ISLAMABAD: A leading Chinese company has expressed interest in investing in Pakistan’s renewable energy sector by setting up an industry, said an official statement on Saturday, prompting a senior minister to observe the step will lead to greater employment opportunities and increase the country’s exports.

China’s Hexing Electrical is a reputable mid-sized company that was founded in 1992 and is primarily known for its presence in the global smart metering and energy management industry. The Chinese company has also expanded its business into the renewable energy sector and is involved in the manufacturing of technical equipment.

Its chairman, Liangzhang Zhou, met Pakistan’s minister for investment and privatization, Abdul Aleem Khan, along with his company delegation in the federal capital, Islamabad, to discuss the possibility of setting up the first manufacturing unit of its kind in the country to produce inverters and batteries.

The development comes nearly two months after Prime Minister Shehbaz Sharif went to China on a five-day visit where, apart from the political leadership, he met with representatives of Chinese companies operating in various economic sectors and encouraged them to invest in his country.

“The establishment of new factories will increase the rate of employment and export in the country and once again boost the national economy as well,” he was quoted as saying in a statement circulated by the ministry after the meeting.

Khan highlighted the investment potential in Pakistan, assuring the Chinese business delegation of full cooperation.

He also maintained that the establishment of factories in the electrical sector with foreign investment would serve as a precursor to the country’s economic development.

The chairman of the Chinese company said his organization was serving 90 countries with a workforce of 7,000, though it had only established such factories in 20 states around the world.

The governments in Islamabad and Beijing have already been working on infrastructure development and regional connectivity projects under the multibillion-dollar China-Pakistan Economic Corridor (CPEC).

The two countries hope the private sector will take the lead in the next CPEC phase and benefit from the planned industrial zones in Pakistan through business-to-business collaboration and investments.