Revision of CPEC Long-Term Plan Underway
Pakistan and China are set to revise the China-Pakistan Economic Corridor (CPEC) Long-Term Plan (LTP) to incorporate elements of the CPEC 2.0 framework, along with cooperation under the Global Development Initiative (GDI) and Global Civilization Initiative (GCI). The revision, targeted for the ongoing fiscal year 2026-27, will integrate five new corridors: Growth, Innovation, Green, Livelihood, and Openness/Regional Connectivity. Official documents reveal that cooperation areas under GDI and GCI, in synergy with CPEC 2.0, will be presented for inclusion in the updated LTP and work plan, with a focus on joint research, digital and space cooperation, and educational and vocational exchanges.
JCC Agreement and Interagency Consultations
The 14th Joint Cooperation Committee (JCC) formally agreed to review the CPEC Long-Term Plan (2017–30) in light of a memorandum of understanding on aligning the five corridors with URAAN. Interagency consultations on the revised LTP are currently underway. Both sides will work to strengthen the Joint Working Group (JWG) mechanism by agreeing on a calendar of JWG meetings for FY 2026-2027 and finalizing a standardized outcome reporting template for submission to respective conveners and the CPEC Secretariats, as per the Annual Plan FY 2026-27.
Outcome-Oriented Agenda for SED JWG
The Pakistani side will pursue an outcome-oriented agenda for the upcoming 4th Socio-Economic Development (SED) JWG. Deliberations will focus on an implementation schedule with milestone dates for the lady health worker, housing, and primary school projects. The agenda will also formally introduce cooperation under the GDI, GCI, and the South-South Cooperation Fund with UNDP, with both sides expected to present GDI/GCI-linked project proposals for the next SED batch.
Energy Efficiency and Hydropower Initiatives
Energy efficiency and conservation initiatives will be pursued to improve system performance, reduce losses, support demand-side management, and promote sustainable energy use across the power sector. A study for identification and ranking of potential sites for pumped storage hydropower projects (water batteries) will be undertaken. This initiative will support energy storage, grid balancing, renewable energy integration, and long-term reliability of the power system.
Industrial Cooperation and Special Economic Zones
Industrial cooperation is expected to witness further momentum, particularly in the marketing and operationalization of four priority Special Economic Zones (SEZs): Rashakai, Allama Iqbal Industrial City (AIIC), Dhabeji, and Bostan. Key initiatives include development of a dedicated Chinese industrial cluster at AIIC; joint feasibility consultations for Karachi Industrial Park (KIP) on Pakistan Steel Mills land spanning approximately 6,400 acres and for the Islamabad Model SEZ; and advancement of Moqpondass SEZ in Gilgit-Baltistan, for which an MoU was signed with a Chinese company in September 2025 and a comprehensive feasibility study initiated. The commercial sales launch of Dhabeji SEZ is also expected during the fiscal year.
Railway Modernization and Mining Corridor
ML-1 upgradation will remain the strategic priority for railway modernization under CPEC 2.0 in FY2026-27. Third-party financing arrangements for the Karachi–Rohri section are under consideration by the Ministry of Railways. Simultaneously, Chinese financing for the Rohri onwards sections will be actively pursued, with a view to presenting a comprehensive financing plan at the Joint Working Group on Transport Infrastructure. The Mining and Mineral Corridor, to be established between Gwadar and Nokundi via Turbat, Buleda, Chedgi, and Mashkel, is also a strategic project to benefit from the mineral wealth of Balochistan and advance national development. For FY2026-27, a joint feasibility study of the corridor is under consideration with the Chinese side.
Technical Working Group and Gwadar Projects
A Joint Technical Working Group (JTWG) has been constituted for joint feasibility studies of four projects: D.I. Khan–Zhob section of N-50 Road, Mirpur–Mangla–Muzaffarabad Expressway, M-10 Motorway, and Babusar Tunnel. In parallel, the Gwadar Safe City Project and the 300 MW Gwadar Coal Power Plant are expected to achieve significant milestones during the year. Gwadar Port and Free Zones will be at the forefront of CPEC 2.0’s operationalization agenda, with emphasis on commercialization, relocation of Chinese enterprises, investor attraction, and throughput generation. The New Gwadar International Airport, handed over to the Pakistan Airports Authority following its inauguration in October 2024, will be a key focus of operationalization efforts in FY2026-27.
Science and Technology Cooperation
To enhance cooperation in science and technology, several initiatives will be focused on in 2026–2027. These include operationalization of joint laboratories and research centers, including sub-centers at UET Lahore, NED Karachi, and BUITEMS Quetta under the BRI Joint Lab on Smart Disaster Prevention, and advancement of civil works at the China–Pakistan Joint Research Center (CPJRC) on Earth Sciences at Quaid-e-Azam University, Islamabad, with installation of a Refined Early Warning and Forecast System for Mountain Disasters targeted by June 2027. Development of the China–Pakistan Knowledge Corridor will strengthen academic and scientific linkages, facilitate joint research programs, and promote knowledge transfer between Chinese and Pakistani institutions through structured bilateral platforms.
