What's new

CPEC 2.0: full speed ahead

Govt will borrow from banks on its terms: Aurangzeb

In an apparent message to local banks, Finance Minister Muhammad Aurangzeb has said the government will now “borrow at its terms”.

In his virtual address to an interactive session on the China-Pakistan Economic Corridor (CPEC) on Tuesday, Mr Aurangzeb said the government wanted to “send a clear message that it is not desperate to borrow”.

Even if the government needs to borrow, it will do so “at its terms”, the minister said, citing examples of the government rejecting bids for T-Bills and Pakistan Investment Bonds to borrow at a cheaper rate in the next auction.

Mr Aurangzeb said the time has arrived for banks to start lending to the private sector.

While listing the government’s economic achievement, the minister said the rupee was stabilising, and foreign exchange reserves were enough to cover more than two months of import.

Inflation has come down, and so have the interest rate and Kibor, which affects the industry. “These are important messages we are trying to convey through the market.”

He claimed that due to better policies, the sitting government has succeeded in improving the macroeconomic situation.

“Now we need to move forward, and that means we need to stay with the reform agenda — whether it’s on the taxation side, whether on the energy side, whether it’s on the state-owned enterprises and privatisation side,” he said, adding that the government will stay on course.

Hopes for IMF package

The minister also said the International Monetary Fund (IMF) will soon approve the $7 billion programme for Pakistan.

“We are very hopeful that the IMF board will approve this 37-month programme for Pakistan under which we are very committed to doing structural reforms.”

The IMF board will meet on September 25 to discuss the loan programme. The decision came following speculation that the disbursement of funds was tied to delays in debt rollover confirmation from China, Saudi Arabia, and the UAE.

The delay was also speculated to be related to the government’s failure to arrange for fresh funds to cover the external financing gap of $2bn for the present fiscal year.

In his address, the finance minister thanked China for the “support that we’ve had on the Fund programme as a long-standing partner of the country”.

Talking about CPEC’s Phase II, the minister said the first phase was all about infrastructure, and now it’s time to monetise this infrastructure.

He said the country, unfortunately, “missed the boat” in terms of following through on the second phase.

“But it is not too late,” he said while reassuring that Prime Minister Shehbaz Sharif and his cabinet are unanimous in supporting the execution of CPEC phase 2.

He sought the private sector’s involvement in various projects under CPEC phase 2 and assured the industry and local and foreign investors of full support in this regard.

Earlier, Chinese Ambassador Jiang Zaidong asked the participants to play their role in strengthening China-Pakistan relations through collective wisdom.

Other than Mr Zaidong, the Chinese consul general in Lahore, Zhao Shiren; economic experts; private investors; businesspersons; and policymakers attended the event.During the event, various stakeholders presented various plans for cooperation on ship recycling, healthcare, packaging, mining, moringa farming, smart city solutions and IT.

DAWN NEWS
 
Pakistan’s destiny is firmly associated with the CPEC success now.
 
Second phase of CPEC launched with new agricultural and industrial agreements

The second phase of the China-Pakistan Economic Corridor (CPEC) has officially begun, marked by the signing of several new agreements aimed at boosting agriculture and industry in Pakistan.

A key agreement worth $400 million was signed between Pakistan’s International Innovation Park Limited and China National Cereals, Oils, and Foodstuffs in Beijing.

This deal is expected to facilitate duty-free access for numerous Pakistani products in global markets, enhancing the country’s agricultural exports.

Additionally, a Memorandum of Understanding (MoU) was established to promote digital transformation and optimize supply chains in 200 textile factories, a vital sector for Pakistan’s economy.

These agreements signify a critical advancement in the economic collaboration between Pakistan and China, as both nations aim to foster growth and development through the CPEC initiative.


AAJ News
 
CPEC’s eastern route found most beneficial for regional connectivity

The eastern route of the China-Pakistan Economic Corridor (CPEC) has been found to be the most advantageous in terms of provincial representation, regional and trans-border connectivity, tourism, and socio-economic benefits, while Islamabad and Dera Ismail Khan have been identified as the top economic and transport hubs due to their strategic locations and interconnectivity.

This was the crux of a consultative session on transformation of transport corridors into economic corridors presided over by Minister for Planning and Development Ahsan Iqbal.

The eastern route is the most viable and shortest travel time option, according to member infrastructure Waqas Anwar. This route connects Gwadar, Karachi, Hyderabad, Sukkur, Multan, Islamabad, Haripur, Mansehra, Chilas and Gilgit, terminating at Khunjerab on the Pakistan-China border.

