CPEC Phase-II will serve as the catalyst for enhanced regional connectivity and growth. Ahsan
On Friday, Federal Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal expressed optimism that Phase II of the China-Pakistan Economic Corridor (CPEC) would act as a catalyst for enhanced regional connectivity and economic development.
“The discussions today affirm that CPEC Phase-II will serve as the catalyst for the subsequent phase of our collaboration and development, integrating its five corridors – growth, innovation, green, livelihood, and regional connectivity – with Pakistan’s 5Es framework of exports, e-Pakistan, energy and environment, and equity and empowerment,” he stated.
He was presenting concluding remarks at the 14th session of the Joint Cooperation Committee (JCC) of CPEC, co-chaired with Zheng Shanjie, Chairman of China’s National Development and Reform Commission (NDRC).
The minister stated that the event had reaffirmed the mutual goal of the two countries and established an ambitious roadmap for Phase II. The meeting was attended by ministers, senior officials, line ministries, and specialists from both parties.
Ahsan Iqbal, who has co-chaired 11 of the 14 JCC meetings to date, stated that he has observed CPEC’s transformation “from a conceptual framework into a significant reality.”
“We have concurred to convert CPEC into a corridor of industrialization, technology, sustainability, and shared prosperity,” he stated, noting that this alignment was based on an action plan ratified during Prime Minister Shehbaz Sharif’s visit and further solidified through agreements with President Xi Jinping and Premier Li in September 2025.
“This plan, along with today’s consensus, delineates a comprehensive agenda encompassing industrial collaboration, special economic zones, contemporary agriculture, maritime development, mining, technology, and significant connectivity projects such as ML-1, KKH, and Gwadar,” he stated.
He stated that CPEC 2.0 would generate substantial opportunities for youngsters, researchers, entrepreneurs, and laborers, while emphasizing the importance of the Main Line-1 railway project and the realignment of the Karakoram Highway (KKH). “The KKH realignment, prompted by a significant hydropower dam, will maintain continuous connectivity between our nations,” he remarked.
To maintain momentum, the minister suggested conducting JCC meetings biannually and assembling joint working groups quarterly for the initial three years, as implemented during Phase-I. “This will guarantee that CPEC 2.0 progresses in accordance with the vision articulated by our leaders,” he stated.
Ahsan Iqbal guaranteed to Chinese partners Pakistan’s unwavering dedication to safeguarding the safety and security of all CPEC projects and every Chinese resident residing in the country. “We shall persist in offering the stable, secure, and conducive environment that this partnership warrants,” he stated.
The minister stated, “With renewed determination and a shared vision, we will guarantee that the forthcoming decade of CPEC yields even greater transformation than the previous one,” while suggesting that the 15th JCC meeting be convened in May 2026 in Islamabad to commemorate the 75th anniversary of diplomatic relations between the two nations.
In his introductory remarks, the planning minister emphasized the accomplishments of CPEC Phase-I, indicating that 17 significant energy projects, with a total capacity over 8,000 MW and valued at nearly $18 billion, had alleviated severe power shortages in Pakistan. He stated that these initiatives allowed the nation to use Thar coal and diversify its energy portfolio to include hydropower and other sources.
Regarding connection, he stated that over 888 kilometers of modern roadways had been constructed, unifying districts into a cohesive economic area. He expressed gratitude to the Chinese leadership for affirming 85 percent funding for the Thakot Dry Port–KKH realignment, required due to portions of the route being inundated following the completion of a significant dam. This alignment must be finalized by 2028. He suggested commencing the bidding procedure without delay while the finance agreement is being negotiated.
Ahsan Iqbal stated that the modernization of Main Line-1 (ML-1) from Karachi to Peshawar is essential. He suggested a hybrid financing plan, with the Multan–Rohri segment backed by the Asian Infrastructure Investment Bank (AIIB) and the Karachi–Rohri segment financed by the Asian Development Bank (ADB), to expedite execution.
He stated that Gwadar has evolved from a tranquil fishing village into Pakistan’s maritime gateway because to CPEC. With financial assistance from China, the port city currently features an international airport, a hospital, a vocational center, desalination plants, and solar energy facilities. The subsequent stage involves promoting Gwadar as a regional logistics center catering to Central Asia and the Gulf, with COSCO assuming a pivotal role. During my recent visit to COSCO headquarters in Shanghai, I engaged in productive discussions with its management on this matter,” he added.
“These are not simply projects; they represent milestones of trust, confidence, and collective advancement,” he stated, emphasizing that Phase-II must establish the foundation for high-quality, inclusive, and sustainable growth, in accordance with Pakistan’s 5Es framework and the five corridors of CPEC 2.0.
The blueprint for a people-centric future, he stated, must center on three fundamental elements, with youth as the focal point of transition.
He observed that about 60 percent of Pakistan’s populace is under 30 years old, suggesting the establishment of 10,000 joint PhD scholarships in AI, engineering, and new sciences at China’s leading 50 universities over the next decade to cultivate a vital human resource foundation for knowledge-based prosperity. He also proposed introducing China’s research-oriented innovation ecosystem to Pakistan.
Simultaneously, he advocated for vocational training programs, youth innovation centers, and internships within Chinese firms to equip young Pakistanis for leadership in modern technologies, industry, and sustainable development.
The minister proposed implementing a pilot of China’s poverty alleviation model in the most impoverished district of each province to establish a demonstration of success.
He stated that Pakistan aimed to emulate China’s rural-urban connections via e-commerce, agricultural logistics, and digital platforms, facilitating direct market access for small producers in both nations.
He emphasized that exports should serve as the catalyst for growth. “Notwithstanding China’s annual imports totaling $2 trillion, Pakistan’s exports languish at approximately $3 billion.” He stated that we desire market access under CPEC with the same advantageous tariff conditions afforded to ASEAN countries, enabling Pakistani products to compete equitably in the Chinese market.