Chinese and Pakistani businessmen sign MoUs

FPCCI cites 10-year tax break in SEZs, Punjab's 'food basket' status to woo investors

LAHORE:

A high-profile 30-member Chinese business delegation visited the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Regional Office in Lahore and held comprehensive meetings with their Pakistani counterparts aimed at enhancing bilateral trade, investment and industrial cooperation.

Following discussions, memoranda of understanding (MoUs) were signed between Chinese companies and various chambers of commerce running across Punjab to promote mutual cooperation and strengthen business relations. Sector-wise business-to-business (B2B) meetings were also organised between Pakistani businessmen and Chinese delegates to explore investment opportunities and potential joint ventures.

FPCCI President Atif Ikram Sheikh stated that with Gwadar Port serving as a gateway to the world, Pakistan acts as a strategic bridge connecting China to the Middle East, Africa and Europe. He emphasised that Pakistan's geographical location offers a pivotal advantage to Chinese industries seeking relocation or expansion opportunities.

FPCCI Regional Chairman and Vice President Zaki Aijaz and United Business Group Patron-in-Chief SM Tanveer said that Pakistan is emerging as a highly competitive manufacturing hub. They noted that Pakistan's GSP Plus status allows duty-free exports to the European Union of more than 6,600 tariff lines, while it is also enjoying favourable market access to the United States.

Zaki Aijaz added that while direct exports from China may face certain trade barriers, "Made-in-Pakistan" products can access Western markets at significantly lower tariffs under existing trade agreements and the China-Pakistan Free Trade Agreement.

Turning attention to the agriculture sector, Aijaz said that Pakistan's vast fertile land and Punjab's status as the country's "food basket" offer immense opportunities for investment in corporate farming and value-added food processing for exports to China.

He also emphasised that investors in the Special Economic Zones (SEZs) could benefit from a 10-year tax holiday and described Pakistan's SEZs as "plug-and-play" destinations specifically designed to facilitate Chinese industrial investment.