Pakistan-China Companies Sign USD 7 Billion Deals in Hangzhou
Pakistani and Chinese companies have inked deals worth USD 7 billion on the sidelines of Prime Minister Shehbaz Sharif's visit to Hangzhou, as the Prime Minister urged Chinese industrial firms to relocate manufacturing operations to Pakistan. The scale of the agreements marks one of the largest single-round commercial commitments in Pakistan-China economic history.
PM Shehbaz personally met with top corporate chief executives from leading Chinese conglomerates in Hangzhou, making Pakistan's investment case directly to decision-makers in the world's second-largest economy. The pitch centred on Pakistan's low-cost labour, strategic geographic positioning, and improved macroeconomic stability as attractive factors for industrial relocation.
The USD 7 billion figure encompasses a range of deals spanning manufacturing, energy, infrastructure, and industrial zones. Chinese firms have been under mounting pressure from rising domestic costs and geopolitical trade friction with Western markets, making the case for offshore manufacturing platforms more compelling than at any previous point.
The agreements represent a significant acceleration in the CPEC second phase, which the Pakistani government has framed around industrial cooperation and job creation rather than purely infrastructure financing. If fully executed, the deals could materially shift Pakistan's industrial output and export capacity over the medium term.
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