CAEDA wants to establish ‘Pakistan Zero-Tariff Trade Zone’

ISLAMABAD: The China Asia Economic Development Association (CAEDA) wants to establish "Pakistan Zero-Tariff Trade Zone," establishment of a service center for Chinese imports, and exploring opportunities in agriculture, livestock investment, export projects, and B2B investment potential.

A delegation from the CAEDA, led by Qian Qiu Zhu and Jian Jun Guo, met with the Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal, on Thursday, in Islamabad.

During the meeting, CAEDA expressed interest in collaborating with Pakistan on a range of economic initiatives, including establishing the "Pakistan Zero-Tariff Trade Zone," establishment of a service center for Chinese imports, and exploring opportunities in agriculture, livestock investment, export projects, and B2B investment potential.

Iqbal also highlighted the upcoming phase-2 of China-Pakistan Economic Corridor (CPEC) with a focus on fostering B2B partnerships.

The minister identified several broad areas for potential cooperation, particularly, the reallocation of Chinese industries to Pakistan. He noted that Pakistan’s labour and production costs are considerably lower than those in China, presenting an opportunity for Chinese enterprises to produce goods in Pakistan for export to markets in Europe and the United States, thereby, circumventing high tariffs imposed on Chinese imports.

In addition, Minister Iqbal highlighted the opportunities within Pakistan’s agricultural sector, particularly, in regions such as Gilgit-Baltistan, where products such as cherries can be exported at competitive prices to China. He emphasised Pakistan’s rich resources in minerals, fisheries, agriculture, and textiles, all sectors where China could collaborate with local investors. He stated that Pakistan seeks advanced technology, modern equipment, and skills from China to elevate these industries further.

Discussing Special Economic Zones (SEZs), Iqbal emphasised the opportunities available to the Chinese business community for investment and development. He committed to supporting Chinese investors and highlighted the significance of a one-stop service centre to facilitate matchmaking between Pakistani and Chinese enterprises, enhancing cooperation between the two nations.

Minister Iqbal reaffirmed the deep bond between Pakistan and China, referring to the two nations as "iron brothers" with a unique relationship. He acknowledged the recent tragic terrorist attack in Karachi, which took place two days ago, as an attempt by adversaries to disrupt the CPEC project.

"The Government of Pakistan is committed to ensuring the safety and security of our Chinese brothers and sisters, who are national guests and heroes contributing to Pakistan’s development," he said.

The minister assured that such isolated incidents do not reflect the overall situation in Pakistan, emphasising that hundreds of Chinese nationals work safely in the country, which remains a welcoming and secure destination for Chinese investment.

The minister underscored the significant potential for collaboration between Pakistani and Chinese enterprises, aiming to build upon the government-to-government cooperation achieved thus far in establishing essential infrastructure. He outlined Pakistan’s long-term Economic Transformation Plan, aimed at encouraging foreign direct investment and boosting exports to address challenges within the economy, particularly, in the export sector.

Copyright Business Recorder, 2024