Pakistan invites Hungarian companies to invest in CPEC’s SEZs

ISLAMABAD: Pakistan on Thursday invited Hungarian investors to avail joint-venture opportunities in special economic zones (SEZs) proposed under the China-funded corridor framework.

Pakistan and Hungary inaugurated the bilateral trade and economic window and business forