Pakistan and China have formally agreed to establish a structured coordination mechanism under the second phase of the China-Pakistan Economic Corridor to streamline and improve investment facilitation. The agreement was reached during a high-level meeting in Islamabad between Federal Minister for the Board of Investment Qaiser Ahmed Sheikh and Chinese Counsellor Yang Guangyuan. This new arrangement aims to bridge the gap between initial investor interest and the actual establishment of industrial projects by creating a more disciplined flow of information between the state institutions of both nations.
Under this enhanced framework, the Board of Investment will provide comprehensive project details to the Chinese Embassy well in advance of formal pitches. In return, the Embassy will supply a curated list of potential Chinese investors with the capacity and interest to undertake such projects. This matching system is designed to increase the conversion rate of visiting delegations into tangible manufacturing units. Both sides acknowledged that while interest remains high, previous coordination issues and information gaps have often hindered the transition from preliminary discussions to operational industrial development.
A major focus of the discussions was the revitalization of Special Economic Zones, which are intended to serve as the primary hubs for CPEC Phase-II. The officials reviewed the performance of existing SEZs and discussed strategies to transform them into effective platforms for export-oriented growth. The shift in strategy marks a transition from the infrastructure-heavy focus of CPEC Phase-I to an industry-driven Phase-II, where manufacturing and job creation take precedence. The Chinese side emphasized that for this transition to succeed, Pakistan must consistently honor its commitments to investors to build long-term confidence in the domestic business environment.
Investor security was also a primary topic of discussion, reflecting its critical importance to foreign entities. The Pakistani delegation confirmed that the Board of Investment is working closely with the Ministry of Interior to ensure enhanced security arrangements for Chinese officials and business leaders operating within industrial zones. Erfa Iqbal noted that strengthening institutional linkages is a priority to provide a safe and reliable environment for large-scale projects. The Chinese Counsellor reiterated that projects endorsed by the Embassy typically carry a higher level of trust among Chinese enterprises, making the Embassy’s involvement a key factor in project visibility.
The meeting also touched upon broader economic indicators, including a rising interest from overseas Pakistanis in the United Kingdom, which is seen as a positive sign for the country’s international investment perception. In a move to showcase regional industrial potential, Minister Sheikh invited the Chinese Counsellor to visit Chiniot to explore the city’s globally recognized handcrafted furniture industry for possible export-oriented partnerships. This outreach illustrates the government’s desire to integrate traditional Pakistani craftsmanship with modern Chinese industrial scale and expertise.
As the Prime Minister prepares for an upcoming visit to China, both nations view this period as a vital opportunity to solidify bilateral economic engagement. The meeting concluded with a pledge to maintain a rigorous line of communication between the Board of Investment and the Chinese Embassy. By ensuring that project data is shared early and investor lists are targeted effectively, both countries hope to ensure that CPEC Phase-II delivers the tangible industrial outcomes and economic expansion required to modernize Pakistan’s manufacturing sector.
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