Overview

• Pakistan and China formally opened CPEC Phase‑II at the 14th JCC, shifting from heavy infrastructure to a people‑centred agenda built around five corridors aligned with Pakistan’s 5Es framework.
• China agreed to cover 85% of the Karakoram Highway realignment, with phased bidding to begin for the Thakot–Raikot section and an initial 82‑km stretch affected by the Diamer‑Basha Dam.
• The roughly $7 billion ML‑1 rail upgrade will be arranged through multilateral financing, with the ADB and AIIB engaged and a phased approach starting from priority sections.
• The JCC closed without resolving long‑pending capacity‑payment disputes with Chinese IPPs, and final meeting minutes are still being negotiated alongside steps to stabilize power‑sector payment mechanisms.
• Both sides agreed to publish an updated long‑term CPEC plan within about 90 days and to tighten the cadence of JCC and working‑group meetings, with Phase‑II prioritizing SEZs, digital and green projects, and youth skills initiatives.