The China–Pakistan Economic Corridor (CPEC) is a multifaceted project which was formally announced during a visit by China’s president, Xi Jinping, to Pakistan in April 2015. It is an infusion of infrastructure, energy, ports, railway networks, and people-centric projects, which enhance Pakistan’s trade connectivity, export potential, and geopolitical relevance. Pakistan and China believe that the CPEC will not only complement the economic development of the two countries but will also bring peace and prosperity in less developed regions of Pakistan. The article focuses on the impact of CPEC projects comprising early harvest projects, middle and long-term plans, and social sector development initiatives including: poverty alleviation, clean water, health, education, vocational training, and agriculture. It also gauges the prospects and challenges faced by the CPEC and policy recommendations to make this project sustainable and inclusive.