Skills Development and Policy Reforms Drive CPEC 2.0 Success
A high-level policy dialogue brought together leading policymakers, experts, and representatives from the Chinese diplomatic mission to examine the critical role of governance reforms and skills development in ensuring the success of the second phase of the China-Pakistan Economic Corridor.
Participants emphasized that while CPEC 2.0 presents a significant opportunity for economic transformation, its success will depend on addressing longstanding institutional and structural challenges. The discussion focused on improving governance frameworks, facilitating business-to-business (B2B) investment, enabling technology transfer, and strengthening coordination between public and private stakeholders.
Moderated by Nabila Jaffer, the session highlighted the need for a more cohesive regulatory environment to support evolving investment dynamics. In his opening remarks, Jauhar Saleem noted that maximizing the value of upcoming investments requires a strategic approach that goes beyond infrastructure development.
He pointed out that while the initial phase of CPEC addressed Pakistan’s infrastructure and energy gaps, it fell short in generating widespread economic spillovers due to governance and institutional limitations. With CPEC 2.0 transitioning from a government-to-government model to a business-driven framework, careful sector selection and policy alignment will be essential.
Three key pillars were identified as fundamental for success: institutional coherence, human capital development, and a stable investment environment driven by private sector participation.
In his keynote address, Qaisar Ahmad Shaikh highlighted lessons from China’s development trajectory, emphasizing education, technology, and skills as primary drivers of economic growth. He stressed the urgency of improving Pakistan’s export capacity and addressing trade imbalances by leveraging Special Economic Zones (SEZs) to attract foreign direct investment.
He further noted that Pakistan is offering extensive land for industrial expansion, including coastal zones, and that a majority of regulatory reforms aimed at reducing bureaucratic hurdles have already been implemented. Referring to recent engagements with Chinese business leaders, he encouraged Pakistani firms to transition from import dependence to technology partnerships and joint ventures.
Shi Yuanqiang highlighted the achievements of CPEC’s first phase, particularly in infrastructure and energy, while outlining the five-corridor framework of CPEC 2.0: Growth, Livelihood, Innovation, Green, and Open. He also pointed to expanding cooperation in sectors such as health, space technology, and industrial development, reinforcing China’s continued commitment to bilateral collaboration.
Former ambassador Masood Khalid stressed the importance of removing administrative and regulatory barriers to unlock investment in SEZs. He also underscored the strategic significance of the ML-1 railway project as a cornerstone for enhancing economic connectivity.
Asim Khan Niazi argued that the future of CPEC 2.0 will be shaped more by governance quality than infrastructure expansion alone. He proposed aligning China’s five-corridor framework with Pakistan’s economic priorities and called for digitalized approval systems, real-time monitoring, and stronger accountability mechanisms.
Amna Munawwar Awan highlighted the challenges of transitioning to a B2B model, including financial facilitation gaps, lack of single-window trade systems, and workforce skill shortages. She emphasized the importance of investing in value-added sectors and ensuring broader inclusion in economic growth.
Shehryar Khan pointed to Pakistan’s credibility challenges, driven by policy inconsistency and weak enforcement, as a major barrier to investment. He advocated for cluster-based industrial development and aligning geopolitical advantages with credible economic performance.
The dialogue concluded with a strong consensus that Pakistan’s recent diplomatic progress must be translated into tangible economic outcomes. Achieving this will require sustained governance reforms, policy consistency, and a decisive shift toward enterprise-led collaboration to fully unlock the potential of CPEC 2.0.