New SEZ Policy Report Released to Boost Pakistan-China Economic Ties

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By Shabbir Hussain

ISLAMABAD, July 26(Alliance News):Federal Minister for Industries and Production Rana Tanvir Hussain officially released a pivotal report titled “Harmonizing the Policies of Pakistan and China Special Economic Zones,” developed by the Pakistan-China Institute (PCI) in collaboration with the China Chamber of Commerce in Pakistan and Power China. The report aims to provide a strategic framework to enhance economic and industrial cooperation between Pakistan and China through Special Economic Zones (SEZs).

The launch event, held in Islamabad, gathered key stakeholders, experts, and dignitaries who discussed the report’s significance and its potential impact on Pakistan’s economic landscape. Mustafa Haider Syed, executive director of the Pakistan China Institute, opened the event with remarks highlighting the necessity of implementing the report’s recommendations. He emphasized that this report comes at a time of growing cooperation between China and Pakistan, marking a significant milestone for the stability and deepening of relations between the two nations.

Syed stressed the critical need for Pakistan to adopt export-oriented policies to attract Chinese industries, which are relocating to the Global South due to rising production costs, a business-friendly environment, and access to regional markets. He pointed out that the global economic landscape is highly competitive, and Pakistan must position itself as a key location for the transition of these industries by developing unique selling points.

The report draws lessons from China’s successful SEZ model, explaining what has worked in China and which practices should be adopted in Pakistan. Key takeaways include the importance of attracting investors with flexible policies and strategic locations for industrial zones, especially near ports and business clusters, akin to the success seen in Shenzhen.

Representing the China Chamber of Commerce in Pakistan, Media and News Director Su Dong highlighted the successful completion of 47 projects in Pakistan, with several more under construction. He conveyed his best wishes for the success of the report and expressed China’s commitment to continue collaborating with Pakistan. Su Dong underscored the importance of this joint effort in advancing economic development and fostering strong bilateral relations. He reiterated Pakistan’s commitment to supporting Power China in its industrial development initiatives, highlighting the potential for future projects and partnerships that could further strengthen economic ties between the two countries.

In his keynote speech, Federal Minister for Industries and Production Rana Tanvir Hussain described China as a great friend of Pakistan. He emphasized the significance of SEZs in attracting foreign direct investment (FDI) and promoting entrepreneurship. The relocation of Chinese industries, he said, presents a significant opportunity for Pakistan. The government is committed to offering more incentives and concessions to attract Chinese businesses, ensuring full protection for their operations, and adopting Shenzhen as a benchmark for the development of SEZs.

Minister Hussain noted that several SEZs in Pakistan are already in the activation phase and stressed the importance of Export Zones in driving economic growth. He highlighted the need for Pakistan to compete with regions like ASEAN, Bangladesh, and Central Asia by creating a conducive environment for industrial migration.

Zhu Yudong, Chief Administration Officer of China Overseas Ports Holdings Company Pakistan Limited, congratulated the launch of the report. He acknowledged that SEZs have achieved significant growth in recent years and have become engines of economic development. However, he pointed out that many challenges remain in the face of global competitiveness. Zhu assured that his company is available to support the improvement and development of SEZs in Pakistan, emphasizing the importance of strategic partnerships and continuous efforts to expand the SEZ framework to attract more investors and industries.

Dr. Arifa Iqbal, Additional Secretary of the Board of Investment (BoI), shared her insights on the report, expressing her special attachment to its subject. She highlighted that economic survival depends on robust SEZ policies and noted that China serves as a valuable role model for Pakistan, followed by countries like Cambodia and Vietnam. Dr. Iqbal acknowledged that Pakistan’s SEZs have experienced successes but also face ongoing challenges. She appreciated the report for providing a comprehensive assessment of these issues and making strategic recommendations.

Dr. Iqbal emphasized that the success of Shenzhen was not solely due to its location but was a combination of factors like land, labor, and capital, supported by proactive government policies. These policies aimed to reduce transaction costs and increase supportive banking transactions for investors. She underscored the need for Pakistan to adopt similar strategies to attract and retain investors in its SEZs.

The launch event also included various panel discussions and presentations by experts who elaborated on different aspects of the report. They discussed the potential impact of the proposed SEZ policies on Pakistan’s economy and shared insights on how these zones could be developed to maximize their benefits.

One of the key topics discussed was the importance of infrastructure development in SEZs. Experts agreed that having well-developed infrastructure, including transportation networks, utilities, and communication systems, is crucial for attracting foreign investors. They highlighted successful examples from China where infrastructure played a key role in the success of SEZs.

Another significant point raised was the need for a skilled workforce. Panelists emphasized the importance of investing in education and training programs to develop a workforce capable of meeting the demands of modern industries. They suggested collaboration with Chinese educational institutions to learn from their experiences and to develop joint training programs.

Environmental sustainability was also a topic of discussion. Experts highlighted the need to adopt environmentally friendly practices in SEZs to ensure sustainable development. They pointed out that China has made significant strides in this area and suggested that Pakistan could benefit from adopting similar practices.

The event concluded with a commitment from all stakeholders to work together towards the successful implementation of the report’s recommendations. They agreed that the harmonization of SEZ policies between Pakistan and China is essential for achieving long-term economic growth and stability.

In summary, the launch of the “Harmonizing the Policies of Pakistan and China Special Economic Zones” report marks a significant step towards strengthening economic and industrial cooperation between Pakistan and China. The report provides a strategic framework for developing SEZs in Pakistan, drawing lessons from China’s successful model.

The discussions at the launch event underscored the importance of flexible policies, strategic locations, infrastructure development, a skilled workforce, and environmental sustainability in achieving the objectives of the report. With the commitment of key stakeholders, the successful implementation of these recommendations could significantly boost Pakistan’s economic landscape and enhance its industrial ties with China.