- New phase would focus on building and operation, Gwadar Port, smooth passage, Karakoram Highway
The China-Pakistan Economic Corridor (CPEC) as of 2023, made significant progress, with an estimated total investment of over $62 billion. Statistics showed that almost 70 percent of the planned projects have been either completed or are nearing completion.
The energy sector has been a main focus, with greater than 5,000 MW of power capacity added by various power plants, helping Pakistan declines its chronic energy shortages by nearly 20 percent. These energy developments have played a crucial role in stabilizing country’s power supply and supporting industrial growth.
| Energy projects under CPEC | |||||
|---|---|---|---|---|---|
| Completed Projects: | |||||
| S.No | Project Name | MW | S.No | Project Name | MW |
| 1 | 1320MW Sahiwal Coal-fired Power Plant | 1320 | 9 | 100MW Three Gorges Second and Third Wind Power Project | 100 |
| 2 | 1320MW Coal-fired Power Plant at Port Qasim Karachi | 1320 | 10 | Matiari to Lahore ±660 KV HVDC Transmission Line Project | 4,000 MW Evacuation Capacity |
| 3 | 1320MW China Hub Coal Power Project, Hub Balochistan | 1320 | 11 | 720MW Karot Hydropower Project, AJK/Punjab | 720 |
| 4 | 660MW Engro Thar Coal Power Project | 660 | 12 | 330MW HUBCO Thar Coal Power Project (Thar Energy) | 330 |
| 5 | 1000MW Quaid-e-Azam Solar Park (Bahawalpur) | 400 / 600 | 13 | 1320MW SSRL Thar Coal Block-I 7.8 mtpa & Power Plant (2×660MW) (Shanghai Electric) | 1320 |
| 6 | 50 MW Hydro China Dawood Wind Farm, Gharo, Thatta | 50 | 14 | 330MW HUBCO ThalNova Thar Coal Power Project | 330 |
| 7 | 100MW UEP Wind Farm, Jhimpir, Thatta | 100 | 15 | 884MW Suki Kinari Hydropower Project, KP | 884 |
| 8 | 50MW Sachal Wind Farm ,Jhimpir, Thatta | 50 | |||
| In-Pipeline Projects | |||||
| 16 | 300MW Coal-Fired Power Project at Gwadar | 300 | 19 | 1320 MW Thar Mine Mouth Oracle Power Plant & surface mine | 1320 |
| 17 | 1124MW Kohala Hydropower Project, AJK | 1124 | 20 | 50MW Cacho Wind Power Project | 50 |
| 18 | 700.7MW Azad Pattan Hydropower Project, AJK/Punjab | 700.7 | 21 | 50MW Western Energy (Pvt.) Ltd. Wind Power Project | 50 |
| Source: cpec.gov.pk | |||||
Presently Pakistan and China agreed to align their development long term plans and build an upgraded version of the China-Pakistan Economic Corridor, called as CPEC 2.0, during wide-ranging talks in Beijing that also covered security cooperation, political ties and regional and international problems. The Seventh Round of the Pakistan-China Foreign Ministers’ Strategic Dialogue was co-chaired in Beijing in the starting of January by Chinese Foreign Minister Wang Yi and Pakistan’s Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, who was visiting China from January 3 to 5 at Wang’s invitation.
During the dialogue, the two countries exchanged views social and economic issues including people-to-people exchanges. China and Pakistan also discussed foreign and regional issues of shared interest and agreed to improve strategic communication, deepen strategic mutual trust, safeguard common interests, and promote economic and social development in the both countries as well as peace and prosperity in the region and beyond. Pakistan and China as part of their economic engagement, agreed to develop an upgraded CPEC, a pioneering project of the Belt and Road Initiative. Both countries said the new phase would focus on the key sectors of industry, agriculture and mining, promote the building and operation of Gwadar Port, ensure the smooth passage of the Karakoram Highway, and improve Pakistan’s capacity for sustainable development.
China-Pakistan stated that the year-round opening of the Khunjerab Pass would facilitate two-way trade and further strengthen people-to-people contacts. They also welcomed third-party participation in CPEC cooperation in accordance with the modalities agreed through both countries. The dialogue took place as Pakistan and China launched plans to introduce commemorative activities in 2026, marking the 75th anniversary of the establishment of diplomatic relations. Both sides reiterated that they are all-weather strategic cooperative partners and reaffirmed their commitment to strengthening high-level exchanges and implementing the Action Plan to Foster an Even Closer Pakistan-China Community with a Shared Future in the New Era (2025–2029). The governments also reaffirmed mutual support on issues concerning their respective core interests and expressed readiness to further strengthen cooperation in areas including counter-terrorism, finance and banking, space cooperation and multilateral forums. In terms of infrastructure, Gwadar Port has seen considerable development, with the port now handling over 50 million tons of cargo yearly. Plans are underway to expand its capacity further to accommodate larger vessels and increase trade volume, positioning Gwadar as a pivotal hub for regional trade and connectivity. Statistics showed that trade through the CPEC corridors increased substantially, with bilateral trade between countries reaching almost $20 billion in 2022. Ongoing projects are expected to further boost this figure, improving economic ties between the governments. Additionally, several industrial zones and special economic zones (SEZs) have been organized along the corridor, attracting investments worth over $1 billion and creating thousands of career opportunities. In Pakistan these zones aim to foster industrial growth and economic diversification. Despite notable progress, issues like project delays, security concerns, and regional geopolitical tensions persist. However, ongoing efforts are focused on accelerating project completion and enhancing regional stability. Overall, CPEC continues to be a vital driver for economic growth, infrastructure development, and regional connectivity in our country and beyond, with its impact expected to grow further in the coming years.
Outlook
The future of CPEC will largely depend on Pakistan’s ability to address these challenges while leveraging opportunities for economic development. With continued commitment, transparency, and regional cooperation, CPEC has the potential to significantly contribute to economic growth, infrastructure development, and regional integration over the next decade.