ISLAMABAD: Pakistan and China are set to formally launch Phase 2.0 of the China-Pakistan Economic Corridor (CPEC) today (Friday) during the 14th Joint Cooperation Committee (JCC) meeting in Beijing. The high-level dialogue will address contentious issues, including capacity payments to Chinese Independent Power Producers (IPPs), partial financing of the Mainline-1 (ML-1) railway and Karakoram Highway (KKH), and the use of Chinese Yuan in selected regions of Pakistan.
Islamabad has sought Beijing’s support in extending repayment terms on liabilities owed to Chinese IPPs to reduce electricity costs, though progress has been limited. China appears cautious about committing fresh funds, raising the likelihood of partial financing for ML-1 and KKH. Pakistan has also approached the Asian Development Bank for ML-1 funding.
Over the past decade, CPEC has attracted $27 billion in Chinese investments, powering 8,904 MW into the grid, building 888 km of highways, upgrading Gwadar Port, and generating an estimated 200,000 jobs.
Phase 2.0 will pivot towards technology, skills, and sustainability. Plans include scholarship and training programmes, Innovation Hubs, Special Economic Zones, climate-resilience projects, and joint ventures in renewable energy, agriculture, and space technologies. Expanded operations at Gwadar and provincial participation in new SEZs are also expected.
Story by Mehtab Haider
