BEIJING: Pakistan Peoples Party Chairman Bilawal Bhutto Zardari persuaded Chinese investors to invest in Sindh’s mega projects over the sovereign guarantee of Sindh Bank instead of the same from Pakistan government.
Bilawal met representatives from Export and Import Bank of China and Credit Insurance Corporation in Beijing on Wednesday, and resolved their reservations regarding investment in Pakistan.
Three major development projects came under discussion during the meeting. The representatives were of the view that for projects worth $90 million they won’t need sovereign guarantee, however, for projects having costs higher than this amount they should be given the sovereign guarantee of Pakistan government. Chinese banks can’t provide finances without any assurance, they added.
They were told that Sindh Bank has deposits worth $1 billion, with which it will provide sovereign guarantee to Chinese investors. Bilawal apprised the investors that Sindh has approved Public Private Partnership Act to provide security and assurances to foreign investors. “We are ready to take more steps to further improve the standards of governance in the province (Sindh),” he added.
Bilawal said that Sindh government wants to draw investors for infrastructural projects like mass transit, power generation, Thar coal and other such development projects. On this the representatives of Credit Insurance Corporation sought more time for consultations, however, representatives of Export and Import Bank of China have asked for the balance sheet of Sindh Bank as guarantee — thus giving a ray of hope.
Published in The Express Tribune, August 29th, 2014.
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This is a good opportunity for Pak economy, but in their zest to attract investors they might concede too much advantage to China, just like India did towards Soviet. Also civil activist should ensure that projects are on the basis of technology transfer and the transfer of the technology should be effective.