This study proposes a modern research framework for establishing a grounded theory perspective on regional development initiatives along the China-Pakistan Economic Corridor (CPEC). Grounded theory is a well-known research approach that uses comparative analysis to generate hypotheses from analyzed data. Thematic event analysis exposes the transitions between domains throughout CPEC project design and execution, including political, economic, social, technical, legal, and environmental elements. The Orange Line Metro Train (OLMT) project’s axial coding highlights contextual variables such as problematic agreements, circumvention of regulations, lack of preparation, public indignation, heritage demolition, tree cutting, and regional tensions. These elements, coupled with China-Pakistan relations, the CPEC framework, infrastructural conditions, and other considerations, impact top-down planning, bureaucratic difficulties, and mismanagement of government plans. Consequently, these techniques cause project delays, unsustainable subsidies, historical damage, and environmental implications, raising questions about accountability and political regime change. This chapter focuses on data collection by using the Grounded Theory Method. These ramifications go beyond the CPEC project, emphasizing the significance of consulting key parties and selecting projects based on scientific and technological criteria. Institutional strengthening, climate change policies, and a focus on sustainable development are all critical. Policy consequences include open and accountable resource allocation, enhanced planning and risk assessment, cost-cutting techniques, cultural heritage preservation, specialized courts, and investment in education and healthcare. It is also critical to strengthen democratic institutions and reduce the environmental dangers.