Pakistan, China agree to upgrade CPEC to version 2.0

January 05, 2026 (MLN): Pakistan and China have agreed to further align their development strategies and build an upgraded CPEC 2.0 reinforcing the China-Pakistan Economic Corridor as a flagship project of China’s Belt and Road Initiative.

The understanding was reached during the Seventh Round of the China-Pakistan Foreign Ministers’ Strategic Dialogue, APP reported.

Both sides agreed to prioritize cooperation in three key sectors industry, agriculture and mining while accelerating the development and operation of Gwadar Port, ensuring the smooth functioning of the Karakoram Highway, and strengthening Pakistan’s capacity for sustainable development.

The two countries also committed to deepening collaboration in trade and investment, information technology, science and technology, cybersecurity, technical and vocational education and training, as well as people-to-people and cultural exchanges.

Welcoming the year-round opening of the Khunjerab Pass, the two sides said it would serve as an important opportunity to expand bilateral trade and enhance people-to-people contacts.

They also expressed openness to third-party participation in CPEC projects, in line with the agreed modalities between Pakistan and China.

In the financial domain, both sides agreed to further strengthen cooperation in banking and finance, including extending mutual support at regional and international multilateral financial forums.

Pakistan expressed appreciation to China for its continued support to Pakistan’s fiscal and financial sectors.

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