Senate informed: China’s investment declines by 29.27pc in two years

ISLAMABAD: China’s investment in Pakistan has decreased by 29.27 per cent in the last two years—mainly due to Covid-19 and conclusion of CPEC (China Pakistan Economic Corridor) Phase-I, the federal government informed the Senate on Tuesday.

“COVID-19 outbreak caused a sharp decline in global economic activity. As majority of Chinese Investments fall under the CPEC ambit, the economic disruptions and social restrictions caused by COVID-19 also impacted the pace of CPEC, thus impacting the overall net FDI (Foreign Direct Investment),” stated Board of Investment Minister Chaudhry Salik Hussain in his written reply to a question posed by treasury Senator Behramand Tangi from Pakistan People’s Party (PPP) in the Senate sitting.

In the question hour, Tangi asked whether it was fact that China’s investment to Pakistan declined in the last two years –and the reasons that contributed to this decline.

“The decrease in Chinese investments in the last two years is mainly due to the conclusion of CPEC Phase-I which has overall impacted the outlay of Chinese investments in Pakistan.

Most of the early harvest projects under the first phase of CPEC relating to power and infrastructure have completed and CPEC is now set to enter the second phase which focuses on industrial cooperation which is a long-term endeavour and dependent on industrialisation through industrial relocation from China, particularly in the Special Economic Zones (SEZs),” the minister’s written reply stated.

“However, it’s very encouraging that with the operationalisation of most of the SEZs in the past two years, and increase in investor interest to establish industry therein, besides other investors many Chinese origin companies have entered SEZs as enterprises thereby committing realization of investment within two years, as is stipulated in the SEZ law,” the reply added.

The decrease in Chinese investments in the last two years is also due to decrease in the FDI Inflows in the manufacturing sector; electrical machinery (-73.96 per cent) and rubber and rubber products (-44.73 per cent) being the top two sectors with major decline, according to the reply.

Manzoor Ahmed Kakar from Balochistan Awami Party (BAP) asked whether there was no prescribed law on the appointment of members of civil services as judges of high courts.

Law Minister Azam Nazir Tarar replied, “The law does not specifically provide for initiating nomination for category of person eligible under Article 193(2)(b) of the constitution of Pakistan for consideration of appointment as judge of a high court.

The initiation of nomination and appointment of judges of the high courts rests with the Judicial Commission of Pakistan under Article 175-A and, the commission and/or chairman has not prescribed or sought any requirement of enacting law for the purposes of Article 193(2)(b) of the constitution from Ministry of Law and Justice.”

Pursuant to the Article 175-A and the Judicial Commission of Pakistan Rules 2010, the initiation of nomination for appointment of judges of high courts rests with the chief justice of the high court concerned and “therefore, this ministry has no mandate to initiate, supervise and/or oversee such process,” Tarar added.

Copyright Business Recorder, 2022