Economic Integration under the China–Pakistan Economic Corridor: A Comparative Analysis of the Western and Eastern Routes

Abstract

The China–Pakistan Economic Corridor (CPEC) is widely regarded as a transformative initiative for Pakistan’s economic integration; however, its internal route configuration has generated significant political and developmental debate. This study examines economic integration under CPEC through a comparative analysis of its Eastern and Western routes, conceptualizing them as distinct yet interconnected development pathways. Using a qualitative, comparative research design supported by descriptive quantitative indicators, the study relies exclusively on secondary data drawn from official government reports, international development institutions, parliamentary records, and peer-reviewed academic literature. The analysis demonstrates that the Eastern Route, aligned with Pakistan’s established urban industrial core, has delivered faster infrastructure completion, higher investment concentration, improved trade facilitation, and short-term efficiency gains. In contrast, the Western Route traversing historically marginalized regions of Khyber Pakhtunkhwa, ex-FATA, and Balochistan has progressed more slowly due to security, terrain, and institutional constraints, yet exhibits stronger potential for inclusive growth, regional equity, and long-term national integration. Comparative evaluation reveals that policy prioritization of efficiency has reinforced existing core periphery disparities, while underinvestment in the Western Route has constrained its integrative capacity. The findings highlight that CPEC’s developmental outcomes are shaped not only by infrastructure economics but also by political economy dynamics, federal–provincial governance asymmetries, and spatial justice considerations. The study concludes that sustainable economic integration under CPEC requires a recalibrated corridor strategy that balances efficiency-driven growth with equity oriented regional development. By integrating both routes within a unified national framework, Pakistan can transform CPEC from a connectivity project into a mechanism for long-term economic cohesion and stability.