The session noted that while the shortest travel time route combines elements of both the central and eastern routes, it fails to adequately represent provincial interests, particularly underrepresenting Sindh.

The central route includes Gwadar, Turbat, Quetta, Shikarpur, D.G. Khan, D.I. Khan, Islamabad, Haripur, Mansehra, Chilas, Gilgit, and Khunjerab, while the western route passes through Gwadar, Turbat, Quetta, Qilla Saifullah, D.I. Khan, Charsadda, Mardan, Haripur, Mansehra, Chilas, Gilgit, and Khunjerab.

In contrast, the eastern route demonstrates a more equitable distribution of infrastructure — 34 per cent in Punjab, 17pc in Sindh, 24pc in Balochistan, 13pc in Khyber Pakhtunkhwa and 12pc in Gilgit-Baltistan — while also aligning with the population distribution of 78.1 million across the provinces.

Moreover, Islamabad and D.I. Khan have been recognised as suitable transport hubs with potential for special economic zones, also serving as logistics centres for warehousing activities. Also, Islamabad’s central location enhances its strategic importance within the network, particularly as it features the shortest travel time route.

The session highlighted that, aside from the Khunjerab Pass and Gwadar, Gilgit poses a significant risk to network robustness, affecting inter-city connectivity under adverse conditions or emergencies. The eastern route is also seen as more robust and operationally efficient.

The planning minister emphasised the government’s commitment to leveraging Pakistan’s existing transport infrastructure as a foundation for broader economic growth, stating that the future of the nation is tied to transforming these corridors into thriving economic zones. “Our vision is to harness the power of our transport networks to drive industrial growth, regional integration, and sustainable development,” he said, adding that transport corridors must serve as economic lifelines, fostering opportunities for trade, investment and regional collaboration.

The session underscored that transport corridors should not merely focus on constructing roads and railways but also on establishing economic zones that integrate industrial and commercial activities, thus becoming hubs for industrial development and facilitating growth in sectors like manufacturing, agriculture, and services.

A key theme of the discussion was the necessity for comprehensive business planning. The planning minister urged the participants to develop detailed business plans that outline a clear roadmap for establishing economic zones along these transport corridors. “We must conduct thorough feasibility studies, identify potential industrial hubs, and create financial models that will attract both domestic and international investment. This is the way forward for creating sustainable economic opportunities,” he said.

The meeting acknowledged that effective planning could unlock substantial value along these routes, particularly through the integration of tourism, agriculture, and agri-processing activities, thereby enhancing the value-added output of agricultural products and improving competitiveness in global markets.

The minister also stressed the importance of human capital development, asserting that infrastructure alone is insufficient. He called for equipping the workforce with the necessary skills for emerging industries through vocational training centres and technical education programs along these corridors, ensuring that local communities can directly benefit from economic growth.

DAWN NEWS
 
Aurangzeb hopes for higher investments in next CPEC phase

Finance Minister Muhammad Aurangzeb has said that the China-Pakistan Economic Corridor (CPEC) has transitioned from a government-to-government investment model in its first phase to a business-to-business engagement in its second phase.

He made these remarks in an interview with the US edition of China’s CGTN network. He previously indicated that Pakistan could repay its Chinese debt only after successfully completing CPEC’s second phase.

During his interview with CGTN, the minister described CPEC as the “champion project” of China’s Belt and Road Initiative, noting that significant infrastructure — particularly road networks and ports — was developed during the first phase.

He underscored the importance of CPEC’s second phase and highlighted Pakistan’s anticipation of increased Chinese investment to support this stage. He thanked the Chinese government and banks for their assistance in debt rollovers, while acknowledging the need for eventual repayment, affirming Pakistan’s commitment to fulfilling its financial obligations.

In a separate meeting on Saturday with China’s Vice Minister of Finance, Liao Min, Mr Aurangzeb reaffirmed Pakistan and China’s enduring strategic cooperative partnership. He expressed gratitude for China’s steadfast support in Pakistan’s socio-economic development and its role in securing the IMF’s Extended Fund Facility (EFF).

Energy challenges

On his fifth day in Washington, attending the annual meetings of the International Monetary Fund (IMF) and the World Bank Group, Mr Aurangzeb engaged in high-level meetings with key international stakeholders, including US officials and representatives from leading financial institutions like the IMF and World Bank.

