At the crossroads of opportunity, Pakistan is poised to leverage its strategic partnership with China and the visionary initiatives of the Special Investment Facilitation Council, paving the way for a future rich in economic potential.

Strategically, Pakistan occupies a very important position on the Asian continent for multiple reasons, including its proximity to great powers—Russia and China—its location at the gateway to oil and energy-rich Central Asia, and its potential as a transit economy corridor for China and the Central Asian Republics (CARs). Despite this lucrative opportunity, Pakistan’s situation is marked by challenges. These issues have given rise to what I now perceive as the terrorism syndrome. In the prevailing situation, while some allies and well-wishers have distanced themselves, China has remained a steadfast friend and supporter. These are pivotal times, during which the Special Investment Facilitation Council (SIFC) has emerged as the vanguard to help Pakistan rise from the recessionary spiral.
In this article, I intend to highlight China's role in stabilizing Pakistan's economic situation and helping the country embark on a path toward prosperity and self-sufficiency. I will also discuss Chinese interest in Pakistan, the role of the SIFC in addressing current challenges, and I will suggest various course corrections needed to maximize the benefits from the existing circumstances.
Importance of China for Pakistan
China, by developing a diverse socialist market economy, strategic five-year plans, effective utilization of its resources, and stringent policies, has proven its mettle as the economic powerhouse of the world, driving global trade and investment. The model adopted by China for economic prosperity serves as a torchbearer for Pakistan in particular and the rest of the world in general. The Chinese concept of establishment of business hubs, Special Economic Zones (SEZs), Special Industrial Zones (SEZs), Export Processing Zones (EPZs), and transport corridors, bank upon creating a wholesome ecosystem around the business centers. A factory, firm, or industry has a complete ecosystem surrounding it—residential areas, community centers, related businesses, schools, hospitals, shopping centers, and associated manufacturers. During the recent visits of the Prime Minister of Pakistan and his delegates to China, the Chinese economic system was studied in great detail, and guidance was sought to replicate their models in Pakistan. Since this visit, several Chinese delegations have arrived in Pakistan to offer training and expertise in various fields, including construction, planning, and technology, to enable Pakistan to embark on a modernization campaign. The proactive approach shown by China toward Pakistan indicates that China intends to stabilize Pakistan so it can shoulder its national and international responsibilities with a systematically appropriate demeanor. This makes China a crucial ally for Pakistan in its pursuit of self-sufficiency and economic stability.
China-Pakistan Economic Corridor
China’s Belt and Road Initiative (BRI) is a game changer for the world. It will not only enhance the trade and commerce of China, but will also provide multiple opportunities to the host countries for development. China has adopted an impressive methodology towards host countries of the BRI. Before setting out on the implementation of its projects and programs, China carries out necessary development in the host countries in order to enable them to embrace the new system. 

Before setting out on the implementation of its projects and programs, China carries out necessary development in the host countries in order to enable them to embrace the new system. 

While analyzing the China-Pakistan Economic Corridor (CPEC), a similar pattern emerges. China has had an interest in reaching the Arabian Sea since the 1950s. The construction of the Karakoram Highway—the Silk Route to Pakistan—was a link in this chain. This initiative was rekindled in the early to mid-1960s when China offered to develop the Gwadar Port. After a long period of stagnation, the program was further enhanced by the signing of Memorandums of Understanding (MoUs) on cooperation for a long-term CPEC plan, which was implemented in 2015. Aimed at helping Pakistan address its energy crisis, CPEC initiated efforts to develop infrastructure in Pakistan, including important road and rail links, pipelines for transporting oil and gas, electricity generation projects, the establishment of an oil refinery, irrigation projects, and hydroelectric projects.
With the required infrastructure in place, China has now announced CPEC 2.0, which represents the actual implementation of the project. The enhancement of the Gwadar Port Complex, the establishment of SEZs, the improvement of infrastructure projects, and the completion of energy projects are all in full swing. By coupling the efforts of CPEC with the strategic vision of the SIFC, progress is expected to accelerate further.
Achievements Against All Odds
Considering the level of achievements of CPEC, one is awed by the fact that all this has occurred despite the current challenges in Pakistan. Over the past decade or more, several Chinese nationals working in various capacities on different projects in Pakistan have been subjected to terrorism by anti-state agencies. These anti-state elements include sub-nationalist Pakistanis as well as hostile nations that cannot fathom a prosperous Pakistan.
I attended a meeting with a Chinese delegation from the China Asia Economic Development Association (CAEDA) on October 7, 2024, just a day after the terrorist attack on Chinese workers in Karachi, which left at least ten Chinese nationals dead or injured. I had been called for the meeting a day earlier, while the incident occurred at night. On my way to the SIFC for the meeting, I thought it was nearly impossible for the meeting to take place under the prevailing conditions. However, to my surprise, not only was the meeting held, but there was also no resentment shown by the Chinese counterparts regarding the previous night’s incident, nor did they waver in their resolve to proceed with their planned projects.
Renewed Chinese Commitment
During the latest meeting with the CAEDA delegation, representatives from various sectors, including energy, agriculture, aviation, artificial intelligence (AI), and medical technology, offered their expertise in relevant fields. The discussion, conducted in an open and friendly environment, saw the Pakistani side propose significant incentives and opportunities to their Chinese counterparts, including tax-free imports, ease of customs clearance, a one-window operation, and exemption from the Foreign Exchange Regulation Act (FERA).
The Chinese side presented new and innovative project proposals, including:
Cooperation in the renewable solar energy sector.
Modernization of Pakistan’s agriculture sector.
Establishment of a drone assembly factory with the ultimate aim of transferring technology.
Creation of assembly plants in Pakistan for various products, along with incentives such as technical training for manpower, establishment of display centers, and allowing Pakistani value-added products to be exported to China and other countries.
These immense opportunities can be easily tapped by Pakistan if there is a progressive economic policy, a robust intelligence system to track down and effectively eradicate anti-state elements, and a forward-looking bureaucracy that is expert in its respective fields. This can exponentially enhance the country’s economic stability and position it as a regional powerhouse in a short span of time.
It is undeniable that Pakistan and China share common friends and foes. Both countries take pride in each other’s prosperity, share a common vision, respect each other’s sovereignty, and choose not to interfere in each other’s internal matters. By creating synergy through capitalizing on each other’s potential and capabilities and supporting one another in their needs, these two great nations can jointly emerge as a major power center in the world.

The author is a PhD scholar in Management Sciences with extensive experience in Project Management.