Shared Heritage Shared Prosperity (Eng)

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Sterling Khyber Pakhtunkhwa The elegant people of the Khyber-Pakhtunkhwa province of Pakistan have kept their sterling qualities of reliability, loyalty, love of beauty, sturdiness, and hard work over the centuries. The people of Khyber Pakhtunkhwa have the pride of long-held custody and stewardship of many beautiful gifts of nature and tradition. Khyber Pakhtunkhwa has cultivated and proudly maintained their strong traditions of hospitality, commerce and enterprise in spite of the vagaries of time. In Khyber-Pakhtunkhwa, guests are welcomed as for-ever partners and friends, and are offered a place close to the heart. People of Khyber-Pakhtunkhwa demonstrate life-long commitment to friends.



Enterprise Determination and Hard work are a Hallmark of Khyber-Pakhtunkhwa and is embedded deep in the nature of the people. Their Enterprise is visible in every aspect of business and life wherever a K-P person is seen at home or away from home. People of K-P have the capability to go to great lengths, long distances in their endeavours. They are able to create value from where others may not comprehend.

Hospitality Khyber Pakhtunkhwa is famous for its unmatched hospitality for their visitors and guests. The tradition is proverbial as undying friendship for its guests is ingrained in the nature of people of Khyber-Pakhtunkhwa. Guest investors are welcomed. People of Khyber-Pakhtunkhwa will participate in business, hand-hold guest investors, and promise them undying security of their investment in KhyberPakhtunkhwa.

Beauty Khyber-Pakhtunkhwa is endowed with immense natural beauty. Such unsurpassed beauty is inherent in its people, in the land, in its culture and its traditions. Khyber-Pakhtunkhwa offers the promise of 'beauty of investment' of guest investors in terms of returns - 'all-round' delivery. Environmental Protection & Sustainability is kept as a fundamental tenet of development, for the promise of 'beauty' to have meaning.


MR. PARVEZ KHATTAK Chief Minister, Khyber Pakhtunkhwa


MESSAGE

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he socio-cultural and religious bonds between China and Khyber Pakhtunkhwa has undergone a long history of more than two thousand years. Peshawar, the provincial metropolis has remained centre of Buddhist learning and propagation from where the Mahayanism spread to China and Central Asia. The travelogues of Zhang Qian, Fa Xian, Song Yun, and Xuan Zang, when translated into modern languages created awareness about links between Gandhara Civilization and China. The historical relationships have remained intact and in 2008 the Xinjiang Region and Khyber Pakhtunkhwa province were officially declared as friendly regions. Similarly, Peshawar - Urumqi and Abbottabad - Kashgar have also been declared as sister cities. The recent initiatives of both the countries under "Pakistan-China Economic Corridor" (CPEC) is the most significant development as it would usher a new era of economic progress and prosperity for both the countries. The government of Khyber Pakhtunkhwa whole heartedly supports the CPEC endeavors. Due to its locational advantage, the province of Khyber Pakhtunkhwa offers numerous advantages to CPEC. This game changer venture will benefit from the province both in short and long term. The province is endowed with natural resources which can be utilized in multiple industries in China and will

promote cross border trade. Moreover, the inhabitants of this province are trade oriented and the vital node of Silk route was equally used for business and trade since time immemorial. The booklet contains multi-sectoral proposals pertaining to Mine & Minerals, Infrastructure development, Oil & Gas exploration, Hydropower generation, Tourism, Housing, Agriculture, Industries and Information Technology sectors. These development interventions compliment the overarching framework of CPEC and have the potential to generate economic activity. These proposals triggered in the 6th Joint Cooperation Committee meeting held in Beijing in December 2016. Working groups of all the respective departments have been constituted to evolve sectoral plans and projects. Being a living document, the portfolio of sectors and interventions may vary according to needs and priorities and it will be updated whenever required. Last but not the least; the cultural crossfertilization of Chinese and Gandhara civilizations took place much before the modern era. It's hoped that these historical bonds are revived and transformed into regional integration for stimulating harmony, prosperity and economic cooperation.


Enterprise Hospitality Beauty


PROFILE


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China

Central Asia

N 35

Central Asia

Afghanistan

CPEC E35 Main Route

N5 Train Tracks

Islamabad- M 1 Rawalpindi

N 55 CPEC Western

Iran Gwadar

Indus River Transport

Gulf Punjab Karachi Port Qasim

Khyber Pakhtunkhwa


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1.

