China's commitment, Pakistan's opportunity
This renewed emphasis on cooperation in agriculture, industry, and mining couldn't come at a better time. Each of these sectors holds transformative potential for Pakistan, and each has stagnated for reasons both structural and political. If China's technical expertise and capital — already well established through CPEC — can be channelled into these critical domains, the resulting multiplier effect could reshape not just trade flows, but Pakistan's growth trajectory itself.
That's not wishful thinking. China's record in capacity-building and infrastructure deployment across Asia and Africa is well-documented. Pakistan, for all its internal dysfunction, has been a standout recipient of Chinese commitment, economically, diplomatically, and militarily. Even in the recent war with India, when much of the world hedged or looked away, China stood firm in supporting Pakistan's strategic space. That solidarity matters. So does Beijing's unambiguous support for Pakistan's anti-terror operations, and its confidence in Islamabad's ability to protect Chinese projects and personnel on the ground.
Contrast this with the ambiguity in Pakistan's dealings with Washington. As the US increasingly views global affairs through a China-containment lens, bilateral engagement with Pakistan has become more transactional, more tactical. Islamabad can no longer afford to mistake occasional nods of approval from Washington as strategic depth. That's why Beijing's clarity, both in commitment and continuity, is invaluable.
Still, Pakistan has done well to avoid open alignment in the US-China binary. Even as its relationship with China has matured into a strategic cooperative partnership, Islamabad has resisted being boxed into an anti-West posture. That balancing act is rarely acknowledged, yet it remains one of the more underrated successes of Pakistan's foreign policy.
Now, with CPEC's next phase aiming at industrial cooperation and sustainable growth, this new push into agriculture and mining could expand the corridor into a truly multidimensional economic framework. Pakistan's agriculture sector, chronically underproductive and exposed to climate volatility, needs smart technology, irrigation infrastructure, and better logistics — all of which China can help deliver. Similarly, mining remains one of Pakistan's most underexploited sectors, despite rich deposits of copper, gold, and rare earths. If Beijing's entry can introduce efficiency, transparency, and export-scale production, it would be a rare and welcome inflection point.
There's of course the risk of overdependence — or worse, capture — that critics often cite when discussing China's international footprint. But that framing ignores two key facts: first, no major donor has come close to matching China's scale and consistency in Pakistan; and second, the success or failure of these ventures will ultimately depend on how Pakistani institutions govern them. Blaming China for local mis-governance is deflection, not diagnosis.
The priority now must be to convert this political goodwill into fast-tracked, bankable projects. Coordination mechanisms between Islamabad and Beijing already exist; they need to deliver. At the same time, messaging around this partnership must remain calibrated — not boastful, not paranoid. China does not ask for allegiance, only stability and execution. Pakistan would do well to reciprocate with seriousness, not slogans.
In a world of shifting alliances and unreliable allies, Pakistan's enduring partnership with China remains a strategic anchor. With the right policy focus, and a bit of administrative discipline, it could also be the engine that lifts Pakistan's economy into a higher orbit.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
5 hours ago
- Express Tribune
A terror tag and a diplomatic turn
Just days before President Donald Trump's inauguration for the second term, a senior Pakistani diplomat briefed a group of people including experts and journalists in Islamabad. His focus was on the Pakistan-US relationship under Trump's administration. The bottom line was: Pakistan should be prepared for a tough challenge. According to the diplomat, Trump's team was surrounded by people who had little sympathy for Pakistan. Experts and those who understand Trump as well as the nature of Pakistan-US ties echoed similar sentiments. There was consensus that despite the unpredictable nature of Trump, there was little or no room for better prospects of Pakistan-US ties. On the contrary, everyone agreed that the relationship between the US and India would only deepen under President Trump's second term. But when President Trump delivered a maiden address to the US Congress, he praised Pakistan. This was some achievement given that until then he spared no one. He launched a diatribe both against friends and foes. Pakistan was the only exception, which Trump mentioned in a positive way. His praise stemmed from Pakistan's assistance in arresting one of the key masterminds of the Abbey Gate bombing in Kabul in August 2021. Muhammad Sharifullah, one of the ISIS-Khorasan operatives and according to the US was one of the facilitators of Kabul Airport attack, was apprehended on the intelligence provided by the CIA and swiftly handed over to the US. That cooperation not only earned Pakistan praise from Trump but also opened a channel of communication that would eventually lead to Field Marshal Syed Asim Munir being invited to launch at the White House in an unprecedented turn of events. When Trump applauded Pakistan at the US Congress, people were still sceptical that this bonhomie would be short-lived as Trump cannot be trusted. Questions were raised about what Pakistan had offered or was going to offer to the US in return for this cozying up approach of the US? Many people also wonder whether Pakistan would get