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Total Investments Made In The First Phase Of CPEC

By CPECNo Comments

China Pakistan Economic Corridor (CPEC) is a $62 billion worth mega economic project that will be developed in four phases. Currently, CPEC is on the brink of completing its first phase and so far, 32 Early Harvest Projects have been completed under CPEC.

CPEC was focused on removing the economic bottlenecks in the first phase of the development process. This included the starving energy sector and poor transportation infrastructure across Pakistan. With a total investment of $25 billion, a lot of substantial work was done. For example, in the transportation sector, 1,544 kilometers of new roads were constructed and 1,456 kilometers  of additional roads are under development. These new roads will reduce logistical costs and provide a productive environment to businesses across Pakistan.

Similarly, in the energy sector, 5320 MW of electricity was added to the national grid in the first phase of project CPEC. Furthermore, seven energy projects (with a production capacity of 2844 MW) are under fast-track development. These energy projects will make resolve the energy crisis in Pakistan and provide a springboard for industrial growth.

Some other landmark developments completed during the first phase of CPEC include the cross border optical fiber project which stretches over 820 km linking Khunjrab to Rawalpindi. This will improve internet connectivity in the region. Also, significant progress has been achieved in the development of Gwadar port which is one of the core projects of CPEC.

In total, ten projects concerning the infrastructure and socio-economic development of Gwadar have been completed. This has made the Gwadar port functional for international transit trade. Tax incentives are also in place for the promotion of investment activities in Gwadar. The coastal city is being developed under the Gwadar Master Plan to catch up with the rising trade activities as Gwadar port becomes a trading hub of the region.

Overall, CPEC projects during the first phase of development have improved local transportation infrastructure and power supply. It has also created 75000 direct jobs and contributed to two percent of GDP growth in Pakistan.

The Economic Worth of CPEC

By CPECNo Comments

China Pakistan Economic Corridor (CPEC) is a mega economic project between Pakistan and China, and a fruit of their diplomatic ties of 1950. The project aims at connecting Kashgar (China) with Gwadar (Pakistan) through a network of highways, railways, natural gas, and oil pipelines. In a broader perspective, CPEC is a corridor envisaged by China in 2013 under its grand vision of the Belt & Road Initiative (BRI)..

Officially, CPEC was launched in April 2015 during the visit of Chinese President Xi Jinping to Pakistan. The project had an initial cost of around $46 billion and was later extended to $62 billion. By 2020, CPEC had a total value of more than $70 billion and experts believe that it may increase further in the future.

As part of CPEC, China has pledged to invest in the development of Gwadar port along with improving transportation infrastructure and meeting the energy needs of Pakistan.  The total duration of the project is 15 years (2015-2030) and will be completed in four phases, namely:

  1. Early Harvest Projects (2015-2018)
  2. Short Term Projects (2018-2020)
  3. Medium Term Projects (2020-2025)
  4. Long Term Projects (2025-2030)

 

Presently, CPEC is almost done with its first phase of development that focused on Pakistan’s transportation and energy sectors. It will soon step into its second phase that will focus on the socio-economic development of Pakistan. The mega economic project has lucrative economic prospects for Pakistan and will prove to be a game-changer for the country’s economy.

 

City At The Heart Of CPEC

By CPECNo Comments

China Pakistan Economic Corridor (CPEC), a mega economic project under China’s grand vision of the Belt and Road Initiative (BRI), is being pursued by China and Pakistan, collectively. The project secures numerous economic benefits for both countries. This is why China is making multiple investments in Pakistan’s industrial, transportation and energy sectors. However, there is one city where China is focusing on. Can you guess the city?

It’s Gwadar.

Yes, Gwadar is the heart of project CPEC. China has set aside a major chunk of investments to develop Gwadar and considers it a key project in CPEC.

What makes Gwadar the focal point of CPEC?

