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Pakistan And China Agree On Data Centers, Fiber Optic Networks And Joint CPEC AI Projects

  • September 27, 2025
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Pakistan and China have taken new steps to deepen their partnership under the China-Pakistan Economic Corridor by agreeing to build advanced digital infrastructure, including data centers, a nationwide fiber optic network, and joint artificial intelligence and quantum laboratories. The commitments were made during the 14th Joint Cooperation Committee meeting held in Beijing, co-chaired by the planning ministers of both countries. The session brought together officials, technical experts, and representatives from multiple ministries, underscoring a shared focus on long-term development through technology-driven cooperation.

Federal Minister for Planning Ahsan Iqbal emphasized during the meeting that CPEC’s second phase will prioritize youth, innovation, and people-centric development. He described Pakistan and China as “iron brothers” tied by trust and a shared destiny, outlining proposals for 10,000 PhD scholarships, innovation centers, and internship programs with Chinese institutions to give Pakistani youth international exposure and new skills. Iqbal also highlighted the importance of uplifting marginalized districts by replicating aspects of China’s poverty alleviation model. This approach aims to extend the benefits of CPEC more widely across Pakistan while nurturing the next generation of skilled professionals capable of driving innovation in the country.

In his remarks, Iqbal detailed how the first phase of CPEC had already delivered significant outcomes, including 8,000 megawatts of electricity generation, 888 kilometers of highways, and the transformation of Gwadar from a fishing town into a key maritime gateway for Pakistan. He noted that modernization of the ML-1 railway would rejuvenate Pakistan’s transport sector and added that the next stage of CPEC will include projects for agricultural reforms, electric vehicles, and green energy initiatives. With a target of achieving 60 percent clean energy by 2030, Pakistan aims to diversify its energy mix while enhancing sustainability and economic resilience.

Highlighting export potential, Iqbal proposed linking each CPEC corridor with defined export targets and establishing export-oriented Special Economic Zones in Karachi and Islamabad to stimulate production and trade. He also called for increased access to Chinese markets for Pakistani exports, aligning such access with benefits extended to ASEAN countries. To enhance regional commerce, he pointed to the development of border markets in Khunjerab, Torkham, and Gwadar as well as plans for a mining corridor stretching from Chagai to Gwadar to unlock new avenues of growth. CPEC’s five corridors – Growth, Innovation, Green, Livelihood, and Regional Connectivity – are envisioned to redefine Pakistan’s development model, while under the Digital Silk Road initiative, projects such as advanced data centers, nationwide fiber optic connectivity, and joint AI laboratories will be rolled out.

The minister reaffirmed Pakistan’s commitment to ensuring the safety and security of all CPEC projects and Chinese personnel in the country. He also emphasized that CPEC Phase Two will focus on promoting business-to-business partnerships rather than limiting cooperation to government-to-government channels, signaling a shift toward greater private sector participation and sustained economic linkages between the two countries.

Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem. 

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Related Topics
  • Ahsan Iqbal
  • AI laboratories Pakistan China
  • CPEC SEZs
  • data centers Pakistan
  • Digital Silk Road
  • fiber optic networks Pakistan
  • Pakistan China CPEC
  • quantum labs Pakistan
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