The China-Pakistan Economic Corridor (CPEC) continues to evolve, focusing on industrialization, clean energy, and socio-economic projects to bolster sustainable development. The second phase of CPEC emphasizes key areas such as industrialization, Special Economic Zones (SEZs), clean energy, and socio-economic projects, reflecting a commitment to sustainable development and economic growth.
In July 2023, the Rashakai Special Economic Zone (SEZ) in Khyber Pakhtunkhwa became operational, marking a significant milestone in CPEC's industrialization efforts. This SEZ is expected to attract substantial investment and create numerous employment opportunities, contributing to regional economic development.
Infrastructure enhancements are also underway. The New Gwadar International Airport, inaugurated in October 2024, aims to facilitate both domestic and international flights, enhancing connectivity and economic activity in the region. However, as of early 2025, the airport remains underutilized, with limited flight operations, highlighting challenges in fully integrating new infrastructure into the local economy.
Energy projects under CPEC are progressing, with the Karot Hydropower Project in Punjab becoming operational in June 2022. This facility contributes significantly to Pakistan's energy supply, addressing previous power shortages and supporting industrial growth.
Despite these advancements, the CPEC faces challenges, including security concerns in regions like Balochistan, which have impacted the progress of certain projects. Ongoing efforts aim to address these issues to ensure the continued success and expansion of the corridor.