ISLAMABAD: Institute of Peace and Diplomatic Studies (IPDS) has released a comprehensive report on the China-Pakistan Economic Corridor (CPEC), showcasing its role in promoting modernization, industrial growth, and bilateral cooperation between China and Pakistan.
IPDS produced this research under the Project ACCWS of Knowledge Sharing. The report reaffirms that CPEC is a transformative initiative with the potential to drive Pakistan’s economic and social progress for decades to come. By fostering innovation, improving infrastructure, and promoting sustainable development, CPEC continues to serve as a model for economic cooperation between China and Pakistan.
Since the inception of the relations between the two countries in 1951, the partnership has steadily evolved, culminating in the strategic upgrading of relations in 2015 to an “all-weather strategic cooperative partnership.” As the flagship project of the Belt and Road Initiative (BRI), CPEC has emerged as a key driver of regional development, contributing significantly to Pakistan’s infrastructure, industrial, and socio-economic growth, while strengthening the bond between the two nations.
While drawing on the contribution from several prominent scholars and research institutions, this report has detailed analysis of CPEC’s impact on various sectors. Dr. Liaqat Ali Shah’s study emphasizes the critical role of infrastructure and energy synergies under CPEC, highlighting how the construction of major roads and the development of Gwadar Port have boosted connectivity and reduced transportation costs.
His research points to the USD 8.9 billion investment in transport infrastructure that has transformed Pakistan’s economic landscape, linking major cities such as Islamabad, Karachi, and Lahore with regional trading hubs like Kashgar in China. The report notes that energy projects, particularly coal and hydropower plants, have alleviated Pakistan’s power crisis, though challenges remain regarding environmental sustainability.
Dr. Attaullah Shah’s research focuses on the industrial and technological advancements brought about during the second phase of CPEC, which spans from 2021 to 2025. His study explores the creation of Special Economic Zones (SEZs) and the promotion of industrial growth as key goals of this phase, aiming to attract local and foreign investment.
With a strong emphasis on innovation, sustainability, and job creation, the industrial expansion under CPEC is set to position Pakistan as a regional leader in manufacturing and technological advancements. The establishment of SEZs, which will boost Pakistan’s manufacturing capabilities, remains a central pillar of the strategy to modernize the country’s economy.
On the environmental front, the report presents insights from Prof. Dr. Zahid Anwar and Tanzeel Ur Rehman, who focus on agricultural development and the integration of tourism as tools for promoting sustainability. They highlight the environmental challenges posed by coal-based energy projects but note the ongoing efforts by both China and Pakistan to adopt greener practices.
The report underscores the importance of technology transfer and modern agricultural techniques to boost productivity while mitigating environmental risks. The researchers advocate for the adoption of agritourism as a strategy to diversify rural economies, enhance job creation, and promote environmental stewardship. The strategic importance of Gwadar Port is a recurring theme in the report. Dr. Muhammad Munir and Muhammad Abdul Rafay Shaffi’s research emphasizes the transformative potential of Gwadar in facilitating regional trade and developing Pakistan’s blue economy.
Positioned near the Strait of Hormuz, Gwadar is expected to become a key hub linking Pakistan with Central Asia, the Middle East, and beyond. However, the researchers caution that security issues and infrastructure limitations must be addressed to fully capitalize on the port’s potential as a driver of regional trade and economic growth.
Dr. Abdul Sattar’s work on human development highlights CPEC’s contribution to skill development, healthcare, and education in Pakistan. His research outlines the impact of various vocational training programs, scholarship initiatives, and healthcare improvements initiated under CPEC, contributing to an increase in Pakistan’s Human Development Index.
The report emphasizes the critical role that human capital plays in sustaining the long-term benefits of CPEC and underscores the importance of continued knowledge sharing between China and Pakistan. Report has several key recommendations including the enhancing transparency and governance, improving security measures for personnel and projects, and focusing on environmental sustainability. The researchers call for greater investment in underdeveloped sectors such as agriculture and tourism, promoting small and medium enterprises, and strengthening regional connectivity.
