Pakistan, China to take CPEC beyond infrastructure

Pakistan and China have set out a second stage for the China-Pakistan Economic Corridor, known as CPEC 2.0, that places industry ahead of construction, according to Mettis Global. Government-led schemes are to give way to business-to-business cooperation, and links that were bilateral will extend into regional and global value chains. Under the plan, Pakistan would act as a production and export base that connects China with South Asia and other regions, including the Middle East and Africa.

The first phase, the report noted, delivered 43 projects worth about $25bn, among them 17 energy schemes that added around 8,900MW to the national grid. It also produced two coal mines, the Matiari-Lahore transmission line and some 200,000 direct jobs. Gwadar is set to develop from a transit point into a hub built around its port, free zone and logistics.

Federal Minister for Planning and Special Initiatives Ahsan Iqbal outlined the vision in a China Daily article, which APP reported. He said private enterprise will sit at the centre of the corridor, with success judged by Chinese companies making profitable goods inside Pakistan. He also said CPEC 2.0 will merge with URAAN Pakistan and that a proposed Pakistan-China Knowledge Corridor and wider AI cooperation form part of the plan.