In a meeting with US Assistant Secretary of State for Energy Resources Geoffrey Pyatt, Mr Aurangzeb discussed Pakistan’s energy sector challenges and the comprehensive reforms being introduced. He appreciated US support in helping Pakistan transition to renewable energy sources.

Separately, he also met with Reta Jo Lewis, President of the Export-Import (EXIM) Bank of the United States. He encouraged closer collaboration and, welcomed EXIM’s interest in Pakistan’s energy, minerals, and IT sectors, and assured provision of necessary data to facilitate the bank’s market entry evaluation. Additionally, he sought clarification on US nexus requirements for goods and services financed or insured by EXIM Bank.

Mohammad Kallala, Global Head of Corporate and Investment Banking at Natixis, met with Mr Aurangzeb to discuss Natixis’ operations, focusing on its strong presence in infrastructure, renewable energy, transportation, aviation, and telecom/technology sectors.

They explored potential partnerships with Gulf investors, particularly from Saudi Arabia, to provide financing and advisory support for investments in Pakistan.

In another meeting, Karan Bhatia, Vice President and Global Head of Government Affairs and Public Policy at Google, provided an overview of Google’s recent activities in Pakistan, along with its plans to expand investments and contribute substantially to the country’s economy. To support these initiatives, Bhatia raised regulatory, legislative, connectivity, and financial concerns.

Ratings upgrade

Mr Aurangzeb also held discussions with representatives from Moody’s credit rating agency, where he expressed appreciation for the recent upgrade of Pakistan’s credit rating to Caa2.

He highlighted the Ministry of Finance and the central bank’s ongoing engagement with rating agencies.

The meeting included a detailed briefing on Pakistan’s debt sustainability, monetary policy, vulnerability to external factors, foreign exchange reserves, fiscal discipline, revenue outlook, governance strength, and resilience of financial markets.

APP ADDS: During a meeting with representatives of S&P Global, the minister expressed the hope of a rating upgrade soon.

In a meeting with ADB President Masatsugu Asakawa, he appreciated ABD’s partnership to support Pakistan’s development agenda and hoped the Country Partnership Framework would be finalised soon.

DAWN NEWS
 

Pakistan to advance CPEC into next phase: Ishaq Dar​


Deputy Prime Minister and Foreign Minister Ishaq Dar announced Pakistan's commitment to advancing the China-Pakistan Economic Corridor (CPEC) into its next phase, aiming to deepen bilateral cooperation in trade, industrial development, digital technology, and agriculture.

Ishaq Dar's remarks came during his address at the International Conference on China's Development and Global Leadership Journey.

Dar highlighted China's rapid economic growth, forecasting its emergence as a global economic powerhouse in the near future. Emphasizing the strengthening partnership, he shared that China has offered to host 100 senior Pakistani agricultural students, allowing them to learn techniques for enhancing production per acre.

“Pakistan is determined to strengthen CPEC, broadening our collaboration with China,” Dar noted, underlining the importance of educational exchanges to support the country’s agricultural sector.

The Deputy Prime Minister’s remarks reflect Pakistan's strategic vision for leveraging CPEC to boost its economy and technological advancement in collaboration with China.

Source: Samaa News
 
Infra projects don't yield results for decades. People shouldn't be quick to jump on Conclusions here.

But the premise that was the basis for CPEC was flawed from the start and in current geo-political scenario makes no sense.
1. Transport by road and rail is always and will remain far far more expensive than sea route. In an ideal scenario, the CPEC route will always be more expensive for Chinese firms than simply shipping via sea.
2. The only reason for CPEC was to provide revenue for Chinese construction firms and have a contingency in case Strait of Malacca is ever blocked in times of war.
3. Pakistan never had the requisite basis to absorb and utilize large infrastructure to grow itself and the cost is exorbitant.

All CPEC has done is the following:
1. Provided Chinese companies projects to continue to work.
2. Draining of Pakistan's resources
3. Making the Chinese the "super-citizens" of Pakistan.
4. A cautionary tale to all the other countries where China is trying to push ahead with its OBOR
5. Chinese have shown they have little interest in developing Pakistan and see it only as a transit route in case of War emergency.

