Propping up: China to help carpet industry achieve competitiveness

Offers research and development facilities to handmade carpet manufacturers.

LAHORE:

A Chinese business delegation, which is in Pakistan to look into joint ventures that promote economic activities between the two countries, has signed a memorandum of understanding with the Pakistan Carpet Manufacturers and Exporters Association (PCMEA).

It has offered research and development facilities to Pakistani handmade carpet manufacturers, in order that the latter capture the growing market for handmade carpets in China.

On the occasion, Huang Guojun, Director General of the Administrative Committee of Nanchuan Industrial Park, said that the delegation’s visit to Pakistan has been fruitful.

“China has set globalisation and localisation trends for the economic development of the world. We would be happy to help the Pakistani carpet industry upgrade and later capture the emerging market of China,” Guojun said.

Guojun also inaugurated an office of the Nanchuan Industrial Park in Lahore on Sunday evening, as a first step towards establishing a business development centre in Pakistan. The local carpet industry will be provided assistance in research and development through this office.

In his speech, Guojun encouraged carpet manufacturers to invest in the Nanchuan Industrial Park and invited the PCMEA to participate in the world carpet expo scheduled next year in Qinghai.

Board of Investment Secretary Anjum Bashir, who especially visited Lahore to meet with the Chinese delegation, said that although Pakistan is interested in boosting trade, it also requires some foreign direct investment (FDI) from China.

“We are thinking of providing more businesses an investment-friendly environment in Pakistan, especially those from our neighbouring countries,” Bashir said.

He said that FDI from mainland China over the last five years has amounted to $769 million and a further $711.7 million has come from Hong Kong. FDI from China and Hong Kong during fiscal 2012 stood at $120.9 million and $80.3 million.

“Trade between Pakistan and China in 2012 was $5.704 billion. I am confident that the volume of trade can go up to $10 billion in the next couple of years,” he said.

“Due to its strategic location, Pakistan can serve as China’s main bridge to the Middle East market,” he added.

“To enable economic prosperity through greater investment, we have a provision for the setting up of Special Economic Zones (SEZ) throughout the country to meet global competitiveness requirements effectively and efficiently,” Bashir continued.

“A law to establish SEZs has been promulgated, which will ensure that incentives granted for the establishment of these zones are protected by law and once granted will not be withdrawn,” he said.

“Investors from Korea and Japan have shown interest in establishing SEZs in Pakistan. I extend an invitation to the Chinese investors and the management of the Nanchuan Industrial Park to come forward and invest in our SEZs,” Bashir said.

Published in The Express Tribune, October 9^th, 2012.