A high-level delegation of Chinese companies visiting Islamabad this week has shown strong interest in establishing a Special Economic Zone (SEZ) in the northern region of Gilgit-Baltistan (GB), according to state-run Radio Pakistan.
Gilgit-Baltistan, administered by Pakistan, forms part of the larger Kashmir region disputed by India and Pakistan since 1947. The area is strategically significant as the gateway to the $65 billion China-Pakistan Economic Corridor (CPEC), but development under the CPEC initiative has been slow, with few tangible benefits reaching the region so far.
Amir Muqam, Pakistan’s Minister for Kashmir and GB Affairs, highlighted the region’s economic and cultural importance, noting centuries of trade and cultural exchanges between China and Pakistan. He emphasized that investing in GB would enhance economic growth, and regional connectivity, and strengthen ties between the two nations.
The Chinese delegation, led by economist Yuan Jianmin, expressed a keen interest in constructing the SEZ, a move expected to boost industrial activities in the region.
Despite GB’s historic decision to join Pakistan in 1948, it remains without full constitutional inclusion, partly due to concerns that doing so might affect Islamabad’s position on the Kashmir dispute. As a result, the region lacks representation in Pakistan’s National Assembly and Senate and receives limited national funding.
Since 2013, several CPEC projects have been proposed for GB, including new roads, hydroelectric plants, a fiber-optic internet line, and a special economic zone, yet none have materialized. The construction of the Karakoram Highway completed decades ago, remains the only significant project in the region from the China-Pakistan partnership.
