By Zafar Hussain

BEIJING, July 22 (China Economic Net) - Pakistan's exports to China reached $1.874 billion in the first half of 2026, marking a substantial 50.7 percent surge compared with $1.244 billion recorded in the same period of 2025, according to the General Administration of Customs of China (GACC).

Monthly performance demonstrated consistent growth momentum throughout the period, with March 2026 recording the highest export value at $361.37 million, an 84.1 percent year-on-year increase from $196.16 million in March 2025.

Pakistani agro-industrial sectors, particularly sugar, bagasse, and related agricultural products, anchored the export expansion. Exporters have significantly scaled up shipments of raw materials and intermediate products to Chinese mills, distilleries, and manufacturing units, capitalizing on established supply chains under sugar and biomass trade corridors.

"The 50.7 percent growth reflects the maturation of our industrial partnership with China. Pakistani exporters have now established themselves as reliable suppliers to China’s energy and manufacturing sectors, particularly in sugar processing and biomass utilization," said a senior official from Pakistan's Ministry of Commerce.

Banking infrastructure improvements have been instrumental. Pakistani exporters now access Chinese financing mechanisms including lease finance facilities and extended credit terms through major commercial banks, substantially improving working capital capacity for larger shipments. MCB Bank Ltd., Al-Habib Ltd., and Meezan Bank have expanded credit facilities for export-oriented agro-industrial enterprises.

Owais Mir, Founder and Chief Executive of Dynamic Engineering & Automation (DEA) Group of companies, told China Economic Net that manufacturing hubs in Punjab and Sindh have reported increased capacity utilization to meet Chinese buyer requirements. March's exceptional 84.1 percent year-on-year jump particularly reflects surging demand for bagasse and molasses from Chinese power plants and distilleries entering peak production seasons.

Mir said that maintaining momentum depends on three critical pillars: continued CPEC infrastructure expansion, sustained Chinese demand for Pakistan's primary agricultural commodities, and predictable regulatory frameworks on both sides.

"The trajectory through June suggests momentum will carry into the second half of the year. However, seasonal variations in agricultural commodity pricing and Chinese industrial demand cycles warrant close monitoring," cautioned Prof. Dr. Audil Rasheed, noting that sustained growth requires careful management of external economic cycles.

Owais added that Pakistan's exporters have built substantial order pipelines through mid-year, with commitments extending into Q3 2026. Continued stability in Pakistan's agro-industrial output and stable logistics costs through CPEC corridors remain prerequisites for sustaining this growth trajectory.