ISLAMABAD: The Minister for Industries and Production Rana Tanveer Hussain has emphasised the significance of Special Economic Zones (SEZs) in attracting Foreign Direct Investment (FDI) and fostering industrialisation, noting that the relocation of Chinese industries presented a significant opportunity for Pakistan.

Mr Hussain was speaking at the launch of a groundbreaking report titled ‘Aligning Special Economic Zones Policies of Pakistan and China’, says a press release on Saturday.

The report has been launched by Pakistan-China Institute in collaboration with PowerChina.

The minister stated that the government was committed to offering more incentives and concessions to attract Chinese businesses, ensuring full security for their operations, and adopting Shenzhen as a benchmark for SEZ development.

He highlighted that a few SEZs in Pakistan were already functional and stressed the importance of export zones in driving economic growth. The minister underscored the need for Pakistan to compete with other regions, such as Asean, Bangladesh and Central Asia, by creating a favourable environment for industrial relocation.

The report aims to provide a strategic framework for enhancing the economic and industrial collaboration between Pakistan and China through special economic zones (SEZs).

The launch event, held in Islamabad, brought together key stakeholders and experts who shared their insights on the importance of this initiative and its potential impact on Pakistan’s economic landscape.

A representative of PowerChina Su Dong underscored the successful completion of 47 projects in Pakistan, with several others under construction. He expressed PowerChina’s readiness to continue working closely with Pakistan, extending best wishes for the report’s success.

Su Dong emphasised the significance of this collaborative effort in driving economic growth and fostering a stronger bilateral relationship. He reiterated PowerChina’s commitment to supporting Pakistan in its industrial development journey, highlighting the potential for future projects and partnerships that can further enhance the economic ties between the two nations.

Chief Administration Officer of China Overseas Ports Holdings Company Pakistan Zou Yaodong extended warm congratulations on the launch of the report. He noted that in the past few years, SEZs had achieved significant development and became engines of economic growth. However, he acknowledged that there were still many challenges to overcome in the face of global competition.

Zou Yaodong said his organisation was available to assist and support the improvement and development of SEZs in Pakistan, highlighting the importance of strategic partnerships and continuous efforts to enhance the SEZ framework to attract more investors and industries.

Additional Secretary and Executive Director General-II at the Board of Investment (BOI) Dr Erfa Iqbal shared her insights on the report, emphasising that the topic was very close to her heart. She highlighted that economic survival depended on robust SEZ policies and China served as a valuable example for Pakistan, a model followed by countries like Cambodia and Vietnam.

Dr Iqbal pointed out that while Pakistan had made strides, the success of its SEZs was still debatable due to a range of problems. She praised the report for providing a comprehensive diagnosis of these issues and offering strategic recommendations.

Earlier, in his opening remarks, Executive Director of Pakistan-China Institute Mustafa Hyder Sayed emphasised the timeliness of the report. He noted that its release coincided with increasing collaboration between China and Pakistan, making it a pivotal moment for both nations.

Sayed highlighted the critical need for Pakistan to adopt export-oriented policies to attract Chinese industries that were relocating to the global south due to rising production costs, business-friendly environments and market access to regional markets.

The launch event concluded with a renewed commitment to strengthening Pakistan-China economic relations through strategic SEZ policies.

Published in Dawn, July 28th, 2024