CPEC Driving Regional Connectivity and Economic Growth: $6.7 Billion Transport Projects Completed

Islamabad – The China-Pakistan Economic Corridor (CPEC) has become a catalyst for regional connectivity and economic transformation, as highlighted in the Pakistan Economic Survey 2024-25. The survey notes the successful completion of eight major transport infrastructure projects worth $6.7 billion, encompassing 888 kilometers of motorways and highways. Several other projects are still under construction.
Key completed projects include the 120 km Havelian-Thakot section of the Karakoram Highway, which has received international recognition, the 392 km Multan-Sukkur Motorway, the 297 km Hakla-D.I. Khan Motorway, and the 110 km Khuzdar-Basima Highway. An additional 853 km of road infrastructure is under development through domestic funding.
According to Gwadar Pro, Finance Minister Muhammad Aurangzeb, while presenting the economic survey, projected a GDP growth rate of 2.7% for the current fiscal year, with inflation recorded at 4.6%. The government is now focused on achieving GDP stability and accelerating the implementation of key trade and infrastructure initiatives.
CPEC is playing a pivotal role in integrating Pakistan into regional and global supply chains, boosting trade, investment, and inclusive growth. The survey also highlighted progress in digital and urban connectivity projects, including the cross-border optical fiber cable and the completion of Lahore’s Orange Line Metro Train.
The new Gwadar International Airport is now operational, enhancing air connectivity, while ongoing infrastructure projects include the Zhob-Quetta, Nokundi-Mashkhel, and Awaran-Khuzdar roads. Feasibility studies are underway for the Babusar Tunnel and the Mirpur-Muzaffarabad-Mansehra Corridor, underscoring continued CPEC expansion.
The Main Line-1 (ML-1) railway project is currently in the technical and financial consultation phase, and a framework agreement for the Karachi Circular Railway has been shared with the Chinese side.
Gwadar Pro also reported substantial progress in Gwadar Port and Free Zone development. Since 2013, China Overseas Ports Holding Company Ltd (COPHCL) has invested over $50 million to enhance port infrastructure. The port is now fully operational with regular commercial activity. The 60-acre pilot zone of the Gwadar Free Zone hosts active businesses in finance, manufacturing, logistics, and fisheries, with a total investment of $250 million.
To promote investment, Pakistan offers a 23-year tax holiday, full foreign ownership, and one-window facilitation. COPHCL has completed the master plan and feasibility for the 2,281-acre main Free Zone.
Additionally, to address water scarcity, a 1.2 million-gallon-per-day reverse osmosis desalination plant was completed in June 2023 under China’s socio-economic assistance program. This facility meets the water needs of Gwadar Port and Phase-I of the Free Zone.
Under the Public Sector Development Programme (PSDP) 2024-25, the federal government has allocated further funding for Gwadar, including for land acquisition, residential infrastructure, and Phase-II of the Eastbay Expressway.