Pakistan Prime Minister Shehbaz Sharif is set to visit China later this month to formally inaugurate the second phase of the China-Pakistan Economic Corridor (CPEC), a multi-billion-dollar flagship of Beijing’s Belt and Road Initiative (BRI).
Pakistan Planning Minister Ahsan Iqbal confirmed that the visit, coinciding with the Shanghai Cooperation Organisation (SCO) summit in Tianjin from August 31 to September 1, will mark the official launch of CPEC-II, with both sides expected to outline priorities and deliverables.
Sharif is also scheduled to hold bilateral meetings with Chinese President Xi Jinping and Russian President Vladimir Putin on the sidelines of the SCO. Officials in Islamabad describe the new phase as a shift from infrastructure and power projects to industrial cooperation, agriculture modernisation, technology partnerships, and expanded connectivity through Gwadar port. Special economic zones (SEZs) are at the heart of the plan, designed to attract Chinese factories and investment into Pakistan.
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India fear
For India, the stakes are particularly high. The corridor continues to pass through Pakistan-occupied Kashmir (PoK), a territory India claims as its own. The expansion of SEZs and logistics hubs there, experts caution, effectively legitimises Pakistan’s occupation and heightens sovereignty concerns. Moreover, Gwadar’s planned expansion raises fears of dual-use facilities, strengthening China’s presence in the Arabian Sea.
The renewed push on CPEC also comes at a delicate geopolitical moment. India and China have been tentatively exploring ways to ease border tensions since the 2020 Galwan clash, but Beijing’s simultaneous deepening of ties with Islamabad underscores its “double game,” balancing outreach to New Delhi while reinforcing its “iron brother” alliance with Pakistan.
Pakistan’s hopes for CPEC-II centre on easing its economic woes, from job creation to industrial revival. Yet past experience with CPEC-I has left the country with heavy debts, unfulfilled promises, and growing local discontent, especially in Balochistan. Observers caution that unless Islamabad can secure tangible, inclusive benefits, CPEC-II risks becoming another cycle of debt, dependence, and unrest — with far-reaching consequences for regional stability.
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First Published: Aug 20, 2025 5:27 PM IS