Gwadar is a port city in Pakistan that has one of the deepest seaports located on the shores of the Arabian Sea near the Iranian border. Gwadar port is 533 kilometers from Karachi and 380 km (240 miles) from Oman. It is in proximity to key oil shipping lanes in the Persian Gulf and International Sea Lines of Communication. Due to these aspects of its unique location, Gwadar port carries the prospect of becoming the main hub of international trade in the future. It will also provide the shortest route to China to extend its outreach in the global market.

As part of CPEC, China has pledged to develop Gwadar at $1.62 billion and aims to connect Gwadar port (Pakistan) with Kashgar (China) through a network of highways, railways, oil and natural gas pipelines. The port is not only a hub of connectivity but is also a part of 21st Century Maritime Silk Route which will not only benefit Pakistan and China but also the entire region.

Gwadar, the Jewel of CPEC

By CPECNo Comments

Pakistan and China are close strategic partners, creation of economic interdependence between them is an easy task. The geographical proximity and the opportunity to develop the least developed parts of China and Pakistan allow them to foster economic interdependence for mutual economic advantage. This economic interdependence increases integration, trade promotion, and many related activities such as investment flow, transfer of technology, building of new economic infrastructure, new job opportunities and industries.

Pakistan has its own interest to pursue a closer economic relationship with China to offset pressures in the region. Therefore, strategically both Pakistan and China can cultivate strong economic and strategic benefits from Gwadar and the CPEC.

Located at the top position of North Arabian Sea, Gwadar helps Pakistan connect with four important and resource-rich regions of the world: South Asia, China, Central Asia, and Iran.

The ambitious One Belt One Road, Maritime Silk Road, Gwadar airport, oil refinery and Gwadar trade center projects are all series for the advancement in Gwadar, in short it is an area of golden sand.

As part of the CPEC and by extension, that of the silk route initiative, Gwadar holds pivotal importance. The port city of Gwadar is a center of network and an irreplaceable trade for the silk route. Through its deep-sea port, Gwadar has helped China and Pakistan understand the objective of 21st century maritime silk route, which will profit China and Pakistan, but also Central Asia by turning into the region’s key entry point.

Gwadar Port is situated on the shores of the Arabian Sea in the city of Gwadar, located in the Pakistani province of Baluchistan. The port is 533 km from Karachi and 120 km from the Iranian border approximately. It is located 380 km (240 miles) away from Oman and near key oil shipping lanes from the Persian Gulf. The greater surrounding region is home to around two-third of the world’s proven oil reserves. It is also the nearest warm-water seaport to the landlocked but hydrocarbon rich Central Asian Republics as well as Afghanistan.

The CPEC, however, plans not to confine Gwadar to as an associating port only, but enhances it as a financial center that will take into account the neighborhood population by improving their living.

China will grant Pakistan $230 million to construct a new international airport in Gwadar. The new airport would be able to accommodate the largest aircraft such as A380. The project would comprise a modern terminal building with cargo terminal having initial handling capacity of 30,000 tons per year.

In addition to CPEC, the total worth of transportation project is $11 billion. Few of them include; Floating liquefied natural gas facility for Gwadar and Nawab-Shah, which has been initiated. The worth of this project is $2.5 billion. Economic zones of China are planned to be constructed with the total worth of $2 billion. 1100 KM roads that will connect Gwadar to Turbat, Punjgor, Baseema, and Khuzdar. Power plant with the capacity to generate 300 Mega Watt of electricity and construction of schools, hospitals, colleges and universities.

The real estate business in Gwadar is inviting investors across the country as the city is being deliberated as a business center point in not so distant future. Over the last year, the land costs in the city have appreciated exponentially due to the infrastructural developments being executed and the initiative by China-Pakistan Economic Corridor.

Because of all the industrialization and developmental progress in Gwadar, many new housing societies have also emerged in the city. One of them is Green Palms Housing Project by Rafi Group. Developmental work is in full swing.

Rafi Group has been known for its mega projects throughout Lahore since 1978. Green Palms Housing Project in Gwadar is an investment opportunity for the ones looking for a luxurious housing scheme. It is located on prime land adjacent to Makran Costal highway with the front of 1 km. This project offers ultimate lifestyle with every facility including fully carpeted roads, state of the art hospitals, international standard schools, community club, modern sewerage systems, disposal systems, water treatment plant and much more, making it a great place to invest.

