Muhammad Saleem

Industrialists and textile exporters have expressed optimism that Chinese companies' ventures in Pakistan would help strengthen the country's fragile economy. Salamat Ali, a garment exporter, said Pakistan should welcome Chinese investment, but it's crucial that the interests of the domestic industries were protected.  Talking to WealthPK, he pointed out that scores of Pakistani industries, particularly in the textile sector, were already competing with Chinese companies globally. "Therefore, the government should avoid pitting domestic businesses against the Chinese investors."

He said Pakistani entrepreneurs would face multiple issues if forced to compete with Chinese companies locally. "We must tell Chinese investors that they would employ locals rather than bringing in their own workforce," he said, warning that this could lead to social unrest if policymakers ignored this crucial issue. "If Chinese investors require specific skilled labour, then the government should set a certain percentage for their projects," he suggested. Besides, he said the government needs to ensure skill development of the local workforce to maximise Chinese ventures in Pakistan. 

Dr Ali, a faculty member of the Government College University, Faisalabad, talking about the significant benefits of Chinese investments in Pakistan, said this investment could be a game-changer for the national economy. "Keeping in view the emerging challenges, we have to improve our existing infrastructure and the projects being executed under the China-Pakistan Economic Corridor can help us in this regard."

Ali said Pakistan needed to boost exports, particularly textiles, to earn foreign exchange and create job opportunities.   "Foreign direct investment is also vital for the struggling economy," he said. He added that Chinese investments had the potential to create jobs, improve local industries' working approaches through joint ventures, and foster technological advancements. He suggested bridging the skills gaps within Pakistan's workforce. He said the Chinese investors were prioritising automation and modern technologies, but "our workforce is not tech-savvy."

Besides, he said the government should also ensure that Chinese ventures' impact on environment was minimal as Pakistan was already facing climate change issues. Sohail Ahmed, an industrialist, said the Chinese investments should create a win-win situation for both countries. He said joint ventures with Chinese investors would create new horizons for the Pakistani entrepreneurs. However, he said the government needed to ensure the Chinese projects were sustainable both ecologically and economically.

He said it was the responsibility of the government to ensure a level playing field for domestic and international companies. "Every investor needs peace and tranquility in the country where he will invest his hard-earned money. We have to alleviate the security-related concerns of the foreign investors," he suggested. Shahid Ali, a trader, argued that except for China, no other country wanted to invest in Pakistan. "We need investment and trade immediately to strengthen our economy to come out of the clutches of the International Monetary Fund.""People need jobs to make both ends meet as the unbridled inflation has made their lives difficult," he said, calling for urgent action to curtail energy prices.

Credit: INP-WealthPk