Pakistan China Joint Chamber of Commerce has supported establishing of Alternative Dispute Resolution (ADR) centres to make the legal system more efficient and a regulatory framework to prevent serious consequences. This was stated by President Pak China Joint Chamber of Commerce S. M. Naveed while speaking at a seminar on 'International Arbitration in Pakistan: Past, Present and Future' arranged by the University of Management & Technology (UMT).
He said with the growth of international trade and commerce between China and Pakistan, certain disputes have already arisen from cross-border transactions involving Pakistani and Chinese companies, which are being resolved in the time consuming national courts of the country or through expensive international arbitration. The increasing economic activity between the two countries is forcing China and Pakistan to find an efficient process in resolving legal disputes without the traditional method. He said China and Pakistan have already taken greater initiative in international trade but there is an immense demand for legal knowledge, trained academic and professional specialists to create awareness for the investment enterprises, to resolve the potential challenges and disputes through an efficient legal framework. If these initiatives are taken the investors, institutions, government of Pakistan and China will benefit greatly.
He pointed out that Pakistan and China together are striving to create an economy that will serve generations. Belt and Road projects will be a series of initiatives, under which several corridors will be built to boost regional economies with the Chinese investments up to US$1 trillion, benefiting over a population of around 4 billion across 65 countries. CPEC is a crucial project for both countries and it has won popular support from people. The completion of CPEC is important for China, as it (1: provides an alternate secure route to import fuel, number (2: creates new markets for its goods and services. (3: Strengthens its goodwill with other neighboring countries. For Pakistan, CPEC will certainly provide a much-needed base to kick-start its economic growth.
He said CPEC has now entered into the second and most critical stage, where industrial development of Special Economic Zones will play an important role in the future development. Pak China Chamber is experiencing an unprecedented increase in the level of Chinese companies coming here directly and also planning through joint venture partnerships.
Special Economic Zones have proven to be the major sources to acquire advance technology and best minds for the country. There would be one time exemption from custom-duties and taxes on import of plant and machinery into SEZ and exemption from income tax for enterprises for 10 years from the starting date. These terms apply equally to all investors including locals and foreigners.
He said CPEC is also a great opportunity to elevate employment in Pakistan. Presently not only 9000 Chinese but also 90000 Pakistanis are working on CPEC projects. Furthermore, relocation of labor intensive industries to Pakistan will not only create room for employment here but will also bring latest technology, latest techniques, and knowledge that will bring a revolution in the conventional norms of production and services.
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