Comprehensive Report: Advancing Digital City Collaboration under CPEC (July 2025)

Rasheed Ahmad Chughtai
Executive Summary
Pakistan has launched a major diplomatic and technological initiative to deepen digital city collaboration under the China-Pakistan Economic Corridor (CPEC). Spearheaded by Economic Minister Aslam Chaudhary at the July 2025 Global Digital Economy Conference in Beijing, this push emphasizes inclusive digital transformation, cross-border data integration, and joint innovation centers to position Pakistan as a regional digital leader. With Pakistan assuming the Digital Cooperation Organisation (DCO) presidency in 2026 and concrete infrastructure already connecting 22,000 villages, this report analyzes Pakistan’s strategic vision, implementation progress, and future roadmap for CPEC’s digital evolution .
1. Strategic Vision for Digital CPEC Cities
1.1 People-Centric Digital Transformation
Minister Chaudhary emphasized that building “digitally friendly cities” transcends mere technology deployment, focusing instead on creating environments where all citizens—urban or rural—can access safe, reliable digital services. This aligns with Pakistan’s national development strategy prioritizing inclusive growth and harmonious human-technology coexistence .
1.2 Three Pillars of Digital Collaboration
Pakistan announced three flagship initiatives under CPEC:
- Cross-Border Data Flows: Establishing interoperability standards under the South-South Cooperation Framework to enable seamless data exchange.
- Inclusive Sectoral Development: Accelerating digitalization in agriculture, healthcare, and climate resilience through Chinese partnerships.
- Digital Talent Pipeline: Implementing joint training programs under CPEC to address Pakistan’s “high urgency” need for skilled professionals .
1.3 Innovation Infrastructure
A key proposal is the Digital Friendly City Innovation Centre with branches in Beijing, Islamabad, and Karachi. This hub will pilot projects in:
“Cloud computing, flood warning systems, climate adaptation, and smart city solutions” .
It directly supports Beijing’s “Digital Silk Road Pilot Zone” while creating replicable models for Global South urbanization .
2. Implementation Progress & Regional Leadership
2.1 National Digital Expansion
- Physical Infrastructure: 22,000 villages connected via nationwide optical cable networks under the “Six One One Foundation” inclusive service fund .
- Policy Frameworks: “Digital Nation Pakistan Bill” (December 2024) aims to create secure, interoperable digital public infrastructure .
2.2 Upcoming Regional Leadership
Pakistan will assume the Digital Cooperation Organisation (DCO) presidency in 2026, hosting the Digital Future Development Initiative (DFDI) forum in Islamabad. This platform will solidify Pakistan’s role as a:
“Regional and global digital leader” .
Table: Pakistan’s Digital Infrastructure Progress (2025)
| Initiative | Progress | Strategic Impact |
|---|---|---|
| Optical Fiber Expansion | 22,000 villages connected | Rural inclusion in digital economy |
| DCO Presidency | Assumed in 2026 | Regional standard-setting authority |
| Talent Training Agreement | Signed under CPEC framework | Addressing critical skills shortage |
| Innovation Centre Proposal | Branches in Beijing-Islamabad-Karachi | Joint R&D in climate/smart city tech |
3. Synergies with Existing CPEC Frameworks
3.1 Disaster Resilience Integration
The Digital CPEC Platform (launched 2025) integrates disaster management across the corridor:
- Data Integration: Consolidates 7 thematic corridors (natural hazards, ecology, socioeconomics) with 18 metadata standards.
- Real-Time Response: Specialized modules for flood warnings and climate risk monitoring, critical for Pakistan’s flood-vulnerable geography .
3.2 Economic Diversification
- Gwadar Digital Gateway: Expanding as a hub linking Central Asia, the Middle East, and Africa with digital trade routes.
- CPEC “1+5” Model: Promotes Maritime Special Economic Zones with eco-friendly infrastructure and blue economy integration .
4. Challenges & Mitigation Strategies
4.1 Cybersecurity Threats
- Anti-CPEC groups (BLA/BYC) exploited TikTok, generating 1,200+ propaganda videos (2025) with 35M+ views in Balochistan .
- Mitigation: Proposed China-Pakistan tech task force to coordinate with ByteDance on content moderation and algorithmic oversight .
4.2 Digital Divide Barriers
- Key Gaps: Low computer literacy (public/private sectors), outdated infrastructure, and distrust in digital systems .
- Mitigation: GATES (General and Technical Education System) upskilling programs along CPEC routes .
4.3 Data Governance Risks
Cross-border data flows face challenges in security standardization. Pakistan is addressing this through DCO-led interoperability frameworks ahead of its 2026 presidency .
5. Future Roadmap & Recommendations
5.1 Short-Term Priorities (2025–2026)
- Operationalize the Digital Innovation Centre with pilot projects in Karachi/Islamabad.
- Scale optical fiber coverage to 30,000 villages by 2026.
- Launch CPEC Digital Talent Scholarships for AI/cloud computing training in China .
5.2 Medium-Term Goals (2027–2030)
- Leverage DCO presidency to establish South Asian digital standards.
- Integrate agricultural digitalization (e.g., smart irrigation, crop sensors) via CPEC agritech partnerships .
- Deploy 5G-enabled smart city corridors along CPEC routes .
5.3 Strategic Recommendations
- Adopt “Digital Silk Road” Benchmarks: Align with Beijing’s global digital economy standards.
- Establish Cyber-DRR Units: Combine disaster resilience with cybersecurity in CPEC infrastructure.
- Public-Private Data Trusts: Ensure secure cross-border data flows while preventing misuse .
Conclusion: Toward a Digitally Sovereign Future
Pakistan’s call for deepened digital collaboration under CPEC marks a strategic pivot from physical infrastructure to technology-driven sustainable development. By leveraging China’s expertise in digital governance, addressing talent gaps, and harnessing its upcoming DCO leadership, Pakistan aims to transform CPEC into a model of inclusive digitization for the Global South. Success hinges on integrating cybersecurity, bridging rural-urban divides, and standardizing data protocols—a complex but feasible mission with profound regional implications.
“Pakistan is willing to work with China and all global partners to turn vision into tangible digital reality.”
—Aslam Chaudhary, Economic Minister of Pakistan (July 2025) .
