ISLAMABAD/BEIJING: Pakistan and China have officially entered a new phase of their landmark partnership as CPEC Phase 2 was formally launched during the 14th Joint Cooperation Committee (JCC) meeting held in Beijing on Friday.
Despite unresolved issues related to payments owed to Chinese independent power producers (IPPs), both nations reaffirmed their commitment to deepening cooperation. Planning Minister Ahsan Iqbal called this a “historic milestone,” stating that Phase 2 will transform CPEC into a corridor of industrial growth, innovation, and shared prosperity.
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The new phase will focus on five key corridors: development, innovation, green growth, livelihood, and regional connectivity. These align with Pakistan’s 5Es framework, which prioritizes exports, e-Pakistan, energy & environment, equity, and empowerment. Major projects include ML-1 railway upgrade, Karakoram Highway (KKH) restoration, and Gwadar Port development.
However, sources revealed that no resolution was reached on the issue of delayed capacity payments to Chinese power plants. Islamabad seeks extended payment terms, while Beijing, in light of Pakistan’s IMF program, has demanded strong financial commitments—especially for the partial financing of ML-1.
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Concluding the session, Ahsan Iqbal urged immediate implementation of strategic infrastructure projects, particularly ML-1 and KKH, highlighting their importance for uninterrupted regional connectivity. He also proposed biannual JCC meetings and quarterly Joint Working Group sessions to ensure momentum and transparency in Phase 2’s execution.