China's iron brother and key Belt and Road corridor — CPEC transforms regional connectivity
📥 Download PDFInvestment Cooperation Guide — Pakistan (2026 Edition) | Published by AERI
Pakistan is China's "iron brother" and a cornerstone of the Belt and Road Initiative through the China-Pakistan Economic Corridor (CPEC). AERI's research reveals that Pakistan remains strategically vital for Chinese enterprises despite economic challenges including fiscal deficits and inflation.
In 2024, Pakistan's GDP reached approximately USD 370 billion, with growth of 2.4%. Population approximately 240 million. CPEC projects valued at over USD 62 billion span energy, transport, and industrial cooperation.
China-Pakistan bilateral trade reached USD 23.3 billion in 2024. Pakistan is one of the earliest and most enthusiastic supporters of the Belt and Road Initiative.
AERI believes Pakistan's core investment value lies in: the CPEC framework providing unprecedented infrastructure support; a consumer market of 240 million; strategic access to Central Asia and the Middle East via Gwadar Port.
Located in South Asia, bordered by India, China, Afghanistan, Iran, and the Arabian Sea. Area: 881,913 km². Capital: Islamabad. Population approximately 240 million. Currency: Pakistani Rupee (PKR).
GDP approximately USD 370 billion (2024). Key sectors: agriculture (cotton, wheat, rice), textiles, services. CPEC has driven significant infrastructure investment.
Board of Investment (BOI) provides one-window facilitation. CPEC Special Economic Zones offer additional incentives. Corporate tax 29%. GST 17%. 100% foreign ownership permitted in most sectors.
CPEC Phase I: energy and infrastructure (USD 25+ billion). Phase II: industrial cooperation, agriculture. Major projects: Gwadar Port, Karachi-Lahore Motorway, multiple energy projects.
State Bank of Pakistan regulates banking. ICBC and Bank of China operate in Pakistan. Common law system. Signatory to New York Convention. AERI South Asia Office (Mumbai): Raheja Towers, Mumbai 400020, India.
Compiled by: Asia Economic Research Institute | April 2026
Connect with AERI's research team for customised investment analysis and market entry guidance across Asian markets.
Contact Our Team →