ISLAMABAD: The Ministry of Planning, Development and Special Initiatives (PD&SI) has outlined an ambitious roadmap to accelerate the China-Pakistan Economic Corridor (CPEC) Phase II, with a focus on high-tech industrialization, enhanced provincial-level cooperation, and modernization of governance and economic systems to support sustainable growth.
Eighty-five percent of the project financing for the Karakoram Highway (KKH) Project has been committed by the Government of China, marking a major milestone in the deepening strategic partnership between the two countries.
Federal Minister for PD&SI Prof. Ahsan Iqbal Chaudhary, while unveiling the report, said, “The bidding process for the Thakot–Raikot Motorway will commence within two months.”
“Provincial-level cooperation under CPEC would also be expanded following discussions with Chinese provincial leaders”.
He highlighted that the next phase of CPEC would not only upgrade physical infrastructure but also integrate emerging technologies, industrial modernization, and regional connectivity.
Prof. Iqbal underscored the growing role of provincial-level cooperation under CPEC, noting that expanded engagement with Chinese provincial leaders would further boost development opportunities across Pakistan.
“Under CPEC Phase II, Pakistan will enter a new stage of high-tech industrialization and human resource development,” he said, adding that the partnership aims to transform Pakistan into a competitive knowledge-based economy.
The report also emphasized that structural reforms and modernization of governance systems are essential to convert macroeconomic stability into sustained and inclusive growth.
It called for reducing bureaucratic hurdles, fostering a pro-business environment, and prioritizing human capital development, wherein youth and women are the key drivers of national progress.
Prof. Iqbal declared 2026 as the “Year of Reform and Modernization,” signaling the government’s determination to align governance structures with the demands of the 21st century while deepening strategic cooperation with China through CPEC Phase II.
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