Green Palms offers each and every facility just around the corner, be it the landscape plazas, comfortable working space, Gwadar’s most popular neighborhoods, world class entertainment or retail choices.

Gwadar is a remarkable new chapter in the book of best investment opportunities. We do recommend this for long-term investments. With the development of CPEC, It is going to yield gold. It is definitely going to be a ‘land of opportunities’ for the real-estate investors. The prices are going to surge with every passing day; therefore, if you are planning to invest, now is the time.

CPEC Can Turn Around Pakistan’s Economic Fortune!

By CPECNo Comments

China Pakistan Economic Corridor (CPEC) carries in its lap lucrative prospects for Pakistan’s economy to thrive. There is no gainsaying the fact that Pakistan’s economic fortune seems bright in the wake of CPEC as it is an economic jackpot which will result in an inclusive economic development of Pakistan.

Currently, Pakistan has been at face with severe economic crisis and this can be testified from the recently passed budget by PTI government for fiscal year 2019-2020. Here is an overview of some of the economic challenges highlighted in the budget which indicate that the country’s battle against economic meltdown is, indeed, serious. As per the recently presented budget, Pakistan’s total debt and liabilities have reached Rs 31,000 billion during the last ten years along foreign debt and liabilities reaching up to $97 billion. The country’s foreign exchange reserves have fallen from $18 billion to less than $10 billion.The current account deficit between income and expenditure has reached $20 million.

In the wake of dismal economic figures which PTI government says it has borrowed from previous governments, PTI government, as part of its policy to overcome economic crisis, has set an overwhelming target of Rs 5,555 billion revenue collection via taxes along imposition of controls on expenditure with the aim of reducing primary deficit to 0.6% of GDP.

Thus, in the wake of what seems on the face value economically which has been compounded by recently concerted efforts of the opposition political parties to replace the incumbent government, it seems like it’s hoping against hope to see Pakistan making its way out of economic quagmire in near future. However, this is not the case as it’s like judging a book by its cover. In reality, Pakistan’s economic prospects are brighter than ever before in the wake of pace of development that is going on in China Pakistan Economic Corridor (CPEC) projects, especially in Gwadar port development. It’s a matter of short time for Pakistan’s economy to bounce back from economic void.

Here, it is important to bring in readers’ attention that CPEC is an economic project between Pakistan and China having a worth of $46 billion and it is an offshoot of China’s vision of One Belt, One Road (OBOR). OBOR is a China’s vision to connect itself with Asia and Europe through a network of roads and maritime routes. Chinese President Xi envisaged the vision of OBOR for China’s global connectivity in 2013. To actualize OBOR, China has been working on six economic corridors around the globe in which CPEC is one of them. CPEC is 15 years economic project that will last from 2015 to 2030 and will be executed in four phases. Currently, the project is in second phase.

Moreover, under CPEC, China wants to connect its Northwestern city Kashgar with Gwadar in South of Pakistan through a network of highways, railways, and natural gas and oil pipelines. Once the corridor becomes actualized, it will act as a doorway for trade among China, Africa and Middle East. The upside for China in CPEC is that it will lower the cost of oil transactions for China from Middle East as, prior to CPEC, China had to cover 12,000 km distance in order to make an oil transaction which was quite costly because of large distance but, via Gwadar port, the cost of oil transaction will lower down because of short route.

In addition to that, as part of CPEC, a huge investment is going on in Gwadar as it is the port in Gwadar that will connect China with around 65 to 70 countries across the globe. For this, Gwadar is being turned into a global metropolitan that can deal effectively with all international transactions. Development of Gwadar is one the core areas of investment in CPEC.

Business firms across China are investing in various capacities to make Gwadar a well-developed trade zone in future through logistics and Infrastructural development.

