Rana Tanvir Hussain launched PCI - POWERCHINA SEZ Policy Report
Source : PCI Date : 26-07-2024
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The Pakistan-China Institute, in collaboration with PowerChina, has launched a groundbreaking report titled 'Aligning Special Economic Zones Policies of Pakistan and China’. The report aims to provide a strategic framework for enhancing the economic and industrial collaboration between Pakistan and China through Special Economic Zones (SEZs). The launch event, held in Islamabad, brought together key stakeholders and experts who shared their insights on the importance of this initiative and its potential impact on Pakistan's economic landscape.
In his opening remarks, Mustafa Hyder Sayed, Executive Director of Pakistan-China Institute, emphasised the timeliness of the report. He noted that its release coincides with increasing collaboration between China and Pakistan, making it a pivotal moment for both nations. Sayed highlighted the critical need for Pakistan to adopt export-oriented policies to attract Chinese industries that are relocating to the global south due to rising production costs, business-friendly environments, and market access to regional markets. He stressed that the global economic landscape is highly competitive, and Pakistan must position itself as the prime destination for the relocation of key industries by developing unique selling points. Drawing lessons from China's successful SEZ model, the report outlines what has worked in China and what needs to be adapted for Pakistan. Key takeaways include the necessity to attract investors with flexible policies and strategic locations for industrial zones, particularly near ports and business clusters, akin to the success seen in Shenzhen.
Su Dong, representing PowerChina, underscored the successful completion of 47 projects in Pakistan, with several others under construction. He expressed PowerChina's readiness to continue working closely with Pakistan, extending best wishes for the report's success. Su Dong emphasised the significance of this collaborative effort in driving economic growth and fostering a stronger bilateral relationship. He reiterated PowerChina's commitment to supporting Pakistan in its industrial development journey, highlighting the potential for future projects and partnerships that can further enhance the economic ties between the two nations.
Federal Minister for Industries and Production, Rana Tanveer Hussain, delivered a keynote speech, lauding China as a great friend of Pakistan. He emphasised the significance of SEZs in attracting Foreign Direct Investment (FDI) and fostering industrialization, noting that the relocation of Chinese industries presents a significant opportunity for Pakistan. Hussain stated that the government is committed to offering more incentives and concessions to attract Chinese businesses, ensuring full security for their operations, and adopting Shenzhen as a benchmark for SEZ development. He highlighted that a few SEZs in Pakistan are already functional and stressed the importance of export zones in driving economic growth. The Minister underscored the need for Pakistan to compete with other regions, such as ASEAN, Bangladesh, and Central Asia, by creating a favourable environment for industrial relocation.
Mr. Zou Yaodong, Chief Administration Officer of China Overseas Ports Holdings Company Pakistan Ltd, extended warm congratulations on the launch of the report. He noted that in the past few years, SEZs have achieved significant development and become engines of economic growth. However, he acknowledged that there are still many challenges to overcome in the face of global competition. Zou Yaodong assured that his organisation is available to assist and support the improvement and development of SEZs in Pakistan, highlighting the importance of strategic partnerships and continuous efforts to enhance the SEZ framework to attract more investors and industries.
Dr. Erfa Iqbal, Additional Secretary and Executive Director General-II (EDG-II) at the Board of Investment (BOI), shared her insights on the report, emphasising that the topic is very close to her heart. She highlighted that economic survival depends on robust SEZ policies and that China serves as a valuable example for Pakistan, a model followed by countries like Cambodia and Vietnam. Dr. Iqbal pointed out that while Pakistan has made strides, the success of its SEZs is still debatable due to a range of problems. She praised the report for providing a comprehensive diagnosis of these issues and offering strategic recommendations. Dr. Iqbal stressed that the success of Shenzhen was not merely due to its location but a combination of factors such as land, labor, and capital, all supported by proactive government policies. She emphasized the need to reduce transaction costs, enhance supportive banking transactions for investors, improve security measures, and ensure business facilitation to create a conducive ecosystem for SEZ development.
The launch event concluded with a renewed commitment to strengthening Pakistan-China economic relations through strategic SEZ policies. The collaborative effort marks a significant step towards economic growth and industrial development in Pakistan, paving the way for a prosperous future. The report, 'Aligning Special Economic Zones Policies of Pakistan and China’, is poised to serve as a blueprint for policymakers and industry leaders, guiding the development of SEZs that can attract global investments and drive sustainable economic growth in Pakistan.