CPEC Phase II launched, Pak-China partnership touches historic point

Islamabad: The 14th Joint Cooperation Committee (JCC) meeting of the China-Pakistan Economic Corridor (CPEC) concluded in Beijing on Friday without resolving the issue of outstanding capacity payments to China’s Independent Power Producers (IPPs).

The Pakistan-China partnership entered a historic phase with the formal launch of CPEC Phase-II. The Main Line-1 (ML-1) has sought commitments from China.

Federal Minister for Planning Ahsan Iqbal has said, “These priorities will together transform CPEC into a corridor of industrial development, technology, sustainability, and shared prosperity”. This convergence is not just theoretical but is embedded in the action plan signed in September 2025, which aims to bring a “China-Pakistan community with a shared future” closer.

The project includes industrial cooperation, special economic zones, agricultural modernization, development of maritime resources, minerals, and major projects such as the ML-1 railway, rehabilitation of the Karakoram Highway (KKH), and development of Gwadar.

However, it is reported that the issue of Chinese power plants could not be resolved as Islamabad wants to extend the payment period. Regarding partial financing of ML-1, China has sought a specific commitment from Islamabad in the context of the current International Monetary Fund (IMF) program.

Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, while addressing the concluding session, emphasized a shared vision, new determination, and an ambitious roadmap, which will set the direction for the next phase of this historic project.

Addressing the host Chinese officials and distinguished delegates, Mr Zhou Haibing, Vice Chairman of the National Development and Reform Commission (NDRC) of China, Ahsan Iqbal expressed his heartfelt gratitude for the wisdom and determination involved in the JCC discussions.

He said that the 14th JCC is not just a review of the past but a renewal of the commitment to deepen cooperation and build a future of shared prosperity.

The Federal Minister explained that CPEC Phase II will be based on five corridors, including Growth, Innovation, Green Growth, Jobs and Livelihoods, and Regional Connectivity, all of which will be aligned with Pakistan’s Uran 5Es framework (Exports, E-Pakistan, Energy & Environment, Equality and Empowerment).

Ahsan Iqbal stressed the need for immediate implementation of the rehabilitation of ML-1 and KKH, saying that these projects are of utmost strategic importance for uninterrupted connectivity between Pakistan and China. He said that early completion of these projects will bring vast economic benefits to the entire region. To maintain the momentum, he suggested that JCC meetings be held every six months and Joint Working Groups meet every quarter in the first three years of Phase II.