Members of business community in Khyber Pakhtunkhwa have sought the level playing field and equal incentives to harvest the benefits of the China-Pakistan Economic Corridor. They also called to formulate a solid strategy to protect indigenous industry and compete with the Chinese investors. They expressed their concerns during a consultative session titled 'CPEC Challenges and Opportunities' organized jointly by Federal Board of Investment (BoI) and Ministry of Planning and Development (P&D) in collaboration with Sarhad Chamber of Commerce and Industry (SCCI) at the chamber house here on Friday.
Mr Jiang Han, Deputy Consul General of Chinese Embassy in Islamabad, was chief guest on the occasion. Notable speakers included Director General BoI, Riffat Pervez; Deputy Director Media from Ministry of Planning and Development, Shaukat Khattak; a representative of think-tank, Ahsan; chief strategist of KPEZDMC, Hassan Ansari; President of SCCI, Haji Mohammad Afzal and others. Besides, office bearers of chambers from Swabi, Charsadda, Swat, Dir and Peshawar, Director General BoI Riffat Pervez, and other higher officials, as well as members of SCCI executive committee and former presidents were present on the occasion.
Zahid Shinwari, ex-president SCCI, said that the industry and the people are still in dark regarding the terms of the deals signed almost two years back. He said that they neither consult nor share plan before the execution of the development projects under the CPEC, which had generated a number of apprehensions and doubts about the multi-billion dollars project. "We demand a level playing field and equal incentives, besides protection of local industries, Mr Shinwari said. He said the export of local manufacturing have already plunged to optimal level, while he said it would further go down with advent of Chinese investors due to lack of competition mechanism in the country.
The former president said the Free Trade Agreement and Preferential Trade Agreements with other countries have affected the local industries, while the market will be flooded with Chinese products as Pakistan has not prepared any policy and grounds to protect the local industries, he noted. "Is there any existing policy to facilitate the industrial units and Small and Medium Enterprise (SMEs) in the China Pakistan Economic Corridor?" said Babar Hamayun a vice president of Swabi Chamber of Commerce and Industry. He stressed the need for finding solutions of negative impacts of CPEC and suggested to constitute a committee to put forward the reservations of business community to federal government on the CPEC.
Malik Awan Ishaq said that China government offered zero per cent loan to companies, but local industries are paying about 8 to 9 per cent markup on loans. Whether we can compete with Chinese companies in the present circumstances, he asked. Therefore, the industrialists have asked the federal government to take practical measures for the protection of local industries, instead of verbal assurances.
Earlier, addressing the participants, Chinese Diplomat Jiang Han said that the CPEC will further boost economic and trade relations between China and Pakistan. He informed that about 18-20 projects have been successfully executed which would bring economic prosperity and development in Pakistan.
The Chinese diplomat said that Pakistan is important destination for Chinese investments. He urged Pakistani investors to take full benefits from the CPEC. He expressed the hope that the CPEC will help in the growth of local economy and create job opportunities for the people of Pakistan. He also mentioned that the CPEC has widely expanded by inclusion of more projects during last Joint Cooperation Meeting on CPEC in Beijing, China.
In his multi-media presentation, Director General BoI, Riffat Pervez said that the industries can only flourish with electricity and infrastructure development, which are the key components of the China-Pakistan Economic Corridor project. He informed that forty six potential sites have been identified for Special Economic Zones (SEZs) alongside CPEC in consultation with provincial governments, including AJK, Gilgit Baltistan, and Fata.
Furthermore, he informed that Board of Investment had so far notified seven SEZs across the country including 3 each in Sindh, Punjab, and one in Khyber Pakhtunkhwa province. He added that nine sites have been prioritized during last JCC meeting in Beijing.
Under the relocation policy, the official said that both new and existing industrial estates would have to avail up-grade to SEZ status. He commented that the Foreign Direct Investment in Pakistan would further boost by 30 per cent with execution of CPEC related projects in coming days. He said that China's upgrading to higher industries will leave a huge space for Pakistan.
Regarding the research-based outcome, Pervez said that CPEC is dynamic project and its portfolio reaching at USD 59 billion from initial estimated USD 43 billion. He stressed that private sector's interest and ownership would lead to the success of CPEC projects. Hassan Ansari, the Chief Strategist from KPEZDMC through his multi-media presentation briefed the participants about the actual situation and the number of projects KP is given under the CPEC. He said that the company had planned to develop more than 18 Economic Zones across the province, which later would gradually get the status of Special Economic Zones (SEZs). He informed that KP government had so far signed deals with Government of China for development of five economic zones under CPEC.
Shaukat Khattak, Deputy Director Media (P&D) also explained the factual position of CPEC through his multi-media presentation on the occasion, and said that Ministry of Planning and Development is holding awareness and consultative meetings with members of business community and other relevant stakeholders to hear their grievances on the CPEC. He said that the Pakistan-China relations have now converted from Geo-politics to Geo-Economics with the advent of CPEC. He said that the CPEC is lifeline for Pakistan, which would bring economic prosperity and development in the country. Earlier, the Sarhad chamber president, Haji Mohammad Afzal also spoke on the occasion.
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