December 18, 2008	Thursday	Zilhaj 19, 1429

ISLAMABAD, Dec 17: Chinese Ambassador Luo Zhao Hui has asked the Board of Investment (BoI) to take immediate steps to allay concerns of Chinese investors.

During a meeting with BOI chairman Saleem Mandiwala here on Wednesday, the ambassador particularly mentioned the concerns of Chinese locomotive supplier Dongfang and said the company had received a contract for 69 locomotives in 2001.

According to him, technical problems arise whenever locomotives are operated in a new environment and the same had happened in Pakistan. He said the company had rectified faults and the engines were now working efficiently.

He said the ministry of railways had thrice rejected the offer for a second batch of 75 engines, citing technical deficiency.

The ambassador complained that a US company, General Electric, had become the favourite to win the same contract, and said that it was being favoured despite high prices.

He referred to the recent approval of the cabinet for issuing ‘long distance international’ licence to China Mobile Pakistan, which had acquired 100 per cent shares of Paktel. He said that since China Mobile was not a new entrant, any delay in the issuance of the LDI licence would send a negative message to Chinese investors.

The BOI chairman assured the Chinese ambassador that he would discuss with the Ministry of Information Technology and PTCL for speedy resolution of the issue. He promised to look into the concerns raised by the ambassador.During a meeting with federal Minister for Privatisation Syed Naveed Qamar, the ambassador said that Chinese companies were keen to participate in Pakistan’s privatisation programme, which would give impetus to President Asif Ali Zardari’s efforts to bring both the countries closer.

Mr Qamar briefed the Chinese envoy on the privatisation programme and said that instead of selling public sector entities through strategic sale, Pakistan was actively considering public-private partnership for expanding the entities by bringing in fresh investment, improving the quality of service, increasing production, getting technology transferred and generating job opportunities.

Appreciating Chinese companies’ interest in the privatisation programme, he said that there was vast potential for Chinese companies to invest in various sectors of Pakistan’s economy.

Mr Luo Zhao Hui said 20 Chinese companies were actively engaged in ongoing projects, including those in steel and mineral sectors, and 70 companies had successfully completed their projects. Chinese investors, he said, were also interested in banking, finance and power sectors.