CPEC Energy Projects in Pakistan – Statistical Analysis

Author: Muhammad Shakil Naz

The China-Pakistan Economic Corridor (CPEC) has emerged as a transformative initiative, redefining Pakistan’s energy sector and boosting its economic prospects. Energy projects under CPEC are among the most significant investments aimed at addressing Pakistan’s longstanding energy crisis. This article provides a detailed overview and statistical analysis of the CPEC energy projects in Pakistan, focusing on their impact, achievements, and future outlook.

Overview of CPEC Energy Projects

CPEC, a flagship project of China’s Belt and Road Initiative (BRI), includes infrastructure development, energy projects, and industrial cooperation between Pakistan and China. Out of the $62 billion allocated for CPEC, a substantial portion is directed toward energy projects. These projects aim to:

1. Mitigate Pakistan’s energy shortfall.
2. Improve the energy mix by incorporating renewable sources.
3. Boost industrial activity and economic growth through a reliable power supply.

As of 2025, CPEC energy projects have significantly contributed to Pakistan’s energy production capacity, making the country more self-reliant in terms of power generation.

Types of Energy Projects Under CPEC

CPEC energy projects encompass a wide range of power generation technologies, including:

1. Coal-Fired Power Plants
   • Coal remains the cornerstone of Pakistan’s energy mix under CPEC. These plants leverage local and imported coal to produce electricity.
2. Hydropower Projects
   • Hydropower is crucial for sustainable energy production. CPEC hydropower projects aim to harness Pakistan’s water resources for clean energy.
3. Wind and Solar Power Projects
   • Renewable energy projects under CPEC promote environmentally friendly power generation, reducing Pakistan’s reliance on fossil fuels.
4. Transmission Infrastructure
   • Significant investments have been made in improving transmission networks to ensure efficient delivery of electricity from power plants to the national grid.

Statistical Insights: CPEC Energy Projects

1. Total Investment in Energy Projects

• The energy sector accounts for approximately $33 billion of the total CPEC investment.

2. Installed Power Generation Capacity

• As of 2025, CPEC energy projects have added approximately 17,000 MW to Pakistan’s national grid.
• Breakdown by energy type:
  • Coal-Fired Plants: ~8,220 MW
  • Hydropower Projects: ~4,870 MW
  • Wind and Solar Projects: ~2,650 MW
  • Others: ~1,260 MW

3. Key Operational Projects

• Port Qasim Coal-Fired Power Plant:
  • Capacity: 1,320 MW
  • Status: Operational since 2018
• Sahiwal Coal-Fired Power Plant:
  • Capacity: 1,320 MW
  • Status: Operational since 2017
• Karot Hydropower Project:
  • Capacity: 720 MW
  • Status: Operational since 2022
• Quaid-e-Azam Solar Park Phase-II:
  • Capacity: 300 MW
  • Status: Operational since 2020

4. Reduction in Energy Deficit

• CPEC projects have reduced Pakistan’s energy deficit by over 50%, significantly mitigating power outages across the country.

5. Economic Impact

• Energy projects under CPEC have created 80,000+ direct and indirect jobs in Pakistan.
• Improved power availability has resulted in a 1.5% increase in GDP growth annually since 2018.

Impact of CPEC Energy Projects on Pakistan

1. Improved Energy Supply

CPEC has played a pivotal role in reducing Pakistan’s energy deficit, ensuring uninterrupted power for industrial, commercial, and residential use.

2. Diversification of Energy Mix

• Before CPEC, Pakistan’s energy mix was dominated by oil and gas, leading to high production costs.
• Post-CPEC, the energy mix includes coal, hydropower, wind, and solar, reducing dependency on imported fuel.

3. Industrial Growth

• Reliable energy supply has revitalized Pakistan’s industrial sector, particularly textiles, cement, and steel.
• Special Economic Zones (SEZs) under CPEC have directly benefited from stable electricity.

4. Environmental Concerns

• While renewable projects have a positive environmental impact, coal-fired plants have raised concerns about carbon emissions.
• Efforts are underway to adopt cleaner technologies for coal-based projects.

5. Strengthened Bilateral Ties with China

• Energy projects under CPEC symbolize the strong partnership between Pakistan and China, fostering long-term economic cooperation.

Challenges and Recommendations

Challenges

1. Environmental Concerns:
   • Heavy reliance on coal-based power generation poses environmental risks.
2. Debt Burden:
   • The loans associated with CPEC projects have increased Pakistan’s external debt.
3. Transmission Bottlenecks:
   • Despite increased power generation, outdated transmission networks lead to energy losses.
4. Policy Hurdles:
   • Bureaucratic delays and lack of transparency affect project execution.

Recommendations

• Adopt Green Technologies: Invest more in renewable energy projects to reduce carbon emissions.
• Upgrade Infrastructure: Modernize transmission and distribution networks for efficient energy delivery.
• Encourage Local Participation: Increase local involvement in project execution to build capacity.
• Ensure Transparency: Maintain transparency in financial agreements to mitigate debt-related concerns.

Future Outlook

The CPEC energy portfolio is expected to expand further with the completion of ongoing projects. Upcoming initiatives include:

• Azad Pattan Hydropower Project (700 MW): Expected to be operational by 2027.
• Thar Block II Expansion: Enhancing coal-based power generation capacity.
• Gwadar Power Plant: Addressing energy needs in Balochistan.

The focus is shifting towards renewable energy to align with global sustainability goals, ensuring long-term benefits for Pakistan.

Conclusion

CPEC energy projects have significantly transformed Pakistan’s energy landscape by addressing critical shortages, diversifying the energy mix, and fostering industrial growth. However, challenges like environmental concerns and financial sustainability need proactive measures for long-term success.

By leveraging the opportunities offered by CPEC while addressing its challenges, Pakistan can secure a brighter, energy-efficient future. These projects not only strengthen the nation’s economy but also serve as a beacon of Pakistan-China friendship and cooperation.

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