China-Pakistan Economic Corridor (CPEC) is evolving into “CPEC 2.0,” emphasizing artificial intelligence, cloud computing, and surveillance technologies over traditional infrastructure projects, according to a recent report. Beijing’s efforts to introduce AI structures and surveillance systems in Pakistan are transforming the partnership towards digital governance from physical connectivity. The implementation of ‘Safe City’ networks, powered by Chinese AI technology, aims to enhance urban security by utilizing facial recognition, license plate readers, and predictive policing algorithms.
This shift towards digital technologies not only modernizes urban crime control and counterterrorism measures but also establishes a mechanism for state control in Pakistan and provides valuable operational data for Beijing. However, the report highlights concerns about Pakistan’s IT sector facing challenges due to this collaboration, as Chinese companies offer subsidized hardware, software, and cloud services that could lead to long-term technological reliance. The report warns that such dependence may hinder future diversification efforts away from Chinese platforms, potentially impacting Pakistan’s sovereignty in critical situations.
The report underscores that Pakistan’s decision to adopt Chinese technological solutions is driven by financial constraints and the necessity to swiftly upgrade urban governance and internal security. With Pakistan’s IT industry heavily reliant on Western markets for revenue, integration with Chinese architectures could expose Pakistani firms to penalties from the US due to stringent data security regulations and supply chain scrutiny. This dilemma could result in Pakistan isolating its dynamic economic sector from lucrative Western tech ecosystems in favor of subsidized tech infrastructure from Beijing.
