CPEC seen as key to unlocking Balochistan’s economic potential

Policymakers and analysts emphasize development, stability and prosperity in the province

Pakistan has a long list of projects it wants to fund, including a tripartite deal between China, Pakistan and Saudi Arabia for an oil refinery in Gwadar. Photo: File

KARACHI:

Balochistan, which holds around 75% of Pakistan’s mineral wealth, is emerging as a central pillar of the China-Pakistan Economic Corridor (CPEC), with policymakers and analysts emphasizing that the development, stability and prosperity of the province are closely linked to the success of the multi-billion dollar connectivity project.

The long coastline of Balochistan, a province rich in coal, copper, gold, chromite and other minerals, its proximity to the Strait of Hormuz and its location at the crossroads of South Asia, Central Asia and the Middle East give it immense geoeconomic and geostrategic importance, according to a paper published by an Islamabad-based think tank, the Center for Research, Policy Development, Peace and Strategic Studies.

Despite these advantages, the province has long lagged behind in terms of social and economic indicators, suffering from poor infrastructure, energy shortages, poor governance and recurring security problems.

Since the launch of CPEC in 2015, however, significant changes have been observed. At the time, Pakistan, and particularly Balochistan, was facing daily power outages of up to 16 to 18 hours, inadequate road networks and sluggish economic activity. Officials say more than $25 billion in CPEC-related investments have since helped modernize the country’s energy system, transport infrastructure and ports, with visible spillover effects in Balochistan.

According to official data, more than 8,000 MW of electricity has been added to the national grid through large power projects, including coal, hydro, solar and wind power plants. These include the Hub coal-fired power plant in Balochistan, which has boosted electricity supply and eased the province’s long-standing energy crisis.

Road projects such as Khuzdar-Basima, Surab-Hoshab Road (N-85), Hoshab-Gwadar Highway (M-8) and Gwadar Eastbay Highway have improved connectivity across the rugged province, linking remote areas with domestic markets.

Officials say travel time between Quetta and Gwadar has been reduced from 24-36 hours to around eight hours, thereby transforming mobility, commerce and socio-economic interactions. The development of the Gwadar port, along with the completion of the new Gwadar International Airport and the creation of a free trade zone, is being described as a game changer that could integrate Pakistan more deeply into regional and global trade.

The Planning Commission says CPEC has already created over 200,000 direct jobs across the country, with thousands of livelihoods linked to the projects in Balochistan. With the launch of CPEC Phase II, the focus is now on inclusive growth, Special Economic Zones (SEZs), agriculture, minerals, information technology and local value creation, with the aim of ensuring that the benefits of development reach ordinary citizens.

Agriculture remains the backbone of Balochistan’s economy, with horticulture being its most important sub-sector. The province is often referred to as the “fruit basket” of Pakistan, producing most of the country’s cherries, grapes, almonds, dates and apples. Despite high production, Balochistan’s share in agricultural exports remains limited due to weak value chains, water shortages and lack of modern storage and processing facilities.

Under CPEC-related initiatives, agricultural mechanization, modern irrigation systems and high-tech agricultural practices are being introduced in collaboration with Chinese partners and international institutions. Officials estimate that these measures could increase agricultural production by 25 to 30 percent and open international markets for Balochistan’s products, helping to reduce rural poverty.

The livestock sector, which directly or indirectly supports about 70 percent of the province’s population, is also considered a major growth sector. Balochistan accounts for a significant portion of Pakistan’s sheep, goats and camels. Chinese cooperation in genetic improvement, breeding technologies and veterinary training is expected to improve productivity and export potential.

Meanwhile, analysts view the province’s vast coastline and marine resources as an untapped “blue economy.” Fishing, mangroves, coastal tourism and marine biodiversity could generate jobs and foreign exchange if developed sustainably. Attractions such as Gwadar, Astola Island, Kund Malir and Hingol National Park have the potential to make Balochistan a major tourist destination, provided peace and stability is ensured.

Balochistan’s mineral wealth – estimated by some experts at trillions of dollars – remains both an opportunity and a source of contention. Projects such as Saindak and Reko Diq highlight the province’s importance in global mineral supply chains. However, local communities have long complained that resource extraction fails to translate into prosperity, fueling grievances and mistrust.

CPEC proponents argue that transparent and well-regulated mining within the corridor, coupled with equitable revenue sharing and local employment, could help address these concerns and reduce conflict. The province’s vast land area and climatic conditions also make it ideal for renewable energy projects, particularly solar and wind power, which could support Pakistan’s climate goals and provide clean energy to underdeveloped regions.

Despite the development progress, security remains the biggest challenge to the smooth implementation of CPEC in Balochistan. The province has seen several waves of insurgency since 2006, with militant groups targeting infrastructure, security forces and, increasingly, Chinese nationals and CPEC-related projects. Officials say dozens of attacks in recent years have slowed project execution, increased costs and shaken investor confidence.

To counter these threats, thousands of security personnel have been deployed to protect CPEC projects, costing billions of rupees annually. Analysts, however, believe that a purely security-focused approach is insufficient. They highlight the need to address the underlying political, economic and governance grievances that fuel activism, including perceptions of exclusion, lack of local ownership and weak provincial institutions.

Critics also point to a governance deficit, pointing out that key CPEC decisions are often made at the federal level, with limited participation from provincial governments and local communities. They say this perpetuates a center-periphery dynamic that undermines trust. Greater transparency, community participation and a stronger role for local governments are widely seen as essential to long-term success.

Experts agree that CPEC represents a historic opportunity for Balochistan, but warn that its success depends on inclusive policies, better governance and lasting peace. Recommendations include accelerating the development of SEZs, prioritizing the ML-1 railway project, integrating local industries into CPEC supply chains, expanding education and vocational training, and adopting climate-resilient development strategies.

Strengthening coordination between federal and provincial authorities, improving information sharing and involving local communities in decision-making are also considered essential. Analysts say that if managed wisely, CPEC could transform Balochistan from a strategically important but underdeveloped region into an economic powerhouse, thereby contributing to Pakistan’s long-term stability and prosperity.

As CPEC enters its second phase, the challenge for policymakers is to ensure that development is not only visible in roads, ports and power plants, but also in improved livelihoods, social welfare and lasting peace for the people of Balochistan.

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