MONDAY DECEMBER 03: China sympathetic towards Pakistan's economic woes: country-specific investment fund likely

KARACHI: The China Investment Corporation (CIC) has expressed interest in setting up a Pakistan-specific investment fund, attracting Chinese funds for Pakistani projects. "The CIC may establish a Pakistan-specific 'Country Investment Fund,' to support economy," President of the Corporation Gao Xiqing said here on Sunday evening during meetings with bankers, representatives of business community and overseas investors at State Bank of Pakistan's (SBP) head office.
Acting Chairman of the State Bank Kazi Abdul Muktadir and Special Secretary to the President Nasreen Haq were also present during the meetings. Gao Xiqing said the CIC had already established country-specific investment funds for Russia and certain other countries. In December last year, CIC signed an agreement with Russia to invest nearly $1 billion in 'Russian Direct Investment Fund' to finance various projects.
The Russian Direct Investment Fund is a joint investment fund, in which some 50 percent or $500 million were invested by CIC, he said.
"There is a possibility of (establishing) a separate investment (fund) for Pakistan and CIC can (set up) such a Pakistan-specific fund on the request of the President of Pakistan Asif Ali Zardari," he said. "We are here to analyse and discover investment opportunities in Pakistani market."
Talking about the investment in the banking sector, he said that one Chinese bank was already operating in Pakistan to facilitate trade and industry.
"Chinese companies are already playing a vital role in Pakistan's economic growth...CIC will also continue to help strengthen Pakistan on the economic front by bringing in more Chinese investment," the CIC chief said.
Asseting that China was interested in bolstering Pakistan's economy, CIC's Chief Strategy Officer Zhou Yuan said that his company would prefer to abide by certain mechanisms that were "inherent components of CIC".
He said CIC was focussed on financial investment with a straight approach to achieve tangible targets. "It is our desire to come to reasonable conclusions to contribute to Pakistan's economic reconstruction for the mutual benefit of the two countries," he added.
Huang Qianli of China National Machinery Import and Export Corporation said that Pakistan was "a land of opportunities" and entrepreneurs who had already invested "are doing well and during recent years have invested significantly in Pakistan". A high-powered CIC delegation is visiting Pakistan to explore investment opportunities. President CIC International (Hongkong) Fan Kungsheng, CIC Vice-President Lu Jinuo, Chief Strategy Officer Zhou Yuan, CIC directors Mi Tao and Li Xinxin are also part of delegation.
APP adds: CIC delegation held a series of meetings with CEOs of major Pakistani banks, CEOs of Pakistani companies collaborating with Chinese companies, representatives of Pakistan Business Council and Overseas Chambers of Commerce and Industry.