Pakistan Strengthens Provincial-Level Cooperation with China under CPEC Phase II
Independent Report
ISLAMABAD, Oct 19: Pakistan has unveiled a comprehensive roadmap to accelerate Phase II of the China-Pakistan Economic Corridor (CPEC), emphasizing high-tech industrialization, deeper provincial-level cooperation, and modernization of governance and economic systems to ensure sustainable and inclusive growth.
According to a report by Gwadar Pro, citing the Monthly Development Report and Initial Flood Damage Assessment issued by the Ministry of Planning, Development and Special Initiatives (PD&SI), the government is moving decisively to advance CPEC’s next phase with targeted reforms and development goals.
Highlighting a key achievement, the report noted that 85 percent of the financing for the Karakoram Highway (KKH) Project has been committed by the Government of China, marking a significant step forward in the ever-strengthening strategic partnership between the two nations.
Federal Minister for PD&SI Prof. Ahsan Iqbal Chaudhary, while unveiling the report, announced that the bidding process for the Thakot–Raikot Motorway will begin within the next two months. He emphasized that CPEC’s provincial-level cooperation would be broadened following discussions with Chinese provincial leaders.
“The next phase of CPEC will not only enhance physical infrastructure but also integrate emerging technologies, industrial modernization, and regional connectivity,” Prof. Iqbal stated.
He further noted that expanded cooperation with Chinese provincial counterparts would open new development horizons for Pakistan, particularly in industrial zones, education, and innovation sectors.
Under CPEC Phase II, Pakistan is expected to enter a new era of high-tech industrialization and human resource development, transforming the economy into a competitive, knowledge-driven model.
The report also highlighted that structural reforms and modernization of governance are crucial to convert short-term macroeconomic stability into long-term inclusive growth. It stressed the need to reduce bureaucratic barriers, foster a pro-business environment, and empower youth and women as vital drivers of progress.
Declaring 2026 as the “Year of Reform and Modernization,” Prof. Iqbal reaffirmed the government’s resolve to align national governance with 21st-century challenges while deepening strategic cooperation with China through CPEC Phase II.
