Govt eyes Gwadar for China industry relocation

Pakistan has initiated efforts to devise a roadmap aimed at attracting Chinese industries for potential relocation to the country in wake of the ongoing tariff dispute between China and the United States. Since US President Donald Trump took office, a series of high tariffs have been imposed on Chinese products in a bid to revive domestic American manufacturing. Pakistan views this escalating trade conflict as an opening to position itself as an attractive destination for Chinese businesses seeking new bases of operation.

To support this ambition, Pakistan is preparing a strategic framework to offer incentives designed to lure Chinese industries to Gwadar, the deep-sea port city at the heart of the China-Pakistan Economic Corridor (CPEC). In parallel, the government is implementing several additional measures to rejuvenate economic activity in the area.

Sources told The Express Tribune that the Cabinet Committee on Chinese Investment Projects (CCoCIP), in a recent session, tasked the Board of Investment (BOI) and the Ministry of Industries & Production to jointly deliver a roadmap within five days. This plan will outline steps to identify and attract Chinese industries willing to relocate operations to Pakistan in light of the US-China tariff battle.

The CCoCIP also reviewed a summary from the Ministry of Maritime Affairs titled "Review/Compliance of decisions taken during previous CCoCIP meetings." The committee noted the ministry's report and made several strategic decisions to advance Pakistan's position as a relocation hub.

Among the key directives was an order to the Ministry of Commerce to immediately issue a Statutory Regulatory Order (SRO) that would allow the export of Potassium Sulphate fertiliser from Gwadar Port, overriding current restrictions under the Export Policy Order. This move had already been approved by the Economic Coordination Committee (ECC) and ratified by the federal cabinet but had not yet been formally notified.

In another decision, the CCoCIP directed the Ministry of Planning, Development and Special Initiatives to convene a high-level meeting involving representatives from the Ministry of Finance, Ministry of Commerce, Ministry of Industries & Production, the Board of Investment, and the State Bank of Pakistan. This meeting, scheduled for the coming week, will explore the implementation of Foreign Currency Facilitation as a pilot project within the Gwadar Free Zone. The Finance Division has been tasked with preparing a one-page briefing for the session.

The committee also urged the Ministry of Maritime Affairs to engage in meaningful dialogue with local fishermen to enable international seafood transshipment through Gwadar Port. A report on the outcomes of these consultations is to be submitted for review at the committee's next meeting.

In regard to the Karachi Comprehensive Coastal Development Zone (KCCDZ), the committee directed the Ministry of Planning, Development and Special Initiatives to form a committee comprising the ministers of Planning, BOI, and Maritime Affairs. This team will engage with the Sindh chief minister of Sindh to address outstanding issues related to the KCCDZ and work towards a viable resolution.

Addressing infrastructure challenges, the committee instructed the Power Division to coordinate with Naval Authorities to ensure electricity supply to the Gwadar Desalination Plant from the Naval Grid. This interim arrangement is necessary due to the temporary suspension of power imports from Iran. Additionally, the Power Division was directed to work with the Gwadar Port Authority to link the plant to the National Grid via an extension of the power distribution line from Panjgur and present their proposal at the next CCoCIP meeting.

The committee further called on the Power Division, in collaboration with the National Electric Power Regulatory Authority (NEPRA), to accelerate the implementation of a cabinet decision concerning the electricity supply mechanism for the Rashakai Special Economic Zone (SEZ). An implementation report is to be submitted at the upcoming committee meeting, while NEPRA has been instructed to expedite its processes in this regard.

Lastly, the Board of Investment has been ordered to act on all pending CCoCIP decisions without delay and provide a comprehensive progress report for review at the committee's next session.