Shehbaz Urges Chinese Firms to Shift Industries to Pakistan
Prime Minister Shehbaz Sharif on Sunday urged Chinese companies to expand industrial operations into Pakistan, presenting the country as a competitive destination for joint ventures, manufacturing relocation and export-led production. Speaking at the Pakistan-China B2B Investment Conference in Hangzhou, he said Pakistan wanted to deepen business cooperation with China through investment, technology transfer and long-term industrial partnerships.
The prime minister framed the proposal as a mutually beneficial opportunity at a time when labour costs in China are rising and many Chinese industries are moving toward higher-end production. He said sectors that are becoming less competitive in China because of higher operating costs could find strong potential in Pakistan, where local entrepreneurs, skilled workers and export access could support new manufacturing ventures.
Shehbaz Sharif highlighted textiles, leather, agriculture, information technology, artificial intelligence, minerals and battery energy storage systems as areas where Pakistan wants stronger Chinese participation. He said Chinese firms could bring machinery, expertise and capital into Pakistan, partner with domestic businesses and produce goods not only for the local market but also for export to third countries.
In his address, the prime minister said Pakistan was not seeking loans, aid or handouts, but experience, investment and practical expertise. He described the proposed industrial relocation model as a “win-win” arrangement for Chinese and Pakistani entrepreneurs, adding that both sides could benefit if memoranda of understanding were converted into binding agreements and commercially viable projects.
A major focus of the speech was agriculture, where Shehbaz said Pakistan had already sent 1,000 young men and women to China for advanced training. He argued that modern seeds, mechanisation, better farm practices and value addition could help Pakistan raise rural incomes and increase agricultural exports to China, which imports large volumes of food and farm products from around the world.
The prime minister said Pakistan aimed to increase agricultural trade with China by about $10 billion over the next five to seven years. He linked this target with job creation in rural areas, the growth of small and medium enterprises and the development of export-oriented agricultural value chains that meet Chinese quality and regulatory standards.
Shehbaz Sharif also promoted a planned special economic zone in Karachi, saying it would cover more than 6,000 acres and offer modern infrastructure, long-term lease opportunities, one-window facilitation and a business-friendly environment for investors. He said the same model could later be replicated in other parts of Pakistan with Chinese cooperation.
The latest pitch comes during the prime minister’s official visit to China as both countries mark 75 years of diplomatic relations. Pakistan is trying to push the next phase of economic cooperation beyond infrastructure and into industrialisation, technology, agriculture and private-sector partnerships under the broader China-Pakistan economic relationship.
For Pakistan, the outcome of these engagements could carry major economic significance. Successful Chinese industrial relocation may help increase exports, create jobs, improve productivity and reduce dependence on external borrowing, but the real test will be whether signed MoUs turn into operational factories, sustained investment and measurable trade growth in the months ahead.