Pakistan's Govt. is set to revive China's BRI projects
ECONOMY & POLICY

Pakistan's Govt. is set to revive China's BRI projects

In an effort to strengthen the nation's faltering economy, Pakistan's new administration intends to give initiatives covered by China's Belt and Road Initiative some much-needed impetus. Ahsan Iqbal, Pakistan?s federal minister for Planning, development, and Special Initiatives, who also co-heads the committee responsible for the China-Pakistan Economic Corridor, mentioned that the South Asian nation is considering joint ventures for renewable energy projects, collaboration in agriculture, and potentially attracting some Chinese companies to relocate to Pakistan. He shared his optimism, stating that he had recently been in China and had meetings with their senior leadership. He expressed seeing significant interest on the Chinese side to reinvigorate momentum for CPEC and advance it into the second phase. This was conveyed by Iqbal at his office in Islamabad, where a large map showcasing the China-Pakistan Economic Corridor adorned the walls. With CPEC, which includes new power plants and a port in the southern town of Gwadar, Pakistan was viewed as the premier location for BRI projects. Following the COVID-19 epidemic and Pakistan's ongoing economic challenges, which have necessitated the participation of the International Monetary Fund, new project development has paused. For the past two years, Pakistan's Prime Minister Shehbaz Sharif, who was elected to a second consecutive term in February, has been trying to rekindle commercial ties with China. When Pakistan joined the BRI in 2013, Nawaz, Sharif's elder brother, was the leader of the nation. Approximately $25 billion worth of projects, including power plants that eliminated the country's long-standing electricity shortfall, were completed during the first phase. A Pakistani committee approved a long-delayed railway upgrade project last week, but scaled it down from $10 billion to $6.8 billion. The railway, in its first phase, will run from Karachi, the southern coast city, to Multan, a little over halfway to the capital, Islamabad.

Iqbal mentioned that the Sharif government had completed several key Belt and Road Initiative (BRI) projects that had been pending for years. These included a water supply project in Gwadar, dredging work at the port, and an electricity transmission line from Iran. He expressed that these accomplishments had significantly contributed to reinforcing China's perception that the new government was once again committed to CPEC initiatives, thereby restoring their confidence in Pakistan's seriousness. He further stated that to commemorate the tenth anniversary of CPEC the previous year, China's Vice Premier, He Lifeng, unveiled five new corridors, including one focused on growth to enhance economic activity in Pakistan. The remaining corridors were associated with livelihood, innovation, green energy, and regional connectivity. Iqbal noted that Sharif was likely to visit China soon. One change in the second phase would likely involve Islamabad taking a step back while urging the private sector to forge partnerships with Chinese firms. The other big focus, albeit a long-shot prospect, is to try and attract Chinese firms thinking of relocating from China amid rising labour costs and heightening geopolitical tensions. He added that such a visit would be considered a success, particularly given the current trend of over 80 million jobs being relocated from China to other countries due to high costs. Iqbal pointed out that these jobs had moved to countries like Vietnam, Laos, and Cambodia, leading to overcrowding, and China was actively seeking new destinations

