This article critically assesses the China-Pakistan Economic Corridor (CPEC), once seen as a flagship of China’s Belt and Road Initiative (BRI), and its failure to deliver on its ambitious promises in Pakistan. Instead of driving economic growth and cohesion, the CPEC exposed deep governance challenges – marked by institutional fragility, lack of elite consensus, and military dominance in policymaking. Strategic and security imperatives often outweighed economic rationale, resulting in a non-transparent process that sidelined parliament and marginalized provincial actors. Projects were selected based on political expediency rather than viability, leading to inefficiencies and delays. The CPEC also re-centralized power, weakening provincial autonomy and intensifying center-periphery tensions, particularly in Balochistan. In Gwadar, local communities saw disruption without benefit, fueling political discontent. Investor confidence waned amid an uneven playing field and the failure of Special Economic Zones to take shape. Far from transformative, the CPEC reinforced narrow elite interests, worsened federal strains, and deepened Pakistan’s economic and institutional uncertainties.