Ayesha Saba

Pakistan has prioritized the development of business-to-business (B2B) ventures and Special Economic Zones to attract foreign direct investment. This strategic initiative emphasizes collaboration between the public and private sectors to spur sustainable economic development. Talking to WealthPK, Jamshed Ahmed, Investment and Industrial Specialist at the CPEC Authority, Ministry of Planning, Development and Special Initiatives, said since the inception of the multibillion-dollar project, Pakistan had experienced a significant surge in FDI from China, establishing it as the leading source of FDI for the country. "This trend underscores Chinese investors' strong interest in further exploring investment opportunities across various sectors in Pakistan." He disclosed that around 20 to 25 Chinese companies were in the process of relocating and establishing their units in the country.

"It is important to highlight that in instances where projects are contracted to Chinese firms, the government does not have the authority to influence the pace of their implementation due to the nature of B2B engagement." "This process arises from the operational framework of Chinese companies, which operate according to their predetermined timelines, closely overseen by their headquarters in China. As a result, our ability to either expedite or slow down project progress is limited, as the pace of development is dictated by the internal mechanisms and directives of these Chinese enterprises," he pointed out. Jamshed stated that CPEC's Phase 2 was to consolidate B2B and people-to-people (P2P) connections. "To effectively pursue substantive initiatives aimed at attracting Chinese enterprises to Pakistan, it is imperative to engage key stakeholders from both the nations."

"Such inclusive involvement is essential for meticulously planning and executing initiatives aimed at bolstering bilateral economic cooperation. By ensuring the comprehensive engagement of key actors, we can harness diverse perspectives, resources and expertise to drive impactful strategies that benefit both nations," Jamshed stressed. The CPEC Authority official said that four SEZs were designated as priority areas, with plans for their expansion to other regions. "Notably, one zone is situated in each province." He said that SEZs had emerged as crucial mechanisms to propel industrialization in Pakistan. "Pakistan possesses a robust market potential and benefits from an abundant pool of young, cost-effective labor. SEZs are instrumental in harnessing these resources to fuel industrial growth and meet the nation's burgeoning economic needs."

Credit: INP-WealthPk