ISLAMABAD: China and the United Arab Emirates are exploring opportunities for cooperation under the China Pakistan Economic Corridor (CPEC), China’s ambassador to Islamabad said on Friday.
The Belt and Road initiative is a Beijing-led program to boost economic and trade ties in dozens of countries in Asia, Europe and beyond, mostly through investments in energy and infrastructure.
In Pakistan, Beijing has pledged about $60 billion for the China-Pakistan Economic Corridor of power stations, major highways, new and upgraded railways and higher capacity ports, aimed to help turn Pakistan into a major overland route linking western China to the world.
The first phase of the corridor focused on the development of infrastructure and electricity projects and the second phase will be oriented towards industrialization and socio-economic development in nine special economic zones across the country.
“UAE is also a partner under the Belt and Road Initiative and has a lot of trade and economic links with Pakistan,” Ambassador Yao Jing told Arab News in an interview. “Between China and UAE, maybe we have some opportunities to cooperate for Pakistan’s development.”
Yao said since the ninth meeting of a Pakistan China Joint Cooperation Committee held this month, both countries had stepped up efforts to promote “third party investment” in the bilateral project.
After the visit of Pakistani Prime Minister Imran Khan to Saudi Arabia last September, Islamabad had invited Saudi Arabia to become a “strategic partner” in CPEC.
Ruling Pakistan Tehreek-e-Insaaf senator Syed Shibli Faraz welcomed investment in Pakistan from the UAE and Arab countries and told Arab News the government was discussing opportunities for Arab countries to join CPEC. They had shown “willingness,” he said.
Senator and Chairman of China-Pakistan Institute, Mushahid Hussain Syed, said the participation of friendly countries like UAE would be a “great plus” for CPEC.
In an earlier interview, UAE Deputy Head of Mission in Islamabad, Abdul Aziz Al Neyadi, told Arab News that UAE and China had common interests and were “ready to jointly work in a third country, as the government of UAE and China enjoy strong relations with Pakistan.”
UAE Ambassador to Pakistan, Hamad Obaid Ibrahim Salem Al-Zaabi, has also said: “Pakistan and UAE need to work together to further upgrade their ties aiming at developing a strategic partnership.”
UAE exploring opportunities for cooperation under CPEC — Chinese envoy
UAE exploring opportunities for cooperation under CPEC — Chinese envoy
- Yao says Pakistan and China have stepped up efforts to promote “third party investment” in the bilateral project
- Last September, Islamabad invited Saudi Arabia to become a “strategic partner” in CPEC
Pakistan PM orders accelerated privatization of power sector to tackle losses
- Tenders to be issued for privatization of three major electricity distribution firms, PMO says
- Sharif says Pakistan to develop battery energy storage through public-private partnerships
ISLAMABAD: Pakistan’s prime minister on Monday directed the government to speed up privatization of state-owned power companies and improve electricity infrastructure nationwide, as authorities try to address deep-rooted losses and inefficiencies in the energy sector that have weighed on the economy and public finances.
Pakistan’s electricity system has long struggled with financial distress caused by a combination of factors including theft of power, inefficient collection of bills, high costs of generating electricity and a large burden of unpaid obligations known as “circular debt.” In the first quarter of the current financial year, government-owned distribution companies recorded losses of about Rs171 billion ($611 million) due to poor bill recovery and operational inefficiencies, official documents show. Circular debt in the broader power sector stood at around Rs1.66 trillion ($5.9 billion) in mid-2025, a sharp decline from past peaks but still a major fiscal drain.
Efforts to contain these losses have been a focus of Pakistan’s economic reform program with the International Monetary Fund, which has urged structural changes in the energy sector as part of financing conditions. Previous government initiatives have included signing a $4.5 billion financing facility with local banks to ease power sector debt and reducing retail electricity tariffs to support economic recovery.
“Electricity sector privatization and market-based competition is the sustainable solution to the country’s energy problems,” Prime Minister Shehbaz Sharif said at a meeting reviewing the roadmap for power sector reforms, according to a statement from the prime minister’s office.
The meeting reviewed progress on privatization and infrastructure projects. Officials said tenders for modernizing one of Pakistan’s oldest operational hubs, Rohri Railway Station, will be issued soon and that the Ghazi Barotha to Faisalabad transmission line, designed to improve long-distance transmission of electricity, is in the initial approval stages. While not all power-sector decisions were detailed publicly, the government emphasized expanding private sector participation and completing priority projects to strengthen the electricity grid.
In another key development, the prime minister endorsed plans to begin work on a battery energy storage system with participation from private investors to help manage fluctuations in supply and demand, particularly as renewable energy sources such as solar and wind take a growing role in generation. Officials said the concept clearance for the storage system has been approved and feasibility studies are underway.
Government briefing documents also outlined steps toward shifting some electricity plants from imported coal to locally mined Thar coal, where a railway line expansion is underway to support transport of fuel, potentially lowering costs and import dependence in the long term.
State authorities also pledged to address safety by converting unmanned railway crossings to staffed ones and to strengthen food safety inspections at stations, underscoring broader infrastructure and service improvements connected to energy and transport priorities.
