China-Pakistan Economic Corridor Relaunch
The China-Pakistan Economic Corridor (CPEC) has become a strategic lifeline for Pakistan and a key foothold for China in South Asia.
Phase II of CPEC has faced numerous challenges, including attacks on Chinese personnel, slow loan repayment, and a lack of progress in executing major projects.
- Attacks on Chinese personnel have resulted in several deaths
- Slow payback of loans has been a major issue
- Lack of progress in executing major projects has hindered development
Public pronouncements during Chinese Foreign Minister Wang Yi's May 2025 visit to Pakistan suggested China's renewed interest in completing CPEC.
Phase II of CPEC aims to develop industrial parks to facilitate industrial development in Pakistan, creating jobs, facilitating production, and generating income to enable Pakistan to repay Chinese loans.
Despite the optimism, there is little progress to show on the ground.
Author's summary: CPEC's relaunch exposes China-Pakistan interdependence.