BEIJING (October 25 2008): Prime Minister Syed Yousuf Raza Gilani on Friday urged the Chinese companies to invest in Pakistan in a big way, strengthening the bonds of ever-lasting Sino-Pak friendship through economic diplomacy.
Addressing the Chief Executives of the top Chinese corporate sector at the State Guest House, he said his country provides immense opportunities to the foreign entrepreneurs, especially those from China to establish joint partnership and undertaking profitable business.
There is very favourable business environment in Pakistan, he said while inviting the Chinese side to visit Pakistan. He said he feels honoured to be in China on his second visit in less than three months. The visits, he said, have provided him an opportunity to meet prominent Chinese businessmen. In Pakistan, the Prime Minister said we have always admired Chinese skills and felt comfortable working with them.
"New generation of Pakistani entrepreneurs is keen to take Pakistan to a higher platform of performance in business and industry and feels pleasure to work in joint ventures with their foreign friends," he added. Gilani said that despite all the changes at international horizon, the two countries have remained steadfast in their solidarity.
He particularly mentioned the role played by former prime ministers Zulfiqar Ali Bhutto and Shaheed Benazir Bhutto in laying the foundation and strengthening the all weather China-Pakistan friendship. The Prime Minister pointed out that today we have a sound architecture in place for developing and strengthening strategic political, economic, commercial, scientific, technological and cultural relations between our two countries.
The Free Trade Agreement in Goods and Investment came into effect in July this year, the Prime Minister said, adding that both the countries have made good headway in negotiations on FTA in trade and services. We are likely to sign it by the end of this year.
The Joint Five-Year Programme, for Trade and Economic Co-operation, signed by the two sides, gives us an elaborate roadmap for tangible targets. The government has decided to mobilise its resources for the speedy implementation of the Five-Year Plan.
This is why it has established an inter-ministerial task force, headed by the President to monitor progress of the projects initiated under the programme. We have a Joint Investment Company (JIC) with paid up capital of $200 million. This company will act as a bridge for Chinese investors coming to Pakistan and play a lead role in launching economic projects.
We have designated the target of $15 billion for our bilateral trade by 2011. If we work harder, we can meet this ambitious target before 2011. The Prime Minister said: "as we go forward, we have to move into the new sectors for investment, joint ventures and marketing.
Pakistan's cement industry, he said for instance is witnessing a boom. Its production and sales are poised to grow further, as the demand in Pakistan and our neighbourhood increases, because of anticipated growth and construction of houses, infrastructure and industrial estates. China and Pakistan can deepen their co-operation in this sector, he noted. He said that Pakistan realises that we will have to expand production of steel fast. Our present capacity of steel manufacturing has to increase; therefore we are planning to set up new plants.
The Prime Minister invited leading Chinese enterprises with proven competence to step in. He pointed out that Pakistan's fast growing economy has huge energy requirements. Our energy demand is expected to increase from present 18,000 MW to more than 160,000 MW by 2030.
He in this connection also invited Chinese companies to invest in the growing economy and become partners in achieving these goals. Pakistan has the world's second largest reserves in coal; the Prime Minister said and added that we need to produce more than 20,000 MW energy from coal in the next 20 year. We need Chinese expertise and technology to turn this reservoir into energy.
He said that the joint collaborative projects in agriculture, food production and food processing sectors will lead to enhanced trade between the two countries. In terms of connectivity, the Prime Minister said Pakistan has to conquer new frontiers. Karakoram Highway is a monument to Pakistan-China friendship, ingenuity and industriousness.
"We can link China and Pakistan by railways, by optic-fiber, by oil and gas pipelines and by building trans-boarder economic zones, along the Karakoram Highway", he noted. This trans-border co-operation can soon morph into trans-regional project co-operation among China, Pakistan and Afghanistan. The time is ripe to encourage Chinese banks and financial institutions to establish their presence in Pakistan, Prime Minister Gilani said.
The Prime Minister said that he knows that the Chinese banks are keen to support the Pakistan-China Joint Investment Company. Pakistan would contribute directly, to the construction of the facilities of JIC. He said that the fundamentals and macroeconomic basis of our economy are being steered in the right direction.
The Prime Minister said that his party has formed the new government as a particularly perilous time for our economy. But we are optimistic that we will overcome these. This year's budget has set out a series of incentives to spur growth in agriculture and manufacturing sectors, he said. Our GDP has doubled to US $170 billion, our resilient population with a rich agriculture base and sufficient natural resources will support an economical revival.
Geographical proximity of China and Pakistan, the exceptionally close political relations between them and Pakistan's location as a bridge between several geographical regions, create a natural interface between our two countries for friendship for transactions, for commerce and for joint undertaking. 'All the doors open warmly as you step into Pakistan's homes, offices and business," the Prime Minister said.