If any alternative channel, the "Thai Canal" is built. The entire CPEC route will be just ghost roads. US doesnt care much about CPEC but has been blocking Thai canal for a reason.

en.wikipedia.org

Thai Canal - Wikipedia

en.wikipedia.org en.wikipedia.org
 
The Bald Eagle said:
It certainly had the potential but severely mismanaged till date.
Click to expand...
you are not answering the question.

did you consider it a game change 10 years ago?

what should have been done differently? what would have done differently?

Will CPEC 2.0 be a game changer?
 
A quick search in the internet shows Pakistani debt to China is $26billion over CPEC Projects. This is almost 7% of Pakistan's GDP just to one country.
 
Many Nooras including Ahsan Iqbal claimed that IK wanted to stop CPEC but as we have seen for a while it wasn't IK but the Juntas agreement with America that wanted the project to stop. There is no doubt that we needed to be more diligent in our agreements with China but we would have benefited in our development. The question is why the Junta is risking all to sit in the American lap.
 
Apt title could be Cpec is backfiring for Pakistan, Native Balochis are resisting the move.
 
Bewal Express said:
Many Nooras including Ahsan Iqbal claimed that IK wanted to stop CPEC but as we have seen for a while it wasn't IK but the Juntas agreement with America that wanted the project to stop. There is no doubt that we needed to be more diligent in our agreements with China but we would have benefited in our development. The question is why the Junta is risking all to sit in the American lap.
Click to expand...
What are major gains from CPEC for Pak so far IYO?
 
Bewal Express said:
If the industrial zones got built and we used these to build export industries. We have wasted trillions on nothing, these CPEC projects would have bought tangible benefits.
Click to expand...
If I understood correctly, there has been no major gains from CPEC to date?

What has been the downside?
 
Bewal Express said:
Many Nooras including Ahsan Iqbal claimed that IK wanted to stop CPEC but as we have seen for a while it wasn't IK but the Juntas agreement with America that wanted the project to stop. There is no doubt that we needed to be more diligent in our agreements with China but we would have benefited in our development. The question is why the Junta is risking all to sit in the American lap.
Click to expand...

Could be a combination of things. Money paid into key Junta personnel accounts or compromising information which can be used against them. As I commented in another thread, they have arrested a guard who attacked and injured to Chinese nationals, so that should lead to information on who is carrying out terror attacks on them, and their handlers. This should be headline news in the Pakistani media.
 
No cpec was stopped by ik because he claimed all the cpec projects has shahbaz sharifs corruption behind it .

He also wanted to give the baloch separatists a stakehold and more influence .

And then the wheels came off.

He then went all anti military and started doing his own foreign policy like the idiocy of meeting putin straight after he launched a war . He wanted to takeover the military as well and bring it under control and started spouting nonsense of denuclearistation of south Asia. Which in reality meant de fanging pakistan.

Remember this guy sold kashmir on his watch something that even zardari never managed .

Basically he wanted pakistan sanctioned like Iran and nk .

China Saudis made their grievances clear to the establishment of having pti in power.

Now he's gone those countries have begun investing once again .

And america doesn't come into it since they have no interest in landlocked afghanistan and our military doesn't buy many western weapons anymore we already have a future potential stealth fighter in j35 .

Remember this pti nonsense that establishment is zionist and nawaz sharif is zionists and will sell our nukes and be the slaves of usa and give these so called bases all fairytales by the online bot team .
 
Rashakai Economic Zone: China’s Century Steel Mill warns of shutting down the plan

China’s Century Steel Mill has warned of shutting down the plant in the Rashakai Economic Zone, as investors continue to express concerns over mounting challenges.

Rashakai SEZ is a flagship project under the industrial cooperation of China China-Pakistan Economic Corridor (CPEC) framework and is listed as the prioritized CPEC SEZ by China-Pakistan Joint Cooperation Committee.

According to official documents, Century Steel has informed Prime Minister Shehbaz Sharif through a letter about its decision to halt the project.

The letter highlights 18 specific grievances faced by the company.

The Century Steel Mill in its letter to the premier has also complained about numerous problems being faced by them.

The letter stated that the the high cost of land in the economic zone is making the project unviable, while unfair competition from FATA and PATA-based steel mills are impacting the steel industry across Pakistan.

“Inconsistent tax policies in the steel sector, leading to closures of major players like Amreli and Agha Steel.”

China’s Century Steel Mills further said that power shortages and delays in approvals by NEPRA is also creating operational hurdles and the pressure to establish a solar power plant for electricity within the zone.

The letter also mentions challenges like declining demand for steel products due to rising costs, security expenses, and obstacles in machinery imports despite State Bank directives.

