China and Pakistan have successfully joined hand with each other through the fifty-four billion Dollars worth deal known as the China-Pakistan Economic Corridor (or CPEC). According to the deal, the Xinjiang region of the western China will commercially connect with the port of Gwadar of the Southern Pakistan. A whopping eleven million Dollars will also be invested in the rail and road infrastructural development, and 33 billion Dollars will be invested to build up the power and energy generation projects in Pakistan. It is needless to say that the major portion of these investments will be made from the Chinese side. This project will very much help Pakistan to develop a new growth in their economy.
The CPEC prevails through the entire country of Pakistan including the Kashmir occupied by Kashmir and southern Balochistan. This also will reduce the border length of the availability of the Chinese goods to be available in the United States of America, Africa and Europe and the whole Western frontier by an average of two thousand miles.
How India will be affected
- India since the very inception has opposed to the very idea of this project because it runs through the Pakistan occupied Kashmir. The 1300 km long corridor will give an alternative economic road link to the valley of Jammu and Kashmir which lies on the Indian side of the border.
- Chief Minister Mehbooba Mufti, although has expressed her optimism about this project. In fact, the political leaders and the business owners of the both side of Kashmir are all optimistic about the project, and they are demanding for making the area a special economic zone.
If the CPEC becomes functional, then China will have an extended business on the oil based countries which will affect India with the 60% of its oil import