Chinese investors urged to cash in on Pakistan’s ‘business-friendly policies’

[Shahzaz ud din]

Chinese investors urged to cash in on Pakistan’s ‘business-friendly policies’
By
Staff Report
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July 11, 2019
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—Minister says China can help increase Pakistan’s exports by relocating its industries and initiating joint ventures in various fields

ISLAMABAD: Planning, Development & Reform Minister Makhdoom Khusro Bakhtiar, while talking to a Chinese business delegation in Islamabad on Thursday, said that the incumbent government was focusing on the promotion of export-led industry and import substitution for sustained economic growth.

The Chinese delegation comprised of chief executives and general managers of various organisations belonging to the western Chinese city of Chongqing, a leading city in automotive and several other hi-tech industries.

Bakhtiar stated that China could help increase Pakistan’s exports by relocating its industries and initiating joint ventures in various fields. “This will boost industrial cooperation and will strengthen the bilateral economic partnership between the two countries,” he added.

The minister underlined that Pakistan was offering liberal investment policies so as to attract foreign investment in different areas. He urged foreign investors to tap the potential of local export-oriented industries through joint ventures.

The minister stressed that the private sector of both countries should forge partnerships for mutual economic benefit, adding that there were investment opportunities in various sectors such as maritime, iron and steel, petrochemical, agro-based industries, tourism, energy, minerals & mines and textiles.

He invited Chinese businessmen to take advantage of incentives being offered by Pakistan.

Talking about the China Pakistan Economic Corridor, Bakhtiar said that the corridor has now entered its second phase, focusing on industrial and agriculture cooperation, socio-economic development and infrastructural uplift of Gwadar.

He said the establishment of industrial zones would not only revive Pakistan’s industrial sector but would also create job opportunities for the youth.

The Chinese delegation expressed its desire to invest around $1 billion in various sectors. The members showed interest in various sectors of Pakistan, including automotive, textiles, agro-industries, IT and telecom.

During the meeting, various proposals were discussed for future cooperation.

The minister said that his ministry would extend complete support to the aspiring investors in order to further the economic cooperation between the two countries.

CPEC Project Director Hassan Daud and senior officials of the planning ministry were also present on the occasion.

 

[nahtanbob]

if pakistani businessmen cannot make money how are chinese businessmen going to make

 

[xyxmt]

Chinese Aao aur facotries lagao, kaam bhi kero aur hamari exports berhao

Hum zara neem ke darakht ke nichay baith ke Aam kha rehy hain.

 

[Baz]

if pakistani businessmen cannot make money how are chinese businessmen going to make

oh really? you think this business mafia is not making money? every industry in pakistan is a mafia trying to blackmail the government

 

[nahtanbob]

oh really? you think this business mafia is not making money? every industry in pakistan is a mafia trying to blackmail the government

i may argue that pakistani businessmen are not making enough money

 

[Pakistansdefender]

Chinese Aao aur facotries lagao, kaam bhi kero aur hamari exports berhao

Hum zara neem ke darakht ke nichay baith ke Aam kha rehy hain.

Pakistanis in general don't want to invest in factories.
They only want to buy plots and take rent etc .
Or import stuff .
Look many countries have benefitted from the relocation of industry from developed countries . Look at vaitname and others .
What has happened to us that we are not happy for anything. We are not happy that there an industry, we are not happy that Chinese are interested in our industry or want to move their industry .
They have promised it from the very start in cpec 2nd phase and it has barely started.

 

[xyxmt]

Pakistanis in general don't want to invest in factories.
They only want to buy plots and take rent etc .
Or import stuff .
Look many countries have benefitted from the relocation of industry from developed countries . Look at vaitname and others .
What has happened to us that we are not happy for anything. We are not happy that there an industry, we are not happy that Chinese are interested in our industry or want to move their industry .
They have promised it from the very start in cpec 2nd phase and it has barely started.

Chinese will build factories, they will bring their own labor and tech staff because lets face the truth that Pakistani labor cannot compete with them. The reason Pakistani products cannot compete in international market is that Pakistan products; even "if" they can compete in quality; cannot compete in price because of our inefficient labor force. So, Chinese factories and Chinese labor and Chinese profit taken out...What will Pakistan get?
No one can help you except yourself, CPEC is going no where as far as 2nd phase, the only thing CPEC can achieve is Port and transportation. Pakistan may have good relationship with Chinese govt but Chinese business are a whole different story. If only our govt can wake up and concentrate on agriculture and argi related businesses. Pakistan can feed the entire middle east.

