The Metamorphosis of a Megaproject: Security, Sovereignty and Sustainability in CPEC 2.0

The geopolitics of proxies is clearly constraining the expansion and evolution of CPEC 2.0, demanding a strategic recalibration. The Government of Pakistan and Army Chief General Asim Munir have played a pivotal role in improving the prospects for peace and stability in the Middle East, a momentum that must now be institutionally converted into deeper socio-economic integration, trans-regional connectivity, investment and quality industrialization under the CPEC 2.0 framework. Afghanistan’s borderlands, however, have become a volatile playground for overlapping regional and extra-regional proxies, including Israel, with certain African and Arabian Gulf States supporting various actors in an apparent collective effort to derail CPEC 2.0 and destabilize Balochistan, particularly Gwadar Seaport. Wise diplomacy is, therefore, the need of the hour to neutralize these multifaceted proxy dynamics. In this context, enhanced Pakistan-China-Iran anti-terrorism collaboration, reinforced by the Regional Anti-Terrorist Structure of the Shanghai Cooperation Organization, can serve as a powerful regional equalizer. The recent terrorist attack on a Rangers camp in Karachi, followed by Pakistan’s military and air force retaliation in Afghanistan’s Paktika, Paktia and Kunar provinces, vividly reflects escalating cross-border tensions. These hostilities are severely undermining the bright prospects of trans-regional connectivity with Central Asia through land, transport and rail corridors, a strategic priority for Pakistan and a cornerstone of CPEC 2.0. Indeed, Uzbek President Shavkat Mirziyoyev’s recent statement at the 5th Tashkent International Investment Forum 2026, highlighting the Trans-Afghan Transport Corridor trilateral railway linking Central Asia to Pakistani seaports, appears increasingly unlikely to materialize under the weight of emerging power politics. Nevertheless, pursuing the “Aerial Corridor” for direct commercial cargo between L