FAQs

All your Questions answered Related to CPEC in one place

Some of your Questions Related to CPEC:

Q. 1. Pakistan has long relation with China, when was CPEC formalized?

-Initially KKH was completed in 1974.

-National Trade corridor concept has been under discussion for research since last ten years.

-CPEC concept was first evolved during Chinese Premier visit to Pakistan during May 2013.

-MoU on CEPC Long Term Plan and Action Plan was signed on 5th July 2013 during Prime Minister Nawaz Sharif’s visit to China.

Q. 2. Historically CPEC routes have been finalized earlier?

Various routes may have been under discussion prior to signing of MOU in July 2013, but the routes were formalized following various discussions after formalization of MOU and it was agreed in November,2015 in the form of monographic study on Transport Planning, which specifies highways/railways network, benefiting all region of Pakistan. 

Q. 3. CPEC is mainly related to cooperation in transport, energy & industrial parks?

As the name suggests, CPEC in totality relates to evolvement of Economic activities. Presently, CPEC mainly relates to cooperation in energy, transport infrastructure (road, railways, airports), Gwadar port & city projects and Industrial parks, which are building blocks to an economy. In long term there are other field of cooperation including, agriculture, industries, tourism, Human resource development and financial cooperation etc.

Q. 4. Lack of transparent planning on part of PC viz-a-viz CPEC?

There is no final plan. Planning Commission can only highlight those plan segments which are finalized by mutual agreement.

Q. 5. Western route was finalized historically and no other route was mentioned?

Various routes may have been under discussion prior to signing of MOU in July 2013, but the routes were formalized following various discussions after formalization of MOU

Q. 6. Installation of Power projects under CPEC is not balanced through out provinces ?

The energy projects are recommended keeping in view the source, load centers and the investors proposal considerations. Regardless of the location, power generated from these projects is added to national grid for nation-wide distribution

Q. 7. How will less developed provinces will benefit from economic zones?

Joint Working Group on industrial cooperation between China and Pakistan under CPEC framework formation is in process, which shall finalize new industrial zones under CPEC. BOI, in consultation with provincial governments is in process of finalizing the zones. These industrial zones will uplift underdeveloped areas.

Q. 8. Why cheap hydropower sources are being ignored in CPEC by focusing on costly fuel for generation of electricity?

Various Hydel projects totaling more than 9000 MW are being planned (CPEC and other than CPEC).

All energy projects are in IPP mode. Federal Government welcomes the initiation of energy projects as per energy policy, which is open to all Provinces/ investors

Q. 9. How Thar is part of CPEC lying so much away from the road network?

Thar having indigenous coal supply is chosen for power project. Its evacuated energy will be part of national grid. 

Q. 10. Lack of environment assessment studies regarding CPEC projects ?

All the projects have been approved after ESIA (Environment and Social Impact Studies).

Q. 11. PC maps depict that there is no western route. It is simply single old road connected with central route. Eastern route is the corridor?

Latest Maps are available on www.cpec.gov.pk/maps

Q. 12. We are now in early harvest phase of CPEC, which is around US$ 46 Billion. What are the details about the allocation of this budget and the share of federating units of the country in this phase, since taxpayers will eventually pay for such project financing?

CPEC is at least 15 year long term project to be completed in phases. Our development goal is to have balance regional development in phases. The US $ 46 Billion is a broad commitment of investment and concessional loans have been principally committed by China in the early harvest phase.

Q. 13. The transmission system of electricity in Pakistan is obsolete and responsible for huge line losses annually. In CPEC US $ 3000 Million has been earmarked to upgrade this system. What are the details of utilization of this amount? In which area, route of CPEC this budget will be utilized?

Transmission line was included in the actively promoted energy projects list. It was included in prioritized projects for the transmission line from Mitiari to Lahore and Matiari to Faisalabad for evacuation of power more efficiently and more reliability and redundancy through HVDC lines. This is in ITC (Independent Transmission Company) mode. Government of Pakistan is not liable to pay back loans and its business model is like IPP mode power plants.

Q. 14. Liquefied natural gas (LNG) pipelines are being planned for installation on the Corridor. What are the details about the budget of LNG, location of the pipelines and the ultimate beneficiaries of this crucial system of energy?

There is no LNG project in the approved list of CPEC project portfolio. However efforts are being made to include an LNG pipeline and terminal project.

Q. 15. We all know that Pakistan will have a corridor for the first time. Since no institute of the country has expertise in the matters pertaining to establishment of corridor, so a representative and competent authority Is needed to make this dream a reality. Which authority/body is dealing with this gigantic project, and what is there expertise in the concerned subjects?

According to the MOU signed between Pakistan and China, Ministry of Planning, Development and Reform is the focal point and lead agency on CPEC from Pakistani side and National Development and Reform Commission is the lead agency from Chinese side. CPEC Secretariat have been established on either side. The capacity of Pakistan Secretariat has been continuously enhanced to meet the requirement. 

Q. 16. What will be the Terms and Conditions / Pre¬requisites for establishment of industrial parks and trade zones along the corridor?

The terms and conditions/ pre-requisites will be finalized by the Joint Working Group which is yet to be set up. However, in 5th JCC Ministry of Planning, Development and Reform shared with Chinese side 27 potential sites identified by provincial Governments.

Q. 17. What are the details about the criteria, allocation, and installations of energy projects along the route of CPEC. Which constitutional body decided these projects?

All energy projects are in IPP mode. These projects are not located along any corridor passage. These are located either close to source or to load centre. Needless to add, regardless of location all power goes to national grid.

Q. 18. Railway is integral part of CPEC. What will be the route of the railways of CPEC and by whom and when this decision was done?

Expansion and up gradation of ML-I line from Peshawar to Karachi is being undertaken which is expected to be completed by 2018. This decision was done by JCC after approval by Joint Working Group of experts from both countries.

Q. 20. Fiber optic cable is a very crucial component of CPEC. What is the exact route where this cable will be installed?

It covers GilgitBaltistan, Khyber Pakhtunkhwa and Islamabad-Rawalpindi (SCO Headquarter). It will provide alternate connectivity and redundancy for Pakistan and will open up huge telecom, data connectivity and other related opportunities

Q. 21. The orders of priority in which each of the said routes is planned to be executed indicating also the names of the routes on which work has already been commenced?

Work on priority base has been started on Western route