The Pakistan China Industrialisation Dialogue was held in Islamabad on Tuesday, bringing together policymakers, diplomats, business leaders, and development experts to chart the next phase of economic cooperation under the China-Pakistan Economic Corridor (CPEC).
The session was opened by Mustafa Hyder Sayed, who welcomed participants and highlighted the transition of CPEC from infrastructure development in its first phase to industrial cooperation and business-to-business (B2B) linkages under Phase II. He also acknowledged the presence of Federal Minister for Board of Investment Qaiser Ahmed Sheikh and appreciated efforts to convert policy frameworks into investment outcomes.
Addressing the dialogue, Qaiser Ahmed Sheikh described Pakistan and China as “iron-clad friends” and underlined the strategic importance of deepening economic ties. He said CPEC, launched in 2015 with an estimated value of $46 billion, has evolved into Pakistan’s largest foreign investment initiative, with around $30 billion already realised and over 261,000 jobs created.
He noted that Phase I of CPEC focused on addressing critical infrastructure gaps, including the addition of more than 8,000 megawatts of electricity to the national grid and the development of extensive road networks, which now serve as a foundation for industrial expansion.
The minister said Pakistan is now entering “CPEC 2.0,” which prioritises industrialisation, export-led growth, and enhanced B2B cooperation. He stressed the need to shift from an import-dependent economy to one focused on value-added production and exports.
Highlighting investment opportunities, he pointed to Special Economic Zones (SEZs), offering incentives such as tax exemptions, including up to nine years of income tax relief, to attract domestic and foreign investors. He also referred to efforts to relocate Chinese industries to Pakistan to boost exports and industrial capacity.
The minister shared that overseas Pakistanis and international investors, particularly during his recent visit to the United Kingdom, have shown increasing interest in Pakistan’s economic prospects. He added that global perceptions of Pakistan are improving, creating a more favourable investment climate.
He further outlined ongoing reforms by the Board of Investment aimed at improving the ease of doing business, including the establishment of Business Facilitation Centres and the implementation of the “Asaan Karobar Act.”
Dr. Shezra Mansab, Minister of State, also spoke at the event, focusing on green industrialisation and sustainable development, highlighting cooperation with Chinese counterparts in climate-friendly economic practices.
Chinese Counsellor Yang Guangyuan reaffirmed Beijing’s commitment to strengthening cooperation across sectors including agriculture, IT, pharmaceuticals, and manufacturing. He noted existing joint ventures such as tyre production and industrial services, and encouraged greater Chinese investment in Pakistan’s industrial sector.
Speakers at the dialogue emphasised the need to address the trade imbalance between the two countries by expanding Pakistan’s export base through value-added manufacturing and stronger supply chains.
The event concluded with a renewed commitment from both sides to deepen industrial cooperation under CPEC Phase II, enhance economic integration, and strengthen regional connectivity. The Board of Investment reiterated its commitment to facilitating investors and supporting sustainable industrial development in Pakistan.