Pakistan’s Prime Minister Shehbaz Sharif and Chinese Premier Li Qiang have reaffirmed their commitment to advancing the next phase of the China-Pakistan Economic Corridor (CPEC), as companies from both nations signed memorandums of understanding worth $4.2 billion. The agreements, inked during a high-profile meeting in Beijing, signal a new chapter in the long-standing partnership between the two countries.
During what PM Shehbaz described as a “warm and most productive” meeting, the leaders agreed to accelerate cooperation under CPEC 2.0, which will focus on five new economic corridors including industry, agriculture, information technology, mining, and textiles. Both sides emphasized the importance of implementing key infrastructure projects such as the Main Line-1 railway upgrade, the realignment of the Karakoram Highway, and the full operationalization of Gwadar Port.
PM Shehbaz, who is on a six-day visit to China, praised Beijing’s continued support for Pakistan’s economic stability, noting that Chinese loan rollovers and investment have been vital to recent improvements in the country’s financial outlook. He also announced Pakistan’s intention to issue Panda Bonds—yuan-denominated debt—in Chinese markets to attract further investment.
Security assurances were prominently offered to Chinese investors, with the prime minister stating that the protection of Chinese nationals and projects in Pakistan is “paramount.” He invited Chinese firms to relocate industries to Pakistan’s special economic zones, highlighting the country’s skilled workforce and strategic location.
The new phase of CPEC aims to build on the successes of the first decade, which saw major investments in energy and infrastructure. With the 75th anniversary of diplomatic relations between the two nations approaching next year, both governments expressed confidence that upgraded economic collaboration would bring mutual benefits and strengthen what they frequently refer to as their “iron-clad” friendship.
