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Chinese investment in Pakistan: a win-win situation both for China and Pakistan

Published on 24th Nov, Edition 47, 2014

 

The massive Chinese investment to the tune of $42 billion is the first instance when a single country like China has practically shown its commitment to Pakistan economy, however, it would equally benefit to China on the back of strategic location of Pakistan in generation like Gwadar Port in particular, which will provide a short cut to transitional goods to and from China as no other country could offer such a reduced passage transportation of shipments to Western part of China, hence the investment is considered a win-win situation for both the friendly countries.

The Chinese commitment to invest at a such a large scale in infrastructure development and energy sectors has send a message across the world that Pakistan is a land of opportunities for those dare to take initiatives. There is no element of fear and greed in friendship between China and Pakistan.

As the trick down effects of the investment deal between China and Pakistan, the cooperation at the trade bodies level of the two countries has also started to further strengthen the bilateral relations between the two countries.

In this respect, the apex trade bodies of Pakistan and China entered into an agreement for what they called construction of Silk Road inked between Shanghai Chamber and FPCCI.

Speaking on the agreement signing occasion Gai Guoping, Vice Chairman, Shanghai Municipal Commission of Commerce China, said that Pakistan and China are neighbors and good friends. Shanghai and Pakistan can develop an economic cooperation. Shanghai’s local government encourages promoting business with Pakistan. They want to invest in textile industry, chemical, building materials, power plants, and heavy duty machinery.

Gai Guoping also desired to promote communication with important ports in Pakistan. He suggested to improve economic relations between China and FPCCI and to supply information about energy development projects in Pakistan.

Agreement between Shanghai and Pakistan enterprises has inked for the joint construction of maritime Silk Road economic cooperation and promotion of common development, last week. The agreement was signed between the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and Shanghai Chamber of Commerce China. According to the framework of the agreement, chambers of both the countries will work together to the principles of goodwill and mutual benefit. Both the parties had agreed to start the Maritime Silk Road union and promote further cooperation between Shanghai and Pakistan.

Both parties will endeavor to build development platforms, create business opportunities and welcome investment in each other country. They will also carry out regional cooperation, negotiation and development in trade cooperation and small and medium sized enterprises. Both chambers will also initiate new growth points and exchange visits at irregular intervals. They will also assist the promotion of trade facilitation for both enterprises.

According to the agreement, they will provide suggestions on the policies concerning trade, technology, project cooperation, logistics, transportation and customs. They will also pay more attention to e-business, supply chain and trade in services.

Speaking at the ceremony, Mr. Munawar Mughal, Vice President FPCCI, said that China is a time-tested friend of Pakistan. Pakistan encourages Chinese investment. Chinese investors are already investing $42 billion in the national projects of Pakistan. He said that China is a strategic partner of Pakistan. Both countries have a historic relationship in the region, which is said to be sweeter than honey and higher than mountains.

Prime Minister Nawaz Sharif in his recent visit to China has signed 19 flagship projects with the Chinese investors, both the countries further want to enhance their economic cooperation in the field of energy, infrastructure, mining and ports and shipping.

He appreciated the idea of one-belt, one-road and said such kind of projects will increase mutual cooperation between both the countries. He accepted the invitation of the visiting Shanghai Chamber of Commerce and also invited Chinese delegation to bring business delegation to Pakistan.

 

Friendly gesture

Meanwhile, the Deputy Director General of Yunnan International Expositions Bureau, Mr. Wang Guoping had offered 100 free booths to the Karachi Chamber of Commerce and Industry (KCCI) at 2nd China-South Asia Expo and 22nd China Import & Export Fair scheduled to be organized from June 6 to June 10, 2015.

The offer was given by the Deputy Director General of Yunnan International Expositions Bureau during a meeting with a KCCI delegation held here in a local hotel. KCCI delegation comprised of Senior Vice Chairman, Businessmen Group and former president KCCI, Anjum Nisar, President KCCI, Iftikhar Ahmed Vohra, former president KCCI, Haroon Agar, former senior vice president Shamim Ahmed Firpo, KCCI Managing Committee members Asif Nisar, Faisal Mukhtar, Yaqoob Warind and Sheikh Ashfaq Ahmed. Vice Consul General of Consulate General of China in Karachi, Mr. Mu Yongpeng, Deputy Director of Yunnan International Expositions Bureau, Mr. Tan Yun and representatives of People’s Government of Yunnan province, Mr. Zhou Lin and Mr. Zhuang Zhanchuan were also present at the meeting.

Deputy Director General of Yunnan International Expositions Bureau, while seeking KCCI’s support in promoting these exhibitions amongst the business community of Karachi, asked KCCI to sign a Memorandum of Understanding (MoU) for strengthening cooperation with Yunnan International Expositions Bureau. He informed that 2nd China-South Asia Expo will carry forward its objective of promoting all-round cooperation and development between China and South Asia while its theme will be focused on expanding trade in services, boosting investment-centered cooperation, accelerating inter-connectivity, and jointly constructing economic corridors.

Similarly, the 22nd Kunming Fair will adhere to the theme of inter-connectivity, cooperation and win-win state, he said, adding that Kunming Fair has become an international business platform featuring business negotiations, commodity exhibition, investment cooperation, service trade and e-business etc.

While welcoming the offer of 100 free booths to Karachi Chamber, President KCCI, Iftikhar Ahmed Vohra assured that the Karachi Chamber will utilize all available channels to promote these two major exhibitions in China in order to ensure participation of maximum number of businessmen and industrialists in these events, which would surely provide a perfect opportunity to promote Pakistan products and services, strengthen business ties and enhance Pakistan’s export share in the Chinese markets. He advised the organizers to facilitate KCCI for establishing a dedicated Pakistan’s Pavilion at the exhibitions.

President KCCI also invited the Chinese delegation to participate in Karachi Chamber’s 12th My Karachi – Oasis of Harmony exhibition scheduled to be organized from April 10 to 12, 2014 at Karachi Expo Center, which would not only give them an opportunity to closely witness Pakistani products and services but it will also be a perfect platform to promote 2nd China-South Asia Expo and 22nd China Import & Export Fair amongst thousands of visitors and exhibitors of My Karachi Exhibition.

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