Pakistan’s economy stabilises amid series of groundbreaking agreements with China

Islamabad: Pakistan’s economy has been showing promising signs of stabilization, thanks to the diligent efforts of the Special Investment Facilitation Council (SIFC) and a series of groundbreaking agreements with China.

This progress represents a key milestone in Pakistan-China relations, strengthening economic ties and paving the way for significant infrastructure and development projects across the nation.

A highlight of this collaboration took place during the recent Shanghai Cooperation Organisation (SCO) Summit, which Pakistan had the honor of hosting.

The summit witnessed the high-profile visit of the Chinese Premier Li Qiang, a trip that resulted in several historic agreements.

Among these was a monumental US $6.8 billion investment for the Main Line-1 (ML-1) railway project, set to be executed in three phases.

This railway expansion not only aims to enhance Pakistan’s transportation infrastructure but also reflects the depth of commitment both countries share in driving regional connectivity.

Infrastructure development emerged as a key area of focus during these discussions.

Both friendly nations agreed to invest in an extensive US $400 million motorway project connecting Sukkur to Hyderabad, along with a US $1 billion road project along the iconic Karakoram Highway. These projects are expected to enhance road networks, reduce travel time, and stimulate economic activity along these crucial routes.

Another remarkable achievement was the inauguration of the Gwadar International Airport, which was constructed with a US $200 million investment under the China-Pakistan Economic Corridor (CPEC) initiative. This airport is set to become a critical hub, facilitating trade and travel in the region and bringing Gwadar closer to global markets.

In addition to infrastructure, the two countries signed multiple Memorandums of Understanding (MoUs) to enhance financial cooperation.

The State Bank of Pakistan and the People’s Bank of China entered into currency swap arrangements, a step intended to ease trade, strengthen financial ties, and enhance currency flexibility between the two nations. Further MoUs laid the groundwork for cooperation in essential sectors such as food security, healthcare, and education, with SIFC playing a key role in ensuring smooth facilitation and coordination.

Pakistan’s successful hosting of the SCO Summit also underscored the nation’s growing global influence and its commitment to regional cooperation.

As a permanent intergovernmental organization, the SCO Summit brought together key leaders, boosting Pakistan’s standing on the international stage and opening doors to new foreign investment opportunities.

With SIFC’s guidance and the momentum from these landmark agreements, Pakistan is taking significant strides toward a stable and prosperous future, underscoring the importance of international partnerships in achieving sustainable development.