Pakistan-China Relations: Economic Benefits Vs. Debt Trap Concerns (CPEC)

Abstract

The Pakistan-China relationship has witnessed significant transformation with the launch of the China-Pakistan Economic Corridor (CPEC), a flagship project under China's Belt and Road Initiative (BRI). While CPEC promises vast economic benefits—such as infrastructure development, energy generation, job creation, and regional connectivity—it has also sparked growing concerns about Pakistan falling into a "debt trap." This study aims to critically examine the dual narrative of CPEC, weighing its potential to boost economic growth against the risks of unsustainable debt, sovereignty erosion, and economic dependence. By analyzing policy documents, economic data, and expert opinions that are published, the study explores how CPEC has reshaped Pakistan's economic landscape and strategic position while raising questions about transparency, loan terms, and long-term fiscal implications. The paper concludes that while CPEC offers transformative opportunities, its success largely depends on effective governance, financial discipline, and mutually beneficial cooperation between both nations.