Energy sector: LCCI for joint ventures with Chinese cos

Pakistan is anxiously seeking joint ventures in energy sector between Pakistani and Chinese private sectors which would not only help much-needed transfer of technology but would also help bring down cost of production in Pakistan.

President, Lahore Chamber of Commerce and Industry (LCCI) Irfan Iqbal Sheikh expressed these views while talking to a Chinese delegation, led by Jonathan Zhang, at the Lahore Chamber on Monday. LCCI office bearers and former president LCCI President Sohail Lashari were also present on the occasion.

Irfan Iqbal Sheikh said that in Pakistan, the energy takes major share in total cost of production of industrial sector, so, there is a need of bringing down the cost of electricity production at par with regional economies like Bangladesh, India and Vietnam. "It is imperative for us to regain the competitive advantage in international market which was lost due to comparatively high cost of doing business", he added.

He said that Pakistan also look forward to increasing the share of electricity generated through renewable sources.

He stressed the need for joint ventures with Chinese companies in energy sector that would promote technology transfer through incorporation of cutting-edge Chinese technology in our energy projects.

"Both the countries have a combined market of more than 1.5 billion people but the trade volume needs to be pushed up and should be balanced as well. The Chinese importers may have better prospects for Pakistani goods particularly of carpets, leather and leather products, surgical equipment, sports goods, fruits and vegetables, rice, pharmaceuticals and, cotton", he added.

LCCI Senior Vice President Ali Hussam Asghar was of the view that besides energy, joint ventures can be initiated in sectors like construction, hotels and tourism; SMEs cluster development, textiles & garments, home appliances, corporate farming, seafood and food processing, banks & finance and light engineering. The two most important areas where Pakistan needs urgent assistance are energy and agriculture, he said.

Copyright Business Recorder, 2019

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