China-Pakistan Economic Corridor (CPEC)

 

  • CPEC is a flagship project as part of China’s multi-billion dollar Belt and Road Initiative (BRI), aimed at enhancing China’s influence around the world through China-funded infrastructure projects.
  • CPEC aims to construct and upgrade transportation network, energy projects, deep-water port at Gwadar and special economic zones (SEZs) to eventually support Pakistan’s industrial development as manufacturing hub by 2030.
  • CPEC will linking Gwadar in South Western Pakistan to China’s North Western region Xinjiang through vast network of highways and railways.
  • The proposed project is financed by heavily-subsidised Chinese loans, disbursed to Pakistan Government by Chinese banking giants such as China Development Bank, Exim Bank of China and Industrial and Commercial Bank of China.
  • Why in news? Pakistan has invited Saudi Arabia to join $50 billion China-Pakistan Economic Corridor (CPEC) as the third strategic partner.