Pakistan moves to convert US $7.54 billion China agreements into investment projects as PM pushes implementation drive

Celina Ali

Islamabad: Pakistan this week launched an ambitious drive to transform $7.54 billion worth of preliminary agreements signed during Prime Minister Shehbaz Sharif’s recent visit to China into concrete investment projects and joint ventures, as Islamabad seeks to accelerate the next phase of economic cooperation with Beijing and attract greater Chinese investment into key sectors of the economy.

Chairing a high-level review meeting in Islamabad on Monday, Prime Minister Shehbaz Sharif directed all relevant ministries and government departments to expedite the implementation of agreements reached during the Pakistan-China Business-to-Business (B2B) Conference held in Hangzhou during his visit to China from May 23 to 26.

He also announced that he would personally oversee progress through monthly review meetings to ensure that the understandings reached between Pakistani and Chinese companies are translated into tangible economic outcomes.

The move reflects Pakistan’s broader strategy to deepen economic engagement with China beyond the infrastructure and energy projects that characterized the first phase of the China-Pakistan Economic Corridor (CPEC), the flagship component of China’s Belt and Road Initiative in Pakistan.

Over the past decade, CPEC has brought tens of billions of dollars in Chinese investment into Pakistan, financing major power generation projects, motorways, transport infrastructure and the development of Gwadar Port. Pakistani policymakers now view the second phase of cooperation as an opportunity to attract investment into productive sectors capable of generating employment, increasing exports and strengthening industrial capacity.

According to a statement issued by the Prime Minister’s Office, PM Sharif instructed officials that the memorandums of understanding signed during the Hangzhou conference should be swiftly converted into formal agreements, investment projects and joint ventures between Pakistani and Chinese firms.

The prime minister emphasized that rapid implementation was essential for maximizing the economic benefits of the agreements and ensuring that investment commitments materialize on the ground.

Officials informed the meeting that the Pakistan-China Business-to-Business Conference witnessed unprecedented participation from the private sectors of both countries.

A total of 123 Pakistani companies and 436 Chinese enterprises took part in the event, highlighting growing business interest in expanding commercial cooperation between the two nations.

The conference resulted in the signing of approximately 207 memorandums of understanding valued at US $7.54 billion, covering a diverse range of sectors considered critical to Pakistan’s future economic growth.

The investment agreements span battery energy storage systems, artificial intelligence, mobile phone and handheld device manufacturing, fertilizer production, seed development, modern irrigation technologies, fisheries, food processing, biotechnology and vaccine manufacturing. Many of these sectors are regarded as strategic priorities for Pakistan as it seeks to modernize its industrial base and enhance export competitiveness.

Speaking during the meeting, PM Sharif described the surge in business engagement between Pakistani and Chinese companies as a landmark development in bilateral economic relations.

“An extraordinary increase in business linkages between the private sectors of Pakistan and China marks the beginning of a new era in the economic partnership between the two countries,” the prime minister said.

He noted that greater cooperation in industry, agriculture and technology would help expand Pakistan’s export potential while creating new employment opportunities for the country’s growing workforce.

The prime minister’s visit to China focused heavily on attracting investment and encouraging private-sector partnerships. During the trip, Sharif held meetings with Chinese President Xi Jinping and Chinese Premier Li Qiang, while also participating in a series of business engagements aimed at encouraging Chinese companies to invest in Pakistan’s manufacturing, mining, agriculture and technology sectors.

Economic experts view the latest agreements as particularly significant because they signal a shift in Pakistan-China cooperation from government-led infrastructure projects toward private-sector-driven industrial investment. Such investments are expected to support Pakistan’s efforts to sustain economic stabilization, strengthen foreign exchange earnings and boost export-oriented production.

The implementation drive comes at a time when Pakistan is working to consolidate economic recovery under a US $7 billion program with the International Monetary Fund while seeking new avenues for growth through foreign direct investment and industrial expansion.

In addition to industrial cooperation, Sharif directed officials to accelerate collaboration between the China Academy of Agricultural Sciences and the Pakistan Agricultural Research Council, describing agricultural modernization as a key pillar of future Pakistan-China cooperation.

The prime minister said that joint agricultural research, technology transfer and collaborative ventures could help transform Pakistan’s farming sector by introducing advanced cultivation techniques, improving productivity and enhancing food security.

Officials told the meeting that the agricultural partnership would focus on research cooperation, the adoption of modern farming technologies and the development of joint projects designed to increase yields and improve efficiency across the sector.

Agriculture remains one of Pakistan’s most important economic sectors, contributing nearly a quarter of national economic output and employing a substantial share of the country’s labor force. Policymakers believe that closer collaboration with Chinese agricultural institutions could play a pivotal role in modernizing the sector and improving rural incomes.

The government hopes that the implementation of the newly signed agreements, coupled with enhanced industrial and agricultural cooperation, will usher in a new phase of investment-led growth, strengthen Pakistan’s economic ties with China and create a foundation for long-term economic development driven by technology, innovation and export-oriented industries.