Refined POL items and solar power: Chinese team to explore deals with PD today

ISLAMABAD: A Chinese delegation China Asia Economic Development Association (CAEDA) is to hold a meeting with Ministry of Energy (Petroleum and Power Divisions) on Thursday (Oct 10) to discuss avenues of refined petroleum products and solar power grid connections matters, well-informed sources told Business Recorder.

The delegation comprising of Zhu Qianqiu, Guo Jianjun, Zhuang Xiaoxion, Yue Zengmin, Li Qianjin, He Weihua and Li Huashun will also hold meeting with the officials of Ministry of National Health Services, Regulations and Coordination to understand medical policies and related matters of investing in pharmaceutical factories.

CAEDA is expected to invest up to $13 billion in a Free Trade Zone in Pakistan over the next five years will hold a meeting with Special Investment Facilitation Council (SIFC) top brass, to seek necessary policy support from the Pakistani government. The initial phase of this investment is projected to range from $8 to $13 billion. With current investments increasing, total investment could reach around $30 billion. CAEDA has communicated to the Ministry of Industries and Production (MoI&P) the need for a favorable business environment to ensure the project’s success.

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As part of its commitment, CAEDA has already invested $500 million and sent the first batch of 20 professional Chinese fishing vessels to Karachi. More vessels are expected to follow in the coming months.

The Cross-Border Trade Committee includes several influential corporate members in China, eager to invest in the Free Trade Zone. However, some companies have expressed concerns regarding Pakistan’s political, cultural, and security climate, highlighting the importance of government support.

The Free Trade Zone aims to serve both the global market and local Pakistani needs, with plans to establish a duty-free shopping mall offering international goods to Pakistani citizens. This zone will allow transactions and imports/exports to be exempt from tariffs and taxes, with customs registration for all goods. Taxes will only apply when goods enter the domestic market in Pakistan. According to CAEDA, the initiative could significantly enhance trade and economic ties between China and Pakistan, fostering development in various sectors.

On October 12, 2024, the delegation is scheduled to hold meeting with Sindh Building Control Authority in Karachi to seek update on implementation on land use for zero tariff trade zones, power supply and photovoltaic grid connection matters, land survey for oil storage tanks. The delegation will also meet with Fisheries Department.

On October 13, the delegation will visit Pakistan Steel Mills (PSM) land and Dhabeji SEZ under overall coordination of Government of Sindh.

The delegation will meet with businesses for cooperation and discussion with Business Organizations.

The delegation has already held discussions with Federal Board of Revenue (FBR) to discuss Zero Tariff Trade Zone, land demand and basic security, customs policy for import export commodities in zero tariff trade zones, taxation and other related matters. Pakistan’s agricultural products export to China agricultural project incubation and investment is also under consideration.

Copyright Business Recorder, 2024