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 aims to develop industrial parks, facilitating industrial development in Pakistan, but faces challenges such as attacks on Chinese personnel and slow loan repayment.
Chinese Foreign Minister Wang Yi's visit to Pakistan in May 2025 highlighted China's renewed interest in completing CPEC, with Phase II focusing on industrial development and job creation.
However, despite public pronouncements, there is little progress on the ground, with Pakistan's ability to repay Chinese loans dependent on the completion of Phase I and the availability of energy for new industries.
Phase II of CPEC is meant to focus on the development of industrial parks to facilitate industrial development in Pakistan.
Author's summary: CPEC's relaunch highlights China-Pakistan interdependence.