Pakistan, China sign $8.5b pacts under CPEC 2.0
BEIJING – Pakistan and China on Thursday inked bilateral accords worth $8.5 billion in various sectors, with Prime Minister Shehbaz Sharif terming the development as a “long march of economic growth”.
The Chinese and Pakistani companies have signed $7 billion Memoranda of Understanding and $1.54 billion Joint Ventures (totaling $8.5 billion) in sectors including agriculture, electric vehicles, solar energy, health, chemical and petrochemicals, irons and steel besides others, at the Second Pakistan-China B2B Investment Conference held in Beijing.
In his keynote address on the occasion, PM Shehbaz Sharif said the “long march” would lead to growth of enormous opportunities of investment and job creation.
The prime minister unveiled a new vision for Pakistan-China economic cooperation, announcing the formal launch of “CPEC 2.0” which will attract investment into diverse sectors.
Welcoming the high-level delegates, Prime Minister Shehbaz Sharif described the forum as a reflection of the iron-clad brotherhood between Pakistan and China.
Addressing concerns about bureaucratic delays, Prime Minister Shehbaz Sharif assured the Chinese investors to remove all red tape hiccups in investments. He issued a clear and direct message: “We will not tolerate a second’s delay. I recently ensured that a Chinese entrepreneur was facilitated within 24 hours. That’s the level of commitment I am talking about.” He reassured the Chinese delegation of Pakistan’s unwavering commitment to investor facilitation, stating that Chinese investors will be treated as partners and that “Pakistan is your second home, just as China is ours.”
Security of Chinese nationals in Pakistan, he said was a top priority, adding “the safety of Chinese citizens is paramount.” “This is one of the largest business conferences I have attended during my visit to this great country. Our relationship with China is unmatched, higher than the Himalayas, deeper than the deepest oceans, sweeter than honey and stronger than steel,” said the prime minister.
Referring to the China-Pakistan Economic Corridor (CPEC) agreement signed in 2015 during President Xi Jinping’s historic visit to Pakistan, Prime Minister Shehbaz Sharif credited the first phase of CPEC with transforming Pakistan’s energy and infrastructure landscape.
“We were facing up to 20 hours of power outages daily. Today, thanks to President Xi’s dynamic and visionary leadership, Pakistan became energy self-sufficient. That was the turning point,” he noted.
PM Shehbaz Sharif announced the launch of CPEC 2.0, which will shift focus toward business-to-business (B2B) investments in agriculture, IT and AI, minerals, and industrial relocation.
“Our agriculture sector employs 60% of our population. China has excelled in this field, and we seek your partnership to modernize our agricultural practices and increase exports,” he urged Chinese investors.
He emphasized the role of Special Economic Zones (SEZs) in attracting investment, offering competitive advantages such as cheaper skilled labor and joint ventures to produce high-quality export goods.
In an emotionally charged segment of his speech, Prime Minister Shehbaz recounted his first visit to China in 1982.
“Even back then, I said China is suffering from success, not failure. Today, China is the second-largest economy and a global military power, having lifted over 700 million people out of poverty. This is the model I want to borrow and replicate in Pakistan,” he said.
He commended President Xi Jinping’s leadership in promoting multilateralism and shared prosperity, saying that China has changed the destinies of many nations, a testament to its “visionary and dynamic leadership.”
In his closing remarks, Prime Minister Shehbaz Sharif reiterated his determination to transform Pakistan’s economic landscape. “We know the path is difficult, but not impossible. With China’s support and our commitment, we will make Pakistan a strong and vibrant economy. Let today mark the beginning of that journey.”
Chinese and Pakistani investors, government officials, and dignitaries, including Deputy Prime Minister Ishaq Dar, the Ambassador of Pakistan to China Khalil Hashmi, and Chairman of China Council for the Promotion of International Trade, federal ministers and others were present on the occasion.
‘Iron-clad, all-weather strategic partnership’
Pakistan and China also reaffirmed their shared resolve to further strengthen their iron-clad, all-weather strategic cooperative partnership.
This affirmation came during a meeting between PM Shehbaz Sharif and Chinese Premier Li Qiang in Beijing on Thursday.
During their warm and friendly meeting, the two leaders expressed their satisfaction at the positive trajectory of Pakistan-China relations.
The PM expressed his deepest gratitude to the Chinese leadership and nation for their unflinching support to Pakistan’s territorial integrity, sovereignty and socio-economic development. Paying rich tribute to China’s impressive transformation under President Xi Jinping’s visionary leadership, Shehbaz Sharif stated that Pakistan wanted to emulate China’s successes and build a stronger and closer Pakistan-China community with a shared future. The PM noted that the government’s tireless reform efforts are yielding promising results, made possible through China’s strong support.
He also shared Pakistan’s intent to float Panda Bonds in the Chinese capital market soon.
On the economic front, Shehbaz Sharif highlighted the significant contribution of China Pakistan Economic Corridor – a flagship project of President Xi’s Belt and Road Initiative (BRI), in Pakistan’s socio-economic development in the past decade, and stressed upon the need for early implementation of ML-I, KKH realignment and operationalization of the Gwadar Port. Both sides also agreed to continue working closely on the next phase of upgraded CPEC 2.0, with its five new corridors.
Emphasizing on the vast potential for B2B cooperation and investment, the Prime Minister briefed the Chinese Premier on the B2B Investment Conference held earlier in the day, where more than 300 Pakistani and 500 Chinese companies were in attendance. He identified agriculture, mines and minerals, textile, industrial sector and IT as priority areas for mutually beneficial economic collaboration.
Both countries would celebrate the 75th anniversary of establishment of Pakistan-China diplomatic ties, next year. Both the leaders also attended the ceremony of sharing of Memorandums of understanding and agreements signed and announced between the two countries with regard to cooperation in the development of CPEC 2.0, science and technology, IT, media, agriculture, etc.
Meanwhile, PM Shehbaz Sharif on Thursday winded up his six-day official visit to China and departed for Pakistan. At the Capital International Airport in Beijing, Han Xerong, Member of the Beijing Municipal Committee of the People’s Political Consultative Conference, Pakistan’s Ambassador to China Khalil Hashmi and diplomatic staff bid farewell to the Prime Minister, a Prime Minister’s Office news release said.
During his visit to China, the prime minister attended the 25th Summit of the Shanghai Cooperation Organization Heads of State and the Shanghai Cooperation Organization Plus Summit in Tianjin. The Prime Minister attended the celebrations of the 80th anniversary of the World War Against Fascism.
