China and Pakistan have signed agreements worth $1.6 billion to implement the China Pakistan Eocnomic Corridor or CPEC project. The agreements were signed at Karamay city in Xinjiang province. The 3,000-km CPEC connecting Xinjiang with Pakistan’s Gwadar Port through PaKistan is stated to cost USD 46 billion.
CPEC project seeks to boost economic cooperation, political trust and cultural exchanges between China and Pakistan. A total of 51 agreements were signed during Xi’s visit of which 30 are linked to the strategic corridor. The project includes building of highways, railways as well as pipelines. It will shorten the route for China’s energy imports from the Middle East by about 12,000 kms.
As the Corridor passes through disputed territory of Pakistan occupied Kashmir, India has conveyed its objections to China.
- Chinese President Xi Jinping proposed the concept of the Maritime Silk Road (MSR) in October 2013.
- The MSR is an attempt to promote economic cooperation and connectivity by reviving the ancient maritime Silk Road trading route.
- The main aim of China’s One Belt, One Road initiative is to develop its landlocked western provinces and enable them to access the markets of Southeast Asia and the Middle East.
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