PROFILE

The Pakistani province of Khyber Pakhtunkhwa touches both banks of the Indus River. It stretches from the Himalayas in the north to the deserts in the south where the provinces of Baluchistan and Punjab border it. On its western flank is the rugged terrain of neighbouring country Afghanistan, accessed through the mountains of the Suleiman Range via the historic Khyber Pass. It borders China, Tajikistan, and the disputed territory of the state of Jammu and Kashmir in the north. Peshawar is the province's capital city. The province, Khyber Pakhtunkhwa covers an area of 74521 sq. km which amounts to 9.4% of the country's total area. According to 1998 Census of Pakistan the total population of the Province was 17.737 million, with an average growth rate of 2.82% per annum which increased to 29.12 million in year 2015. The civilian labour force employs 41% of the total population, where they directly and indirectly contribute to economic activity and the development of the province. 1

1.1

Geography

Geographically, the province consists of two zones; the northern one extends from the ranges of the Hindukush to the borders of Peshawar basin; 1

Development Statistics, BoS, GoKP

Indicator Area (000 Sq. KM) Population (Estd. Millions) Density (Person per Sq Km) Administrative Divisions Administrative Districts Roads (KM) Road/Sq. KM of Area Forest Area (000 Hectare) Cultivated Area (000 Hectare) Irrigated Area (000 Hectare)

Value 74.5 29 391 7 25 14810 0.26 1258 1647 862

and the southern one extends from Peshawar to the Derajat basin. The northern zone is mostly cold and snowy in winters with heavy rainfall and pleasant summers. The Peshawar basin represents the notable exception to this norm and has hot summers and cold winters coupled with moderate rainfall. The southern zone is arid with hot summers and relatively cold winters and scanty rainfall. Its climate varies from very cold like Chitral in the north to very hot in places like D.I.Khan. The province boasts substantial agricultural resources, with 28.53 % cultivated area and 52 % of this cultivated area is irrigated. Land-use intensity is 60.32 % and cropping intensity is 98.14%. The


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major agricultural crops of the province include wheat, maize, gram, corn, pearl millet, barley, rice, sugarcane, sugar beet, tobacco, fruits, and vegetables.2

D.I.Khan, gems in Peshawar, Mingora & Chitral and marble mining in Buner.3

The agricultural produce and its related agriculture businesses are a dominant feature of the province and form the backbone of the provincial economy. A total workforce of 6.09 million is engaged in trade, commerce, industry, and the agriculture sector and constitutes 21 % of the total provincial population. Amongst these sectors, agriculture makes up the largest share (42.3 %) of the work force, playing a vital role in the economic development of the province.

The geology of the Khyber Pakhtunkhwa exhibits considerable diversity. Khyber Pakhtunkhwa consists of Peshawar, Kohat and Bannu Basins and the ranges are Attock Cherat, Kohat Kotal, Suleiman, Marwat, Bitani and Surghar. Khyber Pakhtunkhwa is home to hard rocks in the northern portion and soft rocks in southern portion of the province. Ample ranges of granite, quartzite, marble, and graphitic schist in Buner represent the hard rocks of the north. Migmatite and granite are found in the Swat area. A wide range of granite is found in Besham, Mansehra and Malakand. Pelite and amphibolite's are abundantly available in Salampur. In the Besham area of Swat, basement rocks are rich in tourmaline and zircon. The share of southern areas of Khyber Pakhtunkhwa including the Kohat subbasin is significant while the northern Suleiman basin may share in this market in the future due to 15-20 km thick sedimentary cover with attractive structures and extensive source and cap rocks. The Kohat sub-basin and northern Suleiman fold belt mostly include sedimentary rocks, and are

The formal Industrial sector comprises mainly small and medium scale industries and a lesser number of large industrial establishments. There are 1039 operational industrial units in the province employing approximately 51123 people. Textiles, steel, pharmaceuticals, plastics and packaging sectors employ the largest share followed by food, beverages, flour mills, and the tobacco sectors. Most of these Industries are part of the formal sector and some are in the form of clusters e.g. leather in Charsadda and Bannu, textiles in Matta Mughal Khel, Mingora, and 2

Agriculture Department Directorate of Industries

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1.2.

Geology:


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promising petroleum exploration targets. The province's reservoir rocks are sufficiently porous that they may contain an accumulation of oil and gas e.g. in Hangu, Lockhart and Datta.4

1.3.

