Liaquat Ali
Islamabad: The China-Pakistan Economic Corridor (CPEC) continues to serve as a cornerstone of Pakistan’s development strategy, driving infrastructure modernization, regional connectivity and economic integration, according to the Economic Survey 2025-26 released by the government on Thursday afternoon.
The survey highlighted the central role of China in supporting Pakistan’s long-term development objectives through investments in transport, logistics, energy and industrial infrastructure. It described CPEC as a flagship manifestation of the strategic partnership between Islamabad and Beijing, built on mutual trust, shared economic goals and a commitment to regional prosperity.
According to the report, CPEC has significantly contributed to reducing trade and transit costs, improving logistics efficiency and integrating Pakistan more effectively into regional and global value chains. These improvements are helping to create a more attractive environment for investment, stimulate economic growth and promote inclusive development across the country.
One of the major projects progressing under the corridor framework is the realignment and upgrading of the Karakoram Highway. Under a government-to-government agreement between Pakistan and China, work is advancing on the Thakot-Raikot section, which is considered crucial for improving connectivity between northern Pakistan and western China.
The project’s second phase includes construction of 88 kilometers of new highway alignment and 14 kilometers of connecting roads, while an additional component involves upgrading 139 kilometers of existing roadway infrastructure. Pakistan and China have agreed to implement the project in stages under an 85:15 financing arrangement, with efforts underway to finalize funding agreements.
The survey also underscored the strategic importance of Gwadar, where the Eastbay Expressway has already enhanced cargo movement by providing a dedicated corridor linking Gwadar Port with free zones and the Makran Coastal Highway. The project has reduced congestion and transportation costs while improving logistical efficiency.
Building on this progress, both countries are exploring Phase II of the Eastbay Expressway, which would connect the New Gwadar International Airport with Gwadar Port and surrounding free zones. Officials envision the project creating integrated sea-air logistics services that could transform Gwadar into a regional trade and transportation hub.
Railway modernization remains another major pillar of CPEC 2.0. The survey identified the Main Line-1 (ML-1) railway upgrade as a strategic priority aimed at improving Pakistan’s rail network and creating a more efficient national transport corridor. Negotiations regarding financing arrangements are continuing, including discussions involving potential Chinese participation.
The report further revealed progress on multiple transport infrastructure proposals, including the D.I. Khan-Zhob Road, Mirpur-Mangla-Muzaffarabad Expressway, M-10 Motorway and Babusar Tunnel. Pakistan and China have agreed to establish technical mechanisms to advance feasibility studies and implementation planning for these projects.
In addition, transport initiatives proposed by the Khyber Pakhtunkhwa government, including the Peshawar-D.I. Khan Motorway and Dir Motorway, are being pursued under the broader CPEC framework.
The survey also highlighted expanding cooperation in the mining sector under CPEC 2.0. A proposed mining corridor connecting Nokundi with Gwadar Port is expected to improve transportation links between mineral-rich regions and export facilities, facilitating greater economic activity in Balochistan and enhancing Pakistan’s export potential.
The findings underscore China’s continuing role as Pakistan’s largest development partner and reaffirm CPEC’s position as a key platform for advancing connectivity, trade, industrialization and regional economic integration.
