ISLAMABAD: A high-level delegation of Chinese companies is in Islamabad this week, state-run Radio Pakistan reported on Wednesday, as Pakistan pushes for foreign investment in a bid to shore up its $350 billion economy as it navigates a tough reforms agenda mandated by the International Monetary Fund (IMF).

Islamabad and Beijing signed 32 memorandums of understanding (MoUs) to promote trade and investment in June during Prime Minister Shehbaz Sharif’s visit to China with a team of 100 businessmen. The agreements covered fields like IT, textiles, leather and footwear, minerals, pharmaceuticals and agriculture and food processing. 

Chinese investment and financial support for Pakistan since 2013 have been a boon for the South Asian nation’s struggling economy, including the rolling over of loans so that Islamabad is able to meet external financing needs at a time foreign reserves are critically low. Beijing has over $65 billion in investments in road, infrastructure and development projects under the China-Pakistan Economic Corridor, which is a part of the Belt and Road scheme.

The Chinese delegation currently in Islamabad includes four main business groups, Radio Pakistan reported, who on Tuesday visited the Special Investment Facilitation Council (SIFC) set up by Pakistan in July last year to serve as a “one window operation” to attract foreign investments. 

“Chinese business delegation has evinced keen interest for investment in major sectors of Pakistan’s economy and relocating Chinese industries here,” Radio Pakistan said. 

“The delegation was apprised of potential investment opportunities in priority sectors including agriculture, livestock, Information Technology, energy, minerals, tourism and industry.”

The Chinese companies were also briefed about policy-level measures undertaken by the SIFC to improve the country’s overall business environment as well as on “salient features of industrial development in Pakistan.”

There was no comment from the Chinese side about the meetings in Islamabad. 

The CPEC framework is central to Beijing’s initiative to rebuild a new “Silk Road” through land routes and sea lanes to connect with markets in the Middle East, Africa and Europe. But the undertaking has been hit by Pakistan struggling to keep up its financial obligations as well as militant attacks on Chinese nationals in Pakistan.

In recent months, China has publicly raised with Pakistan the issue of the security of its workers and interests, especially since a March suicide attack in which five Chinese workers and their local driver were killed in Pakistan’s northwest.

Pakistan has also initiated difficult talks on reprofiling power sector debt owed to China as well as negotiations on structural reforms, but progress has been slow.