Flora and Fauna

The province of Khyber Pakhtunkhwa is rich in Flora, with forests covering 17 % of its area. The trees most commonly grown in both plain and hilly areas of the province include: deodar, fir, blue pine, pine, walnut and chalghoza pine etc. There is a great deal of variety in wild fauna, wetlands, wildlife habitats and landscape. The area is home to 98 species of mammals, 465 species of birds and 55 species of reptiles.5

1.4.

Climate

The climate of Khyber Pakhtunkhwa varies immensely for a region of its size, with the

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KPOGDCL Forest & Wildlife Departments

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province experiencing most of the types of climate found in Pakistan. The province, stretching southwards from the Baroghil Pass in the Hindu Kush covers almost six degrees of latitude and is largely mountainous. Dera Ismail Khan is one of the hottest places in South Asia while in the mountains to the north the weather is temperate in the summer and intensely cold in the winter. The northern Chitral district, has a typically continental steppe climate with an average annual precipitation ranging from 3.94 inches per year in the far north to 23 inches in the south. Most of this precipitation from frontal cloud bands during the winter turns into heavy thunderstorms in the spring. At high elevations in the Hindukush the snowfall can be much heavier than this and consequently large glaciers are a prominent feature of the landscape. Snow even cuts off the town of Chitral from the outside world for most of the year. Temperatures in the valleys vary from 30


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°C (86 °F) in July to as low as 0 °C (32 °F) in January. Dir and Hazara districts are some of the wettest places in Pakistan. Annual rainfall at Dir averages 58 inches of which 15.75 inches falls during the summer monsoon from July to September and twice that amount during the winter rainy season from December to April. At Abbottabad, further east the annual rainfall averages about 47 inches but as much as 25 inches falls during the southwest monsoon. In Swat, annual rainfall averages around 33 inches with about 17 inches expected between June and September.

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http://trulypakistan.com/climate-of-khyber-pakhtunkhwa/

The southern region has the typically hot and dry climate of much of Pakistan. Temperatures in summer are oppressively hot and in the south around Mardan temperatures of 45 °C (113°F) are common whilst in Peshawar 40 °C (104 °F) is par for the course in summer. In winter, however this region is both warmer and generally drier than the rest of Khyber Pakhtunkhwa, with temperatures of around 17 °C (62 °F) in Peshawar and over 20 °C (68°F) in the extreme south of the province. However, nights can still be quite cold during the winter.6


HISTORICAL PERSPECTIVE


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Gandhara - China Relations: Historical Perspective For many centuries, the region of Gandhara remained a route for travel for civilizations, a land of invasions and a grea.s, numismatic evidence and other sources. The recent archaeological discoveries made in the Province of Khyber Pakhtunkhwa and in the surrounding regions are important evidence of the existence of intercultural communication between the two important regions Gandhara and China. Gandhara in the extreme northwest of the IndoPak subcontinent and its borderlands have always been of strategic, political, cultural and religious importance. This area contributed to the spread of Buddhism, disseminated knowledge and played a part in making and unmaking both politically and economically the history of the region. The area has served as a gateway to the subcontinent and waves of foreign invaders and nomadic people

have travelled through it. Both the remains of and references to these travellers is evident in literature, travellers' accounts and archaeological discoveries. With these ever-expanding mounds of evidence, scholars are now able to understand the different aspects of the history of this region and the connections it had with the people of the neighbouring countries, particularly China. Oral tradition reveals that the routes for economic and cultural exchange often functioned as paths for the transmission of religions. Situated as it is at the crossing of two civilizations, Gandhara had the privilege of this status. The direct or indirect connection between Gandhara and China probably started during the 3rd Century B.C. when Asoka sent his son to Ceylon and then China to spread the doctrine of Buddhism as attested by the PÄ li literatures, particularly the Dipavamasa which is the oldest historical record on Sri Lanka. Buddhism in Gandhara thrived under the Kushans. This was a golden age for the Buddhists


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and the Buddhist art of Gandhara prospered under the royal patronage of Kanishka. The GandharaChina connection became more evident during and after the Kushans' control over this region. Although Gandhara contributed greatly to the spread of Buddhism and in the Buddhist art in China, recent finds in the region confirm that the influence of Chinese culture penetrated further into the Gandhara region under the rule of the succeeding dynasties. A Chinese inscription referring to one of the Wei dynasty's envoys, Gu-Wei-Long who was in the region for a diplomatic assignment or mission; confirms the first tales of diplomatic relations between the two countries. The Chinese currency, the Huo Quan of the Tang Dynasty found in Gandhara also suggest the economic relation between the two regions even in the 1st and 6th centuries AD. It was the time when Buddhism was the main religion in Gandhara and it was a land of pilgrimage for Buddhists in China. The narrative of Chinese pilgrims such as Fa-xien and Xuang Zang, and the findings of the Bactrian manuscript and the Chinese and other coins of different

