ISLAMABAD: Pakistan and China on Wednesday held a meeting of the Joint Economic Committee (JEC) after a hiatus of 11 years to strengthen bilateral ties under a broader framework, the Pakistani economic affairs ministry said.
The bilateral agreement for the establishment of the Joint Committee for Economic, Trade, Scientific and Technical Cooperation was signed in 1982.
The virtual meeting of the JEC was co-chaired by Chinese Vice-Minister Ren Hongbin and Pakistani Economic Affairs Division Secretary Asad Hayauddin. Pakistan’s Economic Affairs Minister Omar Ayub also participated in the session of the committee.
“Pakistan and China are entering into the next phase of CPEC, where Special Economic Zones (SEZs) are being established. The SEZs would be helpful in attracting foreign direct investment, establishing industrial units, creating employment opportunities and boosting economic activities in the country,” Ayub said, while addressing the attendees.
“Similarly, operationalization of Gwadar Port will also create momentum in the external trade. China has been Pakistan’s largest trading partner for six consecutive years since 2015.”
At present, he said, China was Pakistan’s main source of imports and second-largest export destination.
Pakistan has been establishing SEZs to meet global challenges of competitiveness with state-of-the-art infrastructure and connectivity, according to Ayub. The SEZ incentive package announced by the government includes exemption from income tax for ten years and one-time exemption from all custom duties and taxes on import of capital goods.
He said Pakistani textile, leather, pharmaceutical and surgical industries were considered best in the world and their products were exported around the globe.
“Chinese investors can benefit from the huge potential of Pakistan’s industrial sector. In this regard, Small & Medium Enterprises Development Authority (SMEDA) and Board of Investment of Pakistan can collaborate with Chinese counterparts for enhancing cooperation in industrial sector,” the minister said.
He said Pakistan was looking forward to mutual cooperation in the areas of agricultural research, enhanced productivity, value addition and food processing through establishment of joint ventures and business-to-business contacts.
Both sides also discussed matters relating to development projects in energy, infrastructure and social sectors.
Last month, Prime Minter Imran Khan also directed authorities to facilitate Chinese investors in Pakistani SEZs under the multi-billion-dollar China-Pakistan Economic Corridor (CPEC) and resolve all their issues on an “emergency basis.”
CPEC has seen Beijing pledge over $60 billion for infrastructure projects in Pakistan, central to China’s wider Belt and Road Initiative (BRI) to develop land and sea trade routes in Asia and beyond.