Growing tensions between China and Pakistan regarding the China-Pakistan Economic Corridor (CPEC) have highlighted significant economic and security challenges that threaten the project’s viability.
China has recently refused to fund new CPEC projects due to Pakistan’s failure to meet financial obligations and the lack of progress on existing initiatives. This refusal comes amid concerns over the safety of Chinese nationals working on these projects, as multiple attacks by terrorist groups have occurred in recent years.
There is increasing frustration among local populations in areas like Gwadar, where expectations of economic transformation from CPEC have not materialized. Protests over basic amenities and access to resources have further strained relations, leading to a perception that the benefits of CPEC are not reaching local communities.
China’s investments in Pakistan have faced a downward trend, particularly in manufactured goods crucial for infrastructure development. The overall economic situation in Pakistan, exacerbated by the pandemic and global events like the Ukraine war, has made it difficult for the country to attract further investment.
The security situation in Pakistan, especially in Balochistan, has deteriorated significantly, with repeated attacks on Chinese workers linked to CPEC projects. Notably, incidents such as a suicide bombing that killed two Chinese workers in October 2024 have raised alarms about the safety of Chinese personnel.
In light of these threats, China has expressed dissatisfaction with Pakistan’s ability to provide adequate security for its investments. High-ranking officials from China have visited Pakistan to discuss enhanced security measures, and there are indications that China may deploy private security firms if the situation does not improve.
The ongoing security failures have led to a notable strain in diplomatic relations between the two countries. The Chinese Ambassador has publicly criticized Pakistan’s failure to protect its citizens, indicating a shift from behind-the-scenes dissatisfaction to more overt public demands for improved security measures.
Conclusion
The future of CPEC is uncertain as both economic and security challenges mount. Without significant improvements in these areas, there is a risk that China may reassess its commitment to this flagship project of its Belt and Road Initiative, which could have dire implications for Pakistan’s economy and its international investment reputation.
