President Asif Ali Zardari has invited China's industrial giants and large business groups and companies to take benefit from Pakistan's investment-friendly and incentives-driven policies by investing in diverse fields, particularly in energy, infrastructure, communication and agriculture sectors.
He said Pakistan, a growing economy with around 180 million people, had huge untapped natural resources coupled with the government's pro-investment policies and incentives such as no restriction on equity or repatriation of capital gains, was an attractive place for foreign investors.
The President said that enhanced investment by Chinese industrial and corporate sector companies and groups in different fields and projects in Pakistan including electricity generation, oil and gas exploration, coal mining, infrastructure, communication, telecom, agriculture and dairy development etc would be welcomed to a win-win scenario.
President Zardari was talking to the heads and Chief Executive Officers (CEOs) of China's major industrial and corporate sector companies, groups and consortiums, who separately called on him here on the sidelines of the first China-Eurasia Expo on Wednesday and discussed the prospects and opportunities of trade and investment in Pakistan.
The Federal Ministers, who were accompanying the President in the visit as well as senior officials and spokesperson to the President Farhatullah Babar were also present in the meetings. Farhatullah Babar briefing the Pakistani official media in Urumqi said that over a dozen top executives of China's industrial and corporate sector, who met the President, included Chairman of Tebian Electric and Apparatus Stock Co Ltd (TBEA), Zhang Xin, Chairman and CEO of Goldwind Science and Technology Company Ltd, Gang Wu, Chairman and CEO of Orient Group, Zhang Hongwei, CEO Beiqi Foton Ltd, Wang Jinyu, Chairman of Jinchuan Group Ltd, Yang Zhi Qiang, Chairman of SinoTrans Group Xinjiang, Yuan Jianmin and the Bond Consortium.
The President during his meeting with Chairman TBEA - which is the fastest developed company in China's power transmission industry, appreciated the company's interest in Pakistan and its $3.5 billion agreement with Pakistan's NTDC (National Transmission and Dispatch Company) and China Development Bank (CDB) to supply transmission equipment to Pakistan.
The President said that the present government of Pakistan in order to improve the country's energy resources was focused on building mega hydropower projects in Diamer Bhasha and Bunji. Development of Thar Coal field and electricity generation through coal gasification is also on cards, he said and added that Pakistan needs to revamp its existing transmission lines as well as building new ones for efficient transmission and reducing line losses.
The President also welcomed TBEA's interest in acquiring the Heavy Electrical Complex and invited the attention of Chairman TBEA towards government's investment friendly policies, particularly for investments from China. He said TBEA can take advantage of the opportunities that existed in Pakistan especially in electric generation and transmission fields. The President during his meeting with the Chairman and CEO Goldwind - one of the largest wind turbine manufacturers in the world with operations in Asia, Australia, Europe, and America, said that Pakistan has huge potential of producing electricity from wind.
The Gharo-Keti Bandar wind corridor alone has a potential of producing approximately 50,000 MW, he said, adding, Pakistan expects to generate at least 5 percent of its total power generation from alternative renewable energy sources by the year 2030. The President mentioned the Government of Pakistan's "Policy for Development of Renewable Energy for Power Generation" that offers very attractive incentives.
He appreciated the Goldwind's interest in developing wind power technology in Pakistan and said the company can also participate in the development of wind farms through Direct Foreign Investment (DFI). The President said Goldwind can also collaborate with Pakistani engineering industries for local manufacturing of wind turbines. He assured that the Government of Pakistan will provide full facilitation through AEDB (Alternative Energy Development Board).
Banks and financing institutions may finance commercial projects through equity sharing, he added. During the meeting with the Chairman of Jinchuan Group - one of the biggest mining companies in China and the World in Nickel, Copper, Platinum, and Non Ferrous Metals, the President appreciated the Group's achievements in just 50 years and thanked for their interest in the investment and economic co-operation with Pakistan.
