Pakistan and China have opened the 14th meeting of the Joint Coordination Committee on the China-Pakistan Economic Corridor in Beijing, focusing on expanding cooperation in the second phase of the multibillion-dollar programme. The session placed particular emphasis on the proposed Digital Silk Road, which is planned to channel investments into 5G networks, robotics, biotechnology and other advanced technology sectors. CPEC, launched in 2015 under China’s Belt and Road Initiative, has already brought more than $25 billion of investment into Pakistan. The first phase concentrated on addressing power shortages and upgrading connectivity through new highways, power plants and Gwadar port.
With the shift into the second phase, both sides are prioritising industrial growth, agriculture, technology and human capital development. Planning Minister Ahsan Iqbal, who attended the meeting, highlighted initiatives that place youth and people-centred development at the forefront, such as PhD scholarships, internships in Chinese institutions and the creation of innovation centres. He also pointed to the establishment of joint laboratories in artificial intelligence and quantum sciences, agricultural reforms and new ventures in electric vehicles as part of the agenda. These efforts are designed to enhance Pakistan’s technological capabilities and integrate the country more deeply into regional and global value chains.
Gwadar, constructed with Chinese funding, has already transformed from a small fishing town into a major port city, while the planned upgrade of the Main Line-1 railway from Karachi to Peshawar is expected to modernise Pakistan’s rail infrastructure. According to Iqbal, such projects demonstrate how CPEC can support Pakistan’s economic transition. He stressed that Pakistan is seeking for its exports to China the same preferential access enjoyed by ASEAN countries. Although China imports goods worth $2 trillion annually, Pakistan’s exports currently stand at about $3 billion. He argued that tariff concessions would significantly boost exports in textiles, agriculture and engineering, sectors that can benefit from the improved infrastructure and connectivity provided under CPEC.
Iqbal underscored the importance of moving from government-to-government cooperation to business-to-business partnerships, noting that during a recent Pakistan-China Investment Conference, 800 companies signed agreements valued at $8.5 billion. He proposed the establishment of two special economic zones in Karachi and Islamabad as well as a Pakistan-China industrial relocation fund to help Chinese companies shift production to Pakistan, capitalising on lower costs. He also outlined the plan for a Pakistan-China Digital Silk Road, with investments in 5G networks, fiber optics, data centres and a future skills programme in IT, robotics, biotech and fintech. Additional proposals include a space centre in Pakistan to prepare youth for a technology-driven economy, joint projects in renewable energy and climate-smart agriculture, electric mobility, a mining corridor connecting Balochistan’s mineral-rich areas to Gwadar port, border markets at Khunjerab and Torkham and expanded cross-border fiber networks.
Reaffirming Pakistan’s commitment to the partnership, Iqbal assured that the security of Chinese workers and projects remains a top priority. He said Prime Minister Shehbaz Sharif personally oversees these security measures. By emphasising youth as innovators, exports as drivers and people as stakeholders, the initiatives under CPEC Phase-II are expected to deepen Pakistan’s cooperation with China and accelerate the country’s shift toward a knowledge-based economy.
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