The China-Pakistan Economic Corridor (CPEC) was envisioned to boost Pakistan’s economy through major infrastructure projects. However, concerns have arisen about the increasing debt burden on Pakistan. Despite creating over 9,500 MW of power capacity with Chinese investments, the projects have led to high operational costs and electricity tariffs, straining both consumers and government finances.
Moreover, the $6.7-7 billion Main Line-1 Railway Upgrade project lacks clear revenue-generating potential. With Pakistan’s history of unprofitable railway operations due to subsidized fares, there are doubts about its ability to generate enough revenue to cover its costs. This situation raises questions about the financial sustainability of these endeavors.
The strategic implications of CPEC are also under scrutiny, with China’s growing influence in Pakistan raising concerns about the country’s policy autonomy. As Chinese companies dominate project implementation and control critical infrastructure, Pakistan’s economic reliance on China deepens. This dependency could limit Pakistan’s ability to pursue an independent foreign policy, especially in conflicts between Chinese and American interests.
