BEIJING: The cooperation in digital infrastructure and IT under theChina-Pakistan Economic Corridor (CPEC) will soon make some significantprogress under the IT industry joint working group (JWG) established at the10th CPEC Joint Cooperation Committee (JCC) meeting, said Du Zhenli, deputydirector general of the China International Engineering ConsultingCorporation.
With rich labour resources, a broad market, and a wide radiating capacity,covering the Middle East and Central Asia, Pakistan has become one of thefastest-growing IT markets in the world, but there is still an imbalance,Zhenli, also an Investment Counsellor appointed by Pakistan to promoteChinese investment in Pakistan, added.
At present, there are around 3.7 million broadband users in Pakistan. Amongthe 51,000 villages in the country, most are not covered bytelecommunication services.
Given that 60 per cent of Pakistan’s population is under the age of 30, itcan be expected that the communication services will see rapid developmentin the future.
The Pakistan government has listed the expansion of telecommunicationsinfrastructure and the popularisation of telecommunication services,especially to the vast rural areas and underdeveloped areas as an importantdevelopmental task, the China Economic Net (CEN) reported.
“With the increasing importance of the digital economy in the world,Pakistan has a strong demand to develop its own information technology.
Huawei, ZTE, China Mobile and other service providers have a very solidfoundation, which can boost Pakistan’s industrial development,” Zhenli said.
The Pakistan government and the people welcome foreign investment. ThePakistan government has carried out economic reform, economicliberalisation, and privatisation, and formulated a relatively liberal andopen investment policy, he said.
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It has signed investment protection agreements with more than 40 countries,and double taxation avoidance agreements with more than 50 countries,including China.
With the advancement in CPEC construction, Pakistan’s transportinfrastructure and energy infrastructure conditions have been greatlyimproved, significantly promoting the improvement of Pakistan’s investmentenvironment, he said.
“The establishment of SEZs [Special Economic Zones] is not the ultimategoal, rather, they should be utilised to attract major IT industry projectsto land here.”
Zhenli has been involved in consultation and research on the cooperationbetween China and Pakistan for the last 15 years. Since October 2016, underthe leadership of the CPEC Secretariat of the China’s National Developmentand Reform Commission, he has provided consultation and technical supportrelated to industrial park cooperation under CPEC.
Pakistan’s Investment Strategy 2020/23 takes into account the uniqueopportunity of China’s industrial and capacity transfer. It will pay moreattention to the cooperation in the private sector of both countries, takelabour-intensive and export-oriented projects as the forerunner, andfinally realise industrial diversification.
“In the future, when the individual projects are specifically landed, thesepreferential policies may still need to be deepened and refined,” Zhenlisuggested.
