China, Pakistan Expand Financial Framework to Boost Global Trade Resilience

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China and Pakistan have deepened their financial cooperation to facilitate cross-border trade and enhance global supply chain efficiency, a move seen as a strategic alignment within the Belt and Road Initiative (BRI). Speaking at the 3rd China International Supply Chain Expo, Sheikh Muhammad Shariq, Chief Representative of the National Bank of Pakistan (NBP) in Beijing, emphasised the importance of stronger financial linkages in addressing liquidity issues and supporting businesses operating in an increasingly complex international marketplace.

As digital transformation continues to reshape global commerce, Shariq noted that collaborative financial frameworks are critical to easing friction in cross-border transactions. He stressed that countries participating in the China-Pakistan Economic Corridor (CPEC) , a key BRI infrastructure arm, must modernise supply chain financing to stay competitive. According to Shariq, establishing localised financial services is essential to minimising trade disputes and supporting both major corporations and emerging enterprises involved in bilateral trade.

One of the most pressing challenges highlighted was the overreliance on limited financing sources, which exposes developing economies to volatility and uncertainty. Shariq advocated for a diversified and harmonised financial structure, one that enables smoother capital movement across borders and reduces dependency on any single country or institution. He stated that standardising financial practices and improving communication across different legal and cultural frameworks can help foster resilience in international trade operations particularly in the BRI zone, where consistency in policy and practice is often lacking.

NBP has operated in China since 1981, offering strategic financial support to Chinese companies exploring investment opportunities in Pakistan’s agriculture, energy, and digital sectors. Shariq underlined that the role of stable liquidity cannot be overstated especially for small and medium-sized enterprises (SMEs), which are often disproportionately affected by cash flow constraints. He concluded that a durable, well-integrated financial ecosystem between China and Pakistan will not only stabilise bilateral trade but also serve as a blueprint for broader regional cooperation under the BRI. In an era marked by geopolitical fragmentation and economic nationalism, forging dependable financial pathways is not just smart policy it’s a necessary hedge against future global disruptions.