Pakistan, China expand cooperation

Challenge SEZ attracts $150m investment as EV manufacturing tops trade talks

KARACHI/ISLAMABAD:

Pakistan and China are expanding cooperation across 21 priority sectors with investments exceeding $1.5 billion, reflecting the growing strength of the strategic economic partnership between the two countries, Ambassador to China Khalil Hashmi has said, according to statements issued on Wednesday.

Speaking at a high?level interaction organised by the Foreign Affairs Liaison Office (FALO) Karachi, Hashmi said Chinese investment in Pakistan continues to grow in sectors including defence production, information technology, agriculture, education, medical equipment, infrastructure development, pharmaceuticals and manufacturing. Joint ventures between Pakistani and Chinese companies are also increasing steadily.

The ambassador highlighted growing demand for Pakistani food products and agricultural goods in Chinese markets and said the government is making focused efforts to further enhance exports to China. Describing the China?Pakistan Economic Corridor (CPEC) as a transformational project, he said it has laid the foundations for prosperity, regional connectivity and economic growth, while future phases will create greater opportunities in industrialisation, agriculture, technology, logistics and human capital development. "Pakistan will not allow hostile elements or terrorists to undermine bilateral cooperation," Hashmi said, adding that the government is fully committed to ensuring foolproof security for Chinese engineers, technical experts and personnel working in the country.

Earlier, FALO Karachi Director General Muhammad Irfan Soomro described the interaction as a strategic conversation about Pakistan's economic future and Karachi's growing role as a bridge between the two countries. He said influence today is shaped by innovation, connectivity, supply chains, technology and economic strength, making economic diplomacy the new frontline of global competition. Pakistan must learn from China's success in industrialisation, export competitiveness, technological innovation, smart infrastructure and agricultural modernisation, he added.

Sindh Investment Advisor Syed Qasim Naveed Qamar assured participants that investors in Karachi and across Sindh would receive full facilitation and security support, reiterating the provincial government's commitment to domestic and foreign investors. Chinese Consul General Yang Yundong praised the interaction as an important platform for strengthening economic and people?to?people ties, describing Pakistan and China as 'iron brothers' whose friendship has withstood the test of time over 75 years.

Commerce minister discusses trade, EV cooperation

Separately, Federal Minister for Commerce Jam Kamal Khan held a detailed meeting with Chinese Minister Counsellor Yang Guangyuan to discuss bilateral trade, industrial cooperation, agriculture modernisation, logistics connectivity, supply chain resilience and emerging investment opportunities under the broader framework of the strategic economic partnership, said a statement issued on Wednesday.

Kamal highlighted the evolving global trade environment, noting that supply chain disruptions have reinforced the importance of resilient regional trade corridors. Pakistan's geographic location positions it as a natural gateway connecting China, Central Asia, the Middle East and emerging markets, he said.

A major focus of the discussion was Pakistan?China industrial cooperation, particularly in electric vehicles (EVs), renewable energy, battery manufacturing and advanced industrial technologies. Kamal noted that Chinese automotive brands have established a growing presence in Pakistan through assembly operations, and the next phase should focus on deeper industrial collaboration, localisation, technology transfer and joint ventures in EV manufacturing. Pakistan offers not only a growing domestic market but also significant export potential for regional and African markets.

The Chinese side appreciated Pakistan's interest in expanding industrial cooperation and acknowledged the strong participation of Pakistani companies in emerging sectors such as IT, EVs, energy technologies and manufacturing.

Agriculture cooperation also featured prominently. Kamal said changing weather patterns, fertiliser supply disruptions and food security concerns have made agricultural modernisation an urgent global priority. He highlighted Balochistan's potential for drought?resistant crops such as olives, pistachios, almonds, dates and pine nuts, stressing the importance of shifting towards sustainable, climate?resilient agriculture.

The meeting also explored community?focused development cooperation, including water security solutions, renewable energy applications, solar?powered community infrastructure, women's vocational empowerment and rural welfare initiatives. Gwadar's emerging role as a regional trade hub was also discussed.

Challenge SEZ project reviewed

Federal Minister for Board of Investment Qaiser Ahmed Sheikh held a productive meeting with a high?level delegation of Challenge Fashion (Private) Limited, led by Chairman Huang, to discuss progress on the Challenge Special Economic Zone (SEZ) in Lahore.

Sheikh welcomed the delegation and appreciated Challenge Group's continued confidence in Pakistan's economy, terming the SEZ a landmark initiative. According to the statement issued on Wednesday, the project, with a proposed investment of $150 million, reflects a strong commitment to export?oriented industrialisation, employment generation and technology transfer. Its success will serve as a model for other international investors, particularly Chinese enterprises.

Both sides discussed development status, including progress on infrastructure, utilities and regulatory facilitation. The minister assured full government support for timely resolution of outstanding matters. The discussion also focused on SEZs in other countries, particularly Vietnam, where streamlined procedures have attracted large?scale foreign investment. WITH ADDITIONAL INPUT FROM APP