By Hamid Mahmood ISLAMABAD, Feb 03 (INP-WealthPK): Business to business (B2B) linkages are playing a critical role in turning around the economies the world over. Under the multibillion-dollar China-Pakistan Economic Corridor project, this potential is being exploited to enhance economic activity. The second phase of CPEC especially focuses on industrial organisation through business-to-business investments. In this regard, the Board of Investment (BOI) is also encouraging fostering the B2B enterprises in Pakistan under the CPEC. The BOI is a member of the CPEC's Working Group on Industrial Parks in Special Economic Zones (SEZs). It is in the process of identifying suitable and viable locations for consideration by the Joint Working Group for setting up SEZs. The BOI has already identified possible sites for setting up the SEZs along the corridor in all the four provinces of Pakistan, and the Gilgit-Baltistan in consultation with the stakeholders. Each economic zone will focus on unique goods and services based on the availability of local raw materials, manpower, and other considerations. The creation of these zones will attract both domestic and foreign investment, as well as create a large number of jobs. A CPEC industrial cooperation and business-to-business investment conference organised by the BOI in Lahore recently was also part of the efforts to promote B2B ventures. The goals were to promote CPEC-related SEZs, facilitate public-private partnerships, initiate successful B2B ventures, and showcase the Punjab province's public-sector achievements. BOI Chairman Muhammad Azfar Ahsan briefed the participants on the Pak-China B2B Investment Portal, which was created in association with the China Council for International Investment Promotion (CCIIP). He invited both domestic and Chinese firms to register with the investment portal in order to materialise the potential of joint venture opportunities. He also stressed that the CPEC Industrial Cooperation Programme was large-scale and open to third-party participation, and he invited enterprises from across the world to invest in Pakistan's economic sectors. “Foreign investors have numerous opportunities to capitalise on with 100% equity. They can also launch joint ventures in a number of sectors,” said Fareena Mazhar, the BOI secretary. She said the investors were at liberty to repatriate their profits due to the legal protection afforded to foreign investments under various Acts of Parliament. “The government treats both domestic and international investors equally with guarantees of full return of profits and dividends. There is no minimum investment requirement for new businesses,” she noted. On the occasion, the Habib Bank Limited, a private sector bank of Pakistan, and China Machinery Engineering Corporation signed a memorandum of understanding on agricultural cooperation. Nong Rong, the Chinese Ambassador to Pakistan, and Moinul Haque, Pakistan's Ambassador to China, were also present at the event. They praised the government of Pakistan's efforts to expand Pak-China ties by exploring areas of mutual collaboration. They also recognised the BOI's role in fostering a business-friendly atmosphere and assisting Chinese investors at every step of the process. They reaffirmed their commitment to working closely with the BOI to further enhance the economic cooperation. A total of nine SEZs are to be built under the CPEC. Work on three of them, including Allama Iqbal Industrial City in Punjab, Rashakai SEZ in Khyber Pakhtunkhwa, and Dhabeji SEZ in Sindh, is nearing completion. These SEZs have been offered enticing fiscal advantages, including a 10-year tax holiday and customs duty exemption on capital goods imports for both the developer and the SEZs’ tenants. These special economic zones are being established under a special law to tackle the global competitiveness issues and with a view to attracting foreign direct investment. The legislation provides for creation of an industrial cluster with liberal incentives, infrastructure, and investor facilitation services in order to increase productivity and lower the cost of doing business in order to promote economic growth and reduce poverty. The legislation also provides for doing away with the procedural complexities which usually mar speedy and smooth establishment of enterprises. The SEZ policy offers a comprehensive framework for fostering a favorable business climate conducive to FDI. It focuses on liberalisation, deregulation, privatisation and facilitation.