CPEC’s second phase shifts from roads to factories — slowly
Special economic zones are filling, but energy costs and customs delays still decide who actually opens a plant.
Omar Siddiqui
Investigations, Islamabad
31 August 2026 at 6:00 am · 6 min read
The second phase of the China-Pakistan Economic Corridor was always meant to be quieter than the first: fewer ribbon-cuttings, more factories. That shift is visible in Rashakai and Allama Iqbal Industrial City, where a handful of mid-sized plants have begun trial production.
Officials briefed journalists in Islamabad that 19 projects are now in “advanced execution,” a phrase that covers everything from a completed warehouse to a foundation stone. Independent trade lawyers say the binding constraints have not changed — reliable power, predictable customs, and a rupee that does not surprise a supplier mid-contract.
What to watch this autumn
- A joint customs working group is due to publish a single-window timeline in October.
- Two solar-plus-storage projects attached to industrial zones are still awaiting tariff notification.
- Local vendors say payment cycles from prime contractors have improved, but remain longer than 90 days.
Share this story
