Benefits of China- Pakistan Economic Corridor

China Pakistan Economic Corridor is Collection of Infrastructure project which are Currently Under Construction in Pakistan. Originally Value of China Pakistan Economic Corridor is $46 billion but Now its Value increase Up to  $62 billion. CPEC intended to modernize the Culture of Pakistan Of infrastructure and Strengthen Its Economy by the Construction of Modern Transportation Networks.

CPEC Project is  not a secret  project it help to make Strong Bilateral relation with China.

This Mega project is Divided into two parts: transportation and energy. An energy master plan of power generation projects to overcome energy crises would also benefit Pakistan. It is needed to develop and implement a reform road map to complete it with out any interruption and hurdles. With the CPEC, there is hope that this project will open new business outlets for businessmen from China, Pakistan and Iran. It will also provide a platform of cooperation in huge agricultural sector and will boost tourism industry of Pakistan.
China Pakistan  Economic  corridor is the latest mega project between these two countries which will help to connect the port city Gwadar to the Chinese region Xinjiang.
China Pakistan Economic Corridor is 3000 km long project between Two Countries that Connect China and Pakistan by Railways ,Highways and pipeline.
CPEC Project is a long project that strengthen its Economy and also Help Different 
areas of Cooperation like Finance ,Science and technology ,Agriculture etc.

 China Pakistan Corridor Implementation Phase:
                                                        After the Sign on CPEC Agreement between China and Pakistan Implementation phase begins  on May 2016.

There was an opening ceremony held in Sukkur  in Pakistan’s Sindh Province, as construction began on a section of highway between Sukkur and the city of Multan—it will be part of a network of highways that will connect the cities of Peshawar and Karachi.4 This network is a major component of the CPEC’s plans for infrastructure expansion, which highlights the progress the two nations have achieved thus far in the area of transportation. In addition, on November 13, 2016, the first large shipment of Chinese goods went through port of Gwadar, a flagship CPEC project in Pakistan’s southwestern province of Balochistan.

      

                                                                                                                                                      

Benefits of China Pakistan  Corridor:

There are lot of Benefits of CPEC some of Are Listed here.

1.    Reduction in distance. 

     

It costs 10 times more, to move anything over land, compared to sea routes. When scales of economy, specifically businesses come into play, cost is everything. As it stands, majority of container/gas/oil ships follow path of winds (path of least resistance), to reduce costs further, even when it increases shipping time significantly.

a.    Manufacturing, if shipping costs increase 10 times, multiple industries in China will face closure overnight, as it will not be viable to sell products outside China. Unless these industries are moved to Kashgar. Surprise Surprise Kashgar is exactly where China wants development.

b.    Shipping Oil via sea makes sense, massive quantities in single ship, at cheap rate, via ships that operate on sludge oil. Further future developments mean, sails/para-sails/etc are being trialed and used, which will further reduce shipping costs.

c.    Pakistan's industry is already suffering due to various reasons, exports have dwindled to almost none, what will Pakistan do with "Reduction in distance" when it has nothing to sell in China.

2.    Transportation of resources

3-  Electric projects under CPEC.

•   Pakistan’s electricity generation capacity in 2015–2016 - 109.25TWh.
•   Pakistan’s electricity consumption in 2015–2016 - 90.36TWh.
•   So Pakistan had 18.89TWh extra.
•   That is 18,890,000MWh extra electricity being generated every year.
•   That is 18,890,000,000KWh extra electricity being generated every year.
•   According to World bank, Average household usage in Pakistan is 472KWh every year.
•   According to World bank, Average household usage in US is 10,812KWh every year.
•   So Pakistan had enough electricity to supply, 40,021,186 extra houses in 2015–2016.
•   Or Pakistan had enough electricity to supply, 1,747,132 extra houses in 2015–2016.
•   So, why did Pakistan had so much load shedding in 2015–2016?
•   Why does Pakistan need to construct electricity projects under CPEC at such high return rates. When it is already in surplus.