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Pakistan Studies/Published by the Pakistan Research Center, Inner Mongolia Honder College of Arts and Sciences
Pakistan's Prime Minister Shehbaz Sharif has reaffirmed that business-to-business (B2B) cooperation between Pakistan and China will become the central driving force of the second phase of the China–Pakistan Economic Corridor (CPEC). Speaking during a major business exhibition attended by more than 150 Chinese entrepreneurs and business representatives, the Prime Minister emphasized that expanding private-sector cooperation is essential for Pakistan's long-term economic transformation and industrial modernization.
The exhibition served as an important platform for strengthening commercial ties between enterprises from both countries. Prime Minister Shehbaz welcomed the Chinese delegation and hosted a luncheon in their honor, reaffirming Pakistan's commitment to creating a favorable investment climate for Chinese companies and encouraging broader economic engagement.
Addressing participants, Prime Minister Shehbaz described Pakistan and China as "iron brothers" whose decades-long friendship has evolved beyond traditional diplomacy into a comprehensive strategic partnership covering investment, trade, infrastructure, industrial development, agriculture, and technological innovation.
He noted that while the first phase of CPEC focused primarily on large-scale infrastructure, energy projects, and transport connectivity, the second phase will place greater emphasis on industrial cooperation, manufacturing, technology transfer, and private-sector partnerships.
The Prime Minister stressed that sustainable economic growth requires stronger collaboration between businesses rather than relying solely on government-led projects. Encouraging direct cooperation between Chinese and Pakistani enterprises will help establish modern industries, improve productivity, create employment opportunities, and enhance Pakistan's export competitiveness.
Pakistan hopes to attract additional Chinese investment into its industrial parks and Special Economic Zones (SEZs), where investors can benefit from Pakistan's strategic geographic location, competitive labor force, and preferential market access.
The Prime Minister encouraged Chinese companies to establish joint ventures with Pakistani partners in sectors including:
He emphasized that closer industrial cooperation would accelerate technology transfer, improve local manufacturing capabilities, and contribute to the development of an upgraded industrial base across Pakistan.
Prime Minister Shehbaz also highlighted agriculture as one of the most promising areas for future China–Pakistan cooperation.
Recalling his official visit to China in June 2024, he spoke positively about visits to Chinese agricultural schools and research institutes. Following the visit, both governments agreed to send 1,000 Pakistani agricultural graduates to China for advanced professional training in modern agricultural technologies, sustainable farming practices, and agricultural research.
The Prime Minister observed that approximately 60 percent of Pakistan's population lives in rural areas, making agricultural modernization a national priority.
He noted that Pakistan's agricultural exports increased significantly during the previous fiscal year and expressed the government's ambition to further expand exports by improving productivity, adopting advanced technologies, enhancing food processing capabilities, and exporting higher value-added agricultural products.
China, he said, will continue to serve as one of Pakistan's most important strategic partners in achieving these objectives through technology sharing, investment, and technical cooperation.
The Prime Minister encouraged Chinese and Pakistani companies to conclude more commercial agreements and establish long-term partnerships.
Particular attention was given to cooperation in:
He noted that jointly manufactured products could leverage Pakistan's trade preferences in certain international markets, thereby improving export opportunities while creating mutual economic benefits for both countries.
Such collaboration, he emphasized, represents an important step toward building an "upgraded version" of CPEC, characterized by innovation, industrialization, and deeper integration of the private sectors of both countries.
During his visit to Karachi, Prime Minister Shehbaz also met with the Chief Minister of Sindh Province to discuss several major development initiatives, including the long-awaited Karachi Circular Railway (KCR) project.
The Prime Minister expressed confidence that, with China's support, the KCR project could move forward as an important component of future China–Pakistan infrastructure cooperation.
The Sindh provincial government believes that once completed, the railway system will significantly reduce traffic congestion, improve public transportation, and enhance urban mobility in Pakistan's largest city.
According to the approved development plan, the project will include:
The government is considering implementing the project through a Build–Operate–Transfer (BOT) model with participation from private investors.
The Prime Minister and provincial leaders also discussed Pakistan's rising electricity costs, which remain a significant concern for businesses and households.
To improve energy affordability and reduce industrial production costs, the government is promoting greater utilization of domestic energy resources, including coal from the Thar Coalfield in Sindh Province. Officials believe that increasing the use of locally sourced fuel could help reduce dependence on imported energy while improving the competitiveness of domestic industries.
Energy affordability remains a key component of Pakistan's broader economic reform agenda and is closely linked to efforts to attract foreign investment and strengthen manufacturing.
Pakistan is currently pursuing a comprehensive strategy to stabilize its economy, expand exports, modernize industry, and attract greater foreign direct investment. As one of Pakistan's closest strategic partners, China continues to play an important role through investment, infrastructure development, technology cooperation, and industrial collaboration under the framework of the China–Pakistan Economic Corridor.
The growing emphasis on enterprise-to-enterprise cooperation reflects a broader shift toward market-oriented development and private-sector participation. If successfully implemented, this approach is expected to create new opportunities for investment, employment, technology transfer, and sustainable economic growth, further strengthening the long-standing China–Pakistan All-Weather Strategic Cooperative Partnership.