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Professor Muhammad Nasim Khan, Department of Archaeology, UoP.

civilizations and periods found in Gandhara strongly suggest that people from different quarters of the region visited and paid homage to the sacred sites. The recent discovery of an ancient writing system called “Kohi� clearly indicates the Chinese influence on the script of ancient Gandhara further proving the cultural relations between the two regions. Chinese elements such as the dragons in the Buddhist art of Gandhara go a step further in demonstrating the cultural influences on the region. All these forms of archaeological evidence are suffice to testify the strong political, economic, religious and cultural ties between the two regions over the last two thousand years. 7 It is pertinent to mention here that in 1985 Peshawar and Urumqi and in 2007 Abbottabad and Kashgar were declared sister cities respectively. Moreover, in 2008 the Chinese Xinjiang region and Pakistan's Khyber Pakhtunkhwa province were officially declared friendly regions further energizing already agreedupon protocols.


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Hydropower

ies Tourism

Inf Te orm ch ati no on log y

Oil & G as In De fras ve tru lo c pm tu en re t

Industr

Mines & Minerals

Ho us in

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ECONOMIC COOPERATION


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ECONOMIC COOPERATION The recent developments in Pak-China relations and the visionary decision to bring about the China-Pakistan Economic Corridor central to China-Pakistan relations are the clearest present day indicators of the thriving symbiotic relationship between the two countries. Economists predict that this will create radical change and boost the economies of both Pakistan

and China as well as those of neighbouring countries. Overall, China- Pakistan Economic Corridor is a fusion of a massive range of development projects aimed at creating opportunities for the people of Pakistan. However, from the perspective of the province of Khyber Pakhtunkhwa it provides an unprecedented window of opportunity to utilize potential resources and extract optimal benefit from its interventions. Socio-economic development in the province could make great strides to meet the demands of its population. As with any successful multi-faceted initiative the proposed ChinaKhyber Pakhtunkhwa Economic Cooperation aims to build long lasting bridges between the people of both regions.

3.1

Avenues for Cooperation

As mentioned already China- Khyber Pakhtunkhwa Economic Cooperation would play a significant role in ushering a new era of economic progress and prosperity in the province which would be immensely beneficial for its people. The economy of Khyber Pakhtunkhwa


13 province, despite its vast range of natural resources is performing far below its potential. Developing this abundance of natural capital is the objective of the cooperation ensured in the bilateral agreements with the neighbouring country. The province offers vast investment opportunities in sectors like mining, infrastructure development, agriculture, oil and gas, hydropower, tourism, Information technology and industries. The province will seek technical assistance and offer areas of investment, which will ultimately be finalized through mutual negotiations. China possesses the relevant applicable technologies and development expertise and the agreements ensure that China will actively encourage the competitive enterprises to invest in the province. This investment would contribute to enhancing its resource base and creating more employment opportunities.

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Anticipated Benefits:

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The province's strategic location on main CPEC route assures a substantial portion of the western alignment. Similarly, the facilitation of future trade opportunities and the province's close proximity to the Central Asian corridor could make this route invaluable to Afghanistan and other Central Asian states.

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The province offers multiple avenues for trade. Its infrastructure boasts a wide road network as well as a railway network to facilitate trade and connect major towns and cities of immense economic potential.


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Building a robust and stable provincial economy will create significant opportunities for augmenting its natural endowment and advancing its economic interests. The potential natural advantages of the province e.g. minerals, oil and gas, hydropower and tourism lie near the main CPEC pathway and their utilization will have a multiplier effect on national, provincial and CPEC interests.

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The China- Khyber Pakhtunkhwa Economic Cooperation opens a new vista of great opportunities for the province and will greatly help economic growth and overcoming backwardness, poverty and unemployment.

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Enabling the province to generate more resources can in turn improve the economic and living standards of its people at grassroots level.

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Khyber Pakhtunkhwa would have the opportunity to exploit the sustainable and stable development of China's economic prosperity for the mutual benefit of both regions.

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Ushering in a sense of changing fortunes would greatly help a province ravaged by conflict for the last three decades. Stimulating its economy would increase its attractiveness to foreign investors and would go a long way towards removing socio-economic inequities and in lessening the province's vulnerability to subversive elements.



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