Economic Affairs
Pakistan-China economic cooperation has grown significantly in recent years, strengthening bilateral trade and investment ties. China is Pakistan’s largest trading partner and the source of FDI.
Since the implementation of CPFTA in 2007, bilateral trade between Pakistan and China has expanded considerably. By 2024, total trade volume had increased to approximately $23.06 billion, with $2.82 billion in Pakistani exports to China. This reflects an approximate 3.4-fold increase in total trade over 17 years. Notably, Pakistan’s exports to China grew nearly 5.8 times during this period, demonstrating the continued positive impact of trade liberalization and enhanced market access.
The Embassy of the Islamic Republic of Pakistan in Beijing continues to collaborate closely with government and business stakeholders in both Pakistan and China to foster economic partnerships. These efforts focus on trade liberalization, enhancing export competitiveness,targetted business exchanges and increasing investment opportunities in Pakistan’s priority sectors.
In the area of trade, the Embassy works actively with Chinese counterparts to promote bilateral trade through sector-specific B2B events, participation in exhibitions and trade shows, and the resolution of trade disputes to facilitate smoother business interactions and strengthen commercial ties.
With regard to investment, the Embassy has identified key priority sectors and is committed to organizing matchmaking events to facilitate joint ventures (JVs). These initiatives aim to enhance business collaborations and attract foreign direct investment by connecting Pakistani and Chinese businesses with potential investors. By fostering strategic partnerships, the Embassy seeks to create a conducive investment environment that promotes long-term economic cooperation and mutual prosperity.
These ongoing efforts aim to generate new economic opportunities, strengthen industrial cooperation, and drive sustainable economic growth. They align with the national visions set forth by Uraan Pakistan and the Community with a Shared Future for Mankind, reinforcing Pakistan-China strategic economic ties and paving the way for a shared path to development and prosperity.
Joint Statements
In the recent joint statements issued during high-level visits between China and Pakistan, both countries have consistently reaffirmed their commitment to deepening commercial trade and investment cooperation.
During Pakistani President Asif Ali Zardari’s visit to China (February 4-8, 2025), both sides underscored the importance of expanding bilateral trade, promoting industrial cooperation, and enhancing investment flows. They agreed to further facilitate trade by optimizing the China-Pakistan Free Trade Agreement (CPFTA), encouraging Pakistani exports to China, and creating a more favorable business environment for investors. Special emphasis was placed on Pakistan’s potential in textiles, agriculture, and technology-driven industries, with China reaffirming its support for industrial upgrading and infrastructure development in Pakistan.
Similarly, during Chinese Premier Li Qiang’s visit to Pakistan (October 14-17, 2024), both sides emphasized the need for accelerating investment in Special Economic Zones (SEZs) under the China-Pakistan Economic Corridor (CPEC) framework. Chinese enterprises were encouraged to expand operations in Pakistan’s manufacturing, mining, and energy sectors, while Pakistan pledged to improve its investment climate through policy incentives and regulatory reforms. Both countries also agreed to promote cross-border e-commerce, digital trade, and financial sector cooperation to facilitate seamless business transactions.
Earlier, during Prime Minister Muhammad Shehbaz Sharif’s visit to China (June 4-8, 2024), trade and investment remained central to discussions. Both sides highlighted CPEC’s second phase, focusing on industrial cooperation, technological innovation, and energy investments. Notably, China expressed willingness to strengthen supply chain integration, boost joint ventures, and encourage Chinese enterprises to invest in Pakistan’s priority sectors, including automobile manufacturing, agricultural processing, and IT services. They also agreed to accelerate key projects such as ML-1 railway upgradation, Gwadar Port development, and energy transmission infrastructure, ensuring greater connectivity for trade expansion.
These joint commitments underscore the deepening economic integration between China and Pakistan, with both sides focused on enhancing bilateral trade volumes, facilitating large-scale investments, and strengthening industrial linkages for sustainable growth.