Video: Pakistan in Shock After China Pulls Back on CPEC

The China-Pakistan Economic Corridor (CPEC), unveiled in 2015 as a flagship arm of China’s Belt and Road Initiative with $60 billion in planned investments, is undergoing a major shift. By 2025, China has significantly reduced its direct financial involvement—most notably stepping back from funding the crucial Main Line-1 railway upgrade, forcing Pakistan to seek alternative lenders.

Repeated attacks on Chinese workers, rising security risks, and Pakistan’s mounting payment delays have pushed Beijing toward a more cautious approach. While China hasn’t abandoned CPEC, it has transitioned into a recalibrated “CPEC 2.0” that focuses on industrial zones, agriculture, mining, and green energy instead of massive infrastructure undertakings such as Gwadar’s underutilized airport.

This marks a shift from rapid expansion to a slower, risk-managed rollout. Pakistan now faces the challenge of improving security, fixing payment systems, and ensuring project delivery to keep the corridor’s economic promise alive.