anything in return. But what happened over the past few weeks following high-level exchanges and frequent interactions between the two countries was that Trump's praise was not mere rhetoric but now reflecting a shift in the US policy. The substantive outcome of Pakistan helping Trump to advance his domestic agenda by arresting Abbey Gate bombing facilitator was the US State Department's move to declare Balochistan Liberation Army and its suicide squad Majeed Brigade as terrorist outfit. The designation of BLA and the Majeed Brigade, as Foreign Terrorist Organisations (FTO), was a major victory for Pakistan. Islamabad had long sought its listing but with little success. The US declared Tehreek-e-Taliban Pakistan (TTP) as a terrorist outfit but successive US administrations refrained from taking a similar stance against groups active in Balochistan. One of the reasons included that such groups including BLA and Majeed Brigade were targeting not just the Pakistani interests but also primarily the Chinese interests in the resource-rich Balochistan province. This in many ways probably served the agendas of those who don't want China's Belt and Road Initiative (BRI) to succeed. That was the reason the US decision was extraordinary. The United States not only listed BLA and Majeed Brigade but also seems to be ready to extend cooperation to Pakistan to fight them. The two countries held counterterrorism dialogue, a regular feature, in Islamabad recently. The noticeable change was that for the first time BLA made it to the joint statement. Both delegations underscored the 'critical importance' of developing effective approaches to terrorist threats, singling out the BLA alongside transnational outfits. Washington lauded Islamabad's 'continued successes' in containing entities that threaten regional and global peace. Therefore, listing of BLA and Majeed Brigade is a development that carries legal, political, diplomatic, and operational implications for Pakistan, the US, and even India. First, any BLA or Majeed Brigade funds or property in the US jurisdiction are now frozen. Members and affiliates are barred from entering the US. Providing material support to the group is now a serious US federal crime, even for individuals outside the US if they have US connections. The designation makes it harder for BLA to raise funds internationally through charities, front companies, or sympathetic diaspora groups. The FTO tag makes it riskier for members to travel abroad or seek asylum in countries aligned with US counterterrorism policies. The US can now more actively share intelligence with Pakistan and allies to track, disrupt, or eliminate the group's cells. Diaspora-based sympathisers in the West could face monitoring and prosecution. If BLA finds safe havens in neighbouring states including Afghanistan, the US listing pressures those governments to take action or face reputational costs. While the designation won't end the insurgency, it can weaken its external support structure, especially for high-profile suicide attacks like those by the Majeed Brigade. Second, Pakistan has long stated that BLA is a foreign-backed terrorist group responsible for attacks in Balochistan. The US designation is an international endorsement of that position. Third, India has openly supported Baloch separatists. The US move signals that Washington is not aligning with New Delhi on this issue. Fourth, this listing highlights a warming security relationship between Pakistan and the US. Fifth, quietly, this could create discomfort in New Delhi if US counterterrorism measures start exposing any Indian contacts with Baloch separatists. It is not said publicly but the US move could also be linked to its keen interest in the untapped mines and minerals resources available in abundance in Balochistan. But security is a major challenge. Some view the US interest in mines and minerals with suspicion. The view, nevertheless, in official Pakistani circles is that the US investment in Balochistan could stabilise the situation and it may lay the bases for long-term cooperation between the two countries. The listing of BLA and Majeed Brigade is being seen in that context.
Business Recorder
9 hours ago
- Business Recorder
US-India trade talks scheduled for August called off, source says
A planned visit by US trade negotiators to New Delhi from August 25-29 has been called off, a source said, delaying talks on a proposed trade agreement and dashing hopes of relief from additional US tariffs on Indian goods from August 27. The current round of negotiations for the proposed bilateral trade agreement is now likely to be deferred to another date that has yet to be decided, the source with direct knowledge of the matter said. The US embassy in New Delhi said it has no additional information on the trade and tariff talks, which are being handled by the United States Trade Representative (USTR). Missed signals, lost deal: How India-US trade talks collapsed India's trade ministry did not immediately reply to a Reuters email seeking comments. Earlier this month, US President Donald Trump imposed an additional 25% tariff on Indian goods, citing New Delhi's continued imports of Russian oil in a move that sharply escalated tensions between the two nations. The new import tax, which will come into effect from August 27, will raise duties on some Indian exports to as high as 50% - among the highest levied on any US trading partner. Trade talks between New Delhi and Washington collapsed after five rounds of negotiations over disagreement on opening India's vast farm and dairy sectors and stopping Russian oil purchases. In India, Trump's tariffs spark calls to boycott American goods India's Foreign Ministry has said the country is being unfairly singled out for buying Russian oil while the United States and European Union continue to purchase goods from Russia.
