by mutual development with maintaining the peace of the region. It is going to be the hope for the region to hike the economic growth. Its vision is to provide the people of Pakistan and China

China Pakistan Economic Corridor is hope of better region of the future with peace, development and growth of economy. CPEC Vision & Mission To improve the lives of people of Pakistan and China by building an economic corridor promoting bilateral connectivity, construction, explore potential bilateral investment, economic and trade, logistics and people to people contact for regional connectivity. It includes:

  • Integrated Transport & IT systems including Road, Rail, Port, Air and Data Communication Channels
  • Energy cooperation
  • Spatial layout, functional zones, industries and industrial parks
  • Agricultural development & poverty alleviation
  • Tourism cooperation & people to people communication
  • Cooperation in livelihood areas
  • Financial cooperation
  • Human Resource Development

CPEC Significance/Potential

China-Pakistan Economic Corridor has Significance for the development of the region Potential areas of cooperation/development include:

  • Regional Connectivity
  • Transport Infrastructure
  • Energy Hub/flows
  • Logistic Hub/flows
  • 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


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.

China-Pakistan Economic Corridor and its connectivity with Central Asia, Middle East and Africa will help to shape entire region. Overall construction costs are estimated around $46 billion, with the entire project expected to be completed in several years.

The Corridor is an extension of China’s proposed 21st century Silk Road initiative. This is the biggest overseas investment by China announced so far and the corridor is expected to be operational within three 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. The corridor will be a confidence booster for investors and attract investment not only from China but other parts of the world as well. Other than transportation infrastructure, the economic corridor will provide Pakistan with telecommunications and energy infrastructure.

The Ministry of Planning, Development & Reform (MPD&R) is the focal Ministry for this engagement whereas its counterpart in China is National Development and Reform Commission (NDRC).




  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)
  5. Any other area of interest mutually agreed

Table given below summarizes the number of projects identified so far along with estimated cost under CPEC:

Sr. No.SectorNo. of ProjectsEstimated Cost (Million $)
02Transport Infrastructure49,784


  1. Industrial Cooperation
  2. Financial Cooperation
  3. Agricultural Cooperation
  4. Tourism
  5. Educational linkage
  6. Human resource development
  7. Health Care
  8. People to people contact
  9. Increase in livelihood opportunities
  10. Enhance Security and stability of the region


BOI is an active member of working group on Industrial parks/ special economic zones of the CPEC which is mandated to identify potential feasible sites for consideration by Joint Working Group. BOI, in consultation with all stakeholders, has identified potential sites in all provinces from Khunjrab to Gwadar to establish Special Economic Zones alongside the corridor. Each economic zone will target specific products and services based on the availability of local raw material, work force and other such factors. Establishment of these zones will attract local & foreign investments and generate huge employment.


The Board of Investment (BOI), being central facilitation point for all investors, has been entrusted to promote and facilitate investment including CPEC projects.

BOI provides assistance throughout the investment cycle. Investor Facilitation Centre’s have been established in Islamabad and all provincial capitals to facilitate local and foreign investors. BOI as a focal point provides information and assistance for speedy materialization of investment projects.

Apart from facilitating projects, BOI’s role is also important in the context of visa facilitation and opening up of branch offices and liaison offices of entities. Permission of BOI is mandatory for opening of branch or liaison office in Pakistan. BOI also recommends Work Visas to expatriates working in foreign and local companies in Pakistan.

BOI’s role is crucial for materialization and sustainability of the projects being started and to be started under CPEC. BOI welcomes Chinese and other local and foreign investors interested to invest in the country under CPEC or any other initiative.