The President said since Pakistan and China have a very good co-operation in mines and minerals and with China being a major importer of chromium ores, copper and minerals from Pakistan, the interest of Jinchuan Group is a welcome development. He said with a Chinese state-owned company already operating Saindak copper mines in Balochistan and Duddar lead and zinc mines in Sindh province, a number of Chinese companies are taking interest in developing the Thar Coal/Sonda Jherruk Coal fields. The President assured to provide full support and facilitation to the Jinchuan Group in Pakistan. He also invited the Group's Chairman to visit Pakistan.
President Zardari during his meeting with Beiqi Foton Motor Company Ltd - a state-owned holding listed company in Beijing with the existing capital of RMB 30 billion - mentioned the all weather friendship between Pakistan and China and said the two sides were striving to build this into a stronger economic partnership. He said, "The enterprises of our two countries will play a vital role in enhancing such co-operation."
The President said Pakistan is an investment friendly country and offers business opportunities in variety of areas including infrastructure and public transport. Since the Foton Motors owns the production bases of the entire range of vehicles and parts in nine provinces of China, the President appreciated the company for exploring business opportunities in Pakistan in Public Transport sector, with special reference to the recent agreements to supply 400 buses to Lahore and 2000 buses to Karachi.
The President said as there was a need for upgrading the existing transport network in mega cities of Pakistan, Foton Motors would be welcomed and encouraged to focus on other cites as well to overcome commuters transportation issues and to improve inter and intra city connectivity.
He said as the present government in Pakistan places great importance on environmental protection, the Foton's focus on production of buses powered by environment friendly fuels is laudable. The President invited the Foton Motor to establish its plant in Pakistan for the manufacturing of CNG buses and other vehicles.
During the meeting with Orient Group - an investment group that invests and operates in six major industries including finance and insurance, information technology, sea transportation, distribution of construction materials, the high-tech material and real estate - the President urged the group to take advantage of the investment opportunities in Pakistan in the fields of petroleum and natural resources, infrastructure and energy.
He said the relations with China are the cornerstone of Pakistan's foreign policy and the leadership of two countries stand committed to promote bilateral economic co-operation.
The President welcomed purchase of assets of British Petroleum (BP) in Pakistan by Orient Group for $775 million as well as their interest in Pakistan's education and social sectors.
President Zardari while talking to the Chairman of SinTrans, one of China's largest construction companies that built the dry port at Sost in Gilgit-Baltistan and also has an equity stake in it, appreciated the interest of SinoTrans in Pakistan and hoped that its links with the country could be enhanced even further. Since Sost Dry Port is located on Karakoram Highway (KKH) - an important trade and communications link between Pakistan and China, the President hoped that with development of China's Western Regions, trade through KKH, the shortest link to sea for this region, will further increase.
President Zardari referred to the recent announcement by China to set up a Special Economic Zone in Kashgar which will also greatly increase trade and commerce through KKH said SinoTrans can play an important role in its future development. The President said as Pakistan is building 4500 MW Diamer Bhasha Dam and 7000 MW Bunji Dam in Gilgit Baltistan, it would welcome and encourage the Chinese companies to participate in the bidding. He hoped that SinoTrans will offer logistics support to increased transportation requirements in Pakistan.
Assuring full support and facilitation to SinoTrans in all its endeavours, the President invited the company to extend its operation to other parts of Pakistan. Meanwhile, two memorandums of understanding (MoUs) were signed between the All China Federation for Industry and Commerce (ACFIC) and the Federation of Pakistan Chambers of Commerce and Industry (FPPCI) and China's Foton Motors and the Government of Sindh for co-operation in trade and transport, respectively.
President Zardari witnessed the signing of MoUs by First Vice President of ACFIC Quan Zhezhu and President FPCCI Senator Haji Ghulam Ali; and CEO of Beiqi Foton Motor Company Ltd Wang Jinyu and Chairman Board of Investment (BOI) Salim H. Mandviwala on behalf of the Sindh Government.