Pakistan has allocated funding for railway modernization, industrial cooperation, policy research and academic exchanges under China-Pakistan Economic Corridor (CPEC) in the Public Sector Development Programme (PSDP) 2026–27.
Shift Toward Industry and Economic Cooperation
The new allocations reflect Islamabad’s effort to advance CPEC into its second phase. While earlier stages emphasized energy and transport infrastructure, CPEC 2.0 focuses more on industry, technology, investment and economic cooperation.
Funding for New CPEC Initiatives
Additionally, the PSDP allocates Rs1 billion for new initiatives under CPEC 2.0. Therefore, the government aims to expand the corridor’s scope beyond traditional infrastructure development.
Railway Modernization Receives Priority
In the transport sector, authorities allocated Rs1.056 billion for preliminary design work, consultancy services and technical preparations linked to the Main Line-1 railway upgradation project and a dry port near Havelian.
Moreover, the Ministry of Railways received Rs50 million for the China-Pakistan Economic Corridor Support Project to strengthen planning and implementation capacity for rail-related initiatives.
Industrial Cooperation and Research Support
For industrial development, the government earmarked Rs30 million for the Project Management Unit of the CPEC Industrial Cooperation Development Project. As a result, Pakistan expects stronger investment and industrial collaboration with China.
Meanwhile, the Centre of Excellence for CPEC will receive Rs200 million to support research and policy work. In addition, the CPEC Secretariat secured an allocation of Rs300 million.
Academic Exchanges and Gwadar Development
The government also designated Rs100 million for the CPEC Consortium of Universities to encourage research partnerships and educational exchanges.
Separately, more than Rs14.2 billion has been allocated for projects in Gwadar. Consequently, funding will support connectivity, infrastructure, maritime development, water supply, education and municipal services.
CPEC Enters a New Development Phase
Overall, the latest allocations signal Pakistan’s intention to broaden CPEC through industrial growth, institutional cooperation and long-term economic integration.
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