A glimpse of the launching ceremony of Pak-China Business Investment Forum in Islamabad on Monday. — YouTube screengrab
by Zafar Yousafzai 21 July 2023
The recent Pakistan-China Business Forum held at the Pakistan Embassy in Beijing marks a significant step towards exploring new trade and investment opportunities in Pakistan. The forum aims to promote investment and foster economic cooperation between the two countries, while also sharing the benefits of the China-Pakistan Economic Corridor (CPEC) with the rest of the world.
In his address at the forum, Prof Ahsan Iqbal, the Federal Minister for Planning, Development & Special Initiatives, emphasized the importance of working together to maximize the potential of CPEC. He highlighted how CPEC has already transformed Pakistan’s energy landscape and played a crucial role in improving connectivity through the construction of thousands of kilometers of roads. The minister also acknowledged China’s critical assistance during Pakistan’s energy shortage, underscoring the depth of their economic partnership.
Over the past decade, projects worth over $25 billion have been successfully executed in Pakistan, focusing on energy and logistics infrastructure, information technology, and port development. These investments have not only strengthened Pakistan’s economic foundations but also paved the way for increased trade and investment prospects in various sectors.
One of the significant achievements of the forum was the finalization of protocols for the export of various products, including cherries, boiled meat, milk and dairy products, chillies, and donkey skin. This move opens up a market worth $30 billion, presenting lucrative opportunities for Pakistani exporters. The accessibility to such a vast market can significantly boost Pakistan’s export potential and help create a favorable trade balance.
Furthermore, the Gwadar Zone, an essential part of CPEC, offers attractive incentives for businesses looking to establish a presence in Pakistan. The area provides complete tax holidays of 23 years for businesses and 20 years for contractors and sub-contractors. Moreover, there is an exemption from customs duty for 40 years on the import of equipment and materials needed for construction and operation within the free zone. These incentives make Gwadar an attractive destination for foreign investors, particularly in the areas of infrastructure and logistics development.To facilitate the exchange of ideas and enhance business ties, Chinese companies were invited to participate in the upcoming International Food & Agriculture Expo scheduled for August 10th to 12th in Karachi. The overwhelming response with over 100 registrations from major enterprises demonstrates the interest and enthusiasm of Chinese businesses in exploring opportunities in Pakistan’s agriculture sector.
The forum also highlighted the advantages of relocating Chinese industries to Pakistan, especially labor-intensive ones, to take advantage of the demographic dividend and market access for small and medium-sized enterprises (SMEs). This strategic move aligns with Pakistan’s vision of becoming an attractive destination for foreign investments and presents a win-win situation for both countries.
The 12th Special Joint Cooperation Committee (JCC) meeting, held in parallel with the business forum, reiterates the commitment of both nations to further strengthen their partnership and build upon the foundation laid in the last decade. The forthcoming decade promises to be glorious as both Pakistan and China work together to realize the full potential of CPEC and strengthen their economic ties.
The Pakistan-China Business Forum marks a crucial juncture in the economic relationship between the two countries. It not only showcases the immense potential for bilateral trade and investment but also sets the stage for greater collaboration in various sectors. By leveraging the advantages of CPEC and creating a conducive business environment, Pakistan and China are paving the way for a prosperous and mutually beneficial future.