China finalises $1.5bn deals, signs $9bn MoUs with Pakistan

China has finalised new joint venture agreements worth $1.5 billion with Pakistan and signed memoranda of understanding valued at approximately $9 billion across the agriculture, automotive and minerals sectors, Federal Minister for Investment Qaiser Ahmed Sheikh said on Thursday.

In a conversation with The Express Tribune, the minister stated that China is also set to make a further investment of $10 billion in the country in the near future, adding that global attention is increasingly focused on Pakistan and broad-based foreign investment is expected in the coming years.

According to the minister, a large trade delegation comprising 300 businesspersons from various sectors, organised by the Government of Pakistan, recently visited China. He said the government is planning to link the Reko Diq project to Karachi via Chagai, enabling travel from Chagai to Karachi through a special railway track and a new highway.

He added that $7 million will be obtained from international financial institutions for the development of an economic corridor connecting Chagai to Karachi. He also said that following the success of Bunyan-un-Marsoos, global demand for Pakistan's fighter aircraft has increased and production orders are expected from several countries.

Sheikh said the largest share of foreign direct investment in Pakistan is expected to flow into the agriculture and mining sectors.

Separately, at the 8th Pakistan Leadership Conversation organised by ACCA, Sheikh reiterated that Pakistan's ambition to become a trillion-dollar economy depends on alignment between policy, capital, industry and institutions, noting that fragmented progress cannot deliver sustainable growth.

He said digital technologies, AI and fintech can support economic advancement if scaled beyond pilot projects.