Editor's Note.

Islamabad and Beijing proudly commemorate a decade of the China-Pakistan Economic Corridor (CPEC). Over the past ten years, CPEC has emerged as a monumental testament to the strengthened ties between China and Pakistan. This significant collaboration has witnessed China becoming Pakistan's leading source of investment, loans, and grants, positioning itself as Pakistan's largest trading partner.

Islamabad has received $25.4 billion in direct Chinese investment, a sum allocated to various transportation, energy, and infrastructure projects within the framework of the flagship connectivity and investment corridor project under the aegis of Beijing's Belt and Road Initiative. In addition to direct investment, Pakistan has benefited from substantial loans and a currency swap arrangement, amounting to CNAY=30 billion over the last decade.

These measures have provided critical support to Pakistan's economy, alleviating the pressure on debt repayments and reducing reliance on the U.S. dollar for trade, thereby safeguarding foreign exchange reserves. As we celebrate the decade-long journey of CPEC, this milestone provides both Pakistan and China with an opportunity to reflect on the achievements thus far and chart a course for enhanced economic connectivity. Pakistan must modernize its industrial and agricultural policies to attract Chinese investment and technology.

This transformation is pivotal for Pakistan as it seeks to boost productivity, increase exports, and address its widening trade gap, a primary driver of its balance-of-payments crisis. It is imperative to address the trade deficit of approximately $20 billion with Beijing, a goal attainable through the expeditious completion of special economic zones, enticing Chinese firms to relocate their manufacturing facilities for export.

Equally important is leveraging Chinese expertise and technology to enhance agricultural output, thereby addressing rural poverty and creating a surplus for export. Simultaneously, efforts should be intensified...