PESHAWAR: The Sarhad Chamber of Commerce and Industry (SCCI) has sought a level playing field and incentives for the businessmen of Khyber Pakhtunkhwa like those in other parts of the country to benefit from the China-Pakistan Economic Corridor. It also called for formulating a policy framework to protect the indigenous industry and to compete with the Chinese investors.

The chamber members expressed these views during a consultative meeting titled ‘CPEC – challenges and opportunities’, organised jointly by the Federal Board of Investment (BoI) and Ministry of Planning and Development in collaboration with SCCI at the Chamber’s House here on Friday.

Jiang Han, deputy consul general of Chinese Embassy in Islamabad, was the chief guest on the occasion. The speakers included BoI director general Riffat Pervez, Shaukat Khattak from the Ministry of Planning and Development, chief strategic of KP Economic Zones Development and Management Company Hassan Ansari, SCCI president Mohammad Afzal and others. Office-bearers of the chambers from Swabi, Charsadda, Swat, Dir and Peshawar were also present on the occasion.

Chinese diplomat says corridor project will strengthen Pakistan’s economy

Zahid Shinwari, ex-president of SCCI, said that the industry and people were still in the dark about terms of the deal of CPEC signed almost two years ago. He said that this had generated apprehensions about the multi-billion dollars project.

“We demand a level playing field and equal incentives besides protection of local industries,” he said and added that the export of local manufacturing products had already plunged, while it would go further down with the advent of Chinese investors due to lack of uncompetitive conditions.

He said that the Free Trade Agreement and preferential trade agreements with other countries had affected the local industries, while the market would be flooded with Chinese products as there was still no policy to protect the local industries.

Babar Hamayun, a vice-president of Swabi Chamber of Commerce and Industry, said that he did not know about any policy to facilitate the existing industrial units and Small and Medium Enterprise in the CPEC. He suggested forming a committee to put forward the business community’s reservations to the federal government in this regard.

Malik Awan Ishaq said that the local industries were paying 8 to 9 per cent markup on loans and it would be difficult for them to compete with the Chinese companies.

Addressing the participants, Chinese diplomat Jiang Han said that CPEC would further boost the economic and trade relations between China and Pakistan. He said that about 18-20 projects had been executed which would bring economic development in Pakistan. He hoped that CPEC would strengthen local economy and create maximum jobs for the people of Pakistan.

Mr Pervez said that the industries could not flourish without electricity and infrastructure development, which were the key components of CPEC. He said that 46 potential sites had been identified for Special Economic Zones (SEZs) alongside CPEC in consultation with the provincial governments.

Mr Ansari said that KPEZDMC had planned to develop over 18 economic zones across the province which would be later elevated to special economic zones.

He said that the KP government had so far signed deals with the Chinese government for development of five economic zones under CPEC.

Published in Dawn, July 29th, 2017