China and Pakistan have reaffirmed their commitment to advancing the second phase of the China-Pakistan Economic Corridor (CPEC), signaling a renewed focus on deepening their strategic partnership. The announcement followed a meeting between Chinese Vice Foreign Minister Sun Weidong and Pakistan's Foreign Secretary Amna Baloch in Beijing on Friday.

The two officials participated in the fourth cycle of diplomatic talks at the vice-foreign ministerial level and co-chaired the fifth meeting of the CPEC Joint Working Group on International Cooperation and Coordination (JWG-ICC).

"Ironclad Friendship"

China’s Ministry of Foreign Affairs described the bilateral relationship as an “ironclad friendship and all-weather strategic cooperative partnership.” The ministry emphasized that the time-tested bond between the two nations continues to strengthen.

Both sides agreed to upgrade the CPEC, a flagship project under China’s Belt and Road Initiative (BRI), which has brought billions of dollars in Chinese investment to Pakistan since its inception in 2015. The second phase of CPEC will prioritize industrialization, Special Economic Zones (SEZs), clean energy, agriculture, and livelihood development.

A statement from Pakistan’s Ministry of Foreign Affairs echoed this sentiment, pledging "high-quality development" for CPEC 2.0. The statement reiterated both countries' resolve to elevate their partnership to unprecedented levels of cooperation and collaboration.

Economic Challenges and Local Unrest

Despite the progress, CPEC faces significant challenges stemming from Pakistan's political and economic instability. Energy shortages have exacerbated the situation, triggering local unrest in key areas tied to the project.

This week, hundreds of protesters in Gilgit-Baltistan blocked a section of the Karakoram Highway, a critical artery of the CPEC, in response to prolonged power outages. The region experienced blackouts exceeding 20 hours daily amid freezing temperatures as low as -15°C (5°F), severely affecting residents’ livelihoods. The demonstration disrupted freight truck movement, delaying goods crossing into China.

Future Prospects

Pakistan hopes that enhanced Chinese investment under CPEC 2.0 will help address its economic challenges, including stagnation and energy crises. The project's success is seen as critical to stabilizing Pakistan’s economy and fostering regional development.

Both nations have reaffirmed their determination to overcome obstacles and drive CPEC toward achieving shared economic and strategic goals.