By Yasir Masood
As Pakistan and China celebrate over 70 years of robust diplomatic relations, their partnership stands as a model of mutual respect, shared goals, and strategic collaboration.
Since their alliance began in 1951, the China-Pakistan relationship has evolved into a multi-dimensional partnership encompassing infrastructure, energy, agriculture, and economic development, primarily through the China-Pakistan Economic Corridor (CPEC).
This partnership not only strengthens Pakistan’s economic backbone but also serves as a template for other South Asian nations striving for self-reliance, regional integration, and sustainable development.
Transformative Infrastructure Development
Under CPEC, infrastructure projects have reshaped Pakistan’s landscape, especially in transport and energy. The Gwadar Port, extensive highways, and power plants exemplify China’s commitment to enhancing Pakistan’s connectivity and economic resilience. For instance, the completion of the Karakoram Highway Phase II and the 392-kilometer Multan-Sukkur Motorway has significantly reduced travel times across key routes, enhancing trade flow and accessibility. The Multan-Sukkur Motorway alone generated approximately 29,000 local jobs during its construction, boosting the local economy directly.
CPEC also promotes smart infrastructure, with China supporting projects that integrate sustainable and green practices. The ongoing development in Gwadar, featuring eco-friendly buildings, smart transportation systems, and digitized municipal services, exemplifies this transition towards “smart cities” and sustainable urbanization in Pakistan.
Agricultural Transformation
Agriculture remains a cornerstone of Pakistan’s economy, employing close to 40% of its workforce and contributing around 19% to the GDP, according to recent Pakistan Economic Surveys and international analyses. However, traditional farming practices and climate vulnerabilities have limited growth. Through initiatives like high-yield crop technology, advanced farming tools, and climate-resilient seed varieties, China is helping to modernize Pakistan’s agriculture sector.
For instance, Chinese-supported hybrid rice technology has enabled yield increases of up to 20%, enhancing productivity and food security. Additionally, the establishment of agro-processing units, like those in Gwadar, allows Pakistan to add value to its agricultural exports, creating rural employment opportunities and positioning Pakistan as a leader in agro-processing and innovation.
CPEC: Driving Pakistan’s Energy Transformation
According to recent official sources, CPEC has significantly transformed Pakistan’s energy sector by enhancing capacity, efficiency, and sustainability. With substantial Chinese investment, Pakistan’s total energy capacity now stands at 45,885 MW, of which 8,752 MW—approximately 19.07%—comes directly from CPEC-backed projects. This expansion addresses Pakistan’s longstanding energy shortages and solidifies CPEC’s role in building a reliable energy infrastructure to power the country’s future.
One of the most notable benefits of CPEC projects is their cost-efficiency. Power generated through these initiatives is priced at 8.80 PKR per kilowatt-hour (kWh), as compared to 19.66 PKR/kWh from other sources—yielding over 50% savings per kWh. This pricing advantage not only makes electricity more affordable for consumers but also reduces Pakistan’s dependence on expensive oil and gas imports, fostering a shift toward a self-reliant, sustainable energy framework.
In addition to boosting generation capacity, CPEC has strengthened Pakistan’s energy infrastructure with projects like the Matiari-Lahore ±660kV DC Transmission Line, developed by the State Grid Corporation of China. This high-voltage transmission line improves distribution efficiency and minimizes power losses, ensuring that generated electricity reaches more households and industries nationwide.
Green Energy as a Catalyst for Regional Growth
CPEC’s emphasis on a diversified energy portfolio supports Pakistan’s transition to cleaner, renewable energy sources. Projects span coal, nuclear, hydropower, wind, and solar energy, contributing to a resilient and eco-friendly energy landscape. The Quaid-e-Azam Solar Park in Bahawalpur, a 300 MW project co-financed by China, is among the world’s largest solar installations. Additionally, community solar grids in Sindh and hydro plants like Suki Kinari and Karot ensure stable energy access for remote regions, stimulating local development and regional integration.
