Salim Khan Swati
The meeting between Chinese Ambassador Jiang Zaidong and Deputy Prime Minister and Foreign Minister Ishaq Dar in Islamabad has highlighted the importance of continued engagement between Pakistan and China in advancing their economic cooperation. Their discussions covered the China-Pakistan Economic Corridor (CPEC), trade and investment and regional developments. Ishaq Dar appreciated the progress in bilateral relations and emphasized the importance of sustained high-level exchanges to advance the China-Pakistan Community of Shared Future in the New Era. Both sides also reaffirmed the significance of dialogue and diplomacy in promoting sustainable peace and stability in the region.
At a time when Pakistan is seeking stronger economic foundations, CPEC remains a vital framework for promoting development and attracting investment. The next stage of this flagship project of the Belt and Road Initiative (BRI) offers an opportunity to build on the achievements of its first phase and direct greater attention towards productive sectors, employment generation, export growth and technological advancement. The challenge now is to translate political commitment into practical initiatives that deliver tangible benefits to the people.
The first phase of CPEC played an important role in addressing Pakistan’s energy shortages and improving its infrastructure. Investments in power generation, transport networks and other essential facilities helped strengthen the foundations for economic activity. These developments demonstrated the value of economic cooperation and created opportunities for further investment and connectivity. However, infrastructure alone cannot ensure sustained growth. Its full potential can only be realized when improved connectivity and energy supplies are accompanied by industrial expansion, competitive production, technological innovation and increased exports.
This is where the second phase of CPEC, commonly referred to as CPEC 2.0, assumes particular importance. It envisages broader cooperation in industrialization, agriculture, mining, information technology, artificial intelligence, science and technology, trade and investment. The emphasis is expected to shift towards productive economic activity, with greater participation by businesses, investors, research institutions and skilled workers. This transition is essential if Pakistan is to make effective use of existing infrastructure and establish a more diversified and resilient economy.
Industrial cooperation should be among the principal priorities of CPEC 2.0. Pakistan needs to expand its manufacturing base, create employment for its growing workforce and reduce dependence on a narrow range of exports. Chinese investment and technical expertise can help introduce modern production techniques, improve industrial efficiency and strengthen domestic supply chains. Special economic zones can serve as important platforms for attracting investment, facilitating technology transfer and connecting Pakistani producers with international markets. Their success, however, will depend on reliable utilities, efficient transport, transparent regulations and a predictable business environment.
Agriculture presents another major opportunity. It remains central to Pakistan’s economy and provides livelihoods to a substantial proportion of its population, yet productivity is constrained by water scarcity, outdated practices, limited mechanization and weaknesses in storage and processing. Cooperation with China can support the adoption of modern machinery, improved seeds, efficient irrigation methods and climate-resilient farming techniques. Equally important is the development of food processing, cold storage, livestock management and seafood industries. These measures can reduce post-harvest losses, improve farmers’ incomes and enable Pakistan to export higher-value agricultural products.
Pakistan’s mineral resources also offer considerable potential for economic growth. Responsible investment, modern exploration techniques and improved processing facilities could attract capital, create employment and strengthen export earnings. The objective should not simply be to extract and export raw materials but to develop domestic processing capacity and associated industries wherever economically viable. Clear regulations, environmental safeguards and transparent agreements would help ensure that mineral development contributes to sustainable prosperity and benefits local communities.
The information technology sector provides another avenue for diversifying the economy. A young workforce, expanding digital services and growing demand for technology-related skills create opportunities to increase exports and generate employment. Collaboration in artificial intelligence, digital infrastructure, research and technological training could help Pakistani enterprises become more competitive. Universities, vocational institutions and private companies should work together to equip young people with skills relevant to emerging industries. Greater digital connectivity and support for innovation would further strengthen this effort.
Nevertheless, the success of CPEC 2.0 will depend not only on identifying opportunities but also on effective implementation. Investment proposals must be translated into viable projects with clear timelines, defined responsibilities and measurable outcomes. Policy consistency, timely decision-making and coordination among federal and provincial institutions will be necessary to build investor confidence. Pakistani businesses, particularly small and medium-sized enterprises, should be encouraged to participate in supply chains and joint ventures so that the benefits of new investment extend across the domestic economy.
People-to-people exchanges also deserve attention. Educational partnerships, professional training, cultural interaction and collaboration between research institutions can deepen mutual understanding and strengthen the human foundations of economic cooperation. Such initiatives can help Pakistan develop the skills required to benefit from new technologies and industrial investment while creating lasting links between the two societies.
Both countries have repeatedly reaffirmed their commitment to advancing CPEC. Continued high-level engagement provides a basis for maintaining momentum and resolving implementation challenges. The priority now is to ensure that diplomatic understandings are followed by practical action and that projects are selected according to their economic viability and contribution to national development.
CPEC 2.0 offers Pakistan an opportunity to move beyond infrastructure-led cooperation towards broader economic transformation. By focusing on industrialization, agricultural modernization, responsible mineral development, technological advancement and export diversification, the country can build a stronger productive base and open new avenues of shared prosperity. Sustained coordination, effective institutions and timely implementation will determine how fully this potential is realized. The focus must now shift from commitments to concrete results, ensuring that the next phase of CPEC delivers lasting economic benefits and gives fresh momentum to Pakistan-China relations.
