ISLAMABAD: Pakistani Prime Minister Shehbaz Sharif on Thursday announced the launch of the second phase of the China–Pakistan Economic Corridor (CPEC) during an investment conference in Beijing, vowing to safeguard Chinese nationals working in the country and accelerate stalled projects.
Sharif was in China on a six-day visit that began with the Shanghai Cooperation Organization (SCO) heads of state summit in Tianjin earlier this week. He has since held talks with President Xi Jinping, Premier Li Qiang and Russian President Vladimir Putin, as well as met Chinese business leaders at a large investment forum.
CPEC, first signed in 2015, is a multi-billion-dollar network of roads, railways, ports and power plants linking western China to the Arabian Sea through Pakistan. A flagship of President Xi’s Belt and Road Initiative (BRI), Pakistan’s Planning Commission (CPEC Secretariat) reported last year that completed and ongoing CPEC projects were worth about $25.4 billion, with another $8 billion under implementation, putting the total Chinese investment at around $33 billion so far.
The scheme’s second phase, branded “CPEC 2.0,” aims to expand beyond roads and energy into industry, agriculture, information technology and special economic zones, with Islamabad looking to revive growth and attract new Chinese capital.
“Today we are ready to launch CPEC 2.0 and this CPEC 2.0 would comprise of B2B investments … in agriculture,” Sharif told Chinese business leaders. “And then of course is another very important area IT and AI where China is a world leader and then mines and minerals is another very important potential area of mutual cooperation … These are the pillars of CPEC 2.0.”
The prime minister stressed agriculture’s role as “the backbone” of Pakistan’s economy, which accounts for about 60 percent of GDP, and urged Chinese companies to bring expertise and investment into the sector.
Sharif also sought to reassure investors about security and bureaucratic delays that have plagued projects.
“The question obviously which is concerning most of you is about security in Pakistan, but I want to make it clear … that security of Chinese brothers and sisters in Pakistan is paramount for all of us,” he said.
The premier added: “Delays take place, there are impediments … So let me assure you … we will not tolerate even a second’s delay in taking decisions to facilitate you to invest in Pakistan.”
CPEC has been repeatedly targeted by militants. In March 2024, a suicide bombing killed five Chinese engineers and their Pakistani driver near the Dasu hydropower project in northwestern Pakistan. In October the same year, two Chinese nationals were killed in a suicide attack near Karachi airport. Separatist groups in Balochistan, where China has interests in port and mines projects, among others, accuse China of exploiting local resources, allegations Beijing and Islamabad reject.
Sharif said Pakistan’s economy had stabilized and was ready for renewed foreign investment, adding that “sky is the limit” for Chinese ventures under CPEC 2.0.
Pakistan has been implementing reforms under a $7 billion International Monetary Fund program approved in September 2024, focused on tax collection, energy sector restructuring and privatization of state-owned firms.
The measures have helped stabilize public finances, rebuild foreign exchange reserves and improve international credit ratings, with Fitch Ratings upgrading Pakistan’s outlook to positive in mid-2025. Officials say the steps are crucial for restoring investor confidence and laying the groundwork for sustainable growth in the South Asian nation.
