KARACHI: Visiting Chinese investors from Shenzhen province on Wednesday showed deep interest in Pakistan's textile sector including entering deals with Pakistani businessmen for sale of goods and purchase of textile raw materials and for joint ventures in this potential sector.
Pakistani counterparts invited them to join them for value addition of textile sector in Karachi. Pakistan's textile sector has a great potential to capture a good share in international market, they maintained.
Pakistan is 4rth largest cotton producer with vast agriculture base and cheap and skilled labour, said Chairman Council of Textile Associations and Patron-in-Chief of SITE Association of Industry(SAI) Muhammad Zubair Motiwala and President SAI Assad Nisar Barkhurdaria during an interactive session with Chinese delegates here at SITE Association of Industry (SAI).
Deputy Director, Department of Commerce, China, Zhang Shaoyun led the high profile delegation. China's Consul Attache in Karachi for Economics Ms. Miranda Lee also accompanied. The delegates representing various Chinese textile companies exchanged information with their Pakistani counterparts and urged the need for further engagements of both the sides aimed at promoting strong collaboration and joint ventures for mutual benefit of China and Pakistan.
The participants on both the sides presented brief account of their businesses /companies and identified the areas of engagements-- import and export of textile items including raw materials- and of joint ventures for expansion and upgrading of Pakistan's textile industry to harvest its real potential.
Deputy Director, China's Department of Commerce Zhang Shaoyun, who was leading Chinese Textile delegation, said that after some research and exchange of information both the countries would find opportunities for joint ventures especially in textile sector.
Pakistan also especialised in textile sector. Some Chinese companies were interested to sell goods, some wanted to purchase raw materials and some interested in joint ventures in future. All this would make China and Pakistan's relationship further strong, he said. China and Pakistan were trusted friends and good neighbours. Chinese companies were already doing successful businesses in Pakistan and invested a lot especially in construction sector, he said.
Chairman Council of Textile Associations Muhammad Zubair Motiwala, who is a leading textile industrialist and exporter, offered Chinese investors to enter joint ventures for existing textile units in SITE, which had a capacity for expansion and value-addition.
Pakistan produced 12 to 13 million cotton bales in a year but, he regretted, the textile exports were hardly dollars thirteen billion. " We are unable to convert our cotton into finished goods," he said adding that Pakistan earned only $ 1.17 per cotton bale as it exported mainly textile raw materials or grey cloth. Whereas, Bangladesh, India and China through value addition were earning bigger amounts for value-addition. If Pakistan succeeds in converting ten million cotton bales into finished good, the textile exports would increase manifold.
Motiwala invited them to visit industrial units. There were 300 weaving and 200 dying units in SITE area, which is the largest and oldest industrial zone of the country.
" We want your help in value addition in our textile sector. There will be win-win situation for both the sides," he tried to convince them.
He said Pakistan is basically a textile country. Textile industry's share was 57 percent of total exports of the country and it provided 40 percent employment. This sector had a big room to grow and earn much more under partnership in both the private sectors, he said.
Referring to new industrial policy of Pakistan government, Motiwala said if any foreign investor sets up an industrial unit and guarantees 80 percent export, the facility would be declared as Special Economic Zone unit enjoying all the incentives including tax holiday announced for SEZs.
He emphasized them to join the existing industrial units and start production. There was low priced skilled labour available which would reduce their cost of business against that in China.
Muhammad Zubair Motiwala assured them that SITE Association of Industry did take care of investors even mediation, in case of a dispute.
He said the information provided by the visiting Chinese industrialists would be circulated among more than 3000 members of SAI, who would contact them directly or through the association for any deal or partnership.
He said the security situation in Karachi was satisfactory to do business. SAI along with law enforcing agencies were managing the security matters in SITE area, he said.
He acknowledged that China Pakistan Economic Corridor (CPEC) was a great gift to Pakistanis from China. 46 billion dollars investment from China would change economic and social scenario in Pakistan.
President SITE Association of Industry Assad Nisar Barkhurdaria welcomed the Chinese delegation and briefed them about SITE area and about its potential to grown further.
On this occasion, Chinese guests were gifted Sindhi Ajaraks and Caps besides memento of the association.
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