China Pak Economic Corridor, also widely known as CPEC is link between two countries China & Pakistan forming an alliance for the future business dominance. The need for CPEC comes at a time when China has already captured world’s production market but due to its geographical location faces hardships when sending out shipments. When you put your land to use, it has a dominant impact on the entire region. The project’s impact on Pakistan’s economy will be huge and so will be on the real estate sector. The 3,218 KM long highway is under construction and still requires a lot of time and patience to complete.
Impact of CPEC on Pakistan Real Estate
CPEC is a one-belt one-route plan that comprises of a series of interstates, railroads, pipelines and electricity. Linking Pakistan’s Gwadar deep-sea port with China’s Kashgar in western Xinjiang, will allow neighboring regions to make use as well and reduce their trade routes with the rest of the world. Approximately 83% of China’s oil is transported thru Strait of Malacca to Shanghai. The area it needs to travel is approx. 16ooo KM which requires 3 months owing to traffic and weather conditions. With Gwadar operational, 5000KM will be reduced cutting down time and cost at the same time. Estimated cost of the project is around US $ 75 Billion. About US $ 45 Billion will guarantee the project gets operational by 2020 while the rest will be spent on upgrades and to manage overhead costs. READ MORE
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