Pakistan is deepening its economic and strategic cooperation with China through the second phase of the China-Pakistan Economic Corridor (CPEC). The new phase focuses on smart cities, agriculture, technology, port connectivity, and enhanced financial partnerships. Officials in Islamabad see this as a renewed effort to integrate Pakistan’s economy with regional and global trade routes under China’s Belt and Road Initiative (BRI).
Sharif Highlights CPEC as Regional Connectivity Model
Prime Minister Shehbaz Sharif, during his visit to China, called CPEC a practical demonstration of the Shanghai Cooperation Organisation’s (SCO) vision for regional integration. He stressed that efficient transport corridors across land, air, and sea are vital for supply chain reliability and growth.
Sharif also emphasised that Pakistan seeks stronger trade and industrial ties with Tianjin-Binhai New Area, particularly in pharmaceuticals, biomedicine, and animal vaccines. He noted that Karachi Port, Port Qasim, and Gwadar Port could benefit from Tianjin’s expertise in port operations.
China’s Role in Pakistan’s Development
The Prime Minister praised China’s role in Pakistan’s economic and social development. He said Phase 2 of CPEC will expand cooperation in smart cities, next-generation technologies, and the agricultural industry. Pakistan also invited Chinese companies to set up Special Economic Zones (SEZs).
Finance Minister Advances Cooperation in Beijing
Finance Minister Muhammad Aurangzeb met senior Chinese financial leaders, including the governor of the People’s Bank of China and the chairman of the Industrial and Commercial Bank of China. The meetings focused on expanding banking, investment, and capital market linkages, while acknowledging China’s crucial role in stabilising Pakistan’s economy through loan rollovers and financial support.
Aurangzeb highlighted Pakistan’s economic reforms, positive international credit outlook, and plans to diversify financing by accessing Chinese onshore markets. Both sides agreed to deepen cooperation in investment, trade financing, and financial innovation.
Pakistan’s Commitment to Stability and Growth
Sharif reiterated that Pakistan values its strategic relationship with China and will continue to prioritise economic reforms, IT sector growth, and digitisation of financial systems. He also reaffirmed Pakistan’s commitment to promoting peace and regional stability through dialogue, particularly within the SCO framework.
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