Qudsia Bano

The Lahore Chamber of Commerce and Industry (LCCI) has intensified efforts to attract Chinese investment in different sectors of Pakistan’s economy.

With its prime geographic location, cost-effective labour market, and government-backed, investor-friendly policies, Pakistan presents a lucrative destination for Chinese industries looking to expand. LCCI leaders have urged Chinese businesses to relocate their manufacturing units to Pakistan, citing long-term economic benefits and mutual prosperity.

Speaking at a meeting with a Chinese business delegation, LCCI President Mian Abuzar Shad stressed that relocating industries to Pakistan would be a win-win situation for both countries. He highlighted that Chinese investors could benefit from lower production costs while Pakistan would see job creation, technology transfer, and industrial growth.

“The cost of labour in Pakistan is significantly lower than in China, and with the establishment of Special Economic Zones (SEZs) under the China-Pakistan Economic Corridor (CPEC), we are offering world-class infrastructure and incentives for foreign investors,” Shad said. Experts in international trade believe that Pakistan’s strategic position as a gateway to South Asia, the Middle East, and Central Asia makes it an ideal manufacturing hub for exports.

Talking to WealthPK, Dr Lubna, a senior economist at PRIDE Consulting (Pvt) Limited, a research institute, noted that with access to a market of over two billion people, Chinese manufacturers can use Pakistan as a regional production base to tap into emerging markets. “Pakistan provides a competitive edge in global trade, and its increasing integration into international supply chains makes it a promising destination for industrial relocation,” she added.

LCCI officials also underscore the ease of doing business in Pakistan, pointing to ongoing reforms aimed at facilitating foreign direct investment, noting that with access to a market of over two billion people, Chinese manufacturers can use Pakistan as a regional production base to tap into emerging markets. Experts also point out that industrial relocation from China to Pakistan could play a significant role in strengthening Pakistan’s economy, particularly in manufacturing, textile, and technology-driven sectors.

Dr Ahmed Faraz, a senior economist at Pakistan Institute of Development Economics (PIDE), emphasised that relocating industries to Pakistan would not only reduce production costs for Chinese companies but also help Pakistan enhance its industrial base, increase exports, and improve the balance of trade. “This shift could be instrumental in transforming Pakistan into a regional industrial powerhouse,” he said.

“With CPEC already laying the groundwork for economic integration, industrial relocation from China could be the next major step in strengthening economic ties,” he said. As Pakistan continues to position itself as a key investment destination, experts believe that proactive measures by both the government and business chambers will be critical in ensuring long-term investor confidence.

Credit: INP-WealthPk