- PM Shehbaz’s Beijing Visit Sends Strong Signals to Investors; Key Sectors in Focus
Karachi, June 2, 2026 (Agencies) — Pakistan’s stock market has posted notable gains in recent weeks, buoyed by deepening economic ties with China and growing investor confidence following Prime Minister Shehbaz Sharif’s high-profile visit to Beijing.
The KSE-100 index stood at 170,612 points on June 1, having climbed over 4 percent in the past month and surging more than 43 percent compared to the same period last year. Analysts attribute the bullish sentiment to a combination of macroeconomic stability, easing regional tensions, and a fresh wave of Sino-Pakistani cooperation commitments.
Prime Minister Sharif concluded a visit to China last week, during which Beijing and Islamabad reached what they described as a “new broad consensus” on deepening their strategic ties, advancing the China-Pakistan Economic Corridor (CPEC), and establishing Gwadar port as a regional connectivity hub.
Both sides agreed to accelerate work on major infrastructure, industrial and connectivity projects under the second phase of CPEC, as Sharif wrapped up a four-day visit to China focused on expanding strategic, economic and security cooperation.
“The China visit sent several positive signals to the market, particularly regarding continued support for CPEC projects, industrial cooperation, and investment in special economic zones,” Dr. Khaqan Najeeb, economist and former advisor to the Ministry of Finance, told Sputnik. He identified mining, renewable energy, information technology, and infrastructure as the sectors most attractive to investors.
The bilateral momentum has been building steadily. At the second Pakistan-China B2B investment conference held in September 2025, over 600 Chinese companies participated, resulting in 21 joint agreements, 148 MoUs, and bilateral accords worth $8.5 billion across multiple sectors.
On the financial front, Pakistan issued its first Panda Bond in China’s onshore capital market on May 14 — a three-year, yuan-denominated instrument worth $250 million, backed by guarantees from the Asian Infrastructure Investment Bank and the Asian Development Bank.
The two countries are now moving into a new phase of collaboration under CPEC 2.0, with a strong focus on industry, agriculture, and mining. This year also marks the 75th anniversary of diplomatic relations between Pakistan and China.
China further agreed to support Pakistan’s agricultural modernisation efforts and facilitate market access for high-quality Pakistani agricultural products, following the completion of a Chinese training programme for 1,000 Pakistani agricultural technicians. The joint statement also highlighted plans for two Pakistani astronauts to train in China.
With investor sentiment firmly on the upswing, market observers say Pakistan’s strategic alignment with Beijing is increasingly translating into tangible economic gains — making the country one of the more closely watched emerging markets in Asia.