CPEC Transforming Gilgit-Baltistan’s Economy & Future
Gateway to Prosperity, How CPEC is Transforming Gilgit-Baltistan’s Economy and Connecting Pakistan to the World
Gilgit-Baltistan (GB) has attained limelight due to its geostrategic importance in CPEC. It has changed from a marginalized area to the center of world’s attention. It is Pakistan’s mountainous crown gem that is unquestionably the center of Pakistan’s economic corridor. Its abundant natural resources and advantageous location at the meeting point of China, South Asia, and Central Asia enhance its importance. Through revolutionary tunnels that connect Pakistan to international markets, this $62 billion megaproject is bringing forth an economic revolution in the world.
Khunjerab revolution
The 15,500-foot Khunjerab is the highest paved international boundary in the world. Due to severe winters, this gateway was once only accessible from April to November. It now permits unbroken trade and transit between Xinjiang, China, and the global market. Haji Gulbar Khan, the chief minister, called it a “historic milestone,” resurrecting the Silk Road heritage and boosting the overall economy. Fruit exports are increasingly skipping Dubai for direct access to Chinese markets, and traders anticipate a 30% reduction in logistical costs.
Infrastructure development under CPEC in GB
The infrastructural revolution brought forth by CPEC in Gilgit-Baltistan has changed internet access, power, and connectivity in several ways. While maintaining all-weather connection, the Shonter-Astore Road, the Karakoram Highway expansion, and the Attabad “Friendship Tunnels” have significantly shortened travel times by 40%. To achieve 100% grid connectivity in the area by 2027, energy related projects including the massive Diamer-Bhasha Dam, the 80MW Ghizer Hydropower, and the 100MW Gilgit Hydropower are already under progress.
With 466 kilometers already built, the Pakistan-China Fiber Optic Project has also accelerated digital transformation by offering dependable 3G and 4G services that have improved remote learning and e-commerce.
The anticipated Kashgar-Havelian railway link is anticipated to transform business in the future due to its estimated 500% increase in freight capacity and greater integration of the global community into regional and international markets.
Energy project under CPEC in GB
Gilgit-Baltistan (GB) is being propelled by CPEC’s energy efforts, which are changing the course of the province. The 100MW Gilgit and 80MW Ghizer hydropower projects are filling long standing gaps, while an Islamabad-backed grid construction project is progressively linking areas to provide complete coverage by 2027. In Skardu, 30,000 homes are illuminated by the 17MW of electricity generated by the Satpara Dam. Additionally, its irrigation technology increases farm output by $6 million annually. These initiatives promote sustainable growth while supplying local energy demands. They represent CPEC’s goal of giving GB’s communities a better future.
Impact of CPEC on tourism in GB
Gilgit-Baltistan tourism has changed as a result of CPEC. Today, the area’s natural beauty and commercial potential coexist. The $500 million tourist potential of the developed countries has been tapped by improved roads, heightened security, and quicker internet. Infrastructure improvements have resulted in a 65% increase in visitors, and since 2020, hotel revenues have tripled. Tradition generates prosperity. Previously entirely reliant on seasonal tourists, local communities may now access international markets through music, handicrafts, and cultural events. However, there are concerns about this expansion since unchecked growth endangers the environment, and climatic threats like the Shishper Hunza GLOF highlight the need for eco friendly tourist regulations.
Economic prosperity in GB due to CPEC
CPEC is giving people fresh hope by revealing Gilgit-Baltistan’s hidden beauty. Instead of using costly airfreight, farmers now ship 4,000 tons of cherries, 20,000 tons of apples, and over 100,000 tons of organic apricots straight to China via road routes. The approval of processing and exporting through a 250-acre Special Economic Zone (SEZ) is expected to increase the value of sapphires, rubies, and emeralds in the region. Employment is also expanding quickly by 2030, 30,000 new jobs are anticipated to be generated in logistics and SEZs, on top of the 15,000 jobs now in construction. The alignment of global markets with home aspirations is strengthening and fortifying China and Pakistan.
Role of CPEC in linking GB to Global market
China is facing issues of long route in its trade through the Malacca Strait. It can avoid longer paths by using Gwadar Port in Pakistan. Its shipping route is now about 12,000 kilometers lesser through GB. Therefore, GB is required for safer and quicker trading channels. Additionally, Pakistan’s highways and passes provide up new routes for transit trade by giving access to the Arabian Sea, the Middle East, and Central Asia.
Data shows the shift that exports of minerals and commodities with GB content increased by 18% annually in 2024, and commerce between China and Pakistan reached $23.1 billion. GB is transitioning from isolation to a real regional gateway with CPEC.
Challenges to CPEC in GB
Although difficulties undoubtedly exist, the advantages are obvious. Because of the regular landslides and glacier melting that endanger infrastructure and human life, the global world faces significant environmental concerns. There is an urgent need for climate-sensitive and green policy. There are still political issues. Many residents want more parliamentary representation because they are dissatisfied with GB’s ambiguous constitutional position. So, these hurdles are the hindering factors behind GB’s sustainable growth.
Way forwards
Even though careful preparation is required, GB has a bright future thanks to CPEC. By 2030, the $12 billion Khunjerab Railway project should be completed, linking Havelian and Kashgar and increasing freight capacity. With Khunjerab’s AI-powered customs and solar-powered SEZs facilitating quicker and cleaner commerce, modern logistics will also be crucial. Local communities’ involvement is also required. Technology, agriculture, and gem cutting skill development programs may immediately benefit youth. Profit sharing arrangements between communities and investors will guarantee equity. GB may really act as an anchor for regional progress by fusing infrastructure, technology, and community development.
The history of Gilgit-Baltistan is at a turning point in contemporary time. The tunnels, roads, and energy technology of CPEC are transforming people’s lives. Farmers are discovering new global markets and tourism is expanding. But environmental risks and political disagreements continue to be problems for the whole region. If they are to expand in a sustainable way, solutions are required. Nonetheless, the Khunjerab Pass represents GB’s new position because it is open year-round. It serves as Pakistan’s entryway and a conduit to wealth throughout the world.
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The views and opinions expressed in this article are exclusively those of the author and do not reflect the official stance, policies, or perspectives of the Platform.
