New Delhi, Sep 13 (IANS) Once promoted as a transformative project for Pakistan’s economy and a strategic milestone for China, the China-Pakistan Economic Corridor (CPEC) is increasingly facing criticism over its performance, financial costs and implementation challenges, a report has said.
According to an analysis by the European Times, concerns are growing in Pakistan over the corridor’s contribution to the country’s economic difficulties.
Several CPEC-linked projects were expensive and failed to generate the expected economic returns, it added.
Moreover, uncertainty also surrounds the actual value and financial obligations associated with the original $46 billion CPEC framework.
“While Pakistanis are frustrated by the poor performance and incapabilities of the CPEC projects to generate returns, the Chinese are worried about the repayment of huge CPEC loans amid the exacerbating financial condition of Pakistan,” the report said.
“So, what once was portrayed as the herald of modern infrastructure, the CPEC has itself become a source of economic difficulties,” it added.
Pakistan’s worsening fiscal situation has added to the strain.
The report indicates that liabilities linked to CPEC-backed power projects have risen significantly, exceeding Rs 543 billion (Pakistani rupee) in March 2026.
While the country continues to face persistent energy challenges.
Pakistani officials have reportedly sought more favourable repayment arrangements from Beijing, but substantial relief has yet to materialise.
The situation is particularly evident in Gwadar Port, considered the flagship of the corridor, according to the report.
Despite being projected as a major trade and logistics hub, Gwadar continues to face infrastructure and civic shortcomings. According to the report, delays, administrative hurdles, policy inconsistencies, financial constraints and local opposition have also affected several other CPEC-linked transport and infrastructure projects.
The challenges have implications for China as well. Beijing is reportedly concerned about the slow progress of projects, security issues and the limited returns on its investments.
Gwadar remains central to China’s broader economic and strategic objectives in the region, making the success of the port critical to the overall future of CPEC, according to the report.
“China may see the entire narrative built around the BRI come crashing down if CPEC fails, given that it is a flagship programme,” it said.
–IANS
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