Expert Roundtable held at the Centre of Research and Security Studies (CRSS), Islamabad,
27th September 2024
SUMMARY
The China-Pakistan Economic Corridor (CPEC), was launched in 2015 as part of China’s Belt and Road Initiative (BRI) to improve Pakistan’s infrastructure, boost economic growth, and create regional connectivity. However, CPEC has encountered numerous implementation challenges since its initiation, particularly in the planning, construction, and operation of key projects. Financial constraints, management inefficiencies, and political instability have also contributed to slowing progress. Phase 1 of CPEC focused on the implementation of Government-to-Government (G2G) strategic projects, such as electricity generation and road transport systems.
The Phase 2 of CPEC is anchored around attracting Business-to-Business (B2B) joint ventures by mainly attracting private Chinese re-location of investments that will strengthen Pakistan’s industrial base. China has in the last few years emerged as the 2nd largest investor in renewable energy. Chinese have also entered investment partnerships with the Pakistani private sector in the agricultural and automobile sectors.
However, structural issues within Pakistan’s governance, concerns about repayment to Chinese creditors, repatriation of profits to investors in power projects, and the sustainability of loans remain serious concerns. Extremely slow development of special economic zones (SEZs) and security issues continue to pose major concerns for the long-term success of CPEC.
To address the ongoing challenges and future prospects of CPEC, a focus group discussion was organized at the Centre of Research and Security Studies (CRSS), held on 27th September 2024, brought together experts to provide an in-depth analysis on critical issues such as financing, technology, management, and their broader impact on Pakistan’s economic and infrastructural development.