These energy projects expand Pakistan’s energy capacity while creating jobs and providing skills training. Chinese companies involved in CPEC initiatives have actively engaged in training Pakistani workers in advanced energy management and technology, equipping them with the expertise needed to operate and maintain these high-tech facilities. This emphasis on local capacity-building aligns with CPEC’s overarching vision of promoting long-term self-reliance within Pakistan’s energy sector.
Prominent CPEC projects, such as the Sahiwal 2×660 MW Supercritical Coal-Fired Power Plant and the K-2/K-3 Nuclear Power Plant, stabilize Pakistan’s energy grid while supporting a balanced, diversified energy framework. Together, these efforts position Pakistan to meet its future energy needs sustainably and affordably.
Empowering Pakistani Expertise
Empowering local expertise has also been a priority for China, which is crucial for sustainable development. Chinese universities have granted over 28,000 scholarships to Pakistani students in the past decade, and Chinese companies provide frequent vocational training under CPEC, enabling Pakistanis to manage advanced infrastructure and energy projects independently.
The Pak-China Technical and Vocational Institute in Gwadar, for example, trains local students in marine engineering, renewable energy, and other technical fields, supporting the workforce in leading Pakistan’s development projects.
Technology Transfer and Industrialisation
The second phase of CPEC focuses on technology transfer and industrial growth through Special Economic Zones (SEZs). In Rashakai, which is now operational, Pakistan is seeing progress in manufacturing, textiles, and automotive industries. SEZs like Rashakai, Dhabeji, and Allama Iqbal Industrial City attract Chinese investments that foster industrialisation and help Pakistan.
The estimation of CPEC’s potential to create over one million jobs by 2030 is frequently referenced in discussions about the economic impact of the project. The initial phases of CPEC already generated tens of thousands of jobs across various sectors. For instance, infrastructure projects alone, such as the Peshawar-Karachi Motorway and energy initiatives, collectively employed over 100,000 Pakistani workers with high local engagement rates. Furthermore, as the focus expands into sectors like agriculture, IT, and industrial zones, projections indicate that the cumulative effect could indeed reach or surpass the one million mark by 2030, especially with the establishment of Special Economic Zones (SEZs) across Pakistan, which aim to diversify and strengthen the job market in alignment with Pakistan’s economic needs.
Recommendations for Strengthening the Partnership
1 – Financial Sustainability: Addressing rising debt requires a diversified funding approach, involving multilateral banks and public-private partnerships to ease Pakistan’s reliance on bilateral loans.
2 – Technology and Skill Development: Expanding collaboration in education and vocational training through joint university programs can further empower Pakistan’s workforce. Initiatives like joint research or “train-the-trainer” models can strengthen local skills for SEZ-related industries.
3 – Enhanced Security Measures: Protecting CPEC projects, especially in high-risk areas like Balochistan, is essential. Establishing specialized security units and using surveillance technology can improve safety for workers and local communities alike.
4 – Agricultural Modernisation: With China’s support, introducing modern irrigation and high-yield crop techniques can uplift Pakistan’s agricultural productivity. Adding agribusinesses in SEZs, particularly food processing, could boost export revenues and reduce rural poverty.
5 – Promoting Regional Integration: Developing cross-border trade zones with Afghanistan and Central Asia could position Pakistan as a logistics and trade hub, supporting local industries and fostering economic self-sufficiency.
By focusing on sustainable infrastructure, agricultural innovation, and renewable energy, the China-Pakistan partnership under CPEC continues to exemplify a regional model for growth and self-reliance.
Author: Dr. Yasir Masood – Beijing-based Pakistani Political and Security Analyst. He is also a Broadcast Journalist, and Strategic Communication Expert. His expertise spans geopolitical dynamics, security issues, Chinese affairs, the China-Pakistan Economic Corridor (CPEC), and the Belt and Road Initiative (BRI). He provides in-depth analysis and commentary on international relations across global media platforms and policy think tanks.
(The opinions expressed in this article are solely those of the author and do not necessarily reflect the views of World Geostrategic Insights).
Image Source: Reuters (Chinese President Xi Jinping and Pakistani Prime Minister Shehbaz Sharif at the Great Hall of the People in Beijing on June 7).