In an effort to strengthen the nation's faltering economy, Pakistan's new administration intends to give initiatives covered by China's Belt and Road Initiative some much-needed impetus. Ahsan Iqbal, Pakistan?s federal minister for Planning, development, and Special Initiatives, who also co-heads the committee responsible for the China-Pakistan Economic Corridor, mentioned that the South Asian nation is considering joint ventures for renewable energy projects, collaboration in agriculture, and potentially attracting some Chinese companies to relocate to Pakistan. He shared his optimism, stating that he had recently been in China and had meetings with their senior leadership. He expressed seeing significant interest on the Chinese side to reinvigorate momentum for CPEC and advance it into the second phase. This was conveyed by Iqbal at his office in Islamabad, where a large map showcasing the China-Pakistan Economic Corridor adorned the walls. With CPEC, which includes new power plants and a port in the southern town of Gwadar, Pakistan was viewed as the premier location for BRI projects. Following the COVID-19 epidemic and Pakistan's ongoing economic challenges, which have necessitated the participation of the International Monetary Fund, new project development has paused. For the past two years, Pakistan's Prime Minister Shehbaz Sharif, who was elected to a second consecutive term in February, has been trying to rekindle commercial ties with China. When Pakistan joined the BRI in 2013, Nawaz, Sharif's elder brother, was the leader of the nation. Approximately $25 billion worth of projects, including power plants that eliminated the country's long-standing electricity shortfall, were completed during the first phase. A Pakistani committee approved a long-delayed railway upgrade project last week, but scaled it down from $10 billion to $6.8 billion. The railway, in its first phase, will run from Karachi, the southern coast city, to Multan, a little over halfway to the capital, Islamabad. Iqbal mentioned that the Sharif government had completed several key Belt and Road Initiative (BRI) projects that had been pending for years. These included a water supply project in Gwadar, dredging work at the port, and an electricity transmission line from Iran. He expressed that these accomplishments had significantly contributed to reinforcing China's perception that the new government was once again committed to CPEC initiatives, thereby restoring their confidence in Pakistan's seriousness. He further stated that to commemorate the tenth anniversary of CPEC the previous year, China's Vice Premier, He Lifeng, unveiled five new corridors, including one focused on growth to enhance economic activity in Pakistan. The remaining corridors were associated with livelihood, innovation, green energy, and regional connectivity. Iqbal noted that Sharif was likely to visit China soon. One change in the second phase would likely involve Islamabad taking a step back while urging the private sector to forge partnerships with Chinese firms. The other big focus, albeit a long-shot prospect, is to try and attract Chinese firms thinking of relocating from China amid rising labour costs and heightening geopolitical tensions. He added that such a visit would be considered a success, particularly given the current trend of over 80 million jobs being relocated from China to other countries due to high costs. Iqbal pointed out that these jobs had moved to countries like Vietnam, Laos, and Cambodia, leading to overcrowding, and China was actively seeking new destinations

Next Story
Infrastructure Urban

Jyoti Structures FY26 profit rises 56.5%

Jyoti Structures (JSL) recently reported strong financial results for the quarter and year ended 31 March 2026, driven by disciplined execution, cost management and steady progress across its order book.For Q4 FY2025-26, total income rose 44.2 per cent to Rs 2.41 billion from Rs 1.67 billion in Q4 FY2024-25. EBITDA increased 58.6 per cent to Rs 237 million, while EBITDA margin improved by 89 basis points to 9.84 per cent. Profit before tax grew 53.3 per cent to Rs 188.5 million, and net profit rose 51.9 per cent to Rs 181.4 million.For FY2025-26, total income grew 53.1 per cent to Rs 7.72 bill..

Next Story
Infrastructure Energy

Cat BEPU to Power Doppstadt Separator at IFAT 2026

Caterpillar’s Cat Battery Electric Power Unit (BEPU) has been selected by Doppstadt to power its SWS 6 Spiral Shaft Separator, which will be showcased for the first time at IFAT 2026 in Munich, Germany, from 4–7 May.The compact plug-and-play BEPU is designed to replace a diesel engine within the same space, using the same mounting locations and relative machine position. It integrates the battery, motor, inverter, onboard charging, cooling and controls, enabling OEMs to electrify existing chassis platforms without extensive redesign.Caterpillar and Cat dealer Zeppelin Power Systems have be..

Next Story
Infrastructure Urban

VECV sales rise 6.9% in April 2026

VE Commercial Vehicles, a joint venture between Volvo Group and Eicher Motors, recorded sales of 7,318 units in April 2026, compared to 6,846 units in April 2025, registering 6.9 per cent growth. The total included 7,159 units under the Eicher brand and 159 units under the Volvo brand.Eicher branded trucks and buses reported sales of 7,159 units during the month, up 6.6 per cent from 6,717 units in April 2025. In the domestic commercial vehicle market, Eicher sales rose 8.6 per cent to 6,797 units from 6,257 units a year earlier.Exports declined 21.3 per cent, with VECV recording 362 units in ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement