ISLAMABAD: Pakistan and China are moving toward a more business-driven model of cooperation under the second phase of the China-Pakistan Economic Corridor (CPEC), with greater emphasis on Business-to-Business (B2B) partnerships, industrial development, exports and productivity rather than large-scale Government-to-Government (G2G) financing. The development emerged during a high-level Chinese delegation’s visit to the CPEC Secretariat, where discussions focused on strengthening industrial and commercial ties between the two countries. According to an official statement issued by the Ministry of Planning on Tuesday, the Chinese delegation was headed by Sun Dongsheng, Senior Advisor, Economic Affairs Press. The delegation met Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, along with senior policymakers and development experts. The talks centred on ways to advance B2B and industrial cooperation under CPEC 2.0, reflecting a broader shift in the corridor’s priorities from infrastructure-led development toward industrialisation, exports, technology and private-sector participation. From infrastructure to industrialisation During the meeting, Ahsan Iqbal briefed the Chinese delegation on the government’s Uraan Pakistan economic transformation programme and outlined Islamabad’s priorities for the next phase of CPEC. The minister proposed closer cooperation with Chinese institutions, including counterparts of the National Centre of New Manufacturing, to benefit from China’s experience in advanced manufacturing, innovation, automation and robotics. He said Pakistan needed to strengthen its productive capacity and adopt modern technologies to remain competitive in the era of Industrial Revolution 4.0 and prepare for the emerging Industrial Revolution 5.0. Ahsan Iqbal identified Pakistan’s limited export base as one of the country’s major economic challenges. According to the minister, repeated attempts to accelerate economic growth have struggled to generate sustainable momentum because productive sectors have not been sufficiently integrated with export markets. He stressed that the government’s priority was therefore to turn agriculture, manufacturing and other productive sectors into stronger sources of exports and foreign exchange. Pakistan seeks greater access to Chinese market The minister also called for greater facilitation of Pakistani exports to China, highlighting the considerable gap between the two countries’ trade potential. He noted that China imports goods worth around $2.6 trillion annually, whereas Pakistan’s exports to the Chinese market remain close to $3 billion. Ahsan said Pakistan needed to increase its presence in the Chinese market by improving production standards, competitiveness and the ability of domestic businesses to meet international demand. He expressed the expectation that CPEC 2.0 could help Pakistan address what he described as its “export deficit”, just as the first phase of the corridor contributed to addressing the country’s energy shortfall. CPEC enters a new phase Under CPEC’s first phase, China committed substantial financing to infrastructure, energy and other development projects in Pakistan. Nearly $30 billion was invested in infrastructure and power-sector projects, including independent power producers. However, the focus is now increasingly shifting toward private-sector-led cooperation. Islamabad continues to pursue financing for selected road and motorway projects, but China has yet to demonstrate readiness to finance the long-delayed Main Line-1 (ML-1) railway upgrade, which had previously been regarded as one of CPEC’s flagship projects. The latest consultations indicate that CPEC 2.0 is expected to rely more heavily on commercial partnerships between Pakistani and Chinese companies. The government has already been encouraging enterprises from both countries to explore joint ventures and investment opportunities in sectors including manufacturing, agriculture and mining. Ahsan Iqbal said recent agreements between Pakistani and Chinese companies showed that B2B cooperation was beginning to gain momentum. He expressed confidence that stronger business-to-business engagement would support the modernisation of Pakistan’s industrial and agricultural sectors while creating opportunities for investment, employment and exports. China stresses productive capacity Sun Dongsheng reaffirmed the importance China attaches to its longstanding relationship with Pakistan and highlighted the achievements of CPEC’s first phase. He called for further cooperation in industrial and agricultural development, particularly in strengthening Pakistan’s productive capacity. The Chinese delegation also stressed the importance of involving small and medium-sized manufacturing enterprises in bilateral economic cooperation. Greater enterprise-to-enterprise engagement, according to the delegation, could help create commercially sustainable partnerships and expand opportunities for businesses in both countries. The discussions also focused on technology transfer, innovation, skills development and the creation of stronger industrial linkages. Five Corridors aligned with Uraan Pakistan Officials also discussed the strategic relationship between the Five Corridors of CPEC 2.0 and Pakistan’s 5Es framework under Uraan Pakistan. The government’s 5Es framework focuses on exports, e-Pakistan, environment and climate change, energy and infrastructure, and equity and empowerment. The participants stressed that alignment between the two initiatives needed to translate into concrete economic outcomes, including new enterprises, technology adoption, innovation, employment opportunities, skills development, increased exports and higher investment. The delegation was also briefed on the progress achieved during CPEC Phase I and Pakistan’s priorities for the second phase. The consultations suggest that the next stage of CPEC will increasingly be measured not only by the volume of infrastructure investment but also by its ability to improve Pakistan’s industrial competitiveness, expand exports, attract private investment and create sustainable employment.

The National Electric Power Regulatory Authority (Nepra) has approved a Rs21.436 billion Distribution Investment Plan (DIP) for Sukkur Electric Power Company Limited (SEPCO), covering its transmission and distribution operations for the five-year Multi-Year Tariff (MYT) period from fiscal year 2025-26 through FY2029-30. Along with the investment plan, the regulator has also set provisional targets for transmission and distribution (T&D) losses, while directing SEPCO to improve project execution, digitalise operational data and strengthen its planning and monitoring mechanisms. SEPCO had originally requested approval for an investment programme worth Rs90.563 billion. However, after Nepra raised several questions regarding the proposed projects, costs, utilisation of existing assets and investment requirements, the power utility submitted revised details. Following the revisions, SEPCO reduced its proposed investment to Rs40.191 billion in information submitted to Nepra on June 19, 2026. The revised proposal included changes in investment priorities and network development requirements based on updated demand projections. The company also revised project costs in light of the latest Purchase Orders (POs). Nepra, however, found substantial weaknesses in SEPCO’s original investment submission. According to the regulator, the initial proposal did not adequately reflect actual field conditions and lacked a comprehensive assessment of the utility’s requirements. It also contained gaps in cost calculations and information concerning the utilisation of existing assets. The regulator stressed that future investment planning should be based on reliable data, realistic demand assessments and proper evaluation of existing infrastructure rather than relying solely on projected requirements. Low utilisation of previous investments raises concerns Nepra also raised concerns over SEPCO’s ability to execute projects and utilise approved investment funds effectively. During the previous control period, SEPCO had been allowed investment of Rs39.509 billion. However, the company utilised only Rs14.231 billion, representing around 36% of the approved amount. The regulator said the low utilisation rate raised questions about SEPCO’s project implementation capacity and the efficiency with which approved investments were being converted into infrastructure and operational improvements. Delays were particularly noted in projects falling under the STG head. Nepra attributed the slow progress to difficulties in acquiring land, procurement-related problems and inadequate coordination between relevant departments. The regulator indicated that these issues point towards weaknesses in project planning, monitoring of milestones and implementation. SEPCO asked to improve network performance Nepra has also expressed concern over SEPCO’s technical and operational performance, particularly its transmission and distribution losses and reliability indicators, including the System Average Interruption Frequency Index (SAIFI) and System Average Interruption Duration Index (SAIDI). The authority directed the company to strengthen preventive maintenance programmes, improve energy accounting and introduce stronger system controls. These measures, Nepra said, are necessary to reduce losses, improve reliability and ensure consumers receive a more stable electricity supply. SEPCO’s approved investment priorities include expansion and strengthening of its 132-kilovolt network, augmentation of the existing system to accommodate future electricity demand and the deployment of modern technologies. The proposed technological improvements include Advanced Metering Infrastructure (AMI), Supervisory Control and Data Acquisition (SCADA) systems and Geographic Information System (GIS)-based mapping. These technologies are expected to support better monitoring of the electricity network, improve operational efficiency and enhance safety and service quality. Independent consultant made mandatory In a significant condition attached to the investment approval, Nepra has required SEPCO to engage an independent third-party consultant to review and validate its future investment plans before they are submitted to the regulator. SEPCO has also been instructed to prepare detailed Terms of Reference (ToRs) for the consultant and obtain Nepra’s approval before beginning the procurement process. The regulator said independent validation would help ensure that future investment proposals are based on actual requirements and that proposed projects are properly justified. Nepra pushes digitalisation of SEPCO operations Nepra has further directed SEPCO to move away from manual data-management practices and establish a comprehensive digital system for its operational information. The authority noted that dependence on manual systems can result in errors, delays and inefficient decision-making. A fully integrated digital platform, according to Nepra, would allow the company to monitor its network in real time, improve demand forecasting and make investment decisions based on reliable data. The regulator has also adopted a dynamic approach to the approved investment programme, allowing adjustments on an annual basis as well as a mid-term review. SEPCO has been directed to submit its mid-term review by December 2027. The review will include updated electricity demand forecasts, progress on approved projects and the company’s financial performance. Provisional T&D loss target set at 16.31% For FY2025-26 and FY2026-27, Nepra has approved a provisional T&D loss target of 16.31% for SEPCO. The target includes a 1% allowance related to law-and-order conditions. The regulator has also ordered SEPCO to commission an independent third-party assessment of its T&D losses through an international consultant or consortium. The study is required to be completed within nine months, with the timeline taking effect from January 7, 2026, in accordance with the tariff rebasing decision. Nepra warned that failure to submit the required independent study within the prescribed period could result in the regulator applying benchmark loss levels. Under the benchmark framework, the applicable levels would include 5.32% high-tension (HT) losses and 1.85% low-tension (LT) losses, resulting in total distribution losses of 7.17%. Transmission losses would be set at 1%, while the overall technical loss ceiling would remain within the range of 8% to 10%.

WELLINGTON: Pakistan and New Zealand have agreed to intensify bilateral economic and commercial cooperation, with agriculture, livestock, information technology, education and services identified as key areas offering greater potential for collaboration. The understanding was reached during a series of high-level meetings held in Wellington on August 6, where officials from both countries reviewed the state of bilateral relations and discussed measures to expand trade and investment ties. According to a statement issued by Pakistan’s Foreign Office on Saturday, the discussions placed particular emphasis on improving market access and developing practical avenues for cooperation in sustainable agriculture. The two sides also explored the possibility of technical collaboration in areas such as wool production and plant protection. The meetings included the 5th round of Pakistan-New Zealand Political Consultations and the 3rd meeting of the Pakistan-New Zealand Joint Trade Committee (JTC). The talks provided both sides with an opportunity to assess existing cooperation and identify new sectors for mutually beneficial economic engagement. The Pakistani delegation at the Joint Trade Committee meeting was headed by Commerce Secretary Jawad Paul Khawaja, while the New Zealand side was led by Grahame Morton. Officials also examined ways to strengthen institutional arrangements that could facilitate closer economic cooperation between the two countries. Improving trade relations and creating a stronger framework for investment were among the areas discussed during the engagement. The political consultations were co-chaired by Ambassador Dr Syed Ali Asad Gillani, Additional Foreign Secretary for Asia Pacific at Pakistan’s Ministry of Foreign Affairs, and Grahame Morton, Deputy Secretary of the Americas and Asia Group at New Zealand’s Ministry of Foreign Affairs and Trade. During the consultations, the two delegations conducted a broad review of Pakistan-New Zealand relations and discussed opportunities to expand cooperation in several fields. These included economic development, science and technology, education, counterterrorism, efforts against transnational crime, high-level exchanges and people-to-people contacts. The officials also discussed regional and global developments and agreed on the importance of maintaining closer coordination at multilateral forums. Pakistan briefed New Zealand on its position regarding developments in the Middle East, including Islamabad’s efforts to help reduce tensions and promote peace. The Pakistani delegation also shared its assessment of the regional situation in South Asia, including developments concerning Indian Illegally Occupied Jammu and Kashmir (IIOJK) and Pakistan’s concerns over India’s actions relating to the Indus Waters Treaty. According to the Foreign Office, Morton acknowledged Pakistan’s constructive contribution to efforts aimed at promoting peace in the Middle East. Education cooperation gains momentum One of the major outcomes of the engagement was the signing of an Education Cooperation Arrangement between Pakistan and New Zealand. The agreement is expected to provide a foundation for closer cooperation in education and create opportunities for greater institutional engagement between the two countries. Education was also discussed as an important component of broader people-to-people relations, alongside science, technology and skills development. The latest consultations come as both countries seek to build on existing bilateral ties and diversify areas of cooperation. Agriculture and livestock, in particular, offer opportunities for technical exchanges and knowledge sharing, while the growing importance of information technology and services could provide additional avenues for economic collaboration. The two sides also stressed the need to translate discussions into practical initiatives that can improve bilateral trade and investment flows. Officials described the meetings as an opportunity to take stock of progress in Pakistan-New Zealand relations, explore emerging areas of cooperation and strengthen institutional mechanisms for future engagement. The discussions concluded with a reaffirmation of the two countries’ commitment to developing a broader, forward-looking partnership based on mutual economic interests, diplomatic coordination and stronger people-to-people connections.