Minister for Industries and Production Rana Tanveer Hussain Launches PCI-PowerChina SEZ Policy Report

Islamabad - 26 July 2024 (Adnan Hameed) : The Pakistan-China Institute, in collaboration with the China Chamber of Commerce in Pakistan and PowerChina, has launched a groundbreaking report titled "Aligning Special Economic Zones Policies of Pakistan and China." This comprehensive report aims to provide a strategic framework for enhancing economic and industrial collaboration between Pakistan and China through Special Economic Zones (SEZs). The launch event, held in Islamabad, brought together key stakeholders and experts who shared their insights on the importance of this initiative and its potential impact on Pakistan's economic landscape. In his opening remarks, Mustafa Hyder Sayed, Executive Director of Pakistan-China Institute, emphasized the timeliness of the report. He noted that its release coincides with increasing collaboration between China and Pakistan, marking a pivotal moment for both nations. Sayed highlighted the critical need for Pakistan to adopt export-oriented policies to attract Chinese industries relocating to the global south due to rising production costs, business-friendly environments, and market access to regional markets. He stressed that Pakistan must position itself as the prime destination for the relocation of key industries by developing unique selling points. The report outlines key takeaways from China’s successful SEZ model, including the necessity to attract investors with flexible policies and strategic locations for industrial zones, particularly near ports and business clusters. Su Dong, Media and News Director of the China Chamber of Commerce in Pakistan, underscored the successful completion of 47 projects in Pakistan, with several others under construction. He expressed PowerChina's readiness to continue working closely with Pakistan, extending best wishes for the report’s success. Su Dong emphasized the significance of this collaborative effort in driving economic growth and fostering a stronger bilateral relationship. He reiterated PowerChina's commitment to supporting Pakistan in its industrial development journey, highlighting the potential for future projects and partnerships that can further enhance economic ties between the two nations. Federal Minister for Industries and Production, Rana Tanveer Hussain, delivered a keynote speech, lauding China as a great friend of Pakistan. He emphasized the significance of SEZs in attracting Foreign Direct Investment (FDI) and fostering industrialization. Hussain stated that the government is committed to offering more incentives and concessions to attract Chinese businesses, ensuring full security for their operations, and adopting Shenzhen as a benchmark for SEZ development. He highlighted that a few SEZs in Pakistan are already functional and stressed the importance of export zones in driving economic growth. The Minister underscored the need for Pakistan to compete with other regions, such as ASEAN, Bangladesh, and Central Asia, by creating a favorable environment for industrial relocation. Mr. Zou Yaodong, Chief Administration Officer of China Overseas Ports Holdings Company Pakistan Ltd, extended warm congratulations on the launch of the report. He noted that SEZs have achieved significant development and become engines of economic growth. However, he acknowledged that there are still many challenges to overcome in the face of global competition. Zou Yaodong assured that his organization is available to assist and support the improvement and development of SEZs in Pakistan, highlighting the importance of strategic partnerships and continuous efforts to enhance the SEZ framework to attract more investors and industries. Dr. Erfa Iqbal, Additional Secretary and Executive Director General-II (EDG-II) at the Board of Investment (BOI), shared her insights on the report, emphasizing that the topic is very close to her heart. She highlighted that economic survival depends on robust SEZ policies and that China serves as a valuable example for Pakistan, a model followed by countries like Cambodia and Vietnam. Dr. Iqbal pointed out that while Pakistan has made strides, the success of its SEZs is still debatable due to a range of problems. She praised the report for providing a comprehensive diagnosis of these issues and offering strategic recommendations. Dr. Iqbal stressed that the success of Shenzhen was not merely due to its location but a combination of factors such as land, labor, and capital, all supported by proactive government policies. She emphasized the need to reduce transaction costs, enhance supportive banking transactions for investors, improve security measures, and ensure business facilitation to create a conducive ecosystem for SEZ development.