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This paper aims to examine the impact of various economic, social and environmental issues on the sustainable development of Pakistan, both directly and indirectly through the sustainability dimensions of China–Pakistan Economic Corridor (CPEC), a multi-billion-dollar megaproject.

Using a quantitative (deductive) methodological approach, data were collected using a strategy of an online questionnaire survey from diverse stakeholders of CPEC in Pakistan. Partial least squares-based structural equation modeling technique was used to test the relationship between observed and latent variables.

The results confirmed the positive impact of various economic, social and environmental issues on the sustainable development of Pakistan directly and indirectly through the partial mediation of sustainability dimensions of CPEC.

Sustainability perceptions of stakeholders about CPEC and its relationship with sustainable development are critical issues for governments and policymakers. This paper suggest how economic, social and environmental dimensions of CPEC can enhance the positive perception which is necessary for stakeholder involvement and support for megaprojects such as CPEC.

This study evaluated the megaprojects of CPEC from a sustainability perspective through stakeholders’ perceptions by proposing and testing a parsimonious research model that has never been examined in the existing literature.