CPEC 2.0 to Focus on Digital Economy, Space Technology, and Green Development

CPEC 2.0 to Focus on Digital Economy, Space Technology, and Green Development

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Pakistan and China have agreed to revise the China-Pakistan Economic Corridor (CPEC) Long-Term Plan (2017–2030) during FY2026-27 to align it with the priorities of the CPEC 2.0 framework, broadening cooperation beyond traditional infrastructure into sectors such as digital technology, space, green development, research, and innovation.

According to official planning documents, the updated roadmap will be based on CPEC 2.0’s five strategic corridors: Growth, Innovation, Green Development, Livelihood, and Openness/Regional Connectivity. It will also incorporate collaboration under China’s Global Development Initiative (GDI) and Global Civilization Initiative (GCI), with greater emphasis on digital innovation, scientific research, space cooperation, education, and vocational training.

Updated Plan Following JCC Agreement

The revision follows an agreement reached during the 14th Joint Cooperation Committee (JCC) meeting, where both countries decided to update the existing CPEC framework in line with the new five-corridor strategy. Government departments from both sides are currently conducting consultations on the revised roadmap.

Officials said the updated framework is expected to strengthen long-term cooperation and improve implementation through a more coordinated planning process.

Stronger Coordination Mechanism

According to Pakistan’s Annual Plan 2026-27, both countries will strengthen the Joint Working Group (JWG) mechanism by introducing a fixed meeting calendar and a standardized reporting system to improve project monitoring and coordination.

Focus on Renewable Energy and Storage

In the energy sector, Pakistan plans to promote energy efficiency and conservation while launching studies to identify suitable locations for pumped-storage hydropower projects. These projects are expected to improve renewable energy integration, strengthen grid stability, and support future energy storage requirements.

Expansion of Special Economic Zones

Industrial cooperation under CPEC 2.0 will focus on accelerating development in four priority Special Economic Zones (SEZs):

  • Rashakai SEZ
  • Allama Iqbal Industrial City
  • Dhabeji SEZ
  • Bostan SEZ

The government also expects progress on the Karachi Industrial Park, Islamabad Model SEZ, and Moqpondass SEZ in Gilgit-Baltistan. Commercial operations at Dhabeji SEZ are planned during the current fiscal year.

ML-1 Railway and New Transport Projects

Railway modernization remains a major priority under CPEC 2.0, with the Main Line-1 (ML-1) project continuing to lead the agenda.

Officials are exploring third-party financing for the Karachi–Rohri section while seeking Chinese funding for the remaining portions of the railway upgrade.

The revised roadmap also includes feasibility studies for several transport and mining projects, including:

  • Gwadar–Nokundi Mining and Mineral Corridor
  • D.I. Khan–Zhob (N-50)
  • Mirpur–Mangla–Muzaffarabad Expressway
  • M-10 Motorway
  • Babusar Tunnel

Gwadar Development to Continue

During FY2026-27, Pakistan will continue efforts to commercialize Gwadar Port and its Free Zones by attracting new investors and facilitating the relocation of Chinese enterprises.

Authorities also expect progress on:

  • Gwadar Safe City Project
  • 300MW Gwadar Coal Power Plant

Greater Collaboration in Science and Technology

The updated CPEC framework also prioritizes scientific and technological cooperation.

Planned initiatives include expanding the China-Pakistan Knowledge Corridor, operationalizing joint research laboratories, and strengthening the China-Pakistan Joint Research Center on Earth Sciences at Quaid-i-Azam University.

The roadmap also includes the installation of an advanced mountain disaster early warning system, which is expected to be completed by June 2027.

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Syed Sadat Hussain Shah

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