ISLAMABAD, Aug 31: The government on Friday approved exemption of customs duties on import of machinery for installation of new industrial units in China specific Special Economic Zones (SEZ).

The package was approved at a high-level meeting, headed by Prime Minister Shaukat Aziz at the Prime Minister’s House.

The prime minister said that the establishment of China specific special zones would attract substantial foreign direct investment (FDI) in the manufacturing sector and it would help enhance exports from Pakistan.

Mr Aziz said the establishment of China specific SEZs would usher in an era of economic activities in the country and it would help generate thousands of new jobs and improve the living standard of the people.

He said both Pakistan and China were actively working to expand their trade and economic ties for which all required ingredients to achieve this objective were in place.

He said the establishment of China specific zones was an important initiative of the leadership of the two countries.

Mr. Aziz said Pakistan and China were strategic partners and enjoyed a multifaceted relationship which covered a broad spectrum of areas, including trade, investment, security defence, health and education.

There are yet numerous opportunities to further enhance economic and trade relations between the two countries, he added.

Earlier, the commerce secretary, Syed Asif Shah, in his presentation highlighted the salient features of SEZs and informed the meeting that these economic zones were being established under the Free Trade Agreement between Pakistan and China and all goods manufactured in these zones will have tariff-free entry into Chinese market that would give a boost to exports.

He also mentioned that business ventures would be based on partnership with Pakistani businessmen.

There are yet numerous opportunities to further enhance economic and trade relations between the two countries.

The meeting was attended by Minister for Commerce Humayun Akhtar Khan, Deputy Chairman of Planning Commission

Dr Akram Sheikh, Chairman FBR Abdullah Yousuf, federal secretaries and senior officials.