China and Pakistan are moving to deepen business-to-business (B2B) and industrial cooperation under the second phase of the China-Pakistan Economic Corridor (CPEC), with Islamabad seeking greater Chinese investment and participation in manufacturing, agriculture, technology and export-oriented industries.
The latest discussions reflect a broader shift in the focus of CPEC 2.0, with both countries looking beyond infrastructure development toward industrialization, productivity, innovation, employment generation and stronger exports.
A Chinese delegation led by Sun Dongsheng, senior adviser at the Economic Affairs Press, held consultations with Planning Minister Ahsan Iqbal and senior Pakistani policymakers at the CPEC Secretariat. The discussions focused on ways to advance B2B partnerships and strengthen industrial cooperation between companies from the two countries.
During the meeting, Ahsan Iqbal highlighted Pakistan’s limited export base as one of the major challenges facing the country’s economy. He stressed the need to make productive sectors stronger contributors to exports and economic growth.
According to the minister, CPEC 2.0 should help Pakistan address its export gap in much the same way that the first phase of the project helped the country overcome major energy shortages.
Iqbal also called for greater access for Pakistani products in the Chinese market. He pointed out that China imports goods worth nearly $2.6 trillion annually, while Pakistan’s exports to China remain around $3 billion.
The significant gap between the two figures, according to the minister, highlights the potential for substantially increasing Pakistani exports to China if local businesses can become more competitive and gain better access to the Chinese market.
He emphasized that Pakistan needs to take advantage of the opportunities presented by the Chinese economy by improving production standards, developing competitive industries and encouraging stronger partnerships between businesses in both countries.
The Planning Minister said that CPEC 2.0 is increasingly focused on B2B cooperation, with Pakistani and Chinese companies already entering into regional agreements in sectors including industry, agriculture and mining.
Such partnerships, he said, could play an important role in modernizing Pakistan’s industrial and agricultural sectors while improving productivity and creating opportunities for exports.
Agriculture was also highlighted as an important area for future cooperation. Pakistan is seeking to benefit from China’s experience in modern farming techniques, technology, mechanization and productivity enhancement.
The two countries are also looking toward greater cooperation in advanced technologies. Iqbal said Pakistan wants to learn from China’s experience in innovation, automation and robotics as it works to modernize its manufacturing base.
He proposed cooperation with Chinese institutions comparable to Pakistan’s National Centre of New Manufacturing, particularly to support the country’s transition toward Industry 4.0 and Industry 5.0 technologies.
These technologies can help businesses introduce automation, smart manufacturing, advanced robotics and data-driven production systems, potentially improving efficiency and reducing production costs.
Sun Dongsheng welcomed the progress achieved during the first phase of CPEC and emphasized the need for deeper cooperation in industrial and agricultural sectors during the next phase.
He also stressed the importance of strengthening productive capacity and encouraging greater participation from small and medium-sized manufacturers. According to the Chinese side, expanding B2B partnerships could allow more private-sector companies to benefit from economic cooperation between Pakistan and China.
The consultations also highlighted the changing nature of CPEC. While the first phase placed considerable emphasis on infrastructure, energy and connectivity projects, the second phase is expected to put greater emphasis on industrialization, competitiveness, productivity and private-sector investment.
Under CPEC 2.0, the governments of both countries are seeking to encourage businesses to establish direct partnerships, develop joint ventures, increase investment and explore opportunities in regional and international markets.
The Chinese delegation also pointed to the alignment between the five corridors planned under CPEC 2.0 and Pakistan’s Uraan Pakistan 5Es framework.
The broader objective is to translate cooperation into tangible economic outcomes, including new businesses, technology transfer, employment opportunities, increased exports and higher investment.
For Pakistan, the success of CPEC 2.0 could depend heavily on its ability to move from infrastructure-led development toward sustainable industrial growth. Expanding exports, attracting investment and improving productivity remain key challenges for the economy.
Greater Chinese participation in manufacturing, agriculture, mining and technology could provide Pakistani companies with access to expertise, capital, modern production techniques and international supply chains.
However, stronger B2B cooperation will also require improvements in Pakistan’s business environment, infrastructure, skills development and regulatory framework. Ensuring that local companies can effectively participate in joint ventures and compete in international markets will be essential.
The latest consultations indicate that Pakistan and China are seeking to make CPEC 2.0 more commercially driven, with businesses expected to play a larger role in determining the next phase of economic cooperation.
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