What's Next for Pakistan and China? Major Agreements Signed in CPEC 2.0

New Developments in CPEC

Islamabad: The second phase of the contentious China-Pakistan Economic Corridor (CPEC) has officially commenced, with both nations signing 21 agreements and joint ventures valued at approximately $8.5 billion.

These memorandums of understanding (MoUs) were finalized in Beijing on Thursday, coinciding with the conclusion of Prime Minister Shehbaz Sharif's visit to China, where he engaged with Chinese Premier Li Qiang and participated in an investors' conference.

As reported by a local newspaper, the agreements encompass collaboration in the development of CPEC 2.0, alongside sectors such as science and technology, information technology, media, investment, and agriculture.

The total estimated value of these MoUs and joint ventures stands at around $8.5 billion. An official statement from the Prime Minister's Office (PMO) described the discussions with Li as 'highly productive.'

The two nations have committed to closely collaborate on the next phase of the upgraded CPEC 2.0, which will feature five new corridors.

India has expressed its opposition to the CPEC, which aims to connect Xinjiang in China with Gwadar port in Pakistan's Balochistan, as it traverses through Pakistan-occupied Kashmir (PoK). This project is a cornerstone of China's ambitious Belt and Road Initiative (BRI).

The BRI is perceived as a strategy by Beijing to extend its global influence through infrastructure investments worldwide.

During the meeting, Prime Minister Sharif emphasized the 'significant contribution' of CPEC to Pakistan's socio-economic progress over the last decade.

He also highlighted the urgency of expediting the Main Line-1 (ML-1) railway project, the realignment of the Karakoram Highway, and the operationalization of Gwadar Port.

In a social media update on Thursday, Sharif encouraged Chinese firms to expand their investments in Pakistan, noting that both parties agreed to enhance cooperation in IT, agriculture, minerals, textiles, and industry.

According to state-run Radio Pakistan, the Prime Minister also indicated Pakistan's plans to issue Panda Bonds, a type of debt security in Chinese yuan (RMB), in the Chinese capital market shortly.

Sharif's six-day trip to China included attendance at the Shanghai Cooperation Organisation Summit (SCO) in Tianjin and the WWII Victory Day parade in Beijing.