MANSEHRA: Pakistan and China are intensifying their collaboration in emerging green sectors via the China-Pakistan Economic Corridor (CPEC), according to Mustafa Hyder Sayed, executive director of the Pakistan-China Institute. Sayed highlighted the green CPEC project as a global model of people-centered, win-win cooperation that promotes new energy transition and sustainable economic development.
The comments were made ahead of the 8th China-South Asia Expo, scheduled in Kunming, Yunnan Province, from July 23-28, where green energy will be a key sector for enhanced business cooperation. Sayed stressed accelerating Chinese industry relocation and technology transfer to Pakistan to enhamce bilateral cooperation across green sectors. This process aims to fuel local economic development and energy transition, benefiting both countries.
CPEC, a flagship project under the Belt and Road Initiative (BRI), is upgrading into a green economic corridor. Sayed noted that CPEC has significantly benefited Pakistan by addressing its energy crisis, improving connectivity, developing infrastructure, and revitalizing ports for enhanced commerce. Pakistan is committed to renewable energy projects and eco-friendly initiatives within the green CPEC, leveraging Chinese expertise and technology. Sayed acknowledged the necessity of securing financial support from China through investments from Panda Bonds and green bonds issued by Chinese banks.
Since its inception in 2013, CPEC has created 236,000 jobs in Pakistan and added 510 kilometers of highways, 8,000 megawatts of electricity generation capacity, and 886 kilometers of expressway network. Various energy projects under CPEC, such as wind and hydroelectric projects, are notable efforts towards diversifying Pakistan’s energy matrix. Chinese investments can help Pakistan reduce its dependence on imported fuels and support its vision of achieving 30 percent green energy capacity by 2030.
In June, the first unit of the China-built Suki Kinari Hydropower project in northwest Pakistan entered its wet testing phase, marking a significant step towards renewable energy cooperation under CPEC. Looking forward, Sayed expects more joint ventures, focusing on localizing solar panel cells manufacturing in Pakistan.
Sayed emphasized facilitating low-carbon investment from China into Pakistan, establishing clear green investment criteria for Chinese investors, and ensuring projects’ financial viability, security, and profitability. He praised China’s people-centric cooperation model, which prioritizes ecological and environmental protection as integral to human development, focusing on improving living standards—a model Pakistan views as ideal for its modernization.
China and Pakistan announced in late May,, five new corridors for the second phase of CPEC construction, including the Innovation and Green Corridors. Pakistani officials aim to attract more Chinese investment for joint ventures in renewable energy and modern agriculture projects. Sayed highlighted the shared prosperity and mutual benefits of China’s economic growth model, contrasting it with the Western countries’ new Cold War mentality and their attempts to smear China’s rise by labeling BRI investments as debt traps.
Sayed is hopeful that China’s growth prospects, noting the resilience of the Chinese economy amid efforts for high-quality development. China’s new development pattern of “dual circulation” aims to transform its economy into one driven by both domestic and international demand, promising a sustainable development path.
