Islamabad: Prime Minister Shehbaz Sharif, during his recent address, emphasized the critical role China played in helping Pakistan secure its latest program with the International Monetary Fund (IMF), stating that it would not have been possible without Beijing’s support.
He acknowledged the enduring and strategic partnership between the two nations, highlighting how this relationship continues to shape Pakistan’s economic trajectory through sustained cooperation and investment.
Over the years, China has remained one of Pakistan’s most reliable allies, extending consistent financial assistance and spearheading transformative projects like the China-Pakistan Economic Corridor (CPEC).
Widely described as a “lifeline” for Pakistan’s economy, CPEC has facilitated infrastructure development, energy production, and industrial growth, with China making a direct investment of approximately $35.4 billion under the initiative.
In a move that significantly eased Pakistan’s fiscal pressure, China recently extended the repayment period of a $2 billion loan by one year.
This timely decision provided essential support to stabilize Pakistan’s foreign exchange reserves.
Following a successful review of the IMF’s first loan tranche, Pakistan reached a staff-level agreement in March 2025 as part of a $7 billion bailout programme initiated in September 2024.
Chinese Ambassador Jiang Zaidong praised the Pakistani government’s economic performance over the past year, noting marked improvements in macroeconomic indicators.
He reaffirmed China’s commitment to deepening ties, particularly in the agricultural sector, and reiterated that President Xi Jinping places great importance on strong relationships with neighboring countries like Pakistan.
Pak-China Economic Linkage
Pakistan and China share a longstanding and strategic economic partnership, rooted in mutual cooperation and trust.
This relationship has significantly deepened in recent years, especially through the landmark China-Pakistan Economic Corridor (CPEC), a flagship project under China’s Belt and Road Initiative.
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CPEC has brought over $35 billion in direct Chinese investment into Pakistan, focusing on infrastructure, energy, transportation, and industrial development, and is widely regarded as a game-changer for Pakistan’s economic landscape.
Beyond CPEC, China has consistently supported Pakistan during times of financial need.
A recent example includes the one-year rollover of a $2 billion loan, offering critical support to stabilize Pakistan’s foreign exchange reserves amid its economic challenges.
Additionally, China played a pivotal role in enabling Pakistan to secure its latest International Monetary Fund (IMF) programme, reflecting Beijing’s continued commitment to Pakistan’s economic stability.
Bilateral trade and cooperation in sectors such as agriculture, technology, and finance are also expanding. China is one of Pakistan’s largest trading partners and a key market for Pakistani exports.
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Both countries are also working closely on knowledge-sharing, education, and industrial collaboration.
Overall, the Pakistan-China economic relationship continues to grow, anchored in shared interests, regional connectivity, and a vision for sustainable development and mutual prosperity.
