CPEC benefits for Pakistan

CPEC benefits for Pakistan :-

CPEC is going to be very beneficial for Pakistan. Benefits are described as following :-

1) Overcoming energy crises:-

               CPEC is not only a trade route for Chinese exports rather, it also entails a plan to overcome energy crises in Pakistan. The Chinese companies under CPEC ,  will be working on four(04) wind power projects about 300 MW capacity

a)  One solar power project of 900 MW of electricity,

b)  Three hydro power projects of 2,714 MW,

c) Five coal projects in Thar Sindh of 3,960 MW and

d) Four imported coal projects of 4,260 MW in total along with a ±660 kV HVDC transmission line between the sindh and the Punjab.

One and the most  key projects in CPEC is the ±660 kV Bipolar form Matiari to Lahore HVDC transmission line project, and it will transmit about 4,000 MW of electricity. And that project is the first ever HVDC transmission line in Pakistan and it will also be the first transmission line project in the country , which is developed by private sector.

2) Economic development:-

   China-Pakistan Economic Corridor (CPEC) is a strategic economic project that aims to increase the regional connectivity for the economic development of the Pakistan and the China. That would not be only beneficial for Pakistan and China but is also expected to have positive impacts on  other neighboring countries by enhancing the geographical connectivity of Pakistan with the landlocked central Asian states.  The investment in the other production sectors of the economy of Pakistan , GDP growth rate of  the Pakistan is targeted to increase about 7.5% by 2030 with the addition of jobs about two million in the job market.

3) Infrastructure development:-

    CPEC related projects also aimed to construct the new routes and the overhauling existing road infrastructure while facilitating  the trade and increasing more easiest accessibility to the markets. The transport infrastructure will involve the development of the road networks , railways, highways and energy tunnels.

The CPEC investment in the transport infrastructure will boost our trade within Pakistan and it will increase the trade and the economic cooperation with China. Pakistan will shift the trade routes with the China and other countries by the sea and air to cheapest land transportation. That will increase the export of the agricultural products in the global market, which was before discouraged due to the high transportation costs. Hence the efficient transport infrastructure in CPEC will have result in reducing the internal transportation costs and less time consumption advantage in international market.

4) Removal of poverty : -

        CPEC is one of the best game changer project for Pakistan that will lift millions of Pakistanis out of poverty and provide employment opportunities in wide range. That project involves the construction of the  textile garment, the industrial park projects, construction of dams and the installation of nuclear reactors and also  creating many networks of road, railway line which will generate employment widely and the  people will also take the ownership of these projects. The quality of life of people will be improved by fully equipped hospitals, technical and the  vocational training institutes, water supply and the distribution in undeveloped areas.

5) Peace and Prosperity in the province :-

        The projects under the China-Pakistan Economic Corridor (CPEC) will also brings peace and the  prosperity and the development in Pakistan’s Southwest Province Baluchistan. By this literacy rate will also get increased in future . 

CPEC and Tax and Power Tariff Issues:-

It is become an anxiety, held by China over the tax and tariff implementation of the power projects which are under the CPEC. China has serious matter over slowing down the implementations by the FBR. The main reason of issues arousing is due to the delay in approval from the FBR on the tax relief of imported machinery and the instruments. This dispensation is a part of agreement of the CPEC. This delay shows very negative effects on the completion of the project . Furthermore In addition, china has also made reservations over the problems of reduction in tariff on the renewable energy. According to the sources, this decrease in tariff would have very negative effects on the efficient implementation of  the projects. In that , Pakistani authorities are trying to resolve the problems and issues through the reviews of NAPRA which usually determines the tariff on the fuel independently .