The other day, the China Overseas Ports Holding Ltd invested US $250 Million and built a 25-acre modern Industrial Park in Gwadar Port Free Zone. The free zone has reportedly all the basic amenities of life. It is equipped with well-paved roads, sanitized water pipes, 24/7 electricity, telecommunication services in the likes of internet and telephone, security fence and waste disposal facilities. Business firms are in competition with one another to invest in Gwadar Port Free Zone because Gwadar promises to pay in huge returns due to its economic potential in near future. The rising pace of investment in Gwadar Port Free Zone can be testified from the fact that more than thirty business firms across Pakistan and China have made 3 billion yuan of direct investment in the free zone. These investments have been made in hotel, bank, insurance, financial leasing, logistics, overseas warehousing, grain and oil processing, aquatic product processing, and home appliances assembly. Such is the pace of development going on in Gwadar which is the core project of CPEC. There is no gainsaying the fact that the yearly output value of these investments will exceed 5 billion once they become operational which will be a boon for businesses who have invested in Gwadar.

The geo-economic and geo-strategic significance of Gwadar port has made Gwadar a point of investment for businesses across Pakistan and China. This is good for Pakistan in general and Balochistan in particular which though is the largest province of Pakistan, yet that is the least developed province as compared to other provinces of Pakistan. Gwadar’s development will certainly impact development of Balochistan.

To turn CPEC into reality via development of Gwadar city and play an active role in the development of Balochistan, almost all the businesses have been investing in general; however, Rafi Group, in particular, has outstood among all businesses in its commitment to turn Gwadar into a global metropolitan. For readers’ convenience, Rafi Group is a real estate firm that was established in 1978 and has headquarter in Lahore. The firm is currently running Green Palms Gwadar which is a housing project. Green Palms Gwadar is located in Gwadar city on prime land adjacent to the Makran Coastal Highway.

It is worth sharing here that Rafi Group was the first business group which, quite earlier than the launch of CPEC, invested in Gwadar with the sole aim of uplifting the livelihood of the people of Gawadar and is currently running a housing scheme in Gwadar with all basic facilities in the likes of mosque, community club, postal services, spacious lush green parks, lawnsand educational institutions. Moreover, it has systems such as underground electricity, sewerage disposal mechanism, fresh water supply along quality infrastructure and modern telecommunication network which keeps the environment of Green Palms clean, modern and worth inspiration.

One other distinction that makes Rafi group outstanding among businesses in Gwadar is that Green Palms Gwadar is located in the mainstream city of Gwadar which gives it an edge to play an active role in development of Gwadar as compared to other businesses with respect to providing a housing scheme that is safe, secure and environmental friendly.

Green Palms Gwadar is playing a key role in development of Gwadar keeping in view its centrality in global trade in upcoming times and this is vision of Rafi Group for running Green Palms Gwadar.

Here, it is important to mention that getting returns on investment in Gwadar for businesses is like growing a Chinese bamboo tree which does not grow instantly. It is said about the bamboo tree that once it is sown, it takes five years for the seed of the tree to break the ground. However, once it sprouts, it turns into 90 feet tall bamboo tree within five weeks.

Similarly, businesses investing in Gwadar may not get instant results; however, once Gwadar port gets operational, businesses will thrive like bamboo tree within months. Gwadar provides most lucrative prospects to businesses as with each passing year the returns on investments are becoming doubled.

Lastly, the rising trend of investments being made by businesses in Gwadar which will certainly help in actualization of CPEC sooner than later carries a message in its lap that best days for Pakistan’s economy are yet to come and it’s not all over yet!

All Eyes on Gwadar!

By CPECNo Comments

China-Pakistan Economic Corridor (CPEC) is progressing with a phenomenal pace. The great economic development project inspired by the Chinese vision of One Belt, One Road (OBOR) started in 2013. In the past six years, 11 CPEC projects have reached fruition. 11 are under construction. The total investment of the 22 projects is around $18.9 billion (USD) with 20 more projects in the pipeline. Currently, CPEC has stepped into the second phase which is focused on the socio-economic development of Pakistan. The first phase pre-dominantly focused on meeting Pakistan’s energy needs and developing transportation infrastructure in Pakistan. Overall, under CPEC, the major avenues of focus comprise Energy, Infrastructure, Gwadar Port and Industrial Cooperation.

