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China-Pakistan Economic Corridor (CPEC)

Sector Estimated Cost (USD Bln)
Energy Projects 33.79
Road Network 5.90
Rail Network 3.69
Mass Transit in Lahore 1.60
Gawadar Port 0.66
China Pakistan Fibre Optic 0.04
Total 45.69

CPEC is an under-construction development megaproject to connect Gwadar Port of Pakistan to China’s northwest autonomous region of Xinjiang via highways, railways and pipelines to transport oil & gas. The economic corridor will run about 3,000 km from Gwadar to Kashgar. The corridor would transform Pakistan into a regional hub and give China a shorter and cheaper route for trade with much of Asia, the Middle East and Africa.

Chinese president Xi Jinping visit Pakistan on April 20th 2015, Pakistan and China rolled out of US$46 billion portfolio agreed under CPEC. Both signed agreements worth US$28 billion to immediately kick-start early harvest projects, while projects worth US$18 billion, which are in the pipeline, will follow as soon as required studies, processes and formalities are completed.

The corridor will serve as a primary gateway for trade between China and the Middle East and Africa. At later stages, China also plans to build oil storage facilities and a refinery at Gwadar, with oil transported to its Xinjiang Uighur Autonomous Region via road and pipeline. This will let it move energy and goods to inland China without going through the Strait of Malacca. In addition, such a link would vastly cut the 12,000km route that Mideast oil supplies must now take to reach Chinese ports.


March 2017 Updates:
The magnitude of projects swelled from US$46 billion to US$62 billion upon further addition of project under the umbrella. Following are few major projects recently added under CPEC

  • Karachi Circular Railway
  • Mass transit projects for Quetta and Peshawar
  • Thar Coal based power plant at Keti Bandar
  • Special Economic Zone at Dhabeji
  • Establishment of various industrial zones

Official CPEC website


  • Fauji Foundation
  • Fauji Foundation
  • Fauji Foundation
  • Fauji Foundation
  • Fauji Foundation