‘Punjab can become manufacturing hub’: Chinese analyst

[Naveed Yaseen]

CHINESE Media Chief and Foreign Journalists Association in Islamabad President Professor Zhou Rong has stressed the need for highlighting the province of Punjab as a safer place for joint ventures and developing it as a manufacturing hub.

He was talking to LCCI President Mian Muzaffar Ali here on Tuesday. LCCI former President Shahid Hassan Sheikh, ex-Vice President Aftab Ahmad Vohra and LCCI Executive Committee Member Siddiq-ur Rehman Rana were also present.

He said Punjab could be developed as manufacturing hub of the country and large industrial complexes could be built there with export potential to India, Middle East, Iran and land-locked Central Asian States. He said the globalisation had provided Chinese investors with an opportunity to relocate their large scale industry to Pakistan to reap the benefits of its most conducive business policies as compared to other regional countries.

Professor Rong said the Pakistani businessmen should convince their counterparts in China for making investment in Pakistan.

Giving briefing on China’s economic condition, he said China with GDP of US $ two trillion, foreign direct investment $52.4 billion and overseas investment of $25.7 billion could help Pakistan get an economic boost.

He said that China could extend a lot of cooperation to Pakistan’s agriculture sector that was not up-to-the-mark for multiple reasons.

LCCI President Mian Muzaffar Ali hoped that the free trade agreement between the two countries would help increase the level of bilateral trade to $15 billion in the next five years. Major imports of Pakistan from China include iron, steel products, tyres, tubes, chemical, medical, pharma products, fertilisers, yarn and thread of synthetic fiber, railway vans, spare parts, hand tools and hardware products.

Specific areas for investment/joint ventures can be coal mining, power generation, machinery, chemicals, building materials especially cement production, textiles, synthetic fabrics, electronics, leather, paper and paper products and foodstuffs. The possibilities of joint ventures for Halal meat production and export to Muslim countries will be one of the most promising propositions for the Chinese investors.

The LCCI President said that the government had prepared a special incentive package for the Chinese companies under the Special Economic Zone which offered exemption of customs duties (on import of machinery/equipment) income tax and sales tax to attract foreign investment from China.

LCCI Executive Committee Member Siddiq-ur-Rehman Rana suggested developing integration with Chinese economy to benefit from Chinese market potential and experiences for capacity building of Pakistan’s economy.

http://www.thenews.com.pk/daily_detail.asp?id=154750