Mansoor Sadiq

Till a few years ago, Pakistan had been spending approximately $2 billion to import ceramics tiles from different parts of the world. However, today, with the assistance of Chinese companies, ceramics tiles of the finest quality are being manufactured at the special economic zone (SEZ) in Faisalabad in a cost-effective way, thus curtailing their imports to a great extent. Mian Kashif Ashfaq, a former chairman of Faisalabad Industrial Estate Development & Management Company (FIEDMC) and a pioneer in establishing Allama Iqbal Industrial City (Special Economic Zone Faisalabad set up under CPEC), told WealthPK that with the objective to attract foreign investment in the country, Chinese companies are being provided with best facilities and incentives to invest in SEZs.

He said Faisalabad M-3 Industrial City, Value Addition City and Allama Iqbal Industrial City are the major special economic zones of Pakistan, offering the best available facilities and infrastructure to attract foreign investors. Kashif Ashfaq said about 25 Chinese companies with millions of dollars of investments had set up their factories and started operations in Allama Iqbal Industrial Zone, creating thousands of jobs and boosting ceramics business.  He said besides China, companies from Germany and the Netherlands also took a keen interest in establishing units in this priority SEZ.

He added that all industries, including textiles, pharmaceuticals, paints, steel, chemicals, automobiles, and motorcycles manufacturing were being provided with customs duty exemption for 10 years. Citing the emerging market potential of ceramics in the country’s construction sector, the former FIEDMC chairman said a notable reduction was witnessed in the imports of high-quality ceramics after the establishment of ceramics manufacturing units in Pakistan with the assistance of the Chinese firms. Meanwhile, SM Naveed, Chairman of Special Economic Zones Authority, Punjab, said the SEZs were attracting foreign investment led by Chinese companies.

He said Pakistani textile, leather, pharmaceutical, ceramics and surgical products were ‘the best’ in the world. A spokesperson of the All-Pakistan Ceramic Tiles Manufacturers Association said the locally-produced ceramics tiles were cost-effective and of good quality. He said the Chinese investments in the sector had created employment opportunities. He also said the government had promised to provide incentives like subsidised electricity and gas supply, and ensure smooth supply of water and raw material to these special zones.

He said with the fast-paced development of the sector, Pakistan can also be able to earn foreign exchange by exporting ceramics. It is to mention here that the government is facilitating investments in the SEZs through one-window operations. An official of Pak-China Joint Chamber of Commerce and Industry (PCJCCI) told WealthPK that investment from China was being made in different sectors to boost production of export-oriented sectors. He said the Chinese firms were investing in ceramics, textile, glasswork energy and pharmaceutical sectors.

He said during the last two years, nine ceramics units had been established with the assistance of Chinese firms in the Faisalabad’s SEZ. It is worth mentioning here that Allama Iqbal Industrial City has been designed as per international standards, covering an area of 3,217 acres. The FIEDMC spokesperson said the cost of the land in Allama Iqbal Industrial City was Rs10.40 million per acre, adding industrialists could get possession of the land with only 15% down payment.

He said the remaining 85% can be paid in 12 equal quarterly instalments. He said Yongzhao Import and Export Liability Co. Ltd had made an investment of $600 million in steel industry, while Oreal Ceramic (Fujian), Wenzhau Yanhui Industrial Co. Ltd. and Brother Ceramic had made investments of $70 million each in the ceramics sector.

Credit : Independent News Pakistan-WealthPk