ISLAMABAD, May 20 (SABAH): Federal Minister for Investment Qaiser Ahmed Sheikh has said that Pakistan and China’s 75-year-old diplomatic relation stands as an “unparalleled model” of bilateral cooperation and despite bureaucratic hurdles and regulatory challenges, the iron-clad friendship has weathered global upheavals.
He was speaking at a ceremony, titled: “Celebrating Long-Term Pak-China Cooperation,” organized by Sustainable Development Policy Institute (SDPI) on the occasion of a report launch ‘Charting the evolution from CPEC’s first phase to its transformative second phase’. The minister said at present China is the world’s second largest economy that lifted 800 million people out of poverty whereas Pakistan is confronted with the same problems that existed 39 years ago because of bureaucratic set-up.
Qaiser Ahmed Sheikh revealed that a proposed amendment to facilitate Chinese textile investment has been pending for six months despite Prime Minister’s approval due to prevailing arduous bureaucratic procedures.
Deputy Head of Mission at the Chinese Embassy, Shi Yuanqiang, lauding SDPI for organizing the celebrations, said: “This year marks the 75th anniversary of establishment of Pak-China diplomatic relations, which have proved their resilience in the testing times of global upheavals. Standing at a new historic starting point, both nations are ready to build shared cooperation and partnership,” he said, noting that President Xi, President Zardari, and Prime Minister Shehbaz have resolved to take relations to a people-to-people level.
Dr. Abid Qaiyum Suleri, SDPI Executive Director, said while operationalizing Special Economic Zones is necessary, many actions face IMF programme restrictions. He highlighted the changing geopolitical scenarios with the US recognizing China as a superpower and seeking market access. He underscored that as Pakistan and China enter the next 75 years, the challenge remains converting government-to-government goodwill into business-to-business reality, with bureaucratic reform, security guarantees, and regulatory predictability as urgent prerequisites.
Dr. Sajid Amin Javed, SDPI Deputy Executive Director (Research), said: “The question has never been how strong Pak-China relations are or how beneficial bilateral ties have been. It is a partnership based on mutual respect and deep understanding. The critical question is: how can we make this partnership business-to-business from government-to-government?”
Hamid Sharif, former MD of Asian Infrastructure Investment Bank (AIIB), said: “Pakistan recognized China despite its diplomatic alliances with CENTO and SETO. Both countries stood by each other, building the Karakorum Highway where over 1,000 lives were lost. Today, China accounts for 53% of Pakistan’s FDI.” However, Sharif pointed to critical failures: “Bilateral trade crossed $45 billion but Pakistan’s exports to China remain only $2.4 billion. Pakistani exporters have availed only 30% of preferential concessions. Chinese B2B investment has largely bypassed Pakistan. Vietnam received $50 billion over the last decade. Our SEZs meant to be engines of CPEC are far below potential due to regulatory unpredictability, unclear tax treatment, bureaucratic maze, and layers of red tape. Bureaucrats are not interested in bringing a single dollar of foreign direct investment (FDI) from China.”
Dr. Khalid Waleed, Research Fellow at SDPI, presented the newly-launched Pak-China report, which traces the journey from the first to second phase of CPEC. He highlighted that over 75 years of “cordial and congenial cooperation,” the relationship has transcended from sector to sector annually. “China is the saviour of Pakistan’s energy crisis,” he said, emphasizing that Chinese-enabled solar revolution and four global initiatives of China GDI, GCI, GSI, and GGI are now in motion.
He further said phase two of CPEC, described as transformative, will focus on green energy, industry, technology, and mining, with an estimated USD 30-50 billion investments flowing into SEZs, creating thousands of jobs. “Pakistan should celebrate the solar boom, 40 GW plus EVs, and operationalize cooperation through the 5Es of Uraan Pakistan,” he added.
During the panel discussion, Dr. Hassan Daud Butt, Senior Advisor of China Energy Engineering Group, noted that the Chinese vision of “flying geese” keeps best-performing leaders ahead to support the weakest. He outlined the shared long-term vision towards 2047-49 for economic modernization and national rejuvenation. He added that Pakistan’s inaugural Panda Bond was “five times oversubscribed.”
Dr Syed Hasnat Shah from Pakistan Institute of Development Economics (PIDE) remarked: “We established diplomatic relations with China 75 years ago, and today we see that history will not find a single example where two different countries, different government systems, different cultures, different languages have always remained on the same page.
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