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 amidst multipolar competition.
Phase II of CPEC has faced numerous challenges, including attacks on Chinese personnel, slow loan repayment, and a lackluster attitude from Pakistani counterparts in executing major projects.
Despite these issues, Chinese Foreign Minister Wang Yi's visit to Pakistan in May 2025 suggested China's renewed interest in completing the project.
Phase II of CPEC aims to develop industrial parks, facilitating industrial growth in Pakistan, which relies on the availability of energy from Phase I's completion.
This can create jobs, facilitate production, and generate income, ultimately enabling Pakistan to pay back Chinese loans.
However, there is currently little progress to show on the ground.
Author's summary: CPEC is crucial for both China and Pakistan.