Pak businessmen seek equal opportunities in CPEC projects

ISLAMABAD: The Businessmen Panel of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has sought equal opportunities for Pakistani businessmen in China-Pakistan Economic Corridor (CPEC) projects for a level-playing field, a statement said on Tuesday.

Businessmen Panel chairman Mian Anjum Nisar said CPEC is do and die situation for Pakistan’s economic prosperity, but what the businessmen wanted is that the government should allow them the same facilities in the corridor, which have been provided to the Chinese investors.

“The government should put in place a framework to ensure 100 percent utilisation of local industry. If we want to benefit from the corridor initiative, we have to give our companies their due share in the projects.”

Nisar said the China-Pakistan Economic Corridor would usher in a new era of development and growth; however, he cautioned that it could only be possible if Pakistan’s industry reaped benefits of enhanced connectivity by creating jobs and boosting exports.

Saying that policymakers are overly optimistic about CPEC and its potential benefits, he decried that local goods manufacturer, and industry appeared to be seriously concerned about their future, he added.

The textile industry, for instance, fears a glut of textile goods from the Chinese region of Xinjiang that may ruin their businesses. He pointed out that Pakistan’s industry was already relying on expensive raw material imports following cotton production shortfall in the country and any increase in raw materials demand from China would lead to further price hike and limited availability.

Similarly, other industries are worried that they are going to be eaten up by large-scale Chinese enterprises with significant economies of scale.

The BMP chairman also said yet special economic zones (SEZ) didn't start practically, which should be the priority and, in this regard, the government must take due consultation with the business community of Pakistan.

BMP spokesperson Ahmad Jawad said that there is no question that the China-Pakistan Economic Corridor is a transformational endeavour, but the larger questions of level-playing field to Pakistani industry still exists. Jawad said that China is the world’s largest importer of agricultural products, and Pakistan has to grab its due share through revisiting the free trade agreement (FTA) between the two countries.

In 2015, China imported $160 billion worth of agricultural products; however, Pakistan’s share in these exports was minuscule - less than half a percentage point - despite having a large agrarian base and a shared border with China.”

He also said during transit over long distances, food items faced higher risk of spoilage and contamination. Because of this, not only additional cost is incurred for preservation and packaging, but often exporters have to make use of extra pesticides to increase shelf-life of food. “Pakistan, being China’s neighbour, enjoys a unique advantage and CPEC provides an unprecedented opportunity to capitalise on that,” Jawad added.

The BMP official suggested an open debate may take place about the pros and cons of CPEC investment, loan arrangements and the special incentives being offered to the Chinese investors.