Pakistan, Chinese firms sign over $7 billion agreements as PM seeks industrial relocation

Pakistani and Chinese companies signed agreements and memorandums of understanding worth more than $7 billion on Sunday during the Pakistan-China B2B Investment Conference in Hangzhou, as Prime Minister Muhammad Shehbaz Sharif urged Chinese firms to relocate industries to Pakistan and enter joint ventures with local companies.

The conference focused on IT and telecom, battery energy storage systems, and agriculture. The prime minister said Pakistan offered investor-friendly policies and described industrial relocation and joint ventures as a “win-win model” for both countries.

He said rising labour costs in China and its movement toward high-end industrialisation created opportunities for Chinese industries no longer competitive in labour-intensive sectors to shift production to Pakistan, bring plant and machinery, partner with Pakistani entrepreneurs and export to third countries.

Shehbaz invited Chinese investors to visit the export zone in Karachi and said Pakistan had identified more than 6,000 acres for a special economic zone with modern infrastructure, one-window operations, long-term land leases and basic facilities for Chinese and Pakistani businesses.

Corporate meetings

The prime minister also met senior executives from Sheng Huo Neng Yuan Ke Ji Company, CATL, StarCharge and Xiuzheng Pharmaceutical Group.

In his meeting with Sheng Huo Neng Yuan Ke Ji Company CEO Agnes Siu, discussions focused on renewable energy cooperation. Shehbaz highlighted Pakistan’s emerging renewable energy market and government policies to facilitate solar power and clean energy investment.

His meeting with CATL Executive President Oscar Luo focused on advanced batteries, energy storage and solar-linked solutions to support Pakistan’s clean energy transition.

The meeting with StarCharge Group Chairwoman Danwei Shao centred on electric vehicle charging infrastructure and smart mobility systems.

Xiuzheng Pharmaceutical Group President Xin Yuan also called on the prime minister, with discussions covering pharmaceutical manufacturing, healthcare cooperation and investment opportunities in Pakistan’s medical sector.

The meetings also covered investment potential, establishment of manufacturing facilities and expansion of existing operations in Pakistan.

Agriculture, minerals and IT

The prime minister said Pakistan had major potential in mines, minerals and gemstones, while agriculture remained central to the economy.

He said Pakistan had sent 1,000 youth to China last year for advanced agricultural training, adding that the country needed to improve per-acre yield through quality seeds, modern practices and mechanisation.

Shehbaz noted that China imports around $100 billion worth of agricultural products annually, while Pakistan’s share remains small. He said Pakistan could increase agricultural trade with China by around $10 billion over the next five to seven years through cooperation, value addition and rural enterprise development.

He also highlighted opportunities in IT and artificial intelligence, saying Pakistan was training youth with international certification to improve employability.

Major agreements

In the presence of Prime Minister Shehbaz Sharif and Zhejiang Governor Liu Jie, a $1.12 billion agreement was signed between Haolu Engineering and Technology Company Limited and Fauji Fertilizer for fertiliser production.

A $100 million MoU was also signed between IBI Beijing United Information Technology Company and RIC for the production of agrochemicals and agricultural machinery and for establishing a regional office in Multan.

Officials said more than 200 MoUs worth over $20 billion had been signed during five Pakistan-China B2B conferences held so far, including events in Shenzhen, Beijing and Hangzhou. Shehbaz said around 30% of those MoUs had been converted into agreements.

The conference was attended by Deputy Prime Minister and Foreign Minister Mohammad Ishaq Dar, Governor of Zhejiang Province Liu Jie, Minister for IT and Telecommunication Shaza Fatima Khawaja, Minister for Information and Broadcasting Attaullah Tarar, Minister for National Food Security and Research Rana Tanveer Hussain, Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar, Pakistan’s Ambassador to China Khalil Hashmi, Servis Group CEO Omar Saeed, Long March Tyre Chairman Jin Yongsheng, IBI Goulian Gufen President Qian Xiaojun and China Council for the Promotion of International Trade Zhejiang Provincial Committee Chairman Chen Jianzhang.