Abstract
This study will explain the impact of China-Pak Economic Corridor (CPEC) on logistic system of China and Pakistan. This project is estimated investment of US $90 billion, CPEC project is consists of various sub-projects including energy, road, railway and fiber optic cable but major portion will be spent on energy. This project will start from Kashgar port of china to Gwadar port of Pakistan. Transportation is sub-function of logistic that consists of 44% total cost of logistic system and 20% total cost of production of manufacturing and mainly shipping cost and transit/delivery time are critical for logistic system. According to OEC (The Observing Economic Complexity) currently, china is importing crude oil which 13.4% from Persian Gulf. CPEC will china for lead time that will be reduced from 45 days to 10 days and distance from 2500km to 1300km. This new route will help to china for less transit/deliver time and shipping cost in terms of logistic of china. Pakistan’s transportation will also improve through road, railway and fiber optic cabal projects from Karachi-Peshawar it will have speed 160km per hour and with help of pipeline between Gwadar to Nawabshah gas will be transported from Iran. According to (www.cpec.inf.com) Pakistan logistic industry will grow by US $30.77 billion in the end of 2020.
Highlights
A brief History of Pak-China RelationshipPakistan and china friendship was started in 1949
Pakistan always works for better friendship with china, it can be understood that Pakistan helped to china for the permanent seat at United Nations Security Council (UNO) (Arif, 1984)
League Prime Minister Mr Muhammad Nawaz Sharef visited china to discuss about the mega project China-Pak Economic Corridor (CPEC). His visit was in July 2013 and he formed a committee by name Joint corporation committee (JCC) for further serious dialogue on CPEC and more projects for Pakistan
Summary
Pakistan and china friendship was started in 1949. In the initial phase of friendship Pak-china relationship faced number of problems due to difference between capitalist and communist, both countries were not familiar to each other in many aspects. Other countries likewise US and India always develop pressure for stopping cooperation and friendship between Pakistan and china especially US imposed sanctions on Pakistan. President Mr Xi Jing visited Pakistan in April 2015 and officially announced that China is interested to offer US $46 million and to address the energy crises in Pakistan These projects are expected to be completed during 2018-2020. China is the second largest economy of the world (Bank, 2016) This friendship is taking new step with signing bilateral trade contract named China Pakistan Economic Corridor this agreement will beneficial for Pakistan and china but it will be benevolent for other region of Asia such as Iran, India, Afghanistan, and the Central Asian Republic with key role in improving strategic and economic conditions. The micro study revealed that infrastructure leads to poverty reduction in terms of health, education, income and social economic outcomes
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