Shanghai investment agreements set stage for deeper Pakistan-China industrial cooperation

Pakistan’s investment engagement with Chinese businesses is gaining momentum following 34 memorandums of understanding (MoUs)
and agreements reached at a recent conference in Shanghai, with growing emphasis on manufacturing partnerships, technology transfer
and export-oriented industrial development in line with the second phase of the China-Pakistan Economic Corridor (CPEC 2.0).
The agreements, signed during the October 15 Sindh Investment Conference, cover energy, minerals, electric vehicles, automotive
manufacturing, artificial intelligence, cloud computing, agriculture, food processing, logistics and warehousing.
Organised by the Sindh Investment Department in collaboration with the Consulate General of Pakistan in Shanghai, the conference
resulted in 10 government-to-government and 24 business-to-business arrangements. Representatives of more than 100 Pakistani and
Chinese companies participated, facilitating direct engagement between prospective investors and local enterprises.
The initiative reflects the increasing focus of Pakistan-China economic cooperation on industrial production, private-sector partnerships,
technology transfer and export development, alongside the infrastructure investments associated with earlier phases of CPEC.
Tahir Jamal, former adviser to the Islamabad Chamber of Commerce and Industry (ICCI), told Wealth Pakistan that the significance of the
Shanghai conference lay in its potential to connect Chinese investors directly with Pakistani businesses and support long-term industrial
development.
“The significance of the Shanghai conference lies in its potential to connect Chinese investors directly with Pakistani businesses. Pakistan
needs investment that goes beyond financial commitments and contributes to industrial production, technology transfer, employment and
export growth. Business-to-business cooperation can play an important role in achieving these objectives,” he said.

“Policy inconsistency, delays in infrastructure delivery, and bureaucratic red tape continue to hamper investor confidence,” Jamal said,
urging the government to align industrial and trade policies so that special economic zones support both foreign investment and
domestic entrepreneurship.
He said Pakistan should identify specific products within priority industries where Chinese investment could strengthen domestic
manufacturing and export capacity.
In textiles, he identified man-made fibre garments, technical textiles and value-added apparel as promising areas, while automotive
components, electrical equipment and industrial machinery parts could offer opportunities for joint ventures in light engineering.
Jamal said Chinese manufacturers could contribute advanced technology, industrial expertise and access to international supply chains,
while Pakistani firms could provide local production facilities, workforce capabilities and market knowledge.
“For example, an automotive investor operating in a special economic zone should be encouraged to source selected parts from Pakistani
manufacturers, develop local suppliers and gradually increase domestic content. Similarly, Chinese investment in textile processing should
help Pakistani exporters move into higher-value products rather than merely expand existing production capacity,” he said.
He added that such partnerships could help Pakistani businesses develop stronger industrial capabilities and improve their participation in
regional and international production networks.
Speaking to Wealth Pakistan, an official of the Trade Development Authority of Pakistan (TDAP), who requested anonymity, said the
agreements reached in Shanghai demonstrated growing interest among Chinese businesses in Pakistan’s investment potential.
“The agreements reached in Shanghai reflect growing interest among Chinese businesses in Pakistan’s investment potential. Such
engagements are important because they allow investors to explore commercial opportunities, understand the local business environment
and establish relationships that can gradually develop into long-term investment partnerships,” the official said.
The official emphasised that sustained engagement and effective investment facilitation would be important for translating the
agreements into commercially viable projects.
“A coordinated approach to investment facilitation can help Chinese businesses explore opportunities with greater confidence. Providing
timely information, supporting project development and maintaining regular communication with investors would help sustain the
momentum generated by the Shanghai conference,” the official added.
The official also acknowledged the role of recent government initiatives, particularly the Special Investment Facilitation Council (SIFC), in
facilitating investment processes and strengthening investor confidence, especially among investors from China and Gulf countries.
Such initiatives, the official said, could help create a more supportive environment for international investors interested in establishing
industrial and commercial partnerships in Pakistan.
However, the official emphasised that the long-term economic benefits of foreign investment