At the Pakistan-China B2B Investment Conference in Hangzhou, Prime Minister Muhammad Shehbaz Sharif laid out a multi-sector growth strategy emphasizing IT and AI as high-potential drivers, complemented by Special Economic Zones as catalysts for industrial expansion. He highlighted Karachi's SEZ as a core component, featuring modern infrastructure, essential amenities, a seamless business environment, one-window operations, and red-carpet treatment for investors. Chinese investors and Pakistani entrepreneurs are invited to participate, with land offered on long-term leases to encourage joint ventures, technology transfer, and manufacturing for export. The plan also proposes relocating labor-intensive, higher-cost industries from China to Pakistan, where they can bring their plant and machinery, form joint ventures with local partners, and manufacture for third-country markets. Mines and minerals are identified as another strategic sector, given Pakistan's rich deposits of minerals and gemstones, with an invitation to explore these opportunities. The overarching aim is a win-win model that boosts exports, creates jobs, and diversifies the economy, while strengthening bilateral ties with China. My take is that the strategy is timely, leveraging shifts in global supply chains and Pakistan’s demographic advantages. Its success, however, will depend on policy consistency, energy security, regulatory transparency, and the ability to attract credible investors committed to long-term local capacity-building. To prevent inefficiencies or leakage, governance must be robust, with clear incentives, competitive land terms, and strong environmental and social safeguards. A balanced approach should pair incentives with investments in human capital, infrastructural reliability, and transparent governance. If well-executed, the Karachi SEZ could serve as a flagship project that signals Pakistan’s readiness to integrate IT/AI services, export-oriented manufacturing, and resource development into a cohesive growth engine, potentially improving the current account position and deepening economic cooperation with China while expanding opportunities for Pakistani workers and entrepreneurs.
Source: Statement from @GovtofPakistan
Public Engagement: 1,351 views • 32 likes • 1 comments • 11 shares
Published: May 24, 2026, 5:53 am
Editorial Note: This article is based on publicly available information and official statements.
We strives for accuracy and fairness in all reporting.
{comments}
