BEIJING: China has signaled its determination to advance the second phase of the $62 billion China-Pakistan Economic Corridor (CPEC), even as concerns linger over Pakistan’s political volatility, security challenges, and the country’s patchy track record in project delivery.
Officials in Beijing have voiced renewed commitment to the corridor a flagship of the Belt and Road Initiative (BRI) launched in 2013 while cautioning that Islamabad must ensure tighter security and policy consistency if it hopes to sustain momentum.
A senior Chinese diplomat, speaking on condition of anonymity, described the mood as one of “cautious optimism.” He noted, “For the past year and a half, we have seen greater stability in Pakistan’s policies. But security for our companies and people remains the foremost concern.”
Frustrations from the First Phase
CPEC’s initial phase, worth around $25 billion, was rolled out in 2015 with promises of addressing Pakistan’s crippling energy shortages and modernising road infrastructure. While it delivered several power plants and highways, the programme lost steam following Pakistan’s 2018 government transition. Bureaucratic hurdles, shifting priorities, and mounting security threats stalled many projects, testing Beijing’s patience.
Despite these setbacks, the corridor remains a strategic priority for China, offering a direct trade and energy route from Xinjiang to Gwadar on the Arabian Sea. By bypassing the Strait of Malacca a chokepoint vulnerable to geopolitical tensions Beijing views CPEC as vital to its long-term economic security.
Phase Two: From Infrastructure to Industry
The second phase, dubbed “CPEC 2.0,” shifts focus toward industrial development, technology transfer, and sustainability. Beijing hopes this stage will foster joint ventures in areas such as waste-to-energy, urban transport, and industrial parks. A proposed high-speed rail link between Lahore and Islamabad has also been floated, though officials stress that implementation will depend on stronger security and governance mechanisms.
At the heart of CPEC 2.0 lies the $7 billion upgrade of Pakistan’s Main Line-1 (ML-1) railway, a four-year plan that aims to modernise the country’s colonial-era rail network. The ambitious project, however, requires coordination between multiple financial partners and unwavering political backing in Islamabad.
Economic Opportunity for Pakistan
Chinese officials have repeatedly highlighted how CPEC could serve as a lifeline for Pakistan’s fragile economy. Referring to China’s own development story, one diplomat remarked, “We lifted 800 million people out of poverty. Pakistan has another chance now to rebuild its economy but it cannot afford to waste this opportunity.”
The timing is critical: Pakistan only recently staved off a sovereign default, and Beijing hopes CPEC 2.0 can inject fresh momentum into its recovery. For Islamabad, the stakes are equally high, with the corridor promising industrialisation, jobs, and long-term stability.
A Shared but Fragile Vision
The new phase aligns with Pakistan’s “5Es” agenda exports, e-Pakistan, energy, environment, and equity as well as China’s vision of building corridors of growth, innovation, and green development. But success, both sides admit, hinges on Pakistan’s ability to deliver.
As one Chinese official summed up, “CPEC 2.0 is not just about roads and railways. It is about ambition, innovation, and a shared future. But Pakistan must ensure security and stability if this vision is to materialise.”
