CPEC power projects to add 2pc to Pakistan GDP growth

CPEC power projects to add 2pc to Pakistan GDP growth
ISLAMABAD: The enhanced power generation capacity resulting from China Pakistan Economic Corridor (CPEC) projects is expected
to add two (2) percentage points to Gross Domestic Product (GDP) growth in medium to long term.

The overall energy projects aim to add 17,045 Megawatts (MW) to mitigate chronic electricity shortfall and provide a reliable support for domestic economic activities and exports.

Sources at Planning, Development and Reforms Division on Tuesday said out of US$ 47 billion CPEC portfolio, the bulk (around US$ 35 billion) is for energy projects whereas US $ 12 billion is for roads and other infrastructure projects.

The CPEC transport infrastructure projects (roads, railways, port facility upgrade) would allow easier and low cost access to domestic and overseas markets, promoting inter regional and international merchandise trade.

The sources said services exports would also benefit from increased trade traffic from China.
Moreover, the sources said establishment of Special Economic Zones (SEZ) alongside CPEC routes will facilitate domestic and foreign investment.

These SEZs would have multiplier effect on growth via connectivity to other regions, accessibility to markets, job creation, etc, the sources said and added this will also help in integrating less developed areas into folds of active development.

The project-wise revenue to be accrued to Pakistan, however, cannot be estimated at this stage.