Sindh announces over two dozen MoUs to attract Chinese investment

Sindh Chief Minister Syed Murad Ali Shah has assured Chinese investors of the provincial government’s commitment to protecting Chinese nationals and their investments, while announcing plans to sign more than two dozen memorandums of understanding (MoUs) across key economic sectors.

Addressing the Sindh Investment and Trade Conference in Shanghai on Thursday, Murad said the provincial government had established a dedicated security unit within the Sindh Police to protect Chinese citizens and projects. He added that the unit’s capacity was being further strengthened to improve security arrangements.

The chief minister also thanked the Chinese government for supporting efforts to enhance the capabilities of the provincial police. He said Sindh was committed to providing the necessary resources to safeguard Chinese personnel and investments.

Murad invited Chinese business leaders to explore investment opportunities in the province, highlighting its strategic location, natural resources, industrial base and growing economic potential. He said more than two dozen agreements would be signed during the conference, covering energy, minerals, electric vehicles, automobile manufacturing, digital technology, food processing, logistics, warehousing and trade.

He stressed that signing agreements was only the first step towards building successful partnerships. The Sindh Investment Department would assign a dedicated focal person to each agreement and monitor progress at the highest level to ensure that commitments translated into practical projects and economic activity.

Highlighting Sindh’s geographical and commercial advantages, Murad described Karachi as Pakistan’s financial centre and a major gateway for international trade. Karachi Port and Port Qasim handle a significant share of the country’s seaborne trade, connecting businesses with markets in the Middle East, Africa and Central Asia.

He also pointed to the presence of the State Bank of Pakistan and the Pakistan Stock Exchange in Karachi, along with the province’s young and increasingly skilled workforce. According to the chief minister, these factors make Sindh an attractive destination for investors seeking access to Pakistan’s domestic market and regional trade networks.

Murad highlighted the province’s energy and mineral resources, particularly the Thar coal reserves and the wind corridor. He said Thar contained an estimated 175 billion tonnes of lignite, while Sindh’s wind power potential was estimated at around 50,000 megawatts.

Agriculture was another area of opportunity, with the province producing rice, cotton, wheat, sugarcane, fruits and dates. Murad said these resources could support investment in food processing, industrial production and export-oriented businesses.

The chief minister also outlined incentives available in special economic zones, including a 10-year income tax exemption and duty-free imports of capital goods under the applicable framework. He highlighted Sindh’s public-private partnership legislation and the Sindh Investment Department’s one-window facilitation system, which assists investors from their initial enquiries through to the start of production.

Murad referred to existing Chinese-backed projects in Sindh as examples of the economic cooperation already taking place between the two countries. These include Shanghai Electric’s 1,320-megawatt Thar Block-I power project, which entered commercial operation in 2023, as well as China Machinery Engineering Corporation’s involvement in Thar Block-II and China Three Gorges Corporation’s wind power project at Jhimpir.

He also cited Service Long March Tyres, a Pakistan-China joint venture based in Nooriabad, which has expanded into international markets. The company’s exports to the United States and Brazil, he said, demonstrated the potential for locally based manufacturing ventures to reach overseas customers.

The chief minister pointed to growing Chinese involvement in Pakistan’s automobile industry, including companies such as BYD, Changan, JAC and Dongfeng. He identified electric vehicles and vehicle manufacturing as areas where cooperation could expand further through partnerships with local businesses.

Other Chinese-linked enterprises operating in Pakistan include United Energy Group, Pakistan-China Electric, China National Nuclear Corporation and Hutchison Ports, Murad said.

Looking ahead, he identified energy and minerals as major areas for future investment, including coal-to-chemicals and the development of a wider industrial value chain around Thar’s resources. Artificial intelligence, cloud computing, smart cities, electric vehicles, food processing and logistics were also highlighted as sectors offering opportunities for collaboration.

Murad invited Chinese business leaders to visit Sindh and assess its investment potential firsthand. He described stronger economic engagement as a natural extension of the longstanding relationship between Pakistan and China, which marks 75 years of diplomatic ties.

Concluding his address, the chief minister encouraged Chinese companies to work with local businesses and establish partnerships that create jobs, expand production and support exports. He said Sindh was ready to welcome investors and turn existing commitments into projects that contribute to the province’s economic development.