Pakistan, China deepen economic cooperation across 21 priority sectors

ISLAMABAD: Pakistan and China are broadening cooperation in 21 priority sectors, with investment exceeding $1.5 billion, according to statements issued on Wednesday.

Pakistan’s Ambassador to China Khalil Hashmi said at a high-level interaction organised by the Foreign Affairs Liaison Office (FALO) Karachi that Chinese investment in Pakistan is continuing to expand in defence production, information technology, agriculture, education, medical equipment, infrastructure development, pharmaceuticals and manufacturing. He also said joint ventures between companies from the two countries are increasing steadily.

Hashmi said demand for Pakistani food products and agricultural goods is rising in Chinese markets, adding that the government is making targeted efforts to increase exports to China further. Referring to the China-Pakistan Economic Corridor (CPEC) as a transformational initiative, he said it has established the basis for prosperity, regional connectivity and economic growth, while upcoming phases would open more opportunities in industrialisation, agriculture, technology, logistics and human capital development.

Hashmi said, adding that the government is fully committed to ensuring foolproof security for Chinese engineers, technical experts and other personnel working in Pakistan.

Officials stress economic diplomacy and investor support

Earlier, FALO Karachi Director General Muhammad Irfan Soomro described the event as a strategic discussion on Pakistan’s economic future and Karachi’s expanding role as a bridge between Pakistan and China. He said influence in the current era is shaped by innovation, connectivity, supply chains, technology and economic strength, and added that economic diplomacy has become the new frontline of global competition.

Soomro said Pakistan should draw lessons from China’s experience in industrialisation, export competitiveness, technological innovation, smart infrastructure and agricultural modernisation.

Sindh Investment Advisor Syed Qasim Naveed Qamar told participants that investors in Karachi and elsewhere in Sindh would be provided full facilitation and security support, reaffirming the provincial government’s commitment to both domestic and foreign investors.

Chinese Consul General Yang Yundong described the interaction as an important platform for strengthening economic and people-to-people ties. He said Pakistan and China are iron brothers and that their friendship has endured over 75 years.

Trade, EVs and agriculture discussed

Separately, Federal Minister for Commerce Jam Kamal Khan held a detailed meeting with Chinese Minister Counsellor Yang Guangyuan to discuss bilateral trade, industrial cooperation, agriculture modernisation, logistics connectivity, supply chain resilience and emerging investment opportunities under the broader framework of the strategic economic partnership, according to a statement issued on Wednesday.

Kamal said changes in the global trade environment and supply chain disruptions have underlined the importance of resilient regional trade corridors. He said Pakistan’s geographic position makes it a natural gateway linking China, Central Asia, the Middle East and emerging markets.

A key part of the discussion focused on industrial cooperation, particularly in electric vehicles, renewable energy, battery manufacturing and advanced industrial technologies. Kamal said Chinese automotive brands have built a growing presence in Pakistan through assembly operations, and that the next stage should move toward deeper industrial collaboration, localisation, technology transfer and joint ventures in EV manufacturing. He added that Pakistan offers a growing domestic market as well as export potential for regional and African markets.

According to the statement, the Chinese side appreciated Pakistan’s interest in expanding industrial cooperation and acknowledged the strong participation of Pakistani companies in sectors including information technology, EVs, energy technologies and manufacturing.

Agriculture was also a major area of discussion. Kamal said changing weather patterns, fertiliser supply disruptions and food security concerns have made agricultural modernisation an urgent global priority. He highlighted Balochistan’s potential for drought-resistant crops such as olives, pistachios, almonds, dates and pine nuts, and stressed the need to move toward sustainable, climate-resilient agriculture.

The meeting also covered community-focused development cooperation, including water security solutions, renewable energy applications, solar-powered community infrastructure, women’s vocational empowerment and rural welfare initiatives. Gwadar’s emerging role as a regional trade hub also came under discussion.

Challenge SEZ project reviewed

In another development, Federal Minister for Board of Investment Qaiser Ahmed Sheikh met a high-level delegation of Challenge Fashion (Private) Limited led by Chairman Huang to review progress on the Challenge Special Economic Zone in Lahore.

According to the statement, Sheikh welcomed the delegation and said the SEZ was a landmark initiative, while appreciating Challenge Group’s continued confidence in Pakistan’s economy. The project carries a proposed investment of $150 million and, according to the statement, reflects a commitment to export-oriented industrialisation, employment generation and technology transfer. The statement added that its success would serve as a model for other international investors, particularly Chinese enterprises.

Both sides reviewed the project’s development status, including progress on infrastructure, utilities and regulatory facilitation. The minister assured full government support for the timely resolution of outstanding matters. The discussion also covered special economic zones in other countries, particularly Vietnam, where streamlined procedures have attracted large-scale foreign investment.