ISLAMABAD: A Chinese aerospace firm has expressed interest in investing up to $10 billion in various sectors in Pakistan, the information ministry in Islamabad said on Thursday.

China is a major ally and investor in Pakistan and has pledged over $65 billion in investment in road, infrastructure and development projects under the China-Pakistan Economic Corridor (CPEC), besides several Chinese private sector manufacturers undertaking joint ventures in the South Asian country.

Pakistan offers significant investment potential owing to its strategic geographic location connecting South Asia, Central Asia, and the Middle East, a large consumer market of over 240 million people, and a young and dynamic workforce. The country also provides attractive incentives for investors.

On Thursday, officials of the Aerospace Development Industry Investment Group Co. of China met with Pakistan’s Board of Investment Minister Qaiser Ahmed Sheikh to discuss investment opportunities and potential avenues in the country, according to the Pakistani information ministry.

“They informed that Aerospace Development Industry Investment Group is an international investment group with an AAA corporate credit rating, engaged in strategic industrial investments in areas including advanced technologies, aerospace development, artificial intelligence, electric vehicles, drone technologies, and energy projects,” the ministry said.

“The delegation expressed keen interest in investing between USD 5 billion to USD 10 billion in Pakistan across multiple sectors including mining and minerals, advanced technology industries, and industrial development. They also emphasized their interest in collaborating with Pakistan on skill development initiatives.”

Sheikh appreciated the interest shown by the Chinese company, saying that Pakistan is taking concrete steps to improve investment climate in the country.

“The Board of Investment is actively working on regulatory reforms to facilitate investors, promote ease of doing business and streamline business procedures,” he was quoted as saying.

The minister referred to the Pakistan–China Business-to-Business Conference held in September last year, where more than 300 companies from Pakistan and China participated and signed 167 Memoranda of Understanding (MoUs) aimed at strengthening bilateral investment and trade cooperation.

“Pakistan and China already have a Free Trade Agreement, and Pakistan is now focusing on increasing its value-added exports to further enhance economic cooperation,” he said.

Sheikh also briefed the delegation on the incentives available for investors in Pakistan’s Special Economic Zones (SEZs), including exemption from income tax and sales tax on the import of machinery, to promote industrial investment.