BOI prepares framework agreement on industrial cooperation

ISLAMABAD: Pakistan and China have planned to elevate accord on industrial cooperation (IC) into a framework agreement to develop B2B joint ventures, and to realise vision for special economic zones and industrialisation under the second phase of the China-Pakistan Economic Corridor (CPEC).

Minister of State and Board of Investment (BOI) Chairman Atif R Bokhari said this while addressing a consultative forum on Draft Framework Agreement on IC under CPEC, organised by BOI’s Project Management Unit (PMU) at a local hotel on Tuesday.

Bokhari said the first phase of CPEC required the leading role of the government, while the second phase required a 180-degree change in management and roles of actors.

“It calls for enhanced role of industrialists, the private sector, and the business community, while the government’s role would only be that of a facilitator by devising effective policies, laws, and efficient infrastructure, to facilitate B2B and people to people linkages,” he pointed out.

He added that the draft Framework Agreement on IC was being aligned with the long-term framework of CPEC.

“A world of opportunities will open up by setting the fundamentals of industrial cooperation under CPEC and it is high time for all of us to tap the right opportunities at the right time,” Bokhari said.

Significant progress has been achieved on SEZs development and colonisation during the last few months, wherein four CPEC SEZs, Rashakai in Khyber Pakhtunkhwa, Dhabeji in Sindh, M-3 Allama Iqbal in Punjab, and Bostan in Balochistan were now in advanced stage of development.

The geographical proximity between China and Pakistan would allow these SEZs to foster economic interdependence for mutual economic advantage, he added.

This framework, the minister said was being developed with focus on enhancing the country’s industrial competitiveness, technology transfer, relocation of Chinese businesses, and skill development and labour productivity.

Cooperation would likely enhance B2B and project to project (P2P) ties, balance and modernise existing industry, expedite SEZs development and promotion, seek technical and financial assistance from China, increase production capacity, and facilitate businesses with support of financial institutions from both sides, etc..

BOI Secretary Fareena Mazhar highlighted the role of BOI being a lead agency for IC under CPEC, and shared the corridor’s journey and its future action plan. She said Pakistan and China agreed to elevate the MoU on IC into a Framework Agreement focusing on SEZs development and B2B joint ventures.

She informed that serious efforts were underway for the provision of gas and electricity alongside development of Rashakai, Allama Iqbal Industrial City, Faisalabad and Dhabeji SEZs.

BOI’s CPEC IC PMU Project Director Asim Ayub briefed the participants on the journey of CPEC IC and the salient features of the draft framework agreement.