Is Pakistan's Growing Instability Threatening China's CPEC Investments?
Synopsis
Key Takeaways
Rome, Feb 2 (NationPress) China might be forced to reconsider its involvement in Pakistan if the safety of its officials traveling to Islamabad cannot be guaranteed. Currently, each crisis that Islamabad faces threatens the advancement of the China-Pakistan Economic Corridor (CPEC) and jeopardizes Beijing's significant investments in the region, according to a report released on Monday.
As highlighted in a report by the Italian Institute for International Political Studies (ISPI), China's aspirations to dominate Afghanistan and Pakistan and to establish a thriving economy in its western and southwestern territories seem increasingly unattainable due to recent events.
The situation escalated in October 2025, when rising tensions between Pakistan and the Afghan Taliban culminated in deadly missile exchanges at their border.
The previously solid partnership has deteriorated since the Taliban regained control over Kabul in September 2021.
Beijing, which invested $62 billion in Islamabad a decade ago, is in dire need of stability in the region. Yet, with increasing domestic unrest and a more hostile environment, Pakistan's challenges continue to mount, much to China's frustration.
In recent years, China has ramped up its efforts to increase its influence in Pakistan through enhanced economic contributions as part of the CPEC. The main goal of the CPEC for Beijing is to secure access to the Arabian Sea via an extensive network of infrastructure projects, culminating in the development of Gwadar Port in Balochistan.
The report indicated that ongoing domestic disturbances in Pakistan have emerged as a significant barrier to China's ability to benefit from its investments, thereby disrupting CPEC projects and hindering progress.
In Balochistan, recurrent assaults by the Balochistan Liberation Army (BLA) have obstructed meaningful advancements on crucial CPEC initiatives in the province, particularly the flagship Gwadar Port. The security climate has deteriorated to the extent that the launch of a CPEC-funded airport in Gwadar in late 2024 had to take place online due to the significant danger posed to senior officials attending in person.
Additionally, Pakistan is grappling with a serious security menace from the Tehreek-e-Taliban Pakistan (TTP), a domestic Taliban faction. Similar to the BLA in Balochistan, the TTP presents a considerable challenge to Pakistani security forces and Chinese infrastructure endeavors in Khyber Pakhtunkhwa.
The report concluded that irrespective of how the dynamics between Pakistan and Afghanistan evolve following their military exchanges and ongoing TTP assaults, one fact remains clear: as long as Pakistan remains unstable, China stands to incur the greatest losses.