Fast-track basis: China, Pakistan agree to promote investment, industrial cooperation

ISLAMABAD: Pakistan and China on Wednesday agreed to promote investment, industrial cooperation on a fast-track basis.

Talking to Business Recorder, a senior official of the Economic Affairs Division (EAD) said that the 15th session of the Pakistan-China Joint Economic Committee on Economic, Trade, Scientific and Technical Cooperation (JEC) was held after a gap of 11 years.

The virtual meeting of JEC was co-chaired by Ren Hongbin, Vice Minister of China and Mian Asad Hayaud Din, secretary, Economic Affairs Division, Pakistan.

Omar Ayub Khan, Federal Minister for Economic Affairs attended the session with opening remarks.

The official said that both sides agreed to increase focus on sectors, which were sidelined or even neglected in the recent past due to more focus on areas coming under the ambit of the China-Pakistan Economic Corridor (CPEC).

It was one of the reasons for holding the 15th session after such a long time that more focus was given on CPEC, but now both sides agreed to focus on the CEPC as well as other areas of mutual interest and cooperation, sources added.

Both sides also discussed the matters relating to development projects in energy, infrastructure, and social sectors. They also agreed to promote investment and industrial cooperation on fast track basis.

The official handout issued by the division stated that the Minister for Economic Affairs commended the Government of China for hosting the 15th session of JEC after a long gap of 11 years.

Pakistan, China agree to improve experience of existing investors

The Minister for Economic Affairs highlighted that Pakistan and China are entering into the next phase of the CPEC, where Special Economic Zones (SEZs) are being established.

The SEZs would be helpful in attracting foreign direct investment, establishing industrial units, creating employment opportunities and boosting economic activities in the country. Operationalisation of Gwadar Port will also create momentum in the external trade.

China has been Pakistan’s largest trading partner for six consecutive years since 2015. At present, China is Pakistan’s main source of imports and second-largest export destination.

The Minister for Economic Affairs further highlighted that Pakistan has immense investment opportunities in various sectors. Pakistan provides conducive and liberal investment environment to foreign investors and entrepreneurs.

All foreign investments are fully protected under Foreign Private Investment Promotion and Protection Act, 1976 and Protection of Economic Reforms Act, 1992.

Special Economic Zones (SEZs) are also being established to meet the global challenges of competitiveness with the state-of-the-art infrastructure and connectivity.

The SEZ incentive package includes exemption from income tax for ten-years and one-time exemption from all custom-duties and taxes on import of capital goods.

Textile, leather, pharmaceutical and surgical industries of Pakistan are considered as best in the world and our products are exported around the globe.

Accordingly, Chinese investors can benefit from the huge potential of Pakistan’s industrial sector. In this regard, Small and Medium Enterprises Development Authority (SMEDA) and the Board of Investment of Pakistan can collaborate with Chinese counterparts for enhancing cooperation in industrial sector.

Furthermore, agriculture is another very important sector of the economy, especially for food security and rural development.

He emphasized that we look forward to mutual cooperation in the areas of agricultural research, enhanced productivity, value addition and food processing through establishment of joint ventures and business-to-business contacts.

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The Minister for Economic Affairs expressed his satisfaction on completion of seventy-years of everlasting and unprecedented bilateral friendship between Pakistan and China.

To highlight the significance of the event, the minister referred to the Bilateral Agreement for establishment of Joint Committee for Economic, Trade, Scientific & Technical Cooperation (JEC), signed in 1982, and called it the basis of bilateral cooperation.

The Minister for Economic Affairs expressed that Pakistan and China have always supported each other at every front. Pakistan was among the first country to show its solidarity with China at the time of outbreak of the Covid-19 pandemic and Pakistan’s president paid a visit to Beijing amid this pandemic.

The Government of China has also been supporting Pakistan in pandemic mitigation measures from the very beginning of the pandemic.

In order to support the Government of Pakistan’s drive for mass vaccination, Chinese companies supplied Covid-19 vaccine on priority.

The Government of China also provided over four million doses of vaccine to Pakistan free of cost.

Mian Asad Hayaud Din, secretary, EAD also shared views regarding promotion of bilateral trade cooperation, exchange of experience in the context of poverty alleviation, establishment of joint working groups. The secretary EAD also appreciated the measured taken by the Chinese government to tackle the Covid-19 pandemic. In addition, strengthening of cooperation under multilateral framework was also discussed.

Ren Hongbin, Vice Minister of China commented that the fruitful discussions on bilateral economic relations between delegates of the two countries will meet the objectives of deepening bilateral relationship between the two countries.

He also hoped that the next session of Pak-China JEC will be held soon in Pakistan.

He reiterated that Pak-China relationship is everlasting and bound to continue on good terms in the future.

Copyright Business Recorder, 2021