Pak, China ink six agreements to expedite cooperation under CPEC

Contact Counsellor

Last Updated02/08/2023

Recently, Pakistan and China signed six key documents to help undertake the second phase of the $60 billion China-Pakistan Economic Corridor (CPEC) projects under a new model.

CPEC is a 3,000-km long route of infrastructure projects connecting China’s northwest Xinjiang Uygur Autonomous Region and the Gwadar Port in the western province of Balochistan in Pakistan.
It is a bilateral project, intended to promote connectivity across Pakistan accompanied by energy, industrial, and other infrastructure development projects.
Significance for China
- Access to the Middle East and Africa from Gwadar Port
- Enable China to access the Indian Ocean
Significance for Pakistan
- China will support development projects in Pakistan to overcome the latter’s energy crises and stabilise its faltering economy.
CPEC is a part of the Belt and Road Initiative.
- The BRI, launched in 2013, aims to link Southeast Asia, Central Asia, the Gulf region, Africa and Europe with a network of land and sea routes.

India’s Sovereignty
- India sees CPEC as infringing its sovereignty as it passes through disputed territory of Gilgit-Balistan.
Chinese String of Pearls
- It will serve Beijing’s strategic ambition to encircle India.
- It will serve Beijing’s strategic ambition to encircle India.
Emergence of Pakistan as an outsourcing destination
- It is poised to speed up Pakistan’s economic progress mainly at the cost of Indian export volumes.
It would hamper India’s strategic interests in the South Asian region.
China is also building large dams and military bases in this region, both affecting India’s riparian rights and strategic interests.