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Three out of nine industrial parks under CPEC likely to be built this year

Kabira

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Pakistan Ambassador to China, Masood Khalid said today that both China and Pakistan have agreed to establish nine industrial parks in Pakistan under China-Pakistan Economic Corridor (CPEC) framework and hoped that at least two or three special economic zones could be built this year.

“Outcome of the CPEC is the establishment of many industrial parks and special economic zones. Both the countries have agreed to establish nine industrial parks in Pakistan,” he said in an exclusive interview with the Chinese Edition of “Chine.com.cn.”

He said that China’s experience in establishing special economic zones has been very successful, he said and added, “We hope that at least two or three special economic zones can be built this year, which means that we will build manufacturing centers, joint ventures, which will give people employment opportunities,” he added.

Ambassador Khalid said that the CPEC has brought work to more than 60,000 people in Pakistan. This is the result of the already-launched project, adding, the development of more projects under the Economic Corridor and the Belt and Road Initiative will lead to more job opportunities, per capita income will also increase, the government will have more funds for the construction of roads, hospitals and schools.

Terming it a holistic and comprehensive process, he said, through continuous and sustained efforts, we can solve the problem of poverty and hope that we can learn from China’s experience in this regard.

He said, Pakistan and China are old friends and their all-weather strategic partnership is based on mutual respect and mutual trust, adding, “Our relationship is very broad and diversified.”

“We have cooperation in many fields, bilateral cooperation, regional cooperation, and cooperation in international forums,” he added.

Ambassador Khalid said, in the past three to four years, we implemented the CPEC project, which is a pilot project and a new project under President Xi Jinping’s “One Belt One Road” initiative.

He opined that President Xi’s “One Belt and One Road” initiative, with a vision for the future and great foresight, will bring peace to this world. Therefore, interconnection will also promote our mutual trust.

Pakistan and China have carried out close cooperation on economic corridor projects, and many projects are steadily advancing.

He informed that about 22 projects are currently being implemented in Pakistan. These projects have the participation of Chinese friends.

“We very much welcome Chinese friends and thank you for your support and cooperation,” he added.

He said both China and Pakistan are developing countries and they must support each other as the two countries understand the problems and challenges that the other party faces.

Ambassador Khalid said, the relations between China and Pakistan have always been relatively close, and they have been related to regional issues, global issues, development and financial issues, and development.

Pakistan has benefited from China’s development experience, he said and added, “There are many things that we have to study, such as achievements in the development of China, as well as in all areas such as rural development, agriculture, industry, information technology, science and technology, education, and so on.”

He said, in education, for example, the cooperation between our two countries is thriving. There are about 22,000 Pakistani students studying in China. They not only study professional courses, they are still learning Chinese here, so one can imagine that they will be future China-Pakistan friendship ambassadors.

Ambassador Khalid said, more people will come to China in the future because China, Chinese culture, and Chinese language are all attractive, adding, “We need to learn Chinese and Chinese friends also need to learn Pakistani (Urdu) and learn Pakistani culture.”

“We complement each other with cultures and complement each other economically, and our views on diplomacy tend to be consistent. There are many aspects that we can learn from each other on the basis of mutual respect and mutual benefit,” he added.

He believed that the relations between Pakistan and China will get better and better, and the two countries will benefit more and more from it.

Regarding to a question about the last years 19th National Congress of the Communist Party of China which marked the beginning of a new era of socialism with Chinese characteristics and painted a new blueprint for China’s development in the coming decades, he said, it established China’s future development direction and is a milestone in Chinese history.

The meeting identified China’s future development strategy, including economic development, and its role and contribution in international affairs. Therefore, I think this is a great improvement for China and the world. China has set goals for the next 20 years.

China is now the second largest economy in the world and plays a very important role in international relations.
China has a proactive foreign policy. In terms of domestic affairs, it also strives to achieve the reunification of the motherland and the development of the country.

Therefore, the next 20 years are still of critical importance to China, and it is also crucial for it to fulfil its global obligations, he said.

He said after entering a new era, China will continue to be a leader in new technologies, innovations, and development.
On the impact of China’s development on the world, he said during past five years, China’s contribution to the world economy is 15%, and its contribution to global economic growth is 30%.

He said, President Xi Jinping not only continued to carry out reforms in the past five years, but also launched a new type of international relations based on mutual benefit and mutual respect. This will be of great benefit to the world.

