China wants private sector’s participation in CPEC

ISLAMABAD: China looks forward to encourage Pakistan’s private sector to participate in industrial and agriculture cooperation under the second phase of Chinese-funded projects, a foreign envoy said on Tuesday.

“The second phase of CPEC (China-Pakistan Economic Corridor) is about engagement of private sector, local community and society at large,” Chinese Ambassador Yao Jing said in a dialogue.

The Board of Investment hosted the session on industrial cooperation under CPEC and special economic zones (SEZs) framework. Adviser to Prime Minister for Commerce, Industries, Textiles and Investment Razak Dawood also attended the gathering.

Jing said the current phase of CPEC would cover industrial, agriculture, social, poverty alleviation and science and technology cooperation, with an aim to boost the economy of Pakistan and to raise the skill-set and living standards of the local population. “CPEC objectives are for the mutual benefit of both countries.”

Dawood said the country’s future lies in export-led growth strategy, which makes development of SEZs more vital to improve the capacity and to complement the export requirements of the country.

“Our strategy for the future of Pakistan is being prepared considering CPEC and SEZs under CPEC,” he said. The commerce adviser said Pakistan’s economy faced a lot of challenges in terms of fiscal and current account deficits and required serious steps in terms of devaluation, control on imports and government expenditures.

Dawood said export-led growth strategy has started bearing fruits as the country posted 13.6 percent year-on-year growth in exports in February, in terms of value, while all other regional competitors showed a decreasing trend.

The adviser appreciated the efforts of exporters and businessmen for achieving the result and showed his gratitude towards China for the phase-II of the free trade agreement, which is poised to further boost the growth in overall exports of Pakistan. Dawood said the SEZs are open for businessmen from all countries and nationalities, as the lucrative incentives under SEZs are “same for everyone”.

Commerce adviser said investments in various sectors have started to pour in and “this pace will pick up in the coming days”.

“The second phase of CPEC is about industrial and agricultural cooperation, while the next phase would be about connectivity with regional and global markets, as a part of the overall belt and road initiative,” he said.

Omer Rasul, secretary of Board of Investment said findings and insights from the session would be presented to the higher forums of government for consideration and approval, paving a way to move forward on the second phase of CPEC and development of SEZs in Pakistan.