 

[guest9999]

Pakistanis in general don't want to invest in factories.
They only want to buy plots and take rent etc .
Or import stuff .
Look many countries have benefitted from the relocation of industry from developed countries . Look at vaitname and others .

wow, you are actually right. the only business you see most Pakistani's doing is real estate. it's no surprise that due to this, the country has become horizontally overcrowded with hodgepodge of poorly-built structures. the country lacks building & construction codes and is a lawless land in terms of owning & selling property. I hope Imran Khan pushes for all real estate & plots to become digital.

while other countries like Bangladesh, Vietnam, Indonesia, and more benefit from US-China trade war, Pakistan is the biggest loser. instead we have industrialists blackmailing the government so they don't pay their fair share of taxes, despite some of them having eaten subsidies for years!

 

[ALi Rizwan]

if pakistani businessmen cannot make money how are chinese businessmen going to make

Its depend upon whats sort of business and are the they getting some extra benefits from Govt. compared to local industries.
We are not some high end manufacturer. We compete in low cost manufacturing like other other Asian countries.
But our non reliable electricity is more expensive then Bangladesh and India also don't forget to add cost of Gen, Diesels and LNG etc.

 

[Pakistansdefender]

Chinese will build factories, they will bring their own labor and tech staff because lets face the truth that Pakistani labor cannot compete with them. The reason Pakistani products cannot compete in international market is that Pakistan products; even "if" they can compete in quality; cannot compete in price because of our inefficient labor force. So, Chinese factories and Chinese labor and Chinese profit taken out...What will Pakistan get?
No one can help you except yourself, CPEC is going no where as far as 2nd phase, the only thing CPEC can achieve is Port and transportation. Pakistan may have good relationship with Chinese govt but Chinese business are a whole different story. If only our govt can wake up and concentrate on agriculture and argi related businesses. Pakistan can feed the entire middle east.

That is the case for the Pakistani government to negotiate. Pkaistanis are dumb nation but when they come on working hard they really mean it. And you have talent and educated youth.

Chinese are coming for cheap labor .
Not for expensive labor from China . Otherwise they won't relocate.

We have example of Vietnam where local people work in the factories moved from China and not Chinese officials.

wow, you are actually right. the only business you see most Pakistani's doing is real estate. it's no surprise that due to this, the country has become horizontally overcrowded with hodgepodge of poorly-built structures. the country lacks building & construction codes and is a lawless land in terms of owning & selling property. I hope Imran Khan pushes for all real estate & plots to become digital.

while other countries like Bangladesh, Vietnam, Indonesia, and more benefit from US-China trade war, Pakistan is the biggest loser. instead we have industrialists blackmailing the government so they don't pay their fair share of taxes, despite some of them having eaten subsidies for years!

I am currently right now reading a dawn article that the business community is protecting for the increase in tax in budget .
.
While you can read it yourself that not a single new tax has been applied in the budget . The only thing government is looking for is documentation and everyone pay their rightful share of tax .
And they are openly protesting that they won't pay tax no matter what .
They are protesting against themselevs and country . Sadly.

 

[xyxmt]

wow, you are actually right. the only business you see most Pakistani's doing is real estate. it's no surprise that due to this, the country has become horizontally overcrowded with hodgepodge of poorly-built structures. the country lacks building & construction codes and is a lawless land in terms of owning & selling property. I hope Imran Khan pushes for all real estate & plots to become digital.

while other countries like Bangladesh, Vietnam, Indonesia, and more benefit from US-China trade war, Pakistan is the biggest loser. instead we have industrialists blackmailing the government so they don't pay their fair share of taxes, despite some of them having eaten subsidies for years!

Control the population, its no brainer that in high population growth countries people invest in property.

 

[nahtanbob]

hope Imran Khan pushes for all real estate & plots to become digital.

wtf is digital ?
I assume you want more vertical construction to preserve farmland

 

[aliaselin]

Fake news. No businessmen will be interested in a boom-boom country

 

[lcloo]

Work culture in China is closely related to hardworking, normally factory workers by their own will tend to work for long hours, a lot of overtimes and will skip holidays for more work. This is due to Confucius teachings for over thousands of years.

I don't know much about Pakistani workers but there are hundreds of thousands of Bangladesh workers in Malaysia who worked really hard too. I hope Pakistani workers are no different.

Labour intensive industries are generally do not earn high profit margin, thus efficiency is very important. Workers efficiency can make a low profit labour intensive factory make money or go bankrupt.

Recent clash of Chinese and Pakistani workers is not a good sign. Pakistan should only induct industries that can come to term with their own work culture (which would rule out most of the labour intensive industries). Otherwise there will be more clash if Chinese companies bring in their workers due to the need for efficiency. They have to make profit for their investment.

Lets hope both Chinese investors and Pakistani authorities understand differences in work culture and its effect on production out put, and the bottom line in the profit and loss account.