The Prime Minister of Pakistan, Shehbaz Sharif, made an official visit to China from June 4 to 8, 2024. The purpose was to meet with Chinese leadership and the business community. The visit aimed to advance the strategic partnership between the two countries, strengthen security and defense cooperation, enhance trade and investment, upgrade the China-Pakistan Economic Corridor (CPEC) and promote cultural exchanges.
CPEC is a massive project that offers both opportunities and challenges for Pakistan. Despite receiving $25.4 billion in direct investment from China and adding 6570 MW of energy to the system, Pakistan’s economic position remains poor. The country’s external debt has increased to $124.5 billion US dollars, and inflation reached 24.8% in 2024. Pakistan is currently facing a debt crisis, with the government expected to seek at least $6 billion under a new IMF program after presenting its annual budget. During the visit, both sides emphasized industrial cooperation under the framework of high-quality CPEC development.
They signed an Action Plan for Framework Agreement on Industrial Cooperation under CPEC to strengthen collaboration in various sectors. China reiterated its commitment to Pakistan’s industrialization and pledged to encourage Chinese companies to invest in Pakistan’s Special Economic Zones based on market principles. Pakistan, in turn, agreed to optimize its business environment and policy framework to further facilitate Chinese investment.
The progress of the CPEC project has been hindered by several factors, including inconsistent leadership and policies, a complex institutional framework and security issues. Terrorist attacks on Chinese nationals and projects have also slowed down CPEC’s pace.
During his visit, Shehbaz Sharif held high-profile meetings with top political and business leaders in China. Agreements were reached on sending 1,000 Pakistani students to a leading Chinese agricultural facility for advanced training. The Prime Minister also attended the signing ceremony of a framework agreement between Huawei and Pakistan’s Ministry of Science and Technology, where Huawei committed to providing free training in information technology, including artificial intelligence, to approximately 200,000 young Pakistanis. Discussions also addressed security concerns related to Chinese nationals working on CPEC projects in Pakistan.
The visit of PM Shehbaz Sharif is expected to have a positive impact on the progress of CPEC. China has been pushing for the project’s early completion, emphasizing it as an open and inclusive platform for win-win cooperation that welcomes third-party participation in priority areas such as industry, agriculture, ICT, science, technology and mining. Pakistan, facing significant economic challenges including a substantial trade imbalance, anticipates substantial financial benefits from the visit. It is hoped that the visit will deepen the strategic alliance between Pakistan and China, positively influencing CPEC advancement and Pakistan’s economic conditions.
Successful implementation of CPEC has the potential to significantly improve Pakistan’s economic situation, but addressing challenges and concerns is crucial to realizing its full potential. The visit is expected to inject momentum into Pakistan’s economy, addressing fiscal and export issues, showcasing the country as a strategic partner, ultimately boosting investor confidence and stimulating economic growth.
—The writer is contributing columnist, based in Islamabad.
