Ex top Pakistan official blames economic woes on China: Here's how CPEC became a failure

Even as Pakistan attempts to project itself as a mediator on the global stage, it continues to seek financial assistance from other countries to tackle its worsening economic crisis. The country recently approached the United States for a $10 billion Exchange Stabilisation Facility, underscoring its continued struggle to stabilise its economy.

Amid this backdrop, former Federal Board of Revenue chairman Shabbar Zaidi has blamed China for Pakistan's economic troubles. Speaking at an event, Zaidi claimed that ending economic ties with China would help revive Pakistan's economy. He said, "If there is any person in Pakistan who is against CPEC from day 1, it is Shabbar Zaidi. I said 25 years ago that it is a drama & nothing will come out of it".

The China Pakistan Economic Corridor was launched in 2015 during Chinese President Xi Jinping's visit to Pakistan. The project was promoted as a game changer that would bring billions of dollars in investment while building roads, railways and energy infrastructure across the country.

More than a decade later, however, the project has failed to deliver on many of its promises. While China expanded its strategic footprint in Pakistan and strengthened its control over the Gwadar port in Balochistan, Pakistan has seen limited economic gains. Progress under CPEC slowed during former Prime Minister Imran Khan's tenure and has remained sluggish since then.

The figures reflect the slowdown. Reports show that only 38 of the 90 projects planned under CPEC have been completed. Another 23 projects remain under construction, while work on the remaining projects has not yet begun. The last major project completed under the corridor was the Gwadar East Bay Expressway in 2022.

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Pakistan's economic challenges have continued to deepen. In June, the country's total central government debt climbed to a record $290 billion, the highest level in its history. The surge highlights growing fiscal pressure and increasing dependence on borrowing.

The economic strain has coincided with mounting political instability. A few days ago, Pakistan's Interior Minister Mohsin Naqvi said the country's existing governance structure had collapsed. He proposed creating more provinces or administrative units to improve governance.

The Pakistani military quickly backed Naqvi's remarks, fuelling speculation about possible differences between Army Chief Asim Munir and the Sharif family. The development drew attention because the Pakistan Muslim League Nawaz has traditionally opposed the creation of new provinces.

Political tensions have also intensified. While former Prime Minister Imran Khan's Pakistan Tehreek-e-Insaf continues to challenge the ruling government, its ally, the Pakistan Peoples Party, has also stepped up its criticism. The PPP has accused the Pakistan Muslim League Nawaz of rigging the so-called assembly elections in Pakistan-occupied Kashmir.

PPP chairman Bilawal Bhutto Zardari warned that the ruling party's countdown had begun.

Although Army Chief Asim Munir's long-term strategy remains unclear, Pakistan's economic difficulties and political uncertainty appear set to deepen further as pressure continues to mount on the country's hybrid governance system.