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Pakistan and China have officially released a comprehensive, five-year plan to deepen their economic partnership, with a focus on trade liberalization, digital integration, and increased Chinese investment. This “Action Plan to Foster an Even Closer China-Pakistan Community with a Shared Future (2025-2029)” follows the recent visit of Prime Minister Shehbaz Sharif to Beijing, where he sought Pak-China disaster management cooperation among other venues of mutual interest.
The new roadmap outlines specific strategies for Economic, Trade, and Financial Cooperation, building upon the existing China-Pakistan Economic Corridor (CPEC). The plan aims to align CPEC with Pakistan’s “5Es Framework,” a national development vision that focuses on exports, e-Pakistan, environment, energy, and equity.
Key Economic Initiatives
- Increased Trade: The two countries will work toward greater trade liberalization under Phase-II of the China-Pakistan Free Trade Agreement. This includes exploring new bilateral concession arrangements to boost Pakistani exports to the Chinese market.
- Digital and Physical Connectivity: The action plan seeks to modernize the Khunjerab-Sost border crossing for year-round operation. To streamline trade, both nations will accelerate the development of a “single window” system for the electronic exchange of trade documents.
- Investment and Financial Support: The plan encourages Chinese companies to increase their investment in Pakistan by creating a more convenient business environment. Additionally, China has committed to continuing financial support and strengthening bilateral financial cooperation.
- Industrial Cooperation: The two sides will promote the establishment of Special Economic Zones (SEZs) and industrial parks in Pakistan to drive industrialization and boost exports.
This economic cooperation is a key pillar of the broader Action Plan, which also covers collaboration in political exchanges, science and technology, and security. The plan solidifies the “all-weather strategic cooperative partnership” between China and Pakistan, with both nations committed to a win-win approach for their shared future.