While all the major avenues of CPEC are developing with an accelerating pace, the speed of development in Gwadar can hardly be overlooked. Gwadar has a huge significance in overall CPEC because of Gwadar port which has the potential to bring China at the doorstep of international trade and make Pakistan a key stakeholder in it.

Under CPEC, as per the agreement among China Overseas Ports Holding Company (COPHC), Gwadar Port Authority (GPA) & Singapore Port Authority in 2013, development and operation of Gwadar Free Zone was assigned to the COPHC. Until now, COPHC has invested $250 million to renovate Gwadar port. The speed of development in the port is remarkable as five new quay cranes, a 100,000 meters storage yard, a seawater desalination plant with a capacity of 220,000 gallons pure water/day, two sets of sewage disposal systems & cargo handling equipment have been installed and 80,000 meters green space has been added to the port area. The good news is that the port has been operationalized for exports and 400,000 tons of cargo has been handled by Gwadar Port in 2017.

Another key feature in the development of Gwadar in the wake of CPEC is the development of Gwadar Free Zone which is at a distance of 7 kilometers from the port. Gwadar Free Zone will be developed from 2015 to 2030 and its development has been divided into four phases. Moreover, Gwadar East Bay Expressway is one other takeaway from Gwadar’s development under CPEC. The project was signed in September and its construction started in November 2017. Once it is inaugurated, it will turn out to be the main channel for the cargo distribution of Gwadar Port and a vital communication line to connect the Free Zone in Gwadar’s southern and northern areas.

Gwadar is currently being designed as per Gwadar Smart Port City Master Plan which was approved by Gwadar Development Authority (GDA) on August 23, 2019. Gwadar Master Plan, once actualized, will transform the port city into a hub of industrialization, commercial activity and international marine trade. Ministry of Planning and Development recently made a forecast as per which Gwadar port has the potential to raise Pakistan’s Gross Domestic Product (GDP) to US $200 billion to US $300 billion by 2050. According to the forecast, Gwadar will contribute to Pakistan’s economy US $6 billion in the short term by 2025 and US $24 billion in 2035. Similarly, the per capita income of the citizens in Gwadar will be around US $2000 in 2025 while it will rise to US $4000 by 2035. In addition to that, as per the forecast, the per capita income of the city will further surge to around US $10,000 to US $15,000 in the long term.

The development of Gwadar can turn around Pakistan’s economy. This is something that was testified recently by Chinese visiting Professor Cheng Xizhong at Southwest University of Political Science and Law. In an article published by China Economic Net, the Chinese professor wrote that the pace of development in Gwadar would determine the speed of development in Pakistan as a whole. Furthermore, he opined that there was a need to further speed up the construction of Gwadar Port and make it “Shenzhen of Pakistan”. Shenzhen was just a small fishing village in the early 1980s in China. After about 25 years of development, it became a modern city and turned out to be a springboard for the current economic development of China.

CPEC carries in its lap massive development for Gwadar. Being a core project of CPEC, Gwadar has been gaining popular traction among developers and investors. In order to catch up with the housing needs of Gwadar coming in the wake of development promised by Gwadar Master Plan, Rafi Group has sped up construction in Green Palms Housing Project after its first successful balloting. The housing scheme is the premium housing project in Gwadar and has been designed by modern architects with all basic necessities of life. There is no gainsaying the fact that the housing project’s strategic location in Gwadar carries lucrative prospects for business investors. Rafi Group is the pioneer of the land development sector in Gwadar and is a trusted name in the real estate market across Pakistan since 1978.

In a nutshell, CPEC, in general, and Gwadar, in particular, will decide the future of Pakistan’s economy. Gwadar is a fortune maker. It’s a high time to turn the direction of your investment to Gwadar and the best place to invest in Gwadar is Green Palms Housing Project which will not only offer affordable yet luxurious lifestyle to its residents as per the needs of modern age but, because of its strategic location in Gwadar as well.

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