CPEC expected to boost GDP growth to 7.5%, claims new report

The China-Pakistan Economic Corridor (CPEC) will create more than two million  jobs and take  Pakistan’s GDP  growth rate up to 7.5%,  according to a report  from the US-based consulting firm Deloitte Touche. The report’s authors claim that  CPEC-related projects will create some 700,000 direct jobs over the next 15 years and add 2.5 percentage points to the country’s current GDP growth rate of 5%. 
An additional 1.4 million indirect jobs will be added in supply-chain and service sectors to support the projects, including in its building materials industry where annual cement production capacity is set to increase from 45m to 65m tonnes, according to Bloomberg’s Faseeh Mangi. Other indirect jobs will be created in sectors ranging from personal services to housing and transportation.
Scheduled to become operational by 2020,  the CPEC  is a 3,218km long network of highways, railways and pipelines that will run from Kashgar in China’s western Xinjiang province down to the Chinese-operated port of Gwadar on Pakistan’s Arabian Sea coast.  The total estimated cost of the project is $45bn.
Almost 80% of the oil China needs to fuel its domestic and industrial consumption is currently transported from the Middle East through the Strait of Malacca to Shanghai and the corridor will cut the distance from 16,000km to less than 5,000km. As well as reducing China’s energy costs, however, the CPEC will physically connect China to its markets in Asia, Europe and beyond, in the process give a  significant boost  to Pakistan’s economy.