He said looking at China’s development data is really surprising. China’s average growth rate of 7.1% over the past five years has helped lift 68 million people out of poverty.

Ambassador Khalid said in the past 40 years, China has helped about 800 million people out of poverty. China has helped 68 million people out of poverty in the past five years.

Pakistan is also working on poverty alleviation. Last year, our GDP growth rate was 5.3%, which is the highest level in the past nine and ten years. “We hope that this year can reach 6%. “

“We have worked with China to raise the level of agriculture because agriculture is the main economic industry in Pakistan and covers more than 60% of the population,” he added.

Ambassador Khalid also congratulated the Chinese leadership for making far-reaching decisions under the leadership of President Xi Jinping.
https://nation.com.pk/23-Mar-2018/t...c-likely-to-be-built-this-year-pak-ambassador
 

Clutch

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Qura tul ain Hafeez

Economic expansion, high prices and inflation are the issues on which one can talk for hours. The scarcity of resources, energy crisis and lack of industrial modernization are the challenges which Pakistan has been facing for past many decades. Despite the advantages of geographical setting, the country could not sufficiently expand its economy until 20th Century. However, the China-Pakistan Economic Corridor (CPEC) has brought with it various infrastructural, energy and industrial projects that show smooth progress in these sectors. One of the most significant developments is the establishment of Special Economic Zones (SEZs) under the Long Term Plan (LTP) of CPEC. SEZ is a physically protected area with definite geographic boundaries under which the investors and the developers enjoy duty free benefits and streamlined procedures, set up by the government. After the successful completion of the Early Harvest Program (EHP), the governments of China and Pakistan aspire to complete the Long Term Plan (LTP) of CPEC. As a key route to success, the LTP has been divided into three phases and the work on the first phase has already started. SEZs are on the first priority list of the first Phase of LTP. While utilizing the strategic location of Pakistan and the rich resources, the SEZ will contribute a framework for Pakistan’s domestic industries and local economy.


The government has planned to establish nine Special Economic Zones (SEZs) in all the four provinces, federal area and Gilgit-Baltistan under the framework of CPEC, which would be completed in a period of three years. Pakistan has conducted feasibilities of 5 SEZs which focus only on the infrastructure. The three prioritized SEZs to be completed in the first phase of LTP are M3 Industrial City in Faisalabad, Punjab, Chinese SEZ Dhabeji, Sindh and Hattar SEZ in KP province. While the remaining six sites include Rashakai Economic Zone, M-1 Noshera, Bostan Industrial Zone District Pishin, Allama Iqbal Industrial City, Moqpondass SEZ in Gilgit-Baltistan, ICT Model Industrial Zone Islamabad, Development of Industrial Park on Pakistan Steel Mills Land at Port Qasim near Karachi, Special Economic Zone at Mirpur AJK, Mohmand Marble city.


Although, there are general misunderstanding regarding the industrial ramifications of the SEZ’s under CPEC due to large number of Chinese firms and the exemption in the tax rates offered to them. However, the LTP of CPEC shows that these SEZ’s will offer the country with a great opportunity to accelerate industrialization because they are beneficial for all the international and domestic investors. So far in the history, SEZs have been the reason of economic boost in countries around the globe. Now this is a matter of concern that either these SEZs will make Pakistan a centre of economic modernization and trade ventures or not. The economists and financial experts are optimistic about Pakistan’s emergence as one of the fast growing and promising global economy.
While stepping towards the era of industrialization, Pakistan faces a number of issues that have so far refrained the industries to understand their growth potential. Some of the chief hindrances to investment in Pakistan include poor security; non-availability of infrastructure and power crises, rent-seeking regulators, and cumbersome tax administration, etc. among many others.


Likewise the entrepreneurs in Pakistan have certain reservations with the incentives proposed by the government and SEZs for the investors and enterprises including ten-year exemption from all taxes on imported capital goods and exemption from tax on income accruable from development and operations in SEZs for a period of ten years. Although these incentives will be beneficial for the foreign investors at large but at the same time it will provide Pakistani enterprises with the opportunity to collaborate with the Chinese firms and launch joint ventures of mutual interests and benefits. This will be further beneficial for the annual Gross Domestic Product (GDP) growth of Pakistan. Moreover it will bring Foreign Direct Investment (FDI) in the country thus generating the foreign revenue.


