China-Pakistan Economic Corridor Transitions to Green and Digital Initiatives
The China-Pakistan Economic Corridor (CPEC) is shifting focus from coal power to solar energy and artificial intelligence, with over $65 billion in investment. The project, now in its second phase (CPEC 2.0), aims to establish Pakistan as a leading environmentally friendly industrial center.
By 2025, Pakistan will import 50 GW of solar panels, with solar energy accounting for 25% of its electricity supply. The 'Green CPEC' initiative launched in 2024 aims to localize the solar PV value chain, while the digital economy is supported by a $1 billion AI fund.
Special Economic Zones have increased from seven to 44, facilitating Chinese manufacturing relocation. The corridor's modernization includes a $7 billion railway upgrade and infrastructure developments in Gwadar. The success of CPEC 2.0 relies on efficient operational SEZs and grid system upgrades to support renewable energy.
