As China and Pakistan celebrate the 75th anniversary of diplomatic relations in 2026, the China-Pakistan Economic Corridor (CPEC 2.0) enters a pivotal industrial phase. This initiative focuses on growth, livelihood, innovation, green development, and openness, as highlighted during a seminar organized by the Economic Diplomacy Forum.
Chinese Consul General Yang Yundong emphasized that the anniversary marks a significant milestone and a fresh start for bilateral cooperation. He stated that CPEC, a key project under the Belt and Road Initiative, has transitioned from large-scale infrastructure to industrial cooperation, sustainable development, and people-centered initiatives. The upgraded framework aims to deliver tangible economic outcomes, enhance connectivity, and boost investment flows. Gwadar Port’s transformation into a regional logistics hub and increased trade through the Karakoram Highway underscore the growing economic integration between the two nations.
Yang highlighted the five pillars of CPEC 2.0, including industrial expansion, trade facilitation, social development, digital cooperation, technology transfer, and environmentally sustainable projects. He noted that CPEC projects have created over 240,000 jobs in Pakistan, with initiatives in vocational training, healthcare, and clean water improving community living standards. Despite global economic challenges, China remains committed to multilateralism and inclusive globalization.
Dr. Muhammad Farooq Afzal noted that economic diplomacy is crucial for attracting foreign direct investment and integrating Pakistan into global value chains. He reported a trade volume of $25.2 billion between Pakistan and China in 2025, with Pakistan’s exports to China at $2.8 billion. The next phase of CPEC will focus on special economic zones, export-oriented industries, and industrial clusters, offering fiscal incentives and strategic connectivity. Pakistan’s young workforce and strategic location could position it as a regional manufacturing hub.
The Economic Diplomacy Forum aims to bridge diplomacy and business, promoting dialogue between investors and policymakers and supporting commercially viable projects. With consistent policies and predictable investment frameworks, Pakistan could capitalize on its potential as a manufacturing hub in South Asia, Central Asia, and the Middle East.
Published in SouthAsianDesk, February 5th, 2026
Follow SouthAsianDesk on X, Instagram and Facebook for insights on business and current affairs from across South Asia.
