Pakistan and China Launch CPEC 2.0 Economic Initiative

Prime Minister Shehbaz Sharif and Chinese Ambassador Jiang Zaidong reaffirmed the strategic partnership between Pakistan and China during celebrations in Islamabad on September 30, 2026, marking the 77th anniversary of the founding of the People’s Republic of China.

Sharif announced the transition to CPEC 2.0, a second phase of the China-Pakistan Economic Corridor. This new stage shifts the focus from infrastructure-heavy projects toward industrialization, agriculture, information technology, artificial intelligence, and mining. The initiative aims to stimulate economic revival, create jobs for youth, and develop Gwadar into a regional trade hub. Sharif also endorsed President Xi Jinping's global initiatives regarding security, development, civilization, and governance.

Ambassador Jiang Zaidong highlighted that bilateral trade grew 13.4 percent year-on-year to $16.44 billion between January and July, with China providing 60.7 percent of total foreign investment in Pakistan. Jiang pledged expanded cooperation in defense and counter-terrorism, alongside livelihood projects in Balochistan, including the construction of 100 clean water stations and the upgrading of 1,000 smart classrooms. The leaders noted that the two nations are also celebrating 75 years of diplomatic relations.