China and Pakistan expand CPEC 2.0 to boost industrial cooperation

China and Pakistan are working to deepen business-to-business (B2B) and industrial cooperation through the second phase of the China-Pakistan Economic Corridor (CPEC 2.0). Moving beyond initial infrastructure development, the new phase focuses on industrialization, technology, agriculture, and manufacturing to drive productivity and employment.

During consultations at the CPEC Secretariat, Pakistani Planning Minister Ahsan Iqbal emphasized the need to strengthen productive sectors to address the country’s limited export base. Iqbal noted a significant trade imbalance, highlighting that while China imports nearly $2.6 trillion annually, Pakistan’s exports to China are approximately $3 billion. He stressed that CPEC 2.0 should help close this export gap by improving production standards and increasing access to the Chinese market.

A Chinese delegation, led by senior adviser Sun Dongsheng, met with Pakistani policymakers to discuss advancing these industrial partnerships and strengthening economic ties through innovation and export-oriented industries.