CPEC Phase II: Pakistan and China shift focus from roads to industry, jobs and Gwadar
At a ceremony marking the 77th anniversary of the People’s Republic of China, Prime Minister Shehbaz Sharif said the corridor’s second phase will prioritise industry, agriculture, IT and employment.
Pakistan and China are steering the China-Pakistan Economic Corridor (CPEC) into a new phase that moves beyond motorways and power plants towards factories, farms and jobs. Speaking at a ceremony in Islamabad on September 30 to mark the 77th anniversary of the founding of the People’s Republic of China, Prime Minister Shehbaz Sharif said work on CPEC Phase II is progressing and will focus on industry, job creation and business opportunities.
The first phase of the corridor largely expanded Pakistan’s infrastructure. Phase II, the prime minister said, will prioritise industrial development, agriculture, information technology, science and technology, energy, and Gwadar, which is envisioned as a regional trade and commercial hub. The expected payoff is higher production, private investment, technology transfer and employment, particularly for the country’s young population.
A milestone year for ties
The event also highlighted a diplomatic milestone: 2026 marks 75 years of diplomatic relations between Pakistan and China. Sharif described China as an “iron brother”, while Chinese Ambassador Jiang Zaidong called the two countries all-weather strategic cooperative partners and pointed to potential in trade, investment, technology and people-to-people exchanges. Deputy Prime Minister Ishaq Dar and National Assembly Speaker Sardar Ayaz Sadiq were among those in attendance.
What Phase I delivered
Earlier this year, at an awards ceremony for Pakistani and Chinese staff working on CPEC projects, officials said 43 projects worth about $25 billion have been completed, adding nearly 9,000 MW to the national grid. A Five-Year Action Plan for 2025–2029, aligned with the government’s URAAN Pakistan framework, sets out the next steps, with special economic zones, the Digital Silk Road, renewable energy and climate resilience among the priorities.
Ambassador Jiang said at the time that the corridor “is entering a new phase of development”, with cooperation widening into agriculture, mining and social sectors such as health and education.
The test ahead
The success of Phase II will depend less on announcements and more on execution: getting industrial zones occupied, connecting farmers to export markets, and ensuring that local communities — especially in Balochistan — share visibly in the gains.
Sources: BOL News · Pakistan Observer
