Prime Minister's Advisor on Commerce, Industries, Textile and Investment Abdul Razak Dawood has said that Pakistani exports to China would start increasing following the free trade agreement (FTA) becoming effective from December 1, 2019.
He was talking to media at a ceremony held in connection with signing of joint venture agreement between a tyre manufacturing company-Service Industries Limited and Chaoyang Long March Tyre Co. Ltd of China here on Monday.
He said the foreign investment into Pakistan is gradually increasing besides transfer of technology that would also help generate employment opportunities in the country. "It is a pleasant day for us that a potential foreign company- Chaoyang Long March Tyre Co. Ltd of China is starting its business in Pakistan and would initially invest US $100 million which would be increased to US $250 million, the Advisor said.
Razak Dawood said that Service Industries is big industry in Pakistan that is contributing to the development of national economy besides providing jobs to the people. It is the present government's policy to invite the big business houses of the world to invest in Pakistan.
Under the agreement, all steel radial truck & bus tyres would be manufactured locally. Service Industries Limited will own 51 percent and Chaoyang Long March Tyre Co Ltd will own 49 percent of the newly formed company - Service Long March Tyres Pvt. Limited. The Phase-1 of the $250m project will begin with a $100m investment in SITE Sindh for which land has been purchased and design of the plant has been initiated.
Speaking on the occasion, Umar Saeed of Service Industries said that Service Long March Tyres Pvt. Limited would introduce all steel radial tyres in 2020. Under this joint venture, the company would export steel radial tyres besides meeting the local demand.
Chinese Consul General Long Dingbin said that the joint venture between the Chinese and Pakistani companies would be beneficial for both the countries. He also said that CPEC project has great importance for Pakistan and China.
Chairman, Chaoyang Long March Tyre Co Ltd Li Qingwen and Chairman Board of Investment Zubair Gilani also spoke on the occasion.
Copyright Business Recorder, 2019
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