Islamabad: China wants Pakistan to make policies more attractive for investors to address challenges in next phase of industrialization under China-Pak Economic Corridor (CPEC).
Pakistan wants Chinese industrialists to relocate their industry to Pakistan with transfer of technology. Pakistan is ready to allow them 100 per cent ownership if they are not ready to make joint ventures with local companies.
If policies will be good and attractive and challenges would be less, Chinese Ambassador Yao Jing said while addressing a press conference along with Adviser to Prime Minister on Commerce Razak Dawood. He further said that Pakistan had easier visa policy but process was too long to obtain visa.
While talking to media, Ambassador said that Chinese businessmen were concerned about the financial position of Pakistan. They have raised the question of balance of payment of Pakistan at vendor summit recently held in Schinghai hosted by Li Fung, he said adding that they have been informed that it would become clear after maturing IMF bailout package.
A Chinese giant Li-Fung has US$60 billion and is operating in 50 countries. It produces products on behalf of suppliers. This company is currently placing order from Pakistan worth US$100 million and plans to enhance it to US$1 billion mark this year.
He said that Pakistan and China had framework agreements on industrial, agriculture and social sector cooperation. Two countries had second stage of Free Trade Agreement (FTA) and 95 per cent of Chinese market was open to Pakistani exporters. He said that Pakistan had fundamental platform and Pakistani traders had access to sell products to Chinese market. ‘Pakistan could have now more chances of exports, he said adding that new initiative of business to business contacts had been taken to have vendors and suppliers. It was reallocation of supply chain.
If Chinese company Li-Fung places order of 1 per cent, Pakistani exporters would have orders worth US$600 million, he said adding that Pakistan deserves more than this. He said that exporters could get market access being more competitive. He said that Pakistan would receive investment and transfer of technology in industrial phase of CPEC. He further said that government had clear vision to increase exports and manufacturing that means to attract more investment. ‘I am receiving investors from China every day to explore joint ventures and trade opportunities in Pakistan, he said.
Seven Chinese companies have agreed to relocate their industrial units to Pakistan in second phase of Industrialization under China-Pak Economic Corridor (CPEC).
Adviser to Prime Minister on Commerce Razak Dawood said while addressing a press conference along with Chinese Ambassador to Pakistan. These units of textile and leather would be relocated to Faisalabad. One Chinese company Long March will also set up tyre manufacturing plant in Pakistan.
‘We have not given attention and Chinese industry has been relocated to Far East, Ethiopia and Egypt. We should grab the opportunity this time, Adviser to Prime Minister on Commerce Razak Dawood. He said that government would prefer that these Chinese companies should make joint ventures with local companies. Earlier, there had been focus on imports. Shifting and trading to ‘Make in Pakistan is our priority to increase exports, he said. If Chinese companies do not enter into joint ventures with Pakistani companies, we will allow them 100 per cent ownership, he said adding that adding that relocation of Chinese industrial units would create job opportunities and enhance skill of local people.