ISLAMABAD (GNP ): Federal Minister for Investment Qaiser Ahmed Sheikh described the 75 years of diplomatic relationship between Pakistan and China as an unmatched example of bilateral cooperation on Wednesday, even as he acknowledged that structural and bureaucratic obstacles continue to hinder the partnership’s full economic potential.
The minister was addressing a high-level forum titled “Celebrating Long-Term Pak-China Cooperation,” convened by the Sustainable Development Policy Institute (SDPI) to mark the launch of its report, Charting the Evolution from CPEC’s First Phase to Its Transformative Second Phase.
Minister Sheikh drew a sharp contrast between the two nations’ trajectories, noting that China, now the world’s second-largest economy, had lifted 800 million citizens out of poverty, while Pakistan continued to grapple with institutional challenges that had persisted for nearly four decades. As a case in point, he disclosed that a legislative amendment designed to attract Chinese textile investment had remained stalled for six months, despite receiving the Prime Minister’s endorsement, owing to procedural delays within the bureaucratic system.
Pakistan–China Partnership at a Crossroads
Shi Yuanqiang, Deputy Head of Mission at the Chinese Embassy in Islamabad, struck an optimistic tone, stating that the bilateral relationship had demonstrated resilience through successive global crises. He noted that the leadership of both countries, including President Xi Jinping, President Asif Ali Zardari, and Prime Minister Shehbaz Sharif, had collectively committed to deepening the relationship at the people-to-people level.
SDPI Executive Director Dr. Abid Qaiyum Suleri framed the central challenge as one of translation: converting political goodwill into tangible economic outcomes. While emphasizing the importance of operationalizing Special Economic Zones (SEZs), he cautioned that certain policy interventions remained constrained by Pakistan’s ongoing IMF programme commitments. He called for bureaucratic reform, improved security guarantees, and regulatory predictability as non-negotiable preconditions for progress.
Trade Gap Raises Concerns
Hamid Sharif, former Managing Director of the Asian Infrastructure Investment Bank (AIIB), acknowledged the depth of the historical relationship, citing Pakistan’s early recognition of China and the construction of the Karakoram Highway at enormous human cost, but directed attention to a widening economic imbalance. He noted that while bilateral trade had surpassed USD 45 billion, Pakistan’s exports to China stood at just USD 2.4 billion, and Pakistani businesses had utilized only 30 percent of available preferential trade concessions.
Sharif pointed to Vietnam as a benchmark, noting it had attracted USD 50 billion in Chinese business-to-business investment over the past decade, while Pakistan’s SEZs had largely underperformed due to regulatory unpredictability, inconsistent tax policy, and administrative complexity.
CPEC Phase Two: A USD 30–50 Billion Opportunity
Dr. Khalid Waleed, Research Fellow at SDPI and lead author of the report, outlined the scope of CPEC’s second phase, describing it as a transformative shift toward green energy, industrial development, advanced technology, and mineral extraction. He projected investment flows of USD 30 to 50 billion into SEZs, with significant employment generation anticipated across sectors.
Dr. Waleed highlighted China’s role in addressing Pakistan’s energy crisis through solar expansion and electric vehicle adoption, and called on Pakistan to leverage China’s four global initiatives, the Global Development Initiative, Global Civilization Initiative, Global Security Initiative, and Global Governance Initiative, as frameworks for deeper cooperation.
Also Read: Grand Cultural Evening Marks 75 Years of Pak-China Friendship
Long-Term Vision to 2047–49
Dr. Hassan Daud Butt, Senior Advisor at China Energy Engineering Group, outlined a shared long-term vision extending toward 2047–49, anchored in economic modernization and mutual growth. He noted that Pakistan’s inaugural Panda Bond issuance was oversubscribed five times, signaling strong investor confidence in the bilateral economic framework.
Dr. Syed Hasnat Shah of the Pakistan Institute of Development Economics (PIDE) closed the discussion with a historical reflection, observing that few examples exist in modern history of two nations with such divergent political systems, cultures, and languages maintaining such a consistently aligned relationship over 75 years.
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