Pakistan, China sign agreements worth over $7 billion

BEIJING: More than $7 billion worth of agreements and memorandums of understanding (MoUs) were signed between Pakistani and Chinese companies during Prime Minister Shehbaz Sharif’s official visit to China, aimed at strengthening bilateral investment and economic cooperation.

Addressing the Pakistan–China Business-to-Business Investment Conference in Hangzhou, the prime minister invited Chinese investors to expand investment in Pakistan across sectors, including agriculture, information technology, special economic zones, mining, and minerals.

Shehbaz Sharif said Pakistan’s priority is investment, technology transfer, expertise, and joint development rather than dependence on loans and aid. He emphasized the need to transform signed MoUs into operational projects.

The prime minister also encouraged Chinese companies to relocate industries to Pakistan and assured investors of world-class facilities, one-window operations, and long-term leased land in the Special Economic Zone established in Karachi.

According to the prime minister, more than 200 MoUs worth over $20 billion have been signed in five Pakistan–China business-to-business conferences so far, while around 30 percent have already been converted into operational agreements.

During the conference, a major agreement worth $1.12 billion was signed between Haolu Engineering and Technology Company Limited and Fauji Fertilizer Company Limited for fertilizer production.

Another MoU worth $100 million was signed between IBI Beijing United Information Technology Company and RIC covering agrochemicals, agricultural machinery, and the establishment of a regional office in Multan.

Highlighting agricultural opportunities, the prime minister said China imports nearly $100 billion worth of agricultural products annually, while Pakistan’s current share remains limited. He stated that through mechanized farming, improved seeds, and modern agriculture, Pakistan could potentially increase exports to China to $10 billion within five to seven years.

Shehbaz Sharif further said Pakistan’s young population presents significant opportunities in information technology and artificial intelligence and that Chinese investment in special economic zones would create mutual benefits.

Referring to bilateral ties, the prime minister described President Xi Jinping as a visionary leader and reiterated that Pakistan seeks deeper economic cooperation with China.

Meanwhile, Federal Minister for IT Shaza Fatima Khawaja said that the second phase of the China–Pakistan Economic Corridor is evolving beyond infrastructure into a digital Silk Road involving fiber optics, artificial intelligence, semiconductors, e-commerce, and IT collaboration.

The conference was attended by Deputy Prime Minister Ishaq Dar, federal ministers, investors, business leaders, and representatives of Pakistani and Chinese companies.