Lahore, August 04, 2017 (PPI-OT): While Pakistan is yet to form a group of experts to decide setting up of the exact number and types of special economic zones (SEZs) along the CPEC route, it is very important to take on board the representatives from all relevant organizations including; the Pak-China specialized chambers, associations, business forums and centers. It was stated by Shah Faisal Afridi, Founder President Pak China Joint Chamber of Commerce and Industry in a meeting with president PCJCCI, Mr. Wang Zihai.
He urged that the organizations working independently for the solidarity of Pak China relations must share their knowledge regarding the specification of Special Economic zones to be set up jointly by both countries. Faisal Afridi said that it is pertinent to determine the right direction of investment at the right time. He said that PCJCCI is frequently in contact with Chinese delegations and PCJCCI is well aware of the Chinese Market needs and where Pakistan can fill the gap by developing its potent sectors that are merely lagging due to lack of technology and infrastructure.
Faisal Afridi told that PCJCCI was already taking special initiatives to bring investment from China in the eight potential industrial sectors including Furniture, Handicrafts, Textiles, Fertilizer, Cement, Glass work, Energy and Pharmaceuticals. These sectors are identified after the mutual data sharing by both countries.
He said that Pakistan is in dire need of maximum Special Economic Zones to combat economic challenges being faced by the country since decades. These Special Economic Zones will strengthen the industrial base, will put economy back on the rails besides protecting the national economy from global financial recessions and enable the government to utilize its resources at the targeted industrial areas.
Faisal Afridi appreciated that the Primary objective of the China regarding CPEC was to invest in special economic zones and Industrial estates in Pakistan. He mentioned that special economic zones (SEZ) played an instrumental role in the integration of China to the global economy and in its economic development therefore it’s the best opportunity for Pakistan to learn from the Chinese expertise.
After the detailed analysis of current market needs, strengths and weaknesses of both the markets of China and Pakistan, PCJCCI, has delineated various sectors in which the formation of joint Industrial parks and special economic zones would do wonders. The demarcated zones will have comparative advantage for manufacturing and processing of minerals, fresh fruits and vegetables, wood, herbs and trout fish particularly.
Other includes textiles, garments, cement, building materials, heavy machinery and fertilizers, agriculture and livestock. Mr. Wang told that due to lack of cold-chain logistics and processing facilities, 50% of agricultural products of Pakistan go useless during harvesting and transport, and it is where the entry of Chinese counterparts will fill the gap by overcoming these impediments.
Both Mr. Wang and Faisal Afridi was of the view that preferential policies will be necessary to attract enterprises to come to the newly built industrial parks envisioned under the plan. The areas where such preferences need to be extended are “land, tax, logistics and services” as well as land price, “enterprise income tax, tariff reduction and exemption and sales tax rate.
For more information, contact:
Pakistan China Joint Chamber of Commerce and Industry (PCJCCI)
Mega Tower, 309 – 6th Floor,
Main Boulevard, Gulberg II,
Lahore, Punjab – Pakistan
Tel: +92-42-35777460-02, +92-42-37032203, +92-42-35874353