Chinese Investment in Pakistan Fails to Drive Growth

A report from Directus, citing the Business Recorder, indicates that approximately 62 billion dollars in Chinese investment through the China-Pakistan Economic Corridor (CPEC) has failed to trigger sustained economic growth in Pakistan. The failure is attributed to the Government of Pakistan, which prioritized physical infrastructure projects, such as power plants and the Gwadar Port, without establishing the necessary industrial ecosystems or economic foundations.

These planning errors resulted in uncompetitive electricity tariffs, leaving industrial consumers to pay nearly double the prices of their regional competitors. The lack of visible local economic benefits and uneven development have further destabilized the region.

This economic stagnation has contributed to ongoing unrest and targeted attacks on CPEC personnel and infrastructure in Balochistan. While the Government of China provided the capital for these projects, the reported lack of a competitive utility framework and industrial strategy prevented the investments from generating the intended cargo, investment, and broad-based prosperity.