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
- Lackadaisical attitude of Pakistani counterparts in executing major projects
Despite these challenges, Chinese Foreign Minister Wang Yi's visit to Pakistan in May 2025 suggested China's renewed interest in completing CPEC.
Phase II of CPEC aims to develop industrial parks to facilitate industrial development in Pakistan.
The success of Phase II hinges on the availability of energy from the completion of Phase I, which can create jobs, facilitate production, and generate income for Pakistan to pay back Chinese loans.
Author's summary: CPEC's relaunch highlights China-Pakistan interdependence.