Ayesha Saba

Experts have stressed the need for a comprehensive approach to navigate complexities of joint ventures Pakistan and China are set to embark on to further deepen their economic and business relationships. Sharing with WealthPK his insights on the matter, Malik Sohail Hussain, Chairman Coordination of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), said: "Joint ventures with China across various industries hold significant potential for economic growth and job creation. China's focus on mines and minerals highlights Pakistan's rich natural resources, opening doors for substantial collaboration and investment. With China's high demand for raw material to support its industrial growth, Pakistan could greatly benefit from strengthened trade relations and mining partnerships."

Hussain elaborated that China's substantial investments in regional infrastructure development, particularly in South Asia, suggested that economic integration would lead to political integration in the region. He also emphasised the necessity of diversification and technology transfer in these joint ventures. He highlighted the potential of Special Economic Zones (SEZs) as central hubs for this collaboration. He pointed out that each SEZ possessed unique geographical and production advantages that could be maximised through partnerships with Chinese companies. However, he also cautioned that meticulous planning and transparent frameworks are essential for the success of these joint ventures. "Clear policies and effective communication channels are crucial to navigating the complexities of cross-border collaborations and ensuring mutually beneficial outcomes," he advised.

Meanwhile, an official of the Board of Investment told WealthPK on condition of anonymity that the BOI was working on several key measures to improve the business environment. "These include simplifying regulatory frameworks, offering tax incentives, and ensuring reliable infrastructure." He pointed out that streamlining bureaucratic processes and providing fiscal incentives were crucial to making Pakistan an attractive destination for foreign investment. The official said that efforts were underway to facilitate the relocation of Chinese industries to Pakistan. "Plans are in place to involve Chinese experts in setting up a business facilitation centre in Islamabad to help streamline processes and provide comprehensive support to businesses.

Credit: INP-WealthPk