Pakistan is seeking to expand investment cooperation with Chinese businesses following the signing of 34 memorandums of understanding (MoUs) and agreements at the Sindh Investment Conference in Shanghai on October 15.
The agreements cover energy, minerals, electric vehicles (EVs), automotive manufacturing, artificial intelligence (AI), cloud computing, agriculture, food processing, logistics and warehousing. They reflect growing efforts to attract investment into productive industries and strengthen Pakistan’s manufacturing and export capacity under the second phase of the China-Pakistan Economic Corridor (CPEC 2.0).
Organised by the Sindh Investment Department in collaboration with the Consulate General of Pakistan in Shanghai, the conference resulted in 10 government-to-government (G2G) and 24 business-to-business (B2B) arrangements.
More than 100 Pakistani and Chinese companies participated, providing opportunities for businesses to explore partnerships, discuss investment proposals and establish direct commercial contacts.
Shanghai agreements focus on industrial cooperation
The conference reflects a broader shift in Pakistan-China economic engagement towards industrial development and private-sector investment.
While the first phase of CPEC concentrated heavily on infrastructure, energy and connectivity, CPEC 2.0 places greater emphasis on industrial cooperation, agriculture, minerals, technology and business-to-business partnerships.
Federal Minister for Planning Ahsan Iqbal has also called for stronger cooperation between Pakistani and Chinese companies, highlighting the importance of technology transfer, export growth and private-sector investment.
In an October 14 statement, the Ministry of Planning said Pakistan wanted to develop into a regional production and export hub through closer industrial partnerships with China.
The Shanghai agreements are consistent with these priorities, particularly their focus on manufacturing, advanced technology and value-added production.
However, the signing of MoUs does not automatically mean that the proposed investments have entered implementation. Their economic impact will depend on project financing, commercial feasibility, regulatory approvals and effective follow-up between the participating companies.
Experts call for stronger local manufacturing links
Tahir Jamal, former adviser to the Islamabad Chamber of Commerce and Industry (ICCI), told Wealth Pakistan that the conference could help connect Chinese investors directly with Pakistani businesses and support long-term industrial development.
He said Pakistan needed investment that contributed to industrial production, technology transfer, employment and export growth rather than relying solely on financial commitments.
Jamal also identified policy inconsistency, infrastructure delays and bureaucratic hurdles as continuing challenges for investor confidence.
He urged the government to align industrial and trade policies and ensure that special economic zones (SEZs) support both foreign investment and domestic entrepreneurship.
According to him, Pakistan should identify specific products and industrial segments where Chinese investment could strengthen local manufacturing and improve export capacity.
Textiles and automotive parts offer joint venture opportunities
Jamal identified man-made fibre garments, technical textiles and value-added apparel as promising areas for cooperation in the textile sector.
He also highlighted automotive components, electrical equipment and industrial machinery parts as potential opportunities for joint ventures in light engineering.
Chinese manufacturers could contribute advanced technology, industrial expertise and access to international supply chains. Meanwhile, Pakistani businesses could offer production facilities, skilled workers and knowledge of local and regional markets.
He suggested that Chinese automotive manufacturers operating in special economic zones should be encouraged to source selected components from Pakistani suppliers and gradually increase local content.
Similarly, investment in textile processing should help Pakistani exporters move towards higher-value products instead of simply expanding existing production capacity.
Such partnerships could strengthen domestic supplier networks, improve industrial capabilities and help Pakistani businesses participate more effectively in regional and international production chains.
TDAP highlights investment facilitation and SIFC’s role
An official of the Trade Development Authority of Pakistan (TDAP), who requested anonymity, told Wealth Pakistan that the Shanghai agreements reflected growing interest among Chinese businesses in Pakistan’s investment potential.
The official said direct engagement allowed investors to explore commercial opportunities, understand the local business environment and establish relationships that could develop into long-term investment partnerships.
However, sustained engagement and effective investment facilitation would be essential to turn these arrangements into commercially viable projects.
The official stressed the importance of providing timely information, supporting project development and maintaining regular communication with prospective investors.
The official also acknowledged the role of government initiatives, particularly the Special Investment Facilitation Council (SIFC), in streamlining investment processes and improving investor confidence, especially among businesses from China and Gulf countries.
Dhabeji SEZ offers opportunities for Chinese manufacturers
The Dhabeji Special Economic Zone (DSEZ) in Thatta is among the industrial platforms being promoted to attract Chinese investment into Sindh.
Developed as a priority CPEC project, the zone covers approximately 1,530 acres and is designed to accommodate a range of industrial activities.
According to the CPEC Secretariat, its proposed industrial clusters include light engineering, automotive and auto parts, chemicals and pharmaceuticals, consumer electronics, textiles and garments, steel and foundries, warehousing and building materials.
Its location near Port Qasim offers businesses access to maritime trade routes, supporting the import of raw materials and export of finished products. The project also envisages road and rail connectivity to improve the movement of industrial goods.
The zone could therefore provide a platform for Chinese companies seeking to establish production facilities in Pakistan while working with domestic manufacturers and suppliers.
Pakistan’s SEZ framework also provides fiscal incentives for eligible zone enterprises, including specified exemptions on imported capital goods and income tax, subject to applicable laws and conditions.
Energy and technology partnerships broaden cooperation
Energy cooperation remains another important area of Pakistan-China investment engagement.
The Sindh Energy Department has separately reported nine energy-related MoUs signed during the October 2026 visit to China. These include four government-to-business and five business-to-business agreements.
The proposed cooperation covers the utilisation of Thar coal, coal-to-chemicals and coal-to-liquids projects, mine-water management for agriculture, electrification of mining trucks and expansion of Thar Block-II production capacity.
The agreements also include renewable energy parks with energy storage and EV charging infrastructure. These initiatives are intended to support energy development, industrial activity and new investment opportunities in Sindh. <Cite refs={[“turn247607search0”]}/>
Technology cooperation is also becoming increasingly important under CPEC 2.0. Pakistan and China have identified areas such as artificial intelligence, cloud computing, automation and digital infrastructure as potential fields for collaboration.
The Shanghai conference’s inclusion of AI and cloud computing therefore reflects the expanding scope of bilateral economic engagement beyond traditional infrastructure and energy projects.
Turning agreements into investment remains the key challenge
The Shanghai conference has provided a platform for Pakistani and Chinese companies to explore new commercial relationships across several priority sectors.
However, the success of these arrangements will depend on how effectively both sides move from initial agreements to investment decisions and operational projects.
Consistent industrial policies, reliable infrastructure, faster regulatory approvals and improved investor facilitation will be important in this process.
Equally important will be the development of local supplier networks, workforce skills and technology-sharing arrangements that allow Pakistani businesses to participate meaningfully in joint ventures.
For Pakistan, the broader objective is to attract investment that increases domestic production, creates skilled employment, strengthens exports and reduces reliance on imported industrial goods.
The implementation of the Shanghai agreements could contribute to these goals while advancing the industrial and private-sector priorities of CPEC 2.0.
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