As Pakistan and China celebrate 75 years of diplomatic relations, it is an opportune moment to reflect on the industrial foundations of this enduring partnership. One of the most consequential dimensions of Pak-China cooperation has been the development of Pakistan’s heavy engineering sector -- an area that quietly but fundamentally shaped the country’s industrial trajectory.
PAK-CHINA TIES
As Pakistan and China celebrate 75 years of diplomatic relations, it is an opportune moment to reflect on the industrial foundations of this enduring partnership. One of the most consequential dimensions of Pak-China cooperation has been the development of Pakistan’s heavy engineering sector -- an area that quietly but fundamentally shaped the country’s industrial trajectory.
Industrial cooperation between the two countries from the 1970s to the 1990s laid the foundation for Pakistan’s capital goods industry. The partnership centred on technology transfer, technical training and direct investment in key industrial units, enabling Pakistan to gradually reduce reliance on imported machinery and equipment. Over time, this collaboration evolved into a long-term strategic partnership that helped build indigenous capacity in manufacturing machinery, equipment, and components for diverse industries, including the power sector.
The Heavy Mechanical Complex (HMC) at Taxila (District Rawalpindi), though established in the late 1960s, became fully operational in the 1970s as the cornerstone of Pakistan’s heavy engineering capability. It manufactured sugar plants, cement plants, road construction machinery, overhead cranes, industrial boilers and a broad range of industrial equipment. Alongside it, the Heavy Foundry & Forge (HFF) was developed to provide high-quality heavy castings and forgings, creating an integrated industrial ecosystem. This integration significantly reduced the engineering sector's dependence on imported heavy raw materials.
Similarly, the Heavy Electrical Complex (HEC) at Hattar Industrial Estate (District Haripur) was established with Chinese assistance to manufacture high-voltage power transformers and related electrical equipment, thereby lowering import dependence in the power sector. In 1992, HMC-3 was established as a joint venture between the State Engineering Corporation and the Pakistan Atomic Energy Commission for the progressive manufacturing of nuclear components under Chinese technical know-how, marking a significant step towards advanced engineering production.
Beginning in 1967 and continuing through the 1970s and 1980s, thousands of Pakistani engineers and technicians received training from Chinese experts, both in China and domestically. This extensive human resource development strengthened local capabilities in design & engineering, fabrication, metallurgy and quality assurance. With Chinese design and engineering support, HMC manufactured and rolled out its first static road roller in 1971. In subsequent years, hundreds of such road rollers were supplied to domestic and export markets, demonstrating early success in indigenisation.
Among the earliest landmark projects was the establishment of Larkana Sugar Mills at Naudero in Sindh, a 1,500 tons cane-crushing per day (tcd) public-sector plant built with Chinese technology and supply of critical components. Since 2001, it has operated as Naudero Sugar Mills under private ownership, with its capacity enhanced to 4,500 tcd, availing of Western technology. In the cement sector, HMC manufactured and installed the Pak Cement Plant at Daudkhel, Punjab -- a complete 600-1,000 tons-per-day wet process plant based on Chinese technology. Later, HMC partnered with Chinese firms to manufacture equipment for the 320MW thermal power expansion at Wapda’s Muzaffargarh power station. The complex also produced material-handling equipment, including cranes, for the Saindak Copper-Gold mining project in Balochistan, an important venture established with Chinese cooperation.
If industrial cooperation once again emphasises technology transfer, local capacity building and strategic planning, the Pak-China partnership can move beyond infrastructure towards genuine industrial revival -- strengthening Pakistan’s economic sovereignty and long-term resilience in an increasingly competitive global environment
These collaborations transformed Pakistan’s industrial base and laid the foundation for technological advancement in subsequent decades. By the late 1990s, HMC had upgraded from producing 500 tcd sugar plants to manufacturing 12,000 tcd plants based on European technology. Cement plant capacities increased to 5,500 tpd using modern dry processes, while the product range expanded to include vibratory road rollers, stone crushing plants, and asphalt mixing plants under Japanese technology. In later years, critical equipment for thermal power generation at K-Electric’s Bin Qasim projects (210MW each) was produced using Japanese and German technologies, while components for medium- and large-scale hydropower projects were manufactured with Austrian expertise. During this period, HMC supplied approximately 35,000 tons of equipment and components for various power projects. These achievements reflected a technological trajectory initially enabled by Chinese collaboration.
The Heavy Electrical Complex likewise benefited from the transfer of Chinese technology, manufacturing drawings, and technical expertise for the production of power transformers ranging from 6.3 MVA to 40 MVA. Over time, it delivered nearly one hundred tailor-made transformers to Wapda and K-Electric, many of which remain operational. Specialising in equipment for 132 kV and 66 kV substations, the HEC has also repaired and rehabilitated hundreds of high-voltage transformers, further strengthening domestic technical capacity.
Today, industrial cooperation has entered a new phase under the China-Pakistan Economic Corridor (CPEC). While the first phase focused primarily on infrastructure and energy, CPEC 2.0 aims to prioritise industrialisation, manufacturing and deeper technology transfers. The 2025-2029 Industrial Cooperation Action Plan seeks to transform Pakistan from a transit corridor into a regional industrial hub, aligned with the broader vision of the Belt and Road Initiative.
Nine Special Economic Zones (SEZs) are being developed under the CPEC, including the Faisalabad Allama Iqbal Industrial City, which is partially operational, and the Rashakai Special Economic Zone, a flagship project being developed on priority. Both target engineering industries. Business-to-business cooperation is being encouraged in the iron and steel, electrical equipment and heavy machinery fabrication sectors. The Pak-China E-Mining Platform aims to attract over $10 billion in investment to modernise the mining sector and promote value addition in copper, gold, and rare earth minerals. Meanwhile, the Pak-China Technical and Vocational Institute at Gwadar is preparing skilled manpower to support this industrial transition.
As the two countries commemorate 75 years of a strong relationship, the lesson from history is clear: the strength of Pak–China relations lies in concrete institution-building and technology transfer that enhance domestic capability. The earlier era of cooperation succeeded because it prioritised skill development, industrial absorption of technology and long-term planning. For CPEC 2.0 to replicate that success, Pakistan must ensure policy consistency, competitive energy pricing, improved security and timely provision of infrastructure for SEZs. It is therefore imperative that financing arrangements for industrial zones be streamlined and that the 2025–2029 Industrial Cooperation Action Plan be implemented without delay.
If industrial cooperation once again emphasises technology transfer, local capacity building and strategic planning, the Pak-China partnership can move beyond infrastructure towards genuine industrial revival -- strengthening Pakistan’s economic sovereignty and long-term resilience in an increasingly competitive global environment.
The writer is a retired chairman of the State Engineering Corporation.
