- FinMin says CPEC continues to play a transformative role in regional connectivity and economic development
ISLAMABAD: Finance Minister Muhammad Aurangzeb, while unveiling the Pakistan Economic Survey (PES) 2024–25, highlighted key achievements under the China-Pakistan Economic Corridor (CPEC), particularly in transport infrastructure and strategic development, saying CPEC continues to play a transformative role in regional connectivity and economic development.
The finance minister unveiled the Pakistan Economic Survey 2024–25, projecting a 2.7 percent GDP growth for the outgoing fiscal year, according to state media.
He said that various development activities are in progress under the CPEC. “Eight projects worth $6.7 billion have been completed in the transport infrastructure sector, with several others underway,” he added, Radio Pakistan reported on Tuesday.
“The other projects included the construction of 888 kilometers of motorways and highways, while another 853 kilometers are under development with local funding,” the finance minister informed during the survey launch in Islamabad.
“Inflation for the year was recorded at 4.6 percent, as the country seeks to stabilize its economy while accelerating progress on major connectivity and trade-related projects. “We now have to move towards GDP stabilization. We are currently moving in a better direction,” Aurangzeb said.
Shedding light on achievements under CPEC, the minister shared that among the completed initiatives is the 120-km Havelian-Thakot section of the Karakoram Highway, a flagship project recognized with international awards.
Other key operational projects include the 392-km Multan-Sukkur Motorway, the 297-km Hakla-DI Khan Motorway, and the 110-km Khuzdar-Basima Highway.
“It (CPEC) strengthens Pakistan’s integration into regional and global supply chains, fostering trade, investment, and inclusive development.”
The survey report also highlights progress in digital and urban connectivity, including the completion of a cross-border optical fiber cable and the Orange Line Metro Train in Lahore.
The New Gwadar International Airport is now operational, enhancing air connectivity.
Ongoing projects such as the Zhob-Kuchlak, Nokundi-Mashkhel, and Awaran-Khuzdar sections, as well as feasibility studies for the Babusar Tunnel and the Mirpur-Muzaffarabad-Mansehra corridor, signal continued momentum in infrastructure development under CPEC.
The Main Line-1 (ML-1) railway project remains under technical and financial consultation, while the framework agreement for the Karachi Circular Railway has been shared with the Chinese side.
The survey highlighted significant progress in the development of Gwadar Port and its Free Zone.
Since 2013, the China Overseas Ports Holding Company Limited (COPHCL) has invested over $50 million to upgrade port infrastructure. The port is fully operational and regularly handling commercial traffic.
A 60-acre pilot zone of the Gwadar Free Zone has been developed, with enterprises operating in sectors including finance, manufacturing, logistics, and fisheries.
“The total investment of the company is $250 million for the Gwadar Port Free Zone,” read the survey documents.
To facilitate investment, Pakistan has offered a 23-year tax holiday, full foreign ownership, and one-window operations for investors.
COPHCL has also completed the master plan and feasibility work for the main Free Zone, covering 2,281 acres.
To address water scarcity in the region, a 1.2 million-gallon-per-day reverse osmosis desalination plant, funded by China under its socioeconomic assistance program, was completed in June 2023.
“It will fulfill the water requirements of the surrounding population of Gwadar Port as well as the needs of Gwadar Port Free Zone Part I,” the minister stated.
The federal government has also allocated funding for additional projects in Gwadar under the Public Sector Development Programme (PSDP) for 2024–25, including land acquisition, housing infrastructure, and the East Bay Expressway Phase-II.
