ISLAMABAD: Pakistan has secured significant new investment commitments fromChina amounting to up to $10 billion in the coming years, Federal Ministerfor Investment Qaiser Ahmed Sheikh announced on Thursday, highlighting apositive trajectory for bilateral economic ties amid ongoing efforts torevitalise foreign direct investment inflows.
The announcement comes at a time when Pakistan is actively pursuingeconomic stabilisation and export-led growth through strategicpartnerships, particularly with its longstanding ally China. MinisterSheikh emphasised that these developments signal renewed internationalconfidence in Pakistan’s reform measures and investment climate,potentially injecting much-needed capital into priority sectors strugglingwith low growth and limited modernisation.
Central to the new commitments are government-to-government joint ventureagreements valued at $1.5 billion, which have already been finalisedbetween the two nations. These agreements represent concrete, actionableinvestments aimed at fostering industrial collaboration and technologytransfer, building on the foundation laid by previous high-levelengagements including Prime Minister visits and business forums.
Complementing the joint ventures are memorandums of understanding worthapproximately $9 billion signed across critical sectors includingagriculture, automotive manufacturing, and minerals exploration. These MoUsoutline potential investment pathways that could transform resourceutilisation and value addition in Pakistan, addressing longstanding gaps inproductivity and export competitiveness.
The agriculture sector stands out as a primary beneficiary, aligning withrecent initiatives such as the Pakistan-China Agriculture InvestmentConference held in Islamabad. That event resulted in dozens ofprivate-sector MoUs valued at around $4.5 billion, focusing on moderntechniques, food processing, livestock, and export-oriented value chains,thereby elevating agriculture within the broader CPEC Phase II framework.
Automotive and minerals sectors also feature prominently in the new wave ofcommitments, promising advancements in manufacturing capabilities andresource development. The automotive agreements could enhance localassembly and component production, while minerals-related investments aimto unlock Pakistan’s untapped reserves through joint exploration andprocessing projects.
A key driver behind these developments was the recent visit by a 300-memberPakistani business delegation to China, organised to strengthenprivate-sector linkages and attract additional inflows. The delegation’sengagements focused on business-to-business opportunities, resulting inexpanded networks and preliminary agreements that underpin the broaderinvestment pipeline announced by the minister.
These latest agreements build upon the momentum from earlier milestones,including the Pakistan-China B2B Investment Conference held in Beijing inSeptember 2025, which generated multi-billion-dollar understandings acrossdiverse sectors. Such recurring high-level interactions underscore thedeepening strategic economic partnership between Islamabad and Beijing.
Experts view the $10 billion target as part of China’s continued supportfor Pakistan under the China-Pakistan Economic Corridor initiative, nowtransitioning into its second phase with greater emphasis onindustrialisation, agriculture modernisation, and export promotion. Thisshift aims to move beyond infrastructure toward sustainable, job-creatinggrowth.
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The investments are expected to generate employment opportunities, improvetechnological standards, and boost export potential, particularly inagriculture and minerals where Pakistan holds comparative advantages.Government officials have reiterated commitments to facilitating theseinflows through policy reforms, special economic zones, and streamlinedbusiness processes.
Challenges remain, including implementation timelines, regulatory hurdles,and the need for robust follow-up mechanisms to convert MoUs into actualprojects. However, the scale of commitments reflects optimism aboutPakistan’s economic prospects and the strategic importance of deepeningties with China.
As Pakistan marks preparations for the 75th anniversary of diplomaticrelations with China in 2026, these investment announcements reinforce theenduring “all-weather” partnership. They also align with nationalframeworks like Uraan Pakistan, prioritising exports, energy, andindustrial revival through foreign collaboration.
Overall, the new deals represent a significant step toward economicrecovery and long-term prosperity, with potential spillover effects ontrade balances, fiscal stability, and regional connectivity.
Source:https://tribune.com.pk/story/2588443/china-to-invest-up-to-10bn-in-pakistan-with-new-agreements
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