Regional Development and Socioeconomic Disparities Under China–Pakistan Economic Corridor: Evaluating the Sustainable Development Policy Gap

ABSTRACT Infrastructure projects are considered a primary source of economic growth, stimulating trade and investment, and supporting national development goals. While these projects offer numerous benefits, they also raise significant socioeconomic challenges for the local communities. This study investigates the impact of infrastructure development on sustainable livelihoods within the China–Pakistan Economic Corridor (CPEC) project framework. The research examines the factors that influence the income and livelihoods of the local population potentially affected by the project. Utilizing primary data and a generalized least squares (GLS) model, the study quantifies these factors' impact on the affected population's income and living standards. The analysis reveals several significant socioeconomic and geographical influences on local living standards. These factors include pre‐existing income levels, educational attainment, household size, proximity to development projects and technological awareness. Notably, geographical proximity to infrastructure projects plays a key role, with income levels and living standards decreasing as the distance from projects (road infrastructure, economic zones and energy projects) increases. Conversely, living standards improve with higher educational attainment (both for individuals and family members) and greater experience. Interestingly, technological awareness also emerges as a significant factor. Individuals who are comfortable using social media and mobile phones and have experience in information technology have seen marked increases in their income levels. Based on these findings, the study recommends continued investment in infrastructure projects alongside targeted initiatives. These initiatives should include educational programs that focus on relevant skills and provide affordable access to technology, complemented by programs that promote digital literacy and awareness.