## Pakistan Highlights Transformative CPEC Progress in Economic Survey
Finance Minister Muhammad Aurangzeb emphasized the China-Pakistan Economic Corridor’s (CPEC) continued transformative role in enhancing regional connectivity and fostering economic development. He confirmed that various development initiatives are actively advancing under the CPEC framework.
Detailing progress in transport infrastructure, Aurangzeb stated, “eight projects totaling US$ 6.7 billion have been completed, while several others are underway.” This includes the construction of 888 kilometers of motorways and highways, with an additional 853 kilometers under development utilizing local funding.
The Minister unveiled the Pakistan Economic Survey 2024–25, which projects a 2.7 percent GDP growth for the outgoing fiscal year. The survey also underscored significant CPEC milestones, particularly within transport infrastructure and the strategic development of Gwadar Port. Annual inflation was recorded at 4.6 percent as Pakistan works to stabilize its economy while accelerating major connectivity and trade projects.
“We now have to move towards GDP stabilization. We are currently moving in a better direction,” Aurangzeb declared during the survey launch in Islamabad. He cited specific CPEC achievements, including the internationally recognized, 120-km Havelian-Thakot section of the Karakoram Highway. Other key operational projects highlighted are the 392-km Multan-Sukkur Motorway, the 297-km Hakla-D.I. Khan Motorway, and the 110-km Khuzdar-Basima Highway.
Aurangzeb further noted, “It (CPEC) strengthens Pakistan’s integration into regional and global supply chains, fostering trade, investment, and inclusive development.” The survey report additionally documents progress in digital and urban connectivity, such as the completion of a cross-border optical fiber cable and the Orange Line Metro Train in Lahore. Air connectivity is enhanced with the New Gwadar International Airport now operational.
Infrastructure development momentum continues with ongoing projects like the Zhob-Kuchlak, Nokundi-Mashkhel, and Awaran-Khuzdar sections. Feasibility studies are progressing for the Babusar Tunnel and the Mirpur-Muzaffarabad-Mansehra corridor. 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 Chinese counterparts.
Significant advancements at Gwadar Port and its Free Zone were also detailed. Since 2013, the China Overseas Ports Holding Company Limited (COPHCL) has invested over US$ 50 million to upgrade port infrastructure. The port is fully operational and regularly handles commercial traffic. A 60-acre pilot zone of the Gwadar Free Zone is developed and hosts enterprises in finance, manufacturing, logistics, and fisheries.
“The total investment of the company is US$ 250 million for the Gwadar Port Free Zone,” the survey documents state. To attract investment, Pakistan offers a 23-year tax holiday, full foreign ownership, and one-window operations. COPHCL has finalized the master plan and feasibility work for the main Free Zone, encompassing 2,281 acres. Addressing water scarcity, a 1.2 million-gallon-per-day reverse osmosis desalination plant, funded by China under its socioeconomic assistance program, was completed in June 2023. The survey notes, “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.”
Furthermore, the federal government has allocated funding under the Public Sector Development Programme (PSDP) 2024–25 for additional Gwadar projects, including land acquisition, housing infrastructure, and the East Bay Expressway Phase-II.