ISLAMABAD: Pakistan’s state-owned bank and the China-Pakistan International Silk Road Industry Investment Management Company Limited this week signed an agreement to facilitate investment in key projects to promote industrial cooperation and establish special economic zones, state-run media reported on Sunday.
Islamabad views Beijing as one of its most reliable foreign partners in recent years, which has invested over $65 billion in energy and infrastructure projects in Pakistan as part of the China-Pakistan Economic Corridor (CPEC).
The development takes place as Pakistan eyes foreign investment in key economic sectors whilst it grapples with a macroeconomic crisis. Prime Minister Shehbaz Sharif has repeatedly said his government wants to break the “begging bowl” and is targeting mutually beneficial economic partnerships with allies.
The agreement between the National Bank of Pakistan (NBP) and China-Pakistan International Silk Road Industry Investment Management Company Limited was signed on Saturday at the Pakistan embassy in Beijing in the presence of Aslam Chaudhry, Pakistan’s minister of economic affairs.
“He [Chaudhry] informed that special economic zones are being established across Pakistan where the Chinese enterprises could relocate their industry and export products to different countries taking advantage of preferential agreements signed by Pakistan with various countries,” state broadcaster Radio Pakistan reported.
The minister said Pakistan, with a population of over 225 million people, is itself a “big market” and that Chinese companies could benefit from it.
Chaudhry urged Pakistan urged Chinese entrepreneurs to set up their industrial units in Pakistan.
“He opined that the MoU would help the Chinese companies for investment in different projects and promote industrial cooperation between the two countries,” Radio Pakistan said.
Pakistan has been making efforts to attract foreign investment since last year when it set up the Special Investment Facilitation Center (SIFC). The hybrid civil and government body was formed last year to attract investment in key economic sectors including tourism, agriculture, minerals and others.
