During the 75th anniversary celebrations of Pak-China diplomatic relations, both nations recommitted to accelerating CPEC 2.0. Yet, a stark disconnect persists between these pledges and Pakistan’s national priorities.
Our economic, fiscal, industrial, investment, social export policies are not aligned to support the revival of this mega-project. Consequently, extreme poverty is resurging, social development and industrial growth have stalled, foreign direct investment is derailed, policy continuity remains absent damaging the early start of CPEC 2.0.
The neglect of health, education, people’s welfare community development is glaring. This stems from flawed policies and a disintegration of coordination among the Planning Commission, the URRAN program, the Ministry of Finance, the Board of Investment (BOI), the SECP the State Bank of Pakistan (SBP). Their conflicting targets and mismanagement send mixed, confusing signals to both the local business community and foreign investors, turning CPEC 2.0 into a playground for bureaucratic turf wars that delay its commencement and completion.
The federal Budget 2026-2027 starkly illustrates this reality. It announced a massive Rs3.675 trillion in development allocations, yet contains hardly any new uplift projects. CPEC 2.0, the sole new initiative listed, received a meagre allocation of Rs1 billion. This token amount vividly reflects our true national priorities. Despite lofty rhetoric, the budget does not support or facilitate an early initiation of CPEC 2.0 a deeply ominous sign.
The government and its policymakers must immediately revisit their approach and focus on tangible economic development instead of building castles in the air. Austerity campaigns ring hollow when contrasted with the physical pomp of big protocols, motorcades security umbrellas.
Unfortunately, anti-people and anti-business conduct, the lust for unlimited discretionary powers, the worship of non-professionalism, and reliance on cheap marketing and media stunts have already burned the hopes of ordinary citizens. The nation’s soul is scarred by the capture of its economy and resources by elites, a calcified bureaucracy and ungovernable political domains.
It appears policymakers have somehow become hostages to their political parties and personality cults, preferring to dwell on past losses while making a mockery of the national exchequer. The bitter fruits are evident: brain drain, soaring inflation, price hikes, unproductivity, corruption incompetence have become the hallmarks of the national economy, sabotaging any dream of a qualitative life for the common people. As budgetary and fiscal deficits gain momentum, they mercilessly screw the poor. The government’s only response, lacking a concrete policy to generate jobs, revenue exports, is to impose new taxes and petroleum levies. Public funds are wasted on hit-and-trial therapies for “parachuters” mostly blood relatives of powerful elites, cartels cronies and on futile ceremonies of self-projection and gratification.
Thus, the revival of CPEC 2.0 demands a complete overhaul of our national policies, plans, projects priorities, gearing the nation toward genuine socio-economic prosperity and stability.
It is encouraging that the Chinese Ambassador, Jiang Zaidong, has reaffirmed Beijing’s commitment to deepening strategic cooperation and upgrading CPEC 2.0 with a focus on agriculture, industry mining. This must be appreciated and matched by our own commitment.
Analytically, CPEC Phase 1.0 delivered over $25.9 billion in direct investment, created more than 260,000 jobs, added over 8,000 megawatts of power generation significantly improved infrastructure. Delays in Phase 2.0, therefore, create negative vibes among all stakeholders. The planned work, including the Karakoram Highway Phase-II realignment and the expansion of “small yet beautiful” welfare initiatives for education and water facilities in Balochistan, must be accelerated and extended to other provinces and sectors.
The 75th anniversary of diplomatic ties provides a new lifeline to CPEC 2.0, one that must be nurtured for the wellbeing of the common people. China’s readiness to build an even closer community with a shared future must be honored and harmonized with our national priorities.
To that end, the incumbent government and all opposition parties should sign a long-term economic roadmap. This accord must introduce deep, effective structural reforms in every sector to put the economy, manufacturing, green transformation, human development energy production on the right path under CPEC 2.0, guided by total transparency, accountability, institutionalized merit, professionalism democratized rule of law.
The government should pioneer a concept of “Small Special Economic Zones” parallel to major CPEC projects. These would be dedicated hubs for promoting innovation, modernization, digitalization, AI, quantum technologies, robotic sciences, humanoid robots, the bio-medical sector hybrid agriculture.
We must learn from the Chinese model of economic growth, which is fundamentally aligned with people’s welfare, community empowerment, enterprise liberalization economic diversification. This model is the key to CPEC 2.0’s success.
The Planning Commission, Board of Investment, SECP, SIFC and Ministry of Finance must come out of their deep slumber and work jointly. CPEC 2.0 is our only hope for economic survival, quality development, relocation of modern industries the promotion of local talent and a knowledge-based economy.
CPEC 2.0 will directly help Pakistan meet its development targets. The formation of an “Open Corridor” should be vigorously pursued by including other nations, transforming it into a project of greater regional development. Strengthening socio-economic ties and building integrated transport systems with Uzbekistan, Tajikistan, Kazakhstan Kyrgyzstan would be a critical value addition. The core focus must remain on industrialization, technological collaboration, innovation, sustainability, agricultural modernization people-centered development.
Finally, the emerging US-Iran peace deal carries numerous socio-economic and geopolitical impacts. This moment must be translated into economic uplift seeking more investment from GCC countries, lifting the US embargo on the Iran-Pakistan gas pipeline fostering trans-regional connectivity and economic security.
This is the optimal time to translate all mediating efforts and diplomatic labour into sustainable economic partnerships to prevent a complete economic meltdown and ensure the early initiation of CPEC 2.0. The time for projecting power through protocols is over; the time for projecting purpose through policy is now.
(mehmoodulhassankhan7@gmail.
