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China and Pakistan launch upgraded economic roadmap after high-level talks

Prime Minister Shehbaz Sharif’s state visit to Beijing secured an agreement to launch an upgraded version of the China-Pakistan Economic Corridor

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China and Pakistan have used Prime Minister Shehbaz Sharif’s state visit to Beijing to deepen their “all‑weather” partnership, roll out the next phase of the China-Pakistan Economic Corridor (CPEC) and signal closer coordination on security and global governance.

In talks with President Xi Jinping, Premier Li Qiang and top legislator Zhao Leji, both sides agreed to build an “upgraded version” of CPEC after its first decade, centred on five new corridors for growth, livelihoods, innovation, green development and openness. The roadmap is being aligned with Islamabad’s “5Es” framework, which prioritises exports, digitalisation, environment, energy and equity, positioning CPEC as the main channel for Pakistan’s next phase of industrialisation.

Several flagship infrastructure projects were highlighted. Beijing and Islamabad reaffirmed plans to upgrade the strategic ML‑1 railway line, agreeing to move ahead in phases and start work on financing. 

They also signed a framework agreement to realign the Raikot-Thakot section of the Karakoram Highway and pledged to modernise the Khunjerab-Sost border post so it can operate year‑round. Gwadar Port remains central to the plan, with both sides noting that its new international airport is nearing completion and calling for faster development of supporting facilities to turn the city into a regional transshipment and shipbuilding hub.

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The visit produced several agreements and memorandums of understanding spanning CPEC, agriculture, infrastructure, industrial cooperation, development assistance, media and film. A new action plan on industrial cooperation under CPEC aims to draw more Chinese manufacturers into Pakistan’s special economic zones, particularly in mining, processing and export‑oriented industries.

Beijing reiterated its commitment to Pakistan’s energy security, encouraging Chinese firms to expand investment in hydropower and other clean energy projects while helping modernise Pakistan’s power transmission and distribution network to cut losses. Both sides also agreed to push ahead with agricultural modernisation, including seed technology, irrigation and disease control, and to build a “digital information corridor” with cooperation in 5G, cloud computing and artificial intelligence.

Security featured prominently after the March 2024 attack on Chinese workers at the Dasu hydropower project. Both sides condemned the incident, with Pakistan pledging tougher protection for Chinese personnel and projects and the two governments vowing “zero tolerance” for terrorism and stronger counter‑terrorism cooperation.

At the multilateral level, the joint statement backed a “multipolar world” and “inclusive globalisation,” endorsed China’s Global Development, Security and Civilization Initiatives and promised closer coordination at the UN and within the Shanghai Cooperation Organisation. Pakistan reaffirmed its support for the One China principle, while China reiterated its backing for Pakistan’s sovereignty and development path, underscoring the enduring strategic weight of the relationship.