Pakistan, China Ink $8.5B CPEC Mega-Deal
Second phase of controversial corridor launched in Beijing.
Pakistan and China have launched the second phase of the China-Pakistan Economic Corridor (CPEC), signing 21 agreements and joint ventures worth approximately $8.5 billion during Prime Minister Shehbaz Sharif’s visit to Beijing. The memoranda of understanding (MoUs), finalized on Thursday, September 4, 2025, cover cooperation in science, technology, information technology, media, investment, and agriculture, marking a significant expansion of CPEC 2.0, according to Pakistan’s Dawn newspaper.
The agreements were signed on the concluding day of Sharif’s six-day visit to China, where he met Chinese Premier Li Qiang and attended an investors’ conference. Sharif described the talks as “most productive,” emphasizing the commitment to advance CPEC 2.0 through five new corridors focused on economic and social development. The Prime Minister’s Office highlighted CPEC’s decade-long contribution to Pakistan’s socio-economic progress, underscoring the need to fast-track key projects like the Main Line-1 (ML-1) railway, the Karakoram Highway realignment, and the operationalization of Gwadar Port in Balochistan.
CPEC, a flagship of China’s Belt and Road Initiative (BRI), connects Xinjiang in China to Gwadar Port in Pakistan’s Balochistan, passing through Pakistan-occupied Kashmir (PoK), a route opposed by India due to territorial disputes. The BRI, a multi-billion-dollar initiative, aims to expand China’s global influence through infrastructure investments worldwide. Sharif, in a social media post, invited Chinese firms to increase investments in Pakistan, particularly in IT, agriculture, minerals, textiles, and industry.
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During the visit, Sharif also announced Pakistan’s plan to issue Panda Bonds, yuan-denominated debt securities, in China’s capital market to boost financial ties. The visit included Sharif’s attendance at the Shanghai Cooperation Organisation (SCO) Summit in Tianjin and Beijing’s WWII Victory Day parade, reinforcing the deepening strategic partnership between the two nations.
The $8.5 billion deals signal a robust push for CPEC 2.0, despite regional tensions and concerns over China’s growing economic footprint. As Pakistan and China deepen their collaboration, the projects are expected to drive economic growth but also face scrutiny over sovereignty and geopolitical implications.
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