Key Points
- Leaders push for swift execution of flagship transport and port projects.
- Five new CPEC 2.0 corridors set to expand cooperation beyond infrastructure.
- Pakistan to float Panda Bonds, boosting capital market linkages with China.
ISLAMABAD: Prime Minister Muhammad Shehbaz Sharif and Chinese Premier Li Qiang on Thursday reaffirmed their resolve to accelerate key projects under the China-Pakistan Economic Corridor (CPEC), particularly the long-delayed Main Line-I (ML-I) railway upgrade, the Gwadar Port operationalisation, and the Karakoram Highway (KKH) realignment.
The commitment was made during delegation-level talks in Beijing, followed by a luncheon hosted by Premier Li in honour of the visiting Pakistani delegation, according to an official statement issued by the Prime Minister’s Office.
Both leaders reaffirmed their commitment to deepening the Belt and Road Initiative (BRI) partnership with a focus on transport, energy, and investment, and agreed to accelerate the early implementation of three core projects under the China–Pakistan Economic Corridor.
Joint action plan and CPEC Phase II
Building on the consensus reached between President Xi Jinping and Prime Minister Shehbaz during the September 2 meeting, the two sides described the signing of the Joint Action Plan 2024-2029 as a significant step toward deepening the “iron-clad all-weather strategic cooperative partnership.”
On the economic front, the Prime Minister highlighted the “transformative role” the CPEC had played in Pakistan’s socio-economic development over the past decade. The PM stressed that early implementation of ML-I, the KKH realignment, and Gwadar Port operationalisation were vital for the corridor’s next phase. Both leaders agreed to intensify work on CPEC 2.0, which envisages five new cooperation corridors, while also expanding business-to-business ties.
The operationalisation of Gwadar Port—transforming it into a fully functional deep-sea port with allied infrastructure—is expected to significantly enhance Pakistan’s trade and regional connectivity under the Belt and Road Initiative. Meanwhile, the realignment of the 250 km Thakot–Raikot stretch of the Karakoram Highway is designed to improve safety and climate resilience in Gilgit-Baltistan, bolstering overland connectivity with China. Upgrading ML-I—the Karachi–Peshawar railway spine stretching nearly 1,700 km—is projected to double train speeds to approximately 140 km/h and greatly increase freight and passenger capacity, according to the Pakistan government’s designated website on CPEC (cpec.gov.pk).
Focus on CPEC’s priority projects
PM Office said both sides resolved to intensify work on CPEC 2.0, which introduces five new economic corridors: the Growth Corridor, Livelihood-Enhancing Corridor, Innovation Corridor, Green Corridor, and the ‘Regional Connectivity (Opening-Up) Corridor’. These corridors are aligned with Pakistan’s “5 Es” strategy—Export, Energy (Infrastructure), Equity, E-Pakistan, and Environment—and are intended to drive sectoral investment across export promotion, clean energy, digital transformation, inclusive growth, and regional integration
Shehbaz Sharif told his counterpart that Pakistan’s government was committed to undertaking reforms to ensure a conducive environment for investment and revealed plans to float Panda Bonds in China’s capital market. He also highlighted the outcome of a Pakistan-China B2B Investment Conference held earlier in the day, which drew participation from more than 800 companies across sectors, including agriculture, mining, textiles, industry, and IT.
Unflinching support
The Prime Minister expressed gratitude to the Chinese leadership for what he called their “unflinching support” to Pakistan’s sovereignty and socio-economic stability. He also conveyed congratulations on China’s successful hosting of the Shanghai Cooperation Organisation (SCO) Council of Heads of State Summit in Tianjin and on the 80th anniversary of China’s victory in the War of Resistance and World Anti-Fascist War.
Pakistan reiterated support for President Xi Jinping’s global initiatives, including the Global Development, Global Security, Global Governance, and Global Civilisation Initiatives. Both sides also agreed to mark the 75th anniversary of the establishment of diplomatic ties next year with commemorative events.
At the conclusion of the talks, Shehbaz and Li witnessed the signing and announcement of multiple memorandums of understanding and agreements covering cooperation in CPEC 2.0, science and technology, IT, media, and agriculture.
Both ML-I and KKH, along with Gwadar Port operationalisation, are seen as the core infrastructure priorities of CPEC Phase II, critical for trade, transit, and regional connectivity.
