
05/09/2025
EP News; Pakistan and China have officially agreed to advance the China-Pakistan Economic Corridor into its second phase, branded CPEC 2.0, marking a major milestone in bilateral cooperation. Unlike the initial phase focused primarily on infrastructure and energy, CPEC 2.0 aims to diversify collaboration into key sectors including agriculture, information technology, media, science, and energy.
Both nations have signed multiple Memorandums of Understanding (MoUs) and joint ventures worth $8.5 billion, focusing on expanding business-to-business (B2B) cooperation. The agreements cover agriculture, electric vehicles, solar energy, healthcare, chemicals, petrochemicals, iron and steel, and technology-driven industries.
Prime Minister Shehbaz Sharif and Chinese Premier Li Qiang emphasized strengthening biotechnology in agriculture, harnessing China’s technological expertise to enhance Pakistan’s farming productivity and innovation. CPEC 2.0 also aims to develop five new economic corridors, special economic zones, and industrial clusters, attracting fresh Chinese investment to accelerate Pakistan’s economic growth.
However, China has decided to withdraw from the ML-1 railway project due to prolonged negotiations, prompting Pakistan to explore alternative funding sources, including a $2 billion loan from the Asian Development Bank to modernize the Karachi-Rohri railway segment.
CPEC 2.0 represents a strategic shift from pure infrastructure to knowledge-based and industrial cooperation, strengthening Pakistan-China ties across agriculture, IT, media, energy, and technology sectors.