Pakistan and China agreed to promote investment and industrial cooperation on a fast track basis during the 15th Session of the Pakistan-China Joint Economic Committee on Economic, Trade, Scientific & Technical Cooperation.
According to a handout issued by the Economic Affairs Division, in his opening remarks, Federal Minister for Economic Affairs Omar Ayub Khan commended the government of China for hosting the 15th Session of Joint Economic Committee (JEC) after a gap of eleven years.
The minister expressed his satisfaction at the completion of seventy years of everlasting and unprecedented bilateral friendship between Pakistan and China.
The minister said that Pakistan and China have always supported each other at every front. Pakistan was among the first countries to show solidarity with China at the time of the outbreak of the Covid-19 pandemic and Pakistan’s president also paid a visit to Beijing amid this pandemic.
Similarly, the government of China has also been supporting Pakistan in mitigation measures from the very beginning of the pandemic. To support the government of Pakistan’s mass vaccination drive, Chinese companies supplied the Covid-19 vaccine on priority basis. The government of China also provided over 4 million doses of vaccine to Pakistan free of cost.
He highlighted that Pakistan and China are entering the next phase of the China-Pakistan Economic Corridor (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.
Similarly, the operationalization of Gwadar Port will also create momentum in 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 the second-largest export destination.
The minister further highlighted that Pakistan has immense investment opportunities in various sectors. Pakistan provides a conducive and liberal investment environment to foreign investors and entrepreneurs. All foreign investments are fully protected under the Foreign Private Investment Promotion & Protection Act, 1976 and the Protection of Economic Reforms Act, 1992. Special Economic Zones (SEZs) are also being established to meet the global challenges of competitiveness with 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 customs duties and taxes on import of capital goods. The 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, the Small & Medium Enterprises Development Authority (SMEDA) and Board of Investment of Pakistan can collaborate with Chinese counterparts for enhancing cooperation in the industrial sector. Furthermore, agriculture is another very important sector of the economy, especially for food security and rural development.
He said that Pakistan looks forward to mutual cooperation in the areas of agricultural research, enhanced productivity, value addition and food processing through the establishment of joint ventures and business-to-business contacts.
Both sides also discussed the matters relating to development projects in the energy, infrastructure and social sectors. They also agreed to promote investment and industrial cooperation on a fast track basis.
In his concluding remarks, Vice Minister of China Ren Hongbin commented that the fruitful discussions on bilateral economic relations between delegates of the two countries will meet the objectives of deepening the 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 the Pak-China relationship is everlasting and bound to continue on good terms in the future.
The virtual meeting of JEC was co-chaired by Vice Minister of China Ren Hongbin and Secretary Economic Affairs Division Mian Asad Hayaud Din.
