On May 24, Pakistani and Chinese officials, business leaders and investors gathered in Hangzhou, Zhejiang province of China, for the Pakistan-China B2B (Business-to-Business) Investment Conference. More than 500 major companies from both countries attended the event, during which Islamabad and Beijing signed several new memoranda of understanding (MoU).
The Pakistan-China B2B Investment Conferences are a series of meetings between the two countries aimed at strengthening strategic and economic ties through technology and other sector-specific partnerships. The first conference was held in Shenzhen in June 2024, which resulted in several trade agreements. More than 600 Chinese companies participated in the second conference in September 2025, when the two countries signed 21 joint agreements and 148 memorandums of understanding, as well as bilateral deals worth $8.5 billion in many sectors.
The most recent conference, the third in the series, focused on technology, including artificial intelligence (AI), telecommunications, agriculture, financial technology and energy storage. Pakistani officials presented the commitments as a new phase of economic cooperation under the China-Pakistan Economic Corridor (CPEC), the flagship project of China’s ambitious Belt and Road Initiative (BRI).
For Islamabad, which already benefits from a $7 billion International Monetary Fund (IMF) program and grapples with ongoing economic and political instability, the promise of new investments and economic partnerships offers some hope of easing financial pressures, particularly at a time when trade disruptions and high energy costs due to the U.S.-Iran conflict have worsened the country’s economic situation.
However, Islamabad’s continued reliance on Chinese investment, which Pakistani officials call “economic diplomacy”, is often criticized as “debt trap diplomacy”. Many question the long-term economic implications of the investments, mainly because it is very unclear how much of this financing constitutes loans, direct investments or other forms of financial assistance.
For example, CPEC, which was initially expected to involve projects worth $45.6 billion, has already surpassed the estimated $62 billion. There is little transparency about how these projects are financed, the type of loans Pakistan is accumulating, and the extent and timing of repayment obligations.
Regardless, can the rebranding of CPEC and new investments and partnerships through B2B conferences really make an economic impact in the country?
For an economy struggling with debt, political instability and repeated security concerns, any new foreign investment opportunity is welcome as a way to keep the economy afloat. Even though Chinese officials and businesses frequently criticize Islamabad for project delays and security risks, particularly in Balochistan province, and even though CPEC may have lost most of the momentum it once had, Islamabad and Beijing are still unwilling to let the initiative lose its relevance anytime soon.
For Pakistan, the main incentive is the influx of Chinese investments, and for China, beyond the economy, CPEC is of long-term strategic importance. Due to the geographical position of the Gwadar port and its proximity to the Strait of Hormuz, having a foothold in the region via CPEC remains important for China.
At the same time, Pakistan has also positioned itself as a mediator in the US-Iran conflict. For Pakistan, such diplomacy is important not only geopolitically but also to promote its economic interests, as maintaining its strategic relevance in the region can help Islamabad gain continued economic and political support from China as well as the Gulf countries.
Therefore, new Chinese investments through B2B deals and renewed emphasis on CPEC come at a time when Pakistan is actively seeking both economic relief and geopolitical significance. At the same time, the future of CPEC Phase II also depends on the broader geopolitical situation.
China is also renewing relations with the United States after years of tensions. Whether this relationship improves or deteriorates will have an impact on countries like Pakistan, which rely on Western financial institutions like the IMF on the one hand, even if they are linked to Chinese investments. But unlike previous investments, which were state-backed and infrastructure-focused, the B2B model is more of a commercial and business-focused partnership.
Many find the focus on technology at the recent B2B conference to be at odds with the reality on the ground.
In recent years, the digital environment in Pakistan has been very restrictive. While Pakistan promotes its IT sector and digital commerce through deals with Chinese companies, its domestic policies have resulted in internet shutdowns, digital surveillance and controlled online spaces, making it difficult to work in the technology sector.
It remains to be seen whether B2B deals with China will turn into economic opportunities for Pakistan or be abandoned. It is evident, however, that Islamabad and Beijing still view it as strategic to maintain the political and economic relevance of the economic corridor, even as the regional and global political and economic environment surrounding it is in flux.