The expansion of the upscaling of the China-Pakistan Economic Corridor (CPEC) to its second phase puts it at a crossroads with a shift from mega-infrastructure and energy schemes, a theme which caught market attention in the first phase. While roads, ports, and power plants formed the nucleus of Phase I, Phase II is designed to develop the pillars of a knowledge-based, sustainable economy. It is not a matter of expansion so much as a matter of redirectionalizing Pakistan’s role from a transit belt to an active industrial center of action, technology-enabled agriculture, and human resource development. Industrialization is the driver here.

Special Economic Zones (SEZs) are being established for domestic and international investment. These schemes such as Rashakai SEZ of Khyber Pakhtunkhwa and Allama Iqbal Industrial City of Punjab are being designed in order to locate competitive advantages in tax incentives and bundled infrastructure. For Pakistan, these SEZs are not only sites for investment but also hubs for technology transfer, human capacity development, and generation of employment. The shift of Chinese industry to Pakistan will usher in the possibility of employment for millions of people through 2030, make Pakistani supply chains more robust, and increase the export base. In a way, the SEZs could be Pakistan’s connection to the international industrial economy. The second phase is agrarian in character as well.

With nearly 40 percent of the country’s labor involved with agriculture, its modernization is the priority. With Chinese assistance, Pakistan is implementing advanced agrarian technology, step by step—precision agriculture, automated reapers, water-efficient irrigation systems, and satellite tracking. All these efforts promise more output, reduced wastage of crops after harvesting, and improved export positioning of Pakistani products. Cotton, fruit, dairy, and fishery industries are some of the methods agriculture can ensure food security along with economic diversification simultaneously. This symbiosis, if well implemented, would bring about a new “Green Revolution” for Pakistan. Infrastructure continues to hold significance but now channeled to achieve efficiency and sustainability goals.

The long-awaited $6.8 billion ML-1 railway scheme is the best example. Sophisticated, this rail link will not only reduce transit time but also reduce the cost of logistics, increasing passenger and freight movement throughout the country. Similarly, Gwadar Port would be a hub for CPEC’s initial vision and become a trans-shipment port with logistic hubs to re-shape regional trade streams. Linking South Asia with Central Asia and the Middle East, Gwadar embodies Pakistan’s geostrategic shift as a continent bridgehead. The most daunting task in Phase II here is its commitment to people development. In Phase I, when infrastructure was focused on, the level of inclusivity is what is emphasized. New vocation schools, especially in Gwabad, are built with the objective to impart vocational training to the native population which pertains to impending industries.

Employment of female labor forces, poverty reduction, and development of health sectors are given special importance. This focus assures that CPEC dividends do not reach investors and cities but societal foundations. Political consensus and security are as vital to succeed as well. Special security staff have been assigned for CPEC projects by Pakistan, and efforts are being made to address provincial issues, particularly in Balochistan. These efforts show a realization that CPEC is not a series of projects but a national cause that needs unity and long-term dedication.

Contrary to the critics, the Pakistan’s indebtedness indicates that a negligible portion is due to CPEC financing, thus refuting the widely-hyped “debt trap” theory hurled by the critics. In fact, CPEC Phase II offers a unique opportunity for Pakistan to recreate its economic trajectory. With the symbiotic evolution of industrialization, high-technology agriculture, green infrastructure, and human capacity building, it foresees a joint roadmap towards prosperity. The true potential of the project lies not in short-term profit but in long-term potential to restructure Pakistan’s economy for centuries to come. Aggressively pursued and in good faith, this phase would be well on its way to heralding the start of Pakistan’s rise as an economic giant of the region and leader of the new Silk Road.