Pakistan and China have taken another major step in deepening their economic partnership, sealing $8.5 billion worth of agreements under the new phase of the China-Pakistan Economic Corridor (CPEC 2.0).
The milestone was reached at the Second Pakistan-China B2B Investment Conference in Beijing, where the two countries signed 21 Memorandums of Understanding (MoUs) and joint ventures across various sectors, including agriculture, IT, artificial intelligence, electric vehicles, solar energy, minerals, petrochemicals, health, and steel.
Shehbaz Launches CPEC 2.0
Prime Minister Shehbaz Sharif officially inaugurated the second phase, calling it a “long march of economic growth.” He said the initiative would unlock jobs, attract foreign investment, and improve Pakistan’s export capacity.
Unlike the first phase, which focused heavily on infrastructure and energy, CPEC 2.0 emphasizes business-to-business collaboration, with Special Economic Zones (SEZs) positioned as the backbone due to Pakistan’s skilled but affordable labour and strategic trade location.
Read more: Afghanistan joins CPEC: A new chapter in regional connectivity
Investor Confidence and Security
PM Shehbaz assured investors that his government would act swiftly to remove hurdles. “We will not tolerate even a second’s delay. Chinese investors will be treated as partners. Pakistan is your second home, just as China is ours,” he pledged. Addressing long-standing concerns, he also reiterated that the safety of Chinese nationals in Pakistan is the government’s top priority.
If we talk about earlier achievements, Shehbaz credited first phase of CPEC with ending crippling 20-hour power outages, reviving idle industries, and modernizing road and port infrastructure. He has Shown appreciation for China’s transformation under President Xi Jinping, who lifted over 700 million people out of poverty — a model Pakistan aspires to emulate.
Expanding Horizons with New Corridors
In talks with Chinese Premier Li Qiang, both sides agreed to expand CPEC 2.0 via five new corridors, covering IT, science, technology, textiles, agriculture, minerals and trade industry.
Pakistan also declared plans to issue Panda Bonds in Chinese capital markets to mesmerize further financing.
The event concluded with the unveiling of a Joint Action Plan 2024–2029, which will guide cooperation in various sectors such as
- Trade
- Defence
- Security
It was surrounded by ministers, diplomats, and business leaders, Shehbaz summed up with optimism: “The road is highly difficult but not impossible. With China’s support and our resolve, Pakistan will become a strong, vibrant economy. Today marks the beginning of that journey.”
Together, these will define what is being called “CPEC 2.0”, designed not just to link cities, but is also designed to integrate economies and communities.
Prime Minister Shehbaz Sharif said that Pakistan considered the project as the best opportunity to build a “shared future” with China. He also showed appreciation for unwavering support of Beijing for Pakistan’s sovereignty and socio-economic development, calling the partnership a supporting force in turbulent global times.