New Delhi: Pakistan Prime Minister Shehbaz Sharif will soon travel to China. His visit will mark the launch of the second phase of the China-Pakistan Economic Corridor. The project is known as CPEC-II. It has been delayed for years. Pakistan now presents it as a grand plan for jobs, industry and growth. At its core, it deepens China’s grip on Pakistan’s economy.

The timing is sensitive. India and China are in talks after the 2020 border clash at Galwan. Beijing is at the same time boosting its partnership with Islamabad. This unsettles regional balance and adds pressure on New Delhi.

What CPEC-II Brings

The CPEC began in 2015. Its first phase focused on roads, highways, power plants and Gwadar Port. The CPEC-II is different. It shifts toward industrial cooperation. Special Economic Zones will be set up to attract Chinese factories. Agribusiness firms from China will step into Pakistan’s farms.

Science and technology tie-ups are on the table. Telecom, IT and surveillance systems will also be part of the plan.

Gwadar is central to this push. The port will be expanded and tied to China’s global maritime routes. This phase was planned in 2019. Political turmoil, financial woes and COVID-19 held it back.

Why Islamabad Is Desperate

Pakistan’s economy is in freefall. Foreign reserves are shrinking. The country leans on the International Monetary Fund (IMF). Structural flaws remain unaddressed.

Islamabad calls the CPEC-II a lifeline. Officials believe SEZs will bring jobs and modern industry. They hope Chinese funds can revive the economy.

Critics disagree. They say Pakistan is giving away its autonomy. Tax breaks, land and security are being offered to Chinese firms. Local industry may not be able to compete.

Why India Is Alarmed

For India, the CPEC-II is more than an economic project. It runs through Gilgit-Baltistan and part of Pakistan-occupied Kashmir. India claims these territories. By expanding activity there, China and Pakistan reinforce Pakistan’s control. This challenges India’s sovereignty.

Gwadar adds to the concern. The port is not only commercial. India fears it may host Chinese naval assets. With the CPEC-II, port expansion makes that risk sharper.

Industrial hubs add another layer. China’s projects often blur civilian and military use. SEZs may double as logistics and surveillance sites.

The launch also comes at a delicate time. India and China are talking after years of border standoff. Still, Beijing tightens its embrace of Islamabad. This signals a double move.

India sees a deeper “string of pearls” taking shape. From Hambantota in Sri Lanka to Kyaukpyu in Myanmar, Chinese-backed ports now ring India’s maritime zone.

Risks For Pakistan

The gamble is high. Debt to China already weighs heavily from the CPEC-I. The CPEC-II will add more. Chinese firms are expected to repatriate profits. Pakistan’s export sector will gain a little.

Local anger is strong. In Gwadar and Balochistan, residents feel excluded. They accuse leaders of serving Chinese and elite interests. Communities say benefits have bypassed them. Protests and unrest are frequent.

Past promises also loom large. The CPEC-I was hailed as a “game-changer”. Instead, Pakistan ended up with rising debt, energy shortages and delayed projects. Many now fear that the CPEC-II may repeat that cycle.