China’s Greater BRICS initiatives offer Pakistan new opportunities under CPEC 2.0

Share f X WA in

ISLAMABAD, September 29, 2026: China’s proposed Greater BRICS initiatives could create new opportunities for Pakistan in artificial intelligence, industrial development, investment and export diversification, with experts urging Islamabad to align potential cooperation with the second phase of the China-Pakistan Economic Corridor (CPEC 2.0).

The proposals, presented by Chinese President Xi Jinping at the 18th BRICS Summit in New Delhi, cover five areas: inclusive and open-source artificial intelligence, trade and investment facilitation, digital industries, intelligent manufacturing, and scientific and technological talent development.

Although Pakistan is not a BRICS member, analysts believe its economic partnership with China could provide opportunities for universities, technology companies, industrial organisations and special economic zones to explore cooperation through relevant mechanisms.

Speaking to Wealth Pakistan, experts said Pakistan would need to translate these opportunities into technology transfer, competitive manufacturing, skilled employment and increased exports rather than limiting engagement to diplomatic exchanges.

China’s five initiatives focus on AI, trade and industrial development

The Greater BRICS proposals include establishing an artificial intelligence open-source community, strengthening cooperation among special economic zones and developing a digital ecosystem cloud platform.

Other measures involve support for smart factories, an engineer cultivation alliance and a youth exchange programme focused on technological innovation.

The initiatives are intended to expand cooperation among BRICS countries and their partners in emerging technologies, industrial productivity and workforce development.

For Pakistan, experts see potential connections with CPEC 2.0, which places greater emphasis on industrial cooperation, technological development and economic diversification.

However, participation in the proposed mechanisms would require engagement with relevant institutions and agreement on practical areas of collaboration.

Pakistan urged to connect AI and technology initiatives with CPEC 2.0

Haris Bilal Malik, Research Fellow at the China-Pakistan Study Centre of the Institute of Strategic Studies Islamabad, identified technology, industrialisation and market diversification as three areas where Pakistan could seek early engagement.

He said the proposed AI community, digital ecosystem and technology-training programmes could help connect Pakistani universities, start-ups and information technology companies with international research and innovation networks.

According to Malik, Pakistan should prioritise cooperation that strengthens domestic technological capabilities and supports the requirements of emerging industries.

He highlighted the proposed engineer cultivation alliance and youth exchange programme as particularly relevant to Pakistan’s young workforce.

However, he cautioned that training initiatives should be designed around practical industrial requirements rather than being confined to conventional academic exchanges.

Such an approach, he said, could help develop technical expertise needed for advanced manufacturing, digital industries and other technology-driven sectors.

Special economic zones could benefit from smart manufacturing cooperation

Industrial development is another area where experts see potential links between Greater BRICS cooperation and Pakistan’s economic priorities.

Malik said the proposed special economic zone partnership and smart-manufacturing initiatives could complement the industrial development objectives of CPEC 2.0.

He urged Pakistan to connect its special economic zones with Chinese enterprises and broader BRICS supply chains to encourage technology transfer, domestic production and export-oriented manufacturing.

“Pakistan should seek to connect its special economic zones with Chinese companies and wider BRICS supply chains, with the objective of technology transfer, local production and exports — not simply attracting investment,” Malik said.

He maintained that investment should be assessed not only by the amount of capital attracted but also by its contribution to industrial productivity, employment and exports.

The proposed cooperation could provide opportunities for Pakistani industrial clusters to establish stronger links with international manufacturing networks, subject to commercial viability and appropriate policy support.

Pakistan’s exports to China rise 45.9% in seven months

The potential for expanding trade with China was also highlighted during the discussion.

According to figures cited by Malik, Pakistan’s exports to China reached $2.136 billion during the first seven months of 2026, an increase of 45.9 percent compared with the corresponding period of the previous year.

He said the second phase of the China-Pakistan Free Trade Agreement provided an existing framework for improving market access.

Under the agreement, China granted immediate tariff elimination to 313 priority product lines, creating additional opportunities for Pakistani exporters.

Malik noted, however, that preferential access to foreign markets would not automatically translate into higher exports.

He said Pakistan needed predictable regulations, efficient customs procedures, dependable energy supplies, improved logistics and stronger investment protection to attract businesses interested in production and international trade.

A more secure and consistent business environment would also be necessary to encourage long-term investment and help domestic industries compete in emerging markets, he added.

Nabila Jaffer, Senior Research Analyst and Head of the China Programme at the Institute of Regional Studies Islamabad, said the Greater BRICS framework sought to give greater attention to the development priorities of Global South countries.

She said Pakistan could explore opportunities to strengthen economic and technological engagement with BRICS members in sectors relevant to its development needs.

“With youth making up 60% of its population, alongside its ongoing modernisation efforts through CPEC, Pakistan has the potential to expand cooperation in artificial intelligence, innovation, supply-chain integration, smart industries and talent exchanges,” Jaffer said.

She stressed that Pakistan should identify the economic, technological and strategic strengths it could offer potential partners rather than approaching cooperation solely as a recipient of investment or technical assistance.

According to Jaffer, government departments, research institutions, universities and industry organisations should establish sustained engagement with relevant cooperation platforms as they develop.

She also called for better coordination among Pakistani institutions to identify suitable projects and communicate the country’s investment and industrial potential.

Gwadar and industrial clusters identified as potential cooperation platforms

Jaffer said Pakistan could present its special economic zones, industrial clusters and Gwadar as platforms for investment, manufacturing and regional connectivity under CPEC 2.0.

She noted that the country’s geographical position, domestic market, young population and natural resources could be relevant to discussions with China and other BRICS economies.

However, she emphasised the importance of developing a coordinated strategy that identifies specific areas where Pakistan can contribute to regional production networks and emerging technology partnerships.

Experts said the value of Greater BRICS engagement for Pakistan would ultimately depend on its ability to establish workable partnerships, strengthen industrial competitiveness and connect domestic businesses with international markets.

While the Chinese proposals offer possible avenues for cooperation, Pakistan’s participation in individual initiatives has not been confirmed, and their economic impact would depend on future agreements, investment decisions and implementation.