Pak, China launch report on SEZs

Aims to boost economic collaboration, industrial growth via strategic policies

ISLAMABAD:

The Pakistan-China Institute, in collaboration with the China Chamber of Commerce in Pakistan and PowerChina, has launched a pivotal report titled “Aligning Special Economic Zones Policies of Pakistan and China.” This report aims to enhance economic and industrial collaboration between the two nations through Special Economic Zones (SEZs). The launch event, held in Islamabad, featured key stakeholders and experts who discussed the initiative’s potential impact on Pakistan’s economic landscape.

Mustafa Hyder Sayed, Executive Director of the Pakistan-China Institute, opened the event by emphasising the timeliness of the report. He noted that its release aligns with increasing collaboration between China and Pakistan. Sayed stressed the need for Pakistan to adopt export-oriented policies to attract Chinese industries relocating to the global south due to rising production costs, favourable business environments, and regional market access. He highlighted the competitive global economic landscape and the importance of positioning Pakistan as a prime destination for industry relocation by developing unique selling points. Drawing from China’s SEZ model, the report outlines necessary adaptations for Pakistan, including attracting investors with flexible policies and strategic industrial zone locations, especially near ports and business clusters, akin to Shenzhen’s success.

Su Dong, Media and News Director at the China Chamber of Commerce in Pakistan, highlighted the successful completion of 47 projects in Pakistan and expressed PowerChina’s readiness to continue collaboration. He emphasised the significance of this effort in driving economic growth and strengthening bilateral relations. Su Dong reiterated PowerChina’s commitment to supporting Pakistan’s industrial development and future projects that can enhance economic ties.

Federal Minister for Industries and Production, Rana Tanveer Hussain, praised China as a great friend of Pakistan in his keynote speech. He highlighted SEZs’ role in attracting Foreign Direct Investment (FDI) and fostering industrialisation, noting the opportunity presented by the relocation of Chinese industries. Hussain stated the government’s commitment to offering incentives and concessions to attract Chinese businesses, ensuring operational security, and adopting Shenzhen as a benchmark for SEZ development. He stressed the importance of export zones in driving economic growth and the need for Pakistan to compete with regions like ASEAN, Bangladesh, and Central Asia by creating a favourable environment for industrial relocation.

Zou Yaodong, Chief Administration Officer of China Overseas Ports Holdings Company Pakistan Ltd, congratulated the report’s launch and acknowledged the significant development SEZs have achieved in recent years. He assured that his organisation is available to support SEZ improvement and development in Pakistan, emphasising the importance of strategic partnerships and continuous efforts to enhance the SEZ framework to attract more investors and industries.

Erfa Iqbal, Additional Secretary and Executive Director General-II (EDG-II) at the Board of Investment (BOI), shared her insights on the report, highlighting that economic survival depends on robust SEZ policies. She noted that China serves as a valuable example for Pakistan, a model followed by countries like Cambodia and Vietnam. Iqbal praised the report for diagnosing issues and offering strategic recommendations. She emphasised the need to reduce transaction costs, enhance banking support for investors, improve security measures, and ensure business facilitation to create a conducive ecosystem for SEZ development.

The event concluded with a renewed commitment to strengthening Pakistan-China economic relations through strategic SEZ policies. This collaborative effort marks a significant step towards economic growth and industrial development in Pakistan, paving the way for a prosperous future. The report, “Aligning Special Economic Zones Policies of Pakistan and China,” is set to serve as a blueprint for policymakers and industry leaders, guiding the development of SEZs that can attract global investments and drive sustainable economic growth in Pakistan.