CPEC seen as key to unlocking Balochistan’s economic potential

Policymakers, analysts stress development, stability and prosperity in the province

KARACHI:

Balochistan, which holds around 75% of Pakistan’s mineral wealth, is emerging as a central pillar of the China-Pakistan Economic Corridor (CPEC), with policymakers and analysts stressing that development, stability and prosperity in the province are closely tied to the success of the multibillion-dollar connectivity project.

The long coastline of Balochistan, the province rich in coal, copper, gold, chromite and other minerals, its proximity to the Strait of Hormuz, and its location at the crossroads of South Asia, Central Asia and the Middle East give it immense geo-economic and geostrategic importance, according to a paper published by an Islamabad-based think tank, the Centre for Research, Policy Development, Peace & Strategic Studies.

Despite these advantages, the province has long lagged behind in social and economic indicators, suffering from poor infrastructure, energy shortages, weak governance and recurring security challenges.

Since the launch of CPEC in 2015, however, significant changes have been observed. At the time, Pakistan, particularly Balochistan, was facing daily power outages of up to 16–18 hours, inadequate road networks and sluggish economic activity. Officials say that more than $25 billion in CPEC-related investments have since helped upgrade the country’s energy system, transport infrastructure and ports, with visible spillover effects in Balochistan.

According to official data, over 8,000MW of electricity have been added to the national grid through major power projects, including coal, hydropower, solar and wind plants. These include the Hub coal power plant in Balochistan, which has strengthened electricity supply and eased the province’s long-standing energy crisis.

Road projects such as the Khuzdar-Basima Road, Surab-Hoshab (N-85), the Hoshab-Gwadar (M-8) motorway and the Gwadar Eastbay Expressway have improved connectivity across the rugged province, linking remote areas to national markets.

Officials say that travel time between Quetta and Gwadar has been reduced from as much as 24–36 hours to around eight hours, transforming mobility, trade and socio-economic interaction. The development of Gwadar Port, along with the completion of the New Gwadar International Airport and the establishment of a Free Zone, is being described as a game changer that could integrate Pakistan more deeply into regional and global trade.

The Planning Commission says CPEC has already created over 200,000 direct jobs nationwide, with thousands of livelihoods linked to projects in Balochistan. With the launch of CPEC Phase II, the focus is shifting towards inclusive growth, Special Economic Zones (SEZs), agriculture, minerals, information technology and local value creation, aimed at ensuring that the benefits of development reach ordinary citizens.

Agriculture remains the backbone of Balochistan’s economy, with horticulture as its most prominent sub-sector. The province is often referred to as Pakistan’s “fruit basket,” producing the bulk of the country’s cherries, grapes, almonds, dates and apples. Despite high production, Balochistan’s share in agricultural exports remains limited due to weak value chains, water shortages and a lack of modern storage and processing facilities.

Under CPEC-linked initiatives, agricultural mechanisation, modern irrigation systems and high-tech farming practices are being introduced in collaboration with Chinese partners and international institutions. Officials believe these measures could raise agricultural output by 25–30 per cent and open international markets for Balochistan’s produce, helping alleviate rural poverty.

The livestock sector, which supports around 70 per cent of the province’s population directly or indirectly, is also seen as a major growth area. Balochistan accounts for a significant share of Pakistan’s sheep, goats and camels. Chinese cooperation in genetic improvement, breeding technologies and veterinary training is expected to enhance productivity and export potential.

Meanwhile, analysts point to the province’s vast coastline and marine resources as an untapped “blue economy.” Fisheries, mangroves, coastal tourism and marine biodiversity could generate jobs and foreign exchange if developed sustainably. Attractions such as Gwadar, Astola Island, Kund Malir and Hingol National Park have the potential to turn Balochistan into a major tourism destination, provided peace and stability are ensured.

Balochistan’s mineral wealth — estimated by some experts to be worth trillions of dollars — remains both an opportunity and a source of contention. Projects such as Saindak and Reko Diq underline the province’s importance in global mineral supply chains. However, local communities have long complained that resource extraction has failed to translate into prosperity, fuelling grievances and mistrust.

CPEC proponents argue that transparent, well-regulated mining under the corridor framework, coupled with fair revenue sharing and local employment, could help address these concerns and reduce conflict. The province’s vast land area and climatic conditions also make it ideal for renewable energy projects, particularly solar and wind power, which could support Pakistan’s climate goals and provide clean energy to underdeveloped regions.

Despite development gains, security remains the single biggest challenge to CPEC’s smooth implementation in Balochistan. The province has experienced multiple waves of insurgency since 2006, with militant groups targeting infrastructure, security forces and, increasingly, Chinese nationals and CPEC-related projects. Officials say dozens of attacks over recent years have slowed project execution, increased costs and undermined investor confidence.

To counter these threats, thousands of security personnel have been deployed to protect CPEC projects, costing billions of rupees annually. Analysts, however, argue that a purely security-centric approach is insufficient. They stress the need to address underlying political, economic and governance grievances that fuel militancy, including perceptions of exclusion, lack of local ownership and weak provincial institutions.

Critics also highlight a governance gap, noting that key CPEC decisions are often taken at the federal level, with limited involvement of provincial governments and local communities. This, they say, perpetuates a centre-periphery dynamic that undermines trust. Greater transparency, community participation and a stronger role for local governments are widely seen as essential for long-term success.

Experts agree that CPEC represents a historic opportunity for Balochistan but warn that its success depends on inclusive policies, improved governance and sustained peace. Recommendations include accelerating the development of SEZs, prioritising the ML-1 railway project, integrating local industries into CPEC supply chains, expanding education and vocational training, and adopting climate-resilient development strategies.

Strengthening coordination between federal and provincial authorities, improving intelligence-sharing, and involving local communities in decision-making are also viewed as critical. Analysts argue that if managed wisely, CPEC could transform Balochistan from a strategically important but underdeveloped region into an economic powerhouse, contributing to Pakistan’s long-term stability and prosperity.

As CPEC enters its second phase, the challenge for policymakers is to ensure that development is not only visible in roads, ports and power plants, but also felt in improved livelihoods, social welfare and a durable peace for the people of Balochistan.