Prime Minister Shehbaz Sharif on Thursday officially announced the launch of the second phase of the China–Pakistan Economic Corridor (CPEC 2.0) during a major investment conference in Beijing. The premier assured Chinese partners of enhanced security for their nationals and pledged to fast-track decisions to remove bureaucratic hurdles that have slowed projects in the past.
Sharif is currently on a six-day visit to China, which began earlier this week with his participation in the Shanghai Cooperation Organization (SCO) heads of state summit in Tianjin. Since then, he has held high-level meetings with Chinese President Xi Jinping, Premier Li Qiang, and Russian President Vladimir Putin, while also engaging with top Chinese business leaders at a large-scale investment forum.
CPEC Background and Progress
Launched in 2015, the China–Pakistan Economic Corridor is a multi-billion-dollar initiative consisting of highways, railways, ports, and energy projects that link western China to the Arabian Sea through Pakistan.
According to Pakistan’s Planning Commission (CPEC Secretariat), by 2024:
- Completed and ongoing projects under CPEC were valued at $25.4 billion
- An additional $8 billion worth of projects were under implementation
- Bringing the total Chinese investment to nearly $33 billion
CPEC remains the flagship project of President Xi Jinping’s Belt and Road Initiative (BRI) and has played a critical role in Pakistan’s infrastructure and energy development.
CPEC 2.0 — The Next Phase
The second phase, now branded “CPEC 2.0,” aims to expand cooperation beyond transport and energy to cover:
- Industry and Special Economic Zones (SEZs)
- Agriculture modernization
- Information technology and artificial intelligence (AI)
- Mines and minerals
“Today we are ready to launch CPEC 2.0 and this would comprise of B2B investments in agriculture, IT, AI, and minerals,” Sharif told Chinese entrepreneurs at the Beijing conference.
Highlighting agriculture as “the backbone” of Pakistan’s economy — contributing nearly 60% of GDP — the prime minister urged Chinese companies to bring technology, expertise, and capital into the sector.
Security and Bureaucratic Concerns
Sharif acknowledged longstanding concerns of Chinese partners about security threats and administrative delays, assuring them that both issues were being addressed at the highest level.
“The question obviously concerning most of you is about security in Pakistan, but I want to make it clear … that security of Chinese brothers and sisters in Pakistan is paramount for all of us,” he said.
He also pledged to eliminate red tape:
“Delays take place, there are impediments … So let me assure you, we will not tolerate even a second’s delay in taking decisions to facilitate investment in Pakistan.”
Security concerns have been heightened by repeated militant attacks targeting CPEC workers and assets. In March 2024, a suicide bombing killed five Chinese engineers and their Pakistani driver near the Dasu hydropower project. Later in October, two more Chinese nationals lost their lives in a suicide blast near Karachi airport. Separatist groups in Balochistan, where China is heavily invested in Gwadar Port and mining projects, accuse Beijing of exploiting local resources — allegations rejected by both governments.
Economic Outlook and Reforms
Sharif highlighted that Pakistan’s economy had stabilized under a $7 billion IMF program, approved in September 2024, which introduced critical reforms including:
- Tax collection improvements
- Energy sector restructuring
- Privatization of state-owned enterprises
These reforms, he noted, have helped Pakistan:
- Stabilize public finances
- Rebuild foreign exchange reserves
- Improve global credit ratings
In July 2025, Fitch Ratings upgraded Pakistan’s outlook to “positive”, reflecting rising investor confidence.
“With these reforms in place, Pakistan is ready for renewed foreign investment. Under CPEC 2.0, the sky is the limit for Chinese ventures in our country,” Sharif said.
Looking Ahead
The launch of CPEC 2.0 marks a significant turning point in Pakistan-China relations, with Islamabad seeking to broaden economic cooperation, attract new Chinese investment, and ensure security guarantees for ongoing and future projects.
As both nations prepare to celebrate 75 years of diplomatic ties in 2026, the renewed focus on agriculture, IT, minerals, and industrial development signals a shift from infrastructure-building to economic diversification and growth-oriented collaboration.
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