Pakistan and China Strengthen Ties with $8.5 Billion Economic Agreements
Beijing, September 4, 2025 – Pakistan and China have entered a new phase of economic partnership by signing agreements worth $8.5 billion. These Memorandums of Understanding (MoUs) focus on business-to-business (B2B) cooperation in key sectors including agriculture, information technology, mining, health, trade, and Special Economic Zones (SEZs).
PM Shehbaz Sharif Calls it a “Long March of Economic Development”
At the signing ceremony in Beijing, Prime Minister Shehbaz Sharif hailed the agreements as the beginning of a “long march of prosperity” that will connect Beijing with Islamabad. He emphasized that the initiative will attract billions in investment, generate employment, and reinforce Pakistan’s economic stability.
CPEC 2.0: Agriculture and IT as Core Pillars
The Prime Minister identified agriculture as a key priority under CPEC Phase-II (CPEC 2.0). Calling it the backbone of Pakistan’s economy, he invited Chinese firms to introduce advanced technologies and modern farming methods to improve productivity.
He further highlighted Information Technology and Artificial Intelligence as new growth areas for cooperation, noting that China’s leadership in these fields can help Pakistan achieve digital transformation.
Mining, Minerals, and Special Economic Zones (SEZs)
Pakistan’s rich reserves of minerals and natural resources were also presented as attractive opportunities for Chinese investors.
Shehbaz Sharif encouraged Chinese industries to relocate to Pakistan’s Special Economic Zones, where they can benefit from a skilled yet cost-effective workforce. He described this as a win-win strategy that would strengthen bilateral trade and industrialization.
Security and Bilateral Commitments
The Prime Minister assured Beijing that Chinese nationals working in Pakistan will be fully protected, highlighting security as the government’s top priority.
Both sides also signed the Joint Action Plan 2024–2029, reaffirming their long-term partnership. The agreements expand on the understanding reached earlier between President Xi Jinping and Prime Minister Shehbaz Sharif to upgrade CPEC into a more diversified framework.
Fast-Tracking Key Projects
Shehbaz underlined the urgency of implementing key projects, including the ML-I railway modernization, Karakoram Highway (KKH) realignment, and the operationalization of Gwadar Port.
He added that these projects will improve Pakistan’s connectivity, strengthen trade routes, and unlock regional growth potential.
A Stronger Pakistan-China Partnership
The Prime Minister expressed gratitude to China for supporting Pakistan’s sovereignty and socio-economic development. He congratulated Beijing on hosting the Shanghai Cooperation Organisation (SCO) Summit in Tianjin and reaffirmed Pakistan’s commitment to regional cooperation.
With this $8.5 billion milestone, Pakistan and China are entering a new era of economic integration, job creation, and sustainable growth, further solidifying the Pakistan-China all-weather friendship.