China Pakistan ink new CPEC agreement

Context

Recently, Pakistan signed a new agreement with China to start the second phase of USD 60 billion China-Pakistan Economic Corridor (CPEC).

Key-Highlights

• The industrial cooperation agreement is a key part of what is being called “phase two” of CPEC. 
• The first phase primarily involved Chinese investments in energy projects as well as road infrastructure.  
• The agreement between Pakistan’s Board of Investment and the NDRC is aimed at boosting Chinese investment in Pakistan as well as transferring Chinese industrial capacity.
• The framework will “promote industrialisation and development of economic zones, and initiate, plan, execute, and monitor projects, both in public as well as private sector”.
• CPEC was a project of “strategic significance for both countries” and called for both sides to “expedite” measures to develop the Arabian Sea port of Gwadar.
• China has described CPEC as a “flagship project” of the Belt and Road Initiative.
• The corridor links Xinjiang with Gwadar, and also passes through Pakistan-occupied Kashmir (PoK) where China is investing in a number of projects.

About China Pakistan Economic Corridor (CPEC)

• The China-Pakistan Economic Corridor (CPEC) is a part of China’s ambitious One Belt One Road (OBOR) Initiative to link China with Europe.
• This was started in 2013, the CPEC is a developmental project between Pakistan and its all-weather friend China.
• China-Pakistan Economic Corridor Is a whopping 46 billion dollar project which will connect Kashgar in Xinjiang province of China, with Gwadar port in Balochistan which is the largest province in Pakistan.
• It is connected through a vast and complex network of roads as well as other infrastructure projects such as dams, hydropower projects, railways, and pipelines.