Having undergone a recent re-constitution, the China Pakistan EconomicCorridor (CPEC) Business Council is now proposing a list of new sectors andprojects to be added under the umbrella of CPEC, including promotion oftourism and the establishment of big industries in Thar.
Over the course of the first meeting of the newly re-constituted council,it was suggested that new sectors and projects should be included in CPEC.The meeting was aimed at creating an interface between the government andbusiness community and to propel industrial cooperation between Pakistanand China to higher levels so as to benefit both nations in the comingyears.
Chaired by Advisor to the Prime Minister for Commerce and Investment AbdulRazzak Dawood, the meeting was attended by Minister of State/Chairman Boardof Investment (BOI) Atif R. Bokhari, Chairman CPEC Authority Asim SaleemBaja, Secretary BOI Fareena Mazhar, and members of the council and BOIofficials.
To start with, it was proposed that there should be an increased focus onpetrochemical resources and their domestic production at competitive rates.This will naturally require the establishment of a petrochemical cracker, alarge-scale project that should ideally be included under the umbrella ofCPEC.
According to officials attending the meeting held on Thursday, it was alsoargued that the tourism sector held great potential for the future ofPakistan’s economy. Therefore, the sector should be promoted by offering avariety of incentives and financial support mechanisms.
It was further proposed that in order to make the country an attractivedestination for investment, one window facilitation for economic zonesshould be made in place under one authority represented by all theconcerned ministries.
Private sector representatives present in the meeting suggested that itwould be a good idea to conduct RMB transactions in order to furtherfacilitate and promote bilateral trade and investment with China. While thepresence of business visas is crucial, progress should also be made infacilitating work visas for foreign experts.
Furthermore, it was recommended that infrastructure development such asmanufacturing of hardware in the IT sector would help to grow, expand, andboost the economy. Pakistani institutes may take advantage of Chineseadvancement in the IT sector by ensuring the transfer of technology.
The largely barren landscape of Thar was brought up during the meeting asan ideal place for the establishment of big industries like petrochemicaland naphtha crackers. This is because the region possesses cheap andsustainable energy resources.
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Industrial cooperation is largely viewed as a critical aspect of CPEC, andit is imperative that the government facilitate the development ofinfrastructure in special economic zones (SEZs) in Pakistan. More jointventures should be established in SEZs to look for import substitutions andequal benefits offered to international players be extended to domesticinvestors. The meeting attendees agreed that financing for second phase ofCPEC should be provided by Pakistan too, in the shape of incentives.
According to Mr. Dawood, CPEC is now moving along a new track of industrialand agricultural development which necessitates a more prominent role inthe private sector coupled with greater participation of technologycompanies.
He proceeded to highlight the country’s immense potential in petrochemical,steel manufacturing, and Information Technology, and expressed hisappreciation for all the recommendations put forth by the participants inthe meeting.
Chairman BOI Atif Bokhari insisted that the government is fully committedto creating a business-friendly environment in Pakistan by providing a hostof competitive incentives to the industry. He also talked about the effortsbeing made to improve the performance of SEZs.
“*Rashakai would be a model zone to be established, followed by Dhabejiwhich is uniquely placed and open for local and foreign investors equally**,*” he added.
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