The Joint Working Groups (JWGs) of China-Pakistan Economic Corridor (CPEC) Industrial Cooperation Tuesday considered the federal government's decision of upgrading Pakistan Steel Mills (PSM) in a meeting held via videoconference. The federal government has also assured the JWGs that development work on prioritized Rashakai Special Economic Zone (SEZ) will start in November 2019. Progress on prioritized CPEC SEZs including Rashakai, Dhabeji and Alama Iqbal Industrial City (M3) was also reviewed in the meeting.

In his visit to China on October 7, 2019, Prime Minister Imran Khan decided to hand over PSM to China for its revival through a government to government deal. The JWGs meeting was held ahead of a scheduled meeting of Steering Committee on Doing Business Reforms headed by Prime Minister Imran Khan. The agenda of the Steering Committee meeting was to review the progress in provision of utilities to the prioritized SEZs.

Both side agreed that the groundbreaking of Rashakai SEZ may be done next month (November) whereby the development agreement is in the final stage. Chinese side expressed keen interest to participate in the bidding process for Dhabeji SEZ. In the process of industrial diagnosis of key industries, the Chinese experts informed that the report of the textile industry diagnosis is ready and will be shared by Chinese side soon. Both sides also discussed the possibility of up-gradation of Pakistan Steel Mills.

Both sides further agreed to jointly accelerate the efforts to enhance the level of industrial cooperation by ensuring concentrated efforts with early provision of utilities and allocation of land. Pakistan and China have agreed to enhance business to business linkages to facilitate increased level of investment from Chinese enterprises and enhance industrial competitiveness of business in Pakistan through technology transfer, world class managerial and industrial practices and skill transfer.

The meeting was co-chaired by Qasim Raza Khan, Executive Director General-II, Board of Investment, and Gao Jian, Deputy Director General, National Development and Reform Commission of China. Officials from line ministries, provincial governments and embassies attended the meeting.

Copyright Business Recorder, 2019