By Mehmet Enes Beşer
For decades, the Pakistan–China relationship has been characterized by strategic alignment, defense cooperation, and the physical infrastructure projects of the China–Pakistan Economic Corridor (CPEC). Dubbed an “iron brotherhood,” this bilateral partnership has survived geopolitical turbulence and proven its relevance through energy, transport, and industrial investments. Yet as both nations ride the digital turn of the 21st century, a new chapter is unfolding—one in which technology, rather than asphalt, could become the bedrock of future cooperation.
Pakistan’s start-up ecosystem, albeit nascent, is witnessing frantic growth. As internet penetration improves, increasingly youthful and technologically literate consumers, and an explosion of interest from venture capitals, the country is laying down the pillars of a digital economy. Be it fintech platforms revolutionizing financial inclusion, agritech platforms altering rural productivity, or edutech and healthtech start-ups revolutionizing healthcare and education, Pakistan’s start-ups are taking advantage of ginormous latent demand. But bringing scale to such innovations is always a problem–not just of capital, but of mentorship, infrastructure, and access to global supply chains.
This is where China can be a partner of first choice. It possesses unparalleled records in building digital platforms at large scale in e-commerce champions like Alibaba and JD.com as well as on mobile payment economies like WeChat Pay. It offers not investment, but expertise. And considerably removed from the venture ecosystems of Western nations that so often come with attendant regulatory and political strings, Chinese investors like to invest where there are still sophisticated governance markets in emerging countries. This harmony promises real prospects of structured tech partnering between the countries.
Agritech is poised for two-sided collaboration. Pakistan’s agriculture accounts for close to 20% of GDP and provides employment to the majority of rural workers, but it is plagued by inefficiency, climatic risk, and outmoded techniques. Chinese companies have already designed low-cost smart irrigation systems, crop monitoring using artificial intelligence, and blockchain supply chains that could be adapted to Pakistan’s setting. Pilot initiatives or joint ventures in Punjab and Sindh provinces can demonstrate the potential of digital innovation to boost crop yields, stabilize food prices, and strengthen the bargaining power of smallholder farmers.
Fintech is also an extremely promising field. In a country where over 50% of the adult population remains unbanked, mobile payment systems and micro-lending platforms can have the potential to revolutionize access to finance. China’s success in scaling credit scoring and mobile wallets to the previously unbanked populations can serve as blueprints for Pakistan’s digital inclusion. The joint venture between Telenor Bank’s Easypaisa and Ant Financial in Pakistan is one illustration of how Chinese fintech models can be adapted regionally to locate a local fit for South Asian economies.
Aside from sectoral synergies, increased cooperation in tech is also a strategic factor. As Pakistan seeks to diversify from its over-reliance on traditional sources of foreign assistance and debt-driven growth, tech cooperation offers a more sustainable value creation paradigm. Unlike mega infrastructure projects, which are prone to cost escalations and geopolitical focus, digital partnerships can be lean, scalable, and locally empowering. They are also aligned with Pakistan’s demographic trajectory—leveraging youth and innovation rather than heavy capital investments.
Moreover, tech collaboration deepens the connective tissue among the two nations’ peoples. Whereas CPEC has been roundly criticized for being overly top-down and opaque, deepening tech partnerships—via co-hackathons, startup missions, and university research collaboration—can fuel more horizontal, people-to-people engagement. A Pakistani coder working with a Chinese AI scientist or a Lahore fintech team pitching to a Shenzhen investor not only generates business value, but familiarity and confidence.
Of course, there are issues. Data governance, cybersecurity, and regulatory coherence must be handled with caution so as not to fall into dependency and undermine long-term resilience. Pakistan must also guard against monopolistic tactics or surveillance risks, especially in areas where digital infrastructure is intertwined with national security. But these are not arguments against engagement—these are arguments for designing it with prudence and equitable bargaining.
Conclusion
The fate of the Pakistan–China relationship need not be inscribed on roads, ports, and military drills. It can be written in code, quantified in gigabytes, and powered by innovation. As Islamabad seeks to gear up from infrastructure-driven growth to a knowledge economy, China’s digital playbook—adapted to local needs and rooted in a common strategic vision—offers a path to inclusive growth and long-term resilience.
By investing in tech cooperation, the two nations can not only deepen their bilateral relationship but also co-create the contours of a digitally interconnected Asia. In a world where the very definition of alliances is coming to be framed by data streams and digital ecologies, Pakistan and China have a chance to set an example—one where innovation, rather than ideology, ties nations together.