The China-Pakistan Economic Corridor (CPEC) has transformed Pakistan’s economy and infrastructure over the last decade. Initially launched to drive construction and development, CPEC now serves as a robust framework for Pakistan’s economic recovery and long-term growth.
Positive Impacts of CPEC
CPEC has revolutionized infrastructure, energy production, trade, and regional stability. Initially starting with projects worth $46 billion, the total investment later expanded to $62 billion. The early focus was on modernizing infrastructure, solving the energy crisis, and upgrading Gwadar Port.
Initial Phase (2013-2018)
During the first phase, Pakistan took significant steps to address energy shortages and improve transportation. Key achievements include:
- Generating over 3,000 MW of electricity through the Sahiwal Coal Power Plant and the Port Qasim Coal Power Project.
- Upgrading the Karakoram Highway (KKH) for smoother connectivity.
- Launching the Orange Line Metro Train in Lahore for better urban transport.
Expansion Phase (2019-2023)
The second phase emphasized industrial collaboration and social sector improvements. Important milestones during this period include:
- Establishing the Gwadar Free Zone.
- Developing Special Economic Zones (SEZs) like Rashakai and Allama Iqbal Industrial City.
- Completing the Gwadar East Bay Expressway, enhancing connectivity.
Next Phase (2023 and Beyond)
CPEC’s focus now shifts towards sustainable growth, agricultural development, and technological advancement. Key upcoming projects include:
- Upgrading the ML-1 railway network.
- Expanding facilities at Gwadar deep water port.
- Implementing renewable energy initiatives to diversify energy sources.
Key Achievements of CPEC
CPEC has significantly improved Pakistan’s road network and transport systems. Over 1,500 km of highways, such as the Multan-Sukkur Motorway and the Hazara Motorway, have been built, reducing travel times and enhancing connectivity.
Gwadar Port has been modernized into a state-of-the-art deep water facility, capable of handling large cargo shipments. Through CPEC projects, 5,320 MW of electricity has been added to Pakistan’s power grid, addressing critical energy shortages. Projects like the Sahiwal Coal Power Plant, Port Qasim Coal Power Plant, and Quaid-e-Azam Solar Park have helped diversify energy sources and stabilize supply.
Economic Growth and Social Development
The development of SEZs under CPEC has drawn significant foreign investment. Thousands of jobs have been created, with Rashakai SEZ expected to generate over 50,000 employment opportunities. CPEC has contributed to a 1.5% increase in Pakistan’s annual GDP and improved trade connections with China’s Xinjiang region and Central Asia.
Gwadar Port and Export Growth
Gwadar Port has emerged as a major trade hub, reducing Pakistan’s dependence on traditional trade routes. By 2030, exports via Gwadar are projected to reach $10 billion annually.
Education and Human Resource Development
The second phase of CPEC prioritized education, health, and technology. Scholarships for Pakistani students in Chinese universities and vocational training centers have strengthened human resource development. Projects like the Gwadar desalination plant have also helped address local water and resource challenges.
The Path Forward
CPEC’s success relies on efficient planning, resolving governance issues, and ensuring equal progress across all provinces. Upcoming projects, like the ML-1 railway upgrade and new SEZs, aim to position Pakistan as a key regional economic hub.
Over the last decade, CPEC has brought transformational changes to Pakistan’s energy, infrastructure, trade, and industrial sectors. Despite challenges, its long-term benefits remain immense. With continued collaboration and strategic planning, CPEC will play a critical role in shaping Pakistan’s future.
