The China-Pakistan Economic Corridor (CPEC), a great game changer, is a long-term strategic programme being implemented by China in Pakistan. CPEC is designed to foster industrialization, trade facilitation, regional connectivity, integration within global value chains, and socio-economic development. The initiative, under the Belt and Road Initiative (BRI) of Chinese President Xi Jinping, also focuses on poverty alleviation, agricultural modernization, operationalization of Gwadar Port, and promotion of the blue economy.
The first phase of CPEC has been completed successfully. Early Harvest Projects were prioritized, focusing heavily on energy and infrastructure. These investments addressed critical deficiencies and laid a solid foundation for accelerated economic growth. Around 38 projects, worth more than US $25 billion, were completed across multiple sectors. As a result, Pakistan has seen a rise in industrial activity, improved logistics, growing investor confidence, and a long-term stimulus to the national economy.
From now onwards, CPEC will not only be served by roads and railways, ensuring smooth passage of goods and raw materials from Gwadar Port through Pakistan to China, but also by the establishment of Special Economic Zones (SEZs).
It had long been under consideration that, on the basis of these achievements, CPEC should be expanded and upgraded, covering more corridors beyond the original economic route. This important development was deliberated at the highest levels in Beijing and Islamabad for months. For one reason or another, however, the official launch of CPEC’s expansion was delayed. The developments during Prime Minister Muhammad Shehbaz Sharif’s recent visit to Beijing, and his interaction with the top Chinese leadership, were thus timely and welcome-better late than never.
China and Pakistan have now agreed to upgrade the CPEC, which has transitioned into Phase 2.0 after the successful completion of its first phase. The new five corridors are Growth, Innovation, Green Development, Livelihood, and Regional Connectivity/Openness, prioritizing industrialization, socio-economic development, and regional integration.
While in China, the Prime Minister also held bilateral meetings with a number of world leaders present at the SCO Summit in Tianjin, including Russian President Putin, Turkish President Erdogan, and the Presidents of Azerbaijan and Uzbekistan. Discussions focused on strengthening friendly relations and promoting trade, economic, and investment cooperation in mutually beneficial ways.
The Prime Minister, accompanied by a high-level delegation, held one-on-one meetings with President Xi Jinping and Premier Li Qiang, as well as delegation-level talks. Both sides reaffirmed their shared resolve to further strengthen the all-weather strategic cooperative partnership between China and Pakistan.
At the B2B Investment Conference in Beijing, the Prime Minister addressed a large number of Chinese businessmen who interacted with Pakistani counterparts, marking a promising shift from primarily government-to-government engagement to business-to-business collaboration. Twenty-one Memorandums of Understanding (MoUs) and joint ventures worth about $8.5 billion were signed, covering agriculture, electric vehicles, solar energy, health, chemicals and pharmaceuticals, iron and steel, science and technology, information technology, media, and other sectors.
From now onwards, CPEC will not only be served by roads and railways, ensuring smooth passage of goods and raw materials from Gwadar Port through Pakistan to China, but also by the establishment of Special Economic Zones (SEZs). These zones will manufacture goods for export, activated alongside the planned upgradation of the main railway line from Karachi to Peshawar (ML-1). The focus of CPEC’s next phase will be infrastructure development combined with industrial growth.
During his meetings, the Prime Minister expressed deep gratitude to the Chinese leadership and people for their steadfast support for Pakistan’s territorial integrity, sovereignty, and socio-economic development. He also praised China’s remarkable transformation under President Xi Jinping’s visionary leadership. Both leaders termed the signing of the Joint Action Plan 2024-2029 as an important step forward, reflecting their commitment to sustained development, economic cooperation, and shared prosperity.
Security of Chinese personnel working on development projects in Pakistan, particularly under CPEC, was also discussed. The Prime Minister’s visit and the agreements reached augur well for elevating Pakistan-China ties to unprecedented heights. The signing of MoUs and joint ventures, along with the formal upgradation of CPEC, is a positive step forward. With sincere and determined implementation, the mutually beneficial fruits of these projects can be reaped at the earliest opportunity.
The writer is a Lahore-based freelance journalist, columnist and retired Deputy Controller (News), Radio Pakistan, Islamabad, and can be reached at [zahidriffat@gmail. com](mailto:[email protected])