Impact of CPEC on Pakistan’s Power Sector

Hi Everyone! I hope you are all doing well. Welcome back to another blog. In this article. I will tell you about the Impacts of CPEC on Pakistan’s Power Sectors.  To know the positive and negative impacts of this China-Pakistan Economic Corridor Project, read this article carefully to get all you want to know.

A Power Division official has revealed that Chinese investment under the China-Pakistan Economic Corridor (CPEC) has surged to $21 billion due to the restoration of a coal-based powerhouse at Gwadar. The official stated that the 300-MW project will be made operational by December 2025, after being restored to run on imported coal.

This development is expected to have a significant impact on the energy sector in Pakistan, as well as boost economic activities and create job opportunities. The official further added that the restoration of the powerhouse is a testament to the strong ties between Pakistan and China, and will strengthen their strategic partnership for mutual benefits.

Impact of CPEC on Pakistan’s Power Sector
Impact of CPEC on Pakistan’s Power Sector

China-Pakistan Economic Corridor

According to a government official, the construction of the powerhouse in Gwadar was nearly abandoned, but the Chinese government was urged to shift the power plant to Thar coal. However, the Chinese government refused and insisted on restoring the 300-MW powerhouse based on imported fuel. The official explained that this project is considered the most strategic one for the Gwadar port’s operation. Imported fuel is considered more reliable than local sources due to potential security risks and vulnerability.

As a result, the 300-MW imported coal project has been restored, and it is expected to be operational by December 2025. Eight projects worth $11.337 billion have already been commissioned, which are currently injecting 7,320 MW of electricity into the national grid through CPEC. In addition, the Matiari-Lahore HVDC transmission line project was completed at a cost of $1.658 billion. The project will transport 4,000 MW from Sindh to Lahore to meet the needs of the Punjab load center.

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There are currently five power projects in progress that aim to generate a total of 4,328 MW of electricity. These projects are estimated to cost $6 billion in total. Among these projects is the Thar coal electricity project, which is a part of the Indicative Generation Capacity Expansion Plan 2022-31. However, the exact cost of this project is currently unknown. If the estimated cost of the Thar coal electricity project is taken into account, the China-Pakistan Economic Corridor (CPEC) power sector portfolio is expected to be valued at approximately $21 billion.

Environmental Impacts

  • The potential environmental impacts of CPEC on Pakistan’s power sector
  • Mitigation measures to reduce these impacts
  • The need for sustainable development in the power sector


CPEC has brought significant investments to Pakistan’s power sector, resulting in improved energy infrastructure and increased capacity. It has also provided opportunities for capacity building and employment. However, there are also challenges and environmental impacts that need to be addressed. Therefore, it is important to ensure sustainable development in the power sector to fully realize the benefits of CPEC.


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