Express Tribune
13 hours ago
- Express Tribune
New Chinese EV maker enters Pakistan
Punjab is set to welcome a new wave of industrial investment as China's Letin Auto Group has announced plans to set up a small electric vehicle (EV) manufacturing plant in the province. A 15-member delegation of the company, led by its General Manager Xu Zhen, met with Punjab's Minister for Industries and Commerce Chaudhry Shafay Hussain in Lahore to discuss details of the project and the potential incentives available. The minister assured the delegation of full support from the provincial government and said Punjab was offering attractive facilities to investors, including a 10-year income tax holiday and duty-free import of machinery for plants being set up in the Special Economic Zones. He added that Punjab was fast becoming a preferred destination for foreign industrialists due to its favourable climate for business. "New investment in the province is not only strengthening the economy but also creating employment opportunities for thousands of people," he said. The minister emphasised that the government was focused on the promotion of EVs and wanted Punjab to play a leading role in the country's clean mobility transition. In 2023, the group, with its trading name Levdeo Automobile Group, applied for bankruptcy in China and completed its bankruptcy reorganisation in 2024. Auto sector experts believe that the group may want to relocate and make Pakistan its base for local sales and exports, since Pakistan, particularly Punjab, is offering decent incentives and has won the least US tariff of 19%. The arrival of Letin Auto adds to a growing list of Chinese EV makers entering Pakistan in recent years. Brands such as BYD, Changan and British brand MG have already introduced EV models in the local market, while others are exploring assembly and production options. Industry watchers believe this influx shows the growing confidence of Chinese companies in Pakistan's EV sector, which is still in its infancy, but holds significant potential due to the rising cost of fuel and the government's policy incentives. While consumers may welcome more choices, existing auto players are watching the development closely. An official of a Japanese-origin car assembler admitted that the entry of another Chinese automaker would intensify competition. "This means we cannot sit idle anymore. We have to accelerate our EV plans and bring affordable models to the market," he said. A senior executive representing another brand said that Chinese EVs, if priced competitively, could quickly capture market share. "Chinese companies have a reputation for speed and affordability. This will put pressure on established players, but in the long run it will benefit customers." Some local joint ventures are also preparing to join the EV race. A senior official of Hyundai Pakistan said that the company has already begun internal studies for introducing its EV line in Pakistan in the next few years. "Globally, Hyundai is moving aggressively towards electric mobility and Pakistan will not be left behind. The arrival of new Chinese players will further push us to bring our EV technology here sooner," he said. Industry experts believe that this competition will reshape the local auto landscape, forcing companies to move away from the comfort zone dominated by conventional combustion vehicles. At the same time, observers say, the rapid entry of multiple Chinese EV brands reflects a bigger trend where emerging economies like Pakistan are seen as promising markets for future growth. Car enthusiasts, meanwhile, see this as a welcome change. Salman Ali, an EV enthusiast from Lahore, said that affordable small EVs could be a game changer. "With fuel prices going up every month, people are desperate for alternatives. If these Chinese EVs are introduced at competitive prices, they will give the middle class a real chance to switch to cleaner mobility," he said. Analysts also point out that Pakistan's EV policy has given a significant push to this momentum. Reduced customs duties on EV parts and favourable tariff structures have already encouraged imports, but local assembly and manufacturing is the next step. If companies like Letin Auto move ahead with their projects, it will not only help reduce reliance on imports but also support the development of an entire supply chain, including battery and component industries. For Punjab, the benefits are clear. More foreign plants mean fresh jobs, technology transfer and a stronger industrial base. For consumers, it means more options on the showroom floor. For local auto assemblers, it signals a race against time to remain competitive. "Chinese companies don't just bring cars, they bring disruption. Those who adapt will survive, those who don't will be left behind," said the Japanese auto company official. Analysts further say that for decades, the market has been dominated by a few players offering limited choices, but the arrival of Chinese EV makers is breaking that pattern. Whether it is local assembler preparing its own electric models or new entrants promising affordable alternatives, the competition is set to redefine the way Pakistanis buy and use cars.
