CPEC 2.0: Special Economic Zones Surge to 44
- Islamabad is preparing to celebrate 75 years of diplomatic relations with China in 2026, with plans to expand industrial cooperation under the China-Pakistan Economic Corridor (CPEC).
- Diplomatic relations between Pakistan and China were established on May 21, 1951, making 2026 the 75th anniversary.
- The relationship was formalized with a Treaty of Friendship in 1963, and has continued to strengthen through joint ventures like the Karakoram Highway and, more recently, CPEC.
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Islamabad is preparing to celebrate 75 years of diplomatic relations with China in 2026, with plans to expand industrial cooperation under the China-Pakistan Economic Corridor (CPEC). The Board of Investment (BOI) has pledged continued support for investment and policy coordination to facilitate the second phase of CPEC industrial initiatives.
Pakistan-China Relations
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Diplomatic relations between Pakistan and China were established on May 21, 1951, making 2026 the 75th anniversary. China views Pakistan as an “all-weather strategic cooperative partner”, and the relationship has deepened over decades through economic, political, and military cooperation.
The relationship was formalized with a Treaty of Friendship in 1963, and has continued to strengthen through joint ventures like the Karakoram Highway and, more recently, CPEC.
Example: in March 2024, Pakistan and China signed several agreements to enhance cooperation in areas such as agriculture, science and technology, and infrastructure development. Dawn reported on these agreements.
China-Pakistan Economic Corridor (CPEC)
The China-Pakistan Economic Corridor is a collection of infrastructure projects currently under construction throughout Pakistan,and is a major component of China’s Belt and Road Initiative.The World Bank provides an overview of the Belt and Road initiative, of which CPEC is a key part.
The initial phase of CPEC focused on energy and infrastructure projects.The second phase aims to prioritize industrial cooperation, special economic zones (SEZs), and job creation.
Detail: As of December 2023, CPEC projects have attracted over $25.4 billion in investment to Pakistan. The News International reported on this investment figure.
Board of Investment (BOI)
The Board of Investment is the primary government agency responsible for promoting and facilitating investment in Pakistan. It effectively works to create a favorable investment climate and streamline procedures for both domestic and foreign investors.
The BOI is currently focused on attracting investment into Pakistan’s SEZs, notably those established under the CPEC framework.It is also working to improve the regulatory environment and reduce bureaucratic hurdles for investors.
Example: In November 2023, the BOI launched an online portal to facilitate investment applications and approvals. BR Recorder reported on the launch of this portal.
PMU CPEC-ICDP
The PMU CPEC-ICDP (Industrial Cooperation Development Program) is a dedicated unit within the CPEC framework focused on promoting industrial cooperation between Pakistan and China. It identifies potential investment opportunities, facilitates joint ventures, and supports the development of SEZs.
The PMU CPEC-ICDP is planning a series of commemorative events and investment forums in 2026 to mark the 75th anniversary of diplomatic relations and attract further investment into CPEC industrial projects.
detail: The PMU CPEC