Pakistan and China Sign Over $22 Billion in B2B Business Deals in Two Years

Pakistan and China have continued to deepen their academic and economic engagement as the two countries mark 75 years of diplomatic relations, with officials highlighting more than $22 billion in business-to-business agreements signed over the past two years. The growing commercial engagement is being accompanied by expanding cooperation in technology, energy, education and agriculture. The developments were discussed during an international academic symposium held at Peking University from September 4 to 7, 2026, bringing together around 100 scholars, think-tank researchers, diplomats and business representatives from Pakistan and China.

Addressing the symposium, Pakistan’s Ambassador to China Khalil Hashmi highlighted the momentum behind the expanding business-to-business relationship between the two countries. He said Chinese and Pakistani businesses had signed agreements worth more than $22 billion during the past two years. Nearly 30% of the total, equivalent to around $7 billion, was associated with enterprise-relocation efforts. The figures reflect the increasing commercial interaction between companies in both countries and point to a broader expansion of economic cooperation beyond traditional areas of bilateral engagement.

The academic and institutional relationship has also expanded during the same period. Ambassador Hashmi said four new centres for Pakistan studies had been established in Shenzhen, Shandong, Hangzhou and Shenyang over the past two years. These centres are placing greater emphasis on technology-related fields, including chemical technology and artificial intelligence, compared with the focus traditionally associated with Pakistan studies programmes. The development indicates a growing academic interest in technology and emerging areas alongside established educational and research cooperation between the two countries.

Energy cooperation and the transition toward renewable sources also featured prominently during the symposium. Mao Keji, Associate Research Fellow at the International Cooperation Centre of China’s National Development and Reform Commission, said the green transition is increasingly becoming a form of economic and energy security rather than simply a method of reducing emissions. Citing an empirical analysis of monthly data from 12 South and Southeast Asian economies between 2025 and 2026, he said a 10 percentage point increase in dependence on imported oil and gas was associated with approximately a 3.6% increase in green energy imports and a 7.9% rise in electric vehicle imports following a crisis.

Mao also highlighted Pakistan’s growing use of solar energy, noting that cumulative solar panel imports had crossed 55,700 megawatts, or 55.7 gigawatts, by the end of May 2026. He cited estimates from the State Bank of Pakistan indicating that a shift from fossil-fuel-based generation toward solar power could eventually reduce Pakistan’s annual energy import bill by between $5.2 billion and $7.8 billion. He argued that the renewable energy transition could help reduce the impact of geopolitical disruptions on domestic energy markets and inflation by shortening the chain through which international shocks affect the economy.

According to Mao, solar installations require significant upfront investment but can replace years of recurring fuel purchases denominated in foreign currency. He added that financing arrangements using currencies such as the renminbi could potentially ease external financing constraints. The discussion placed renewable energy within a broader economic context, where greater domestic energy generation could reduce exposure to international fuel prices and external financial pressures.

The Karot Hydropower Project was also cited as an example of Pakistan-China cooperation in the energy sector. Liu Yonggang, Assistant Chief Executive Officer, Chief Compliance Officer and Chief Legal Advisor at China Three Gorges South Asia Investment Limited, said the project is meeting the electricity needs of around five million local people. The project has generated more than 12 billion kilowatt-hours of electricity cumulatively, while saving approximately 1.4 million tonnes of standard coal each year and reducing carbon dioxide emissions by around 3.5 million tonnes. Liu said the project would be transferred to Pakistan free of charge as a permanent state asset after the completion of its concession period.

Liu further said the company’s wind power projects in Pakistan had reached a combined installed capacity of 150 megawatts, with cumulative electricity generation of 3.2 billion kilowatt-hours. These projects complement hydropower capacity and contribute to a more diversified clean-energy mix in Pakistan. The developments underline the continued role of Chinese companies in Pakistan’s renewable energy sector and the expansion of cooperation beyond individual infrastructure projects.

Agriculture and regional cooperation were also discussed at the symposium. Zhang Shulan, Director of the Center for South Asian Studies at Shandong University, highlighted the increasingly specialised nature of cooperation between different regions of China and Pakistan. She cited Xinjiang’s expertise in cotton production and desertification control, Shaanxi’s role in talent development and Hubei’s strengths in seeds and agricultural technology. On the Pakistani side, she noted opportunities in different provinces and regions, including Sindh’s exploration of contract farming and export supply chains for products such as chillies and mangoes, Punjab’s use of demonstration farms for hybrid rice, maize and cauliflower technologies, and opportunities in Gilgit-Baltistan and Balochistan.

The discussions also highlighted the growing human development component of bilateral cooperation. Zhou Yuan and Xiao Xueqin of Beijing Foreign Studies University said the China-Pakistan Economic Corridor is evolving from an infrastructure-focused initiative into a platform for human development. They pointed to female empowerment initiatives, including expanded school assistance programmes in Balochistan that have created opportunities for around 550 girls to pursue further education.

They also noted that girls represented nearly 44% of the first intake at the Gwadar Vocational and Technical Institute, where training includes artificial intelligence and e-commerce. A planned Ban Mo College is expected to strengthen cooperation between educational institutions and businesses while contributing to digital talent development. In addition, the She Power initiative aims to distribute hygiene kits to 70,000 girls while providing teacher training on personal hygiene. The discussions indicated that Pakistan-China cooperation is increasingly extending from business and infrastructure into education, digital skills, women’s participation and broader social development.

The latest developments demonstrate the widening scope of Pakistan-China engagement as the two countries mark 75 years of diplomatic relations. From more than $22 billion in business agreements and enterprise relocation to renewable energy, agricultural technology, artificial intelligence, education and digital skills, cooperation is expanding across multiple areas. The focus on technology, clean energy, specialised regional partnerships and human development also points to a relationship increasingly shaped by commercial activity, knowledge exchange and capacity building alongside established economic cooperation.

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