Century Steel warned, “This is our final communication. If the situation doesn’t improve, we will begin dismantling the plant.”

arynews.tv

Rashakai Economic Zone: China's Century Steel Mill warns of shutting down the plant

ISLAMABAD: China's Century Steel Mill has warned of shutting down the plant in the Rashakai Economic Zone, as investors continue to express concerns over
arynews.tv arynews.tv
 
Pakistani to sit on BRI ‘green network’ panel

Executive Director of the Pakistan-China Institute Mustafa Hyder Sayed has been appointed as a member of the Belt and Road Initiative (BRI) Green and Low-Carbon Expert Network.

According to a press statement, Mustafa Sayed’s appointment on the panel was announced during GLEN’s launching ceremony in Beijing.

The panel is being supported by China’s Ministry of Ecology. The launch event featured Zhao Yingmin, Vice Minister of the Chinese ministry, and Erik Solheim, Vice President of the BRI International Green Development Coalition Governing Board.

DAWN NEWS
 

China, Pakistan agree to 'upgrade' CPEC cooperation​


China and Pakistan have reaffirmed their vow toward the development of the second phase of China-Pakistan Economic Corridor (CPEC), the two nations said on Saturday.

The remarks came after Chinese Vice Foreign Minister Sun Weidong and Pakistan's Foreign Secretary Amna Baloch met in Beijing on Friday for the fourth cycle of diplomatic talks at the vice-foreign ministerial level.

"The two sides agreed that China and Pakistan are ironclad friends and all-weather strategic cooperative partners, and the time-tested friendship between the two countries has grown even stronger," China's Ministry of Foreign Affairs said in a statement on Saturday.

CPEC 2.0

Both foreign officials also co-chaired the fifth meeting of the CPEC Joint Working Group on International Cooperation and Coordination (JWG-ICC) on Friday.

Beijing said that the two countries agreed on the need to "upgrade" the CPEC.

The agreement — which was signed in 2015 — pledges billions of dollars of Chinese investment in Pakistan's infrastructure.

The project is part of China's mammoth Belt and Road Initiative (BRI) which is aimed at developing trade routes to connect with the rest of the world.

Islamabad said on Friday that a "high quality development" of CPEC 2.0 would focus on industrialization, Special Economic Zones (SEZ's), clean energy, agriculture and livelihood projects.

A statement from the Pakistani Ministry of Foreign Affairs posted on social media said "both sides reiterated firm resolve to elevate Pakistan-China ironclad ties to a new pedestal of cooperation and collaboration."

Pakistan's economic hurdles

Chinese investment in the region is facing the challenges posed by political instability, economic stagnation and energy supply issues.

Earlier this week, hundreds of Pakistani protesters blocked a section of a key highway that forms part of the CPEC in protest against power outages.

Locals in the snowy Gilgit-Baltistan region suffered blackouts of more than 20 hours amid temperatures of -15 degrees Celsius (5 degrees Fahrenheit).

The demonstrations on the Karakoram Highway in Hunza Valley prevented dozens of freight trucks from crossing into China.

Pakistan is hoping the greater Chinese investment to help alleviate its economic woes.

www.dw.com

China, Pakistan agree to 'upgrade' CPEC cooperation – DW – 01/12/2025

Beijing and Islamabad have pledged to deepen their bilateral ties, renewing a commitment for the second phase of the strategic China-Pakistan Economic Corridor.
www.dw.com www.dw.com
 
You must log in or register to reply here.

Similar threads

Bhaijaan
“Half the World, Three Nuclear Powers, One Flashpoint: Welcome to the Subcontinent - The True Power Center of the World”
Replies
6
Views
434
Bhaijaan
Bhaijaan
hoshiarpurexpress
  • Poll Poll
What if series : In the war between USA and China who will Pakistan support?
Replies
8
Views
350
The Bald Eagle
The Bald Eagle
Ball Blazer
Iran-Israel conflict 2025: Pakistan - the unexpected mediator between Israel/US and Iran?
Replies
6
Views
257
HalBass9
HalBass9
Bhaijaan
China’s weapons systems vs Indian indigenous weapon system - which one reigned supreme in recent India Pakistan tensions 2025?
2 3
Replies
207
Views
5K
gazza619
gazza619
sweep_shot
[VIDEO] What can Indians learn from Chinese people?
Replies
43
Views
909
sweep_shot
sweep_shot
Back
Top