Ministry of Planning and Development Addresses Speculations About Stalled CPEC Projects, Provides Updates on CPEC Initiatives

Clarifying Progress, Challenges, and Future Prospects for the China-Pakistan Economic Corridor

Ministry of Planning and Development Addresses Speculations About Stalled CPEC Projects, Provides Updates on CPEC Initiatives


The Ministry of Planning, Development & Reform has issued a statement clarifying the multi-phase progress of the China-Pakistan Economic Corridor (CPEC). Originally conceived in three distinct phases, CPEC's initial phase aimed at resolving key economic bottlenecks, primarily in the energy and infrastructure sectors. The ongoing phase, however, focuses on fostering industrialization, socio-economic development, agricultural cooperation, business promotion, and consolidating prior advancements.

In the initial phase, significant strides have been made. For instance, in the realm of road infrastructure, 1544 kilometers have been completed, and an additional 1456 kilometers are currently under construction. Meanwhile, in the energy sector, a substantial 5320MW of electricity has been integrated into the national grid, with seven projects generating 4170MW nearing completion and an additional 2844MW in the pipeline. The ambitious cross-border optical fiber project linking Khunjrab to Rawalpindi, spanning 820 kilometers, has already been successfully executed.

Regarding Gwadar's development, a total of ten projects in infrastructure and social sectors are either completed or in progress, with the operational Gwadar port standing out as a significant achievement. Of paramount importance, the Gwadar Smart Port City Master Plan for comprehensive city development gained approval on August 23, 2019, and is ready for implementation. The resolution of long-standing tax concessions and investment incentives issues since 2016 promises to bolster economic activity in Gwadar. The groundbreaking ceremony for the country's largest airport, the New Gwadar International Airport, took place on March 29, 2019, under the Prime Minister's auspices.

The current CPEC phase is geared towards industrialization, socio-economic progress, modernizing agriculture, nurturing the blue economy, and promoting tourism. Framework Agreements on Industrial Cooperation, Agriculture, and Socio-economic Development were inked in November 2018. Prioritized Special Economic Zones (SEZs), including Rashakai, M3 Faisalabad, and Dhabeji Thatta, are in focus. The Rashakai SEZ's Concession Agreement was signed in April 2019, with its groundbreaking anticipated in early October. Overcoming utility supply challenges for these SEZs, the government has committed to providing essential services at zero cost through its resources.

In the social sector development arena, 27 projects spanning education, healthcare, agriculture, poverty alleviation, and water supply have been identified. Seventeen of these projects hold priority status and are slated for completion during this phase. The ML1 Project, essential for transportation, is advancing, supported by a dedicated financing committee. Negotiations for vital petrochemical plant, refinery, and gas pipeline projects are ongoing.

CPEC remains on course and enjoys robust support from both nations. Assertions of a slowdown or rollback in this flagship initiative lack factual foundation and are driven by misinformation. Such unfounded claims pose the risk of generating confusion and uncertainties regarding this vital framework between two friendly nations. Therefore, it is imperative to disregard such baseless news items and uphold the veracity of this significant endeavor.