Pakistan and CPEC Project

Pakistan and CPEC Project

What is the news?

• The Pakistan government has decided to shelve a major coal­ based power plant project under the $60 billion China ­Pakistan Economic Corridor (CPEC), citing sufficient generation capacity already lined up for the next few years.
• It has requested Beijing to formally delete the project from the CPEC list.

About CPEC Project

• The CPEC is the flagship project of the multi-billion dollar Belt and Road Initiative (BRI).
• It is a pet project of Chinese President Xi Jinping, aimed at enhancing Beijing’s influence around the world through China-funded infrastructure projects.
• The 3,000 km-long China–Pakistan Economic Corridor (CPEC) consisting of highways, railways, and pipelines is the latest irritant in the India–China relationship.
• CPEC eventually aims at linking the city of Gwadar in South Western Pakistan to China’s North Western region Xinjiangthrough a vast network of highways and railways.
• The proposed project will be financed by heavily-subsidised loans, that will be disbursed to the Government of Pakistan by Chinese banking giants such as Exim Bank of China, China Development Bank, and the Industrial and Commercial Bank of China.

Cause of Concern for India

• CPEC Project passes through PoK (Pakistan Occupied Kashmir).
• Any Indian participation would inextricably be linked to the country’s legitimate claims on PoK.
• CPEC rests on a Chinese plan to secure and shorten its supply lines through Gwadar with an enhanced presence in the Indian Ocean.
• Hence, it is widely believed that upon CPEC’s completion, an extensive Chinese presence will undermine India’s influence in the Indian Ocean.