False Promises, Real Leverage: SEZs under CPEC in Pakistan

China’s investment in Pakistan predates the announcement of the Global Development Initiative (GDI), yet tangible improvements across key economic and social sectors remain limited. Despite over a decade of promised investments from China, primarily through the $68 billion China-Pakistan Economic Corridor (CPEC), Pakistan has seen minimal improvement owing to project delays, high debt servicing, and security issues. In fact, Pakistani officials have acknowledged that political instability has discouraged investors and undermined the expectation that CPEC would be a “game changer.” This issue brief examines selected Special Economic Zones (SEZs) under CPEC Phase 1, along with some of the energy and railway projects to assess their economic and strategic implications. It argues that China leverages its deepening economic footprint in Pakistan to secure diplomatic support in multilateral forums, including UN agencies.