Subsequently it is significant to keep in mind that in Pakistan there are certain security and political factors due to which the SEZ’s may face challenges. Hence to conquer these challenges provincial harmony among all the provinces and mutual consensus between the public sector and private sector is needed. SEZs under CPEC will be a life-time opportunity for Pakistani companies to work together with Chinese companies for the development of export-oriented manufacturing industries. Therefore, Pakistan should increase its products in the Chinese market and raise the ratio of its export while decreasing the trade deficit by lowering the imports.

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KP govt submits proposal for inclusion of SEZs in CPEC framework

By APP -
March 28, 2018
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PESHAWAR: Khyber Pakhtunkhwa (KP) Government through KP Economic Zones Development and Management Company (KPEZDMC) has submitted a proposal on Comprehensive Special Economic Zone (SEZ) to Federal Board of Investment (BoI) reaffirming and reiterating KP government’s position on the inclusion of SEZs in CPEC Framework.

The position of KP Government is that Rashakai SEZ, must be included as a prioritised SEZ in CPEC framework under the scheme of ‘One Project – “One Concern “, said a press release issued here on Wednesday.

Two Zones under CPEC’, i.e. KP CSEZ, where Hattar pSEZ is included also for synergistic, simultaneous, synchronised and balanced development and operations of two distinct pSEZs.

These SEZs are offered along with associated Rail Cargo Centers, Logistics Hub, and with dedicated Power Plants.

Engagement agreements have been signed with Chinese State Companies to achieve this objective. KP government intends to cater to the broader national interest, and interest of the people living in KP.

The government’s principled position is for balanced, equitably distributed economic development. KP trusts that the proposal will be fully supported by the Board of Investment for project’s inclusion in CPEC framework.

CEO KPEZDMC, Saeed Ahmad Khan said ‘Comprehensive Special Economic Zone’ at Rashakai and Hattar will be a game changer for KP bringing prosperity in the region with thousands of jobs and a huge investment.
 

Kabira

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I am shocked that no one replied yet to this thread.
The SEZs are one of the major key for CPEC success..
CPEC SEZ are just glorified industrial states which already existed. Only thing we need to know is if China is willing to set up industries or not. This isn't like building power plant with guaranteed returns.
 

shahbaz baig

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CPEC SEZ are just glorified industrial states which already existed. Only thing we need to know is if China is willing to set up industries or not. This isn't like building power plant with guaranteed returns.
it's is really sad the people in Pakistan never demand to fully implement the RTI act. neither Govt make any policy regarding the right to information for the civilians. and the current RTI act is unhealthy..

on Topic.. yeah i know the 3 mentioned SEZs is just the extension of already existing industrial Zones.
for example the sayawala because sheikhupura SEZs would take 2 more years to be developed. all other provinces already acquired and demarcated the land.. and yes there would be Chinese industries not only Chinese but other countries too. for example in Gawadar free Zoon there would be a furniture, chemicals, electric motor cycles etc industries. Islamabad SEZs there would be IT related industries and so on..
basically Chinese industrial are desperately showing their interests in existing Industrial zones of Pakistan. according to them they are saying if the first major SEZ would be started after 2 years so that means we have to move elsewhere to invest. let me tell you bro there would be 35 to 40 small SEZs along with 9 major SEZs.

right now we all are waiting for final Gawadar master plan which is expected in August. Pakistan is pressurizing to Chinese authority to announce the master plan in August because china already has said that the master plan would be announced by December. 30 to 40 companies are waiting to take NOC from GDA, and once Master Plan would be there. the current GDA stuff cant handle it.. i think GDA should be ready for upcoming FDI.. GDA should start preparing now for the recruitment and should work for GDA network in Gawadar.
 
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Syed1.

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CPEC seems to be in auto-pilot mode for the last one year or so, since the entire government is only focused on Nawaz's trail and how to save the royal family.
 

wiseone2

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CPEC SEZ are just glorified industrial states which already existed. Only thing we need to know is if China is willing to set up industries or not. This isn't like building power plant with guaranteed returns.
why should china set up industries ?? The next thing will be whether china has to buy pakistani products
 

shahbaz baig

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why should china set up industries ?? The next thing will be whether china has to buy pakistani products
and why cant india participate in CPEC and develop one of SEZ along with CPEC route. We are service provider that's it.. Is it real difficult to understand ?
 

wiseone2

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whaaaaaaaat some people ? The whole indian Govt has been opposing since day one.. What some people can do about it ? Pakistan already invited to india..
i am sure some business leaders are thinking otherwise

if pakistan is serious about CPEC it would allow India-Afghan trade. end of discussion.
 

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