Key points
- Private sector positioned to drive CPEC Phase-II investment
- Pakistan targets $100 billion in exports by 2035
ISLAMABAD: The second phase of the China-Pakistan Economic Corridor (CPEC) is transforming into a platform for export-led growth, private-sector investment and industrial development.
Pakistan’s government is placing business-to-business cooperation, modern agriculture, technology and minerals at the centre of its economic strategy.
The priorities form part of the CPEC Action Plan 2025–2029, finalised during Prime Minister Muhammad Shehbaz Sharif’s visit to China in August 2025.
The government has reviewed progress during the first year of the plan and directed relevant ministries to accelerate implementation of agreed priorities.
According to the Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, the private sector must play a leading role in converting opportunities under CPEC Phase-II into investment, production and exports.
The government was focused on providing an enabling environment for businesses and investors, he added.
From infrastructure to export
Pakistan-China cooperation had strengthened during difficult periods, said the minister, recalling that China provided critical investment when Pakistan was facing severe energy shortages.
CPEC Phase-I attracted around $25 billion in Chinese investment and added nearly 8,000 megawatts to Pakistan’s power generation capacity, helping address the country’s energy crisis and improve energy security.
Thar coal development and the fibre-optic network were also cited among the major achievements of the first phase.
Phase-II is intended to build on this infrastructure foundation by shifting the emphasis towards business-to-business cooperation, industrialisation, agricultural modernisation, minerals, human capital development and technology.
The Phase-II agenda is aligned with the five pillars of Pakistan’s URAAN Pakistan framework through the Growth, Livelihood, Innovation, Green Economy and Openness corridors.
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The Growth Corridor will focus on strengthening industrial and agricultural capacity to expand exports. The Livelihood Corridor will promote social development and support less-developed regions; the Innovation Corridor, aligned with E-Pakistan, will seek to expand information technology capabilities and equip millions of young people with modern skills.
Pakistan’s young population is its greatest economic asset, reflecting the potential for technology and skills development to create employment and support a more productive economy.
The Green Economy Corridor will focus on climate resilience, water and food security and agricultural modernisation.
The government plans to send 1,000 agricultural experts to China for training in modern farming technologies, to develop a critical mass of trained professionals and lay the groundwork for what Iqbal has termed “Green Revolution 2.0”.
$100 billion export target
Iqbal described export expansion as a “national emergency”, stressing that Pakistan’s target of increasing exports to $100 billion by 2035 was essential for the country’s economic survival.
He called for closer cooperation between the government and private sector to improve competitiveness, expand productive capacity and establish “Made in Pakistan” as a globally recognised brand.
The minister has also stressed the need to diversify Pakistan’s export base and move towards higher-value products.
Sectors such as information technology, engineering, manufacturing, agriculture, mining and minerals were to offer opportunities for greater foreign-exchange earnings.
The Openness Corridor is expected to support regional connectivity and economic integration, potentially allowing CPEC to serve as a broader platform for trade and investment beyond Pakistan and China.
He called for national unity and stronger institutional coordination to convert recent strategic and diplomatic gains into economic benefits.
“For Pakistan’s future and a better tomorrow for our youth, we cannot compromise on the country’s economic development,” he said.
“Pakistan does not need to heat its roads; Pakistan needs to heat its economy,” Iqbal stressed, urging all political forces to focus on strengthening the economy and building a self-reliant, export-driven Pakistan.
Pakistan’s government intends to reposition CPEC from an infrastructure-led initiative towards an economic partnership centred on industrial production, exports, technology, agriculture and private-sector investment.
