The Objective of developing a China Pakistan Economic Corridor (CPEC), which was planned by Chinese official Li Keqiang during his visit to Pakistan in May 2013. The proposed economic corridor will connect the north-western Chinese province of Xinjiang with the Pakistani port of Gwadar through a network of roads measuring around 3000 km (1,800 miles), providing Pakistan its much-needed economic infrastructure, especially power-generation plants, roads and modern development.
The China-Pakistan Economic Corridor is located where the Silk Road Economic Belt and the 21st Century Maritime Silk Road meet. It is, therefore, a major project of the “Belt and Road” initiative.

China has made commitments to provide around more than $46 billion in development deals, which is equivalent to roughly 20 per cent of Pakistan’s annual GDP. In total, the economic corridor project aims to add some 17,000 megawatts of electricity generation at a cost of around $34 billion. The rest of the money will be spent on transport infrastructure, including upgrading the railway line between the port megacity of Karachi and the northwest city of Peshawar.


How China Pakistan Economic Corridor Effect Other World Counties
The effects of CPEC on other countries can be both positive and negative. Some of the potential benefits include:
- Increased trade: CPEC is expected to increase trade between China and Pakistan, and potentially other countries in the region, by improving transportation infrastructure and reducing trade barriers.
- Economic growth: CPEC is expected to boost economic growth in Pakistan, which in turn could lead to increased demand for goods and services from other countries.
- Job creation: CPEC projects are expected to create jobs in Pakistan, which could lead to reduced unemployment and improved living standards.
However, there are also potential negative effects of CPEC on other countries:
- Competition: As Pakistan’s economy improves, other countries may face increased competition from Pakistani companies in international markets.
- Debt: Pakistan has already a heavy debt, CPEC projects in Pakistan are funded by Chinese loans, which could lead to an increase in Pakistan’s debt burden and potential defaults on those loans.
- Balancing act: Neighboring countries may feel pressure to balance the relationship with China and Pakistan, this could lead to tensions between regional countries.
- Geopolitical implications: CPEC runs through disputed territory in Pakistan-administered Gilgit-Baltistan, which is claimed by India. This has led to tensions between China, Pakistan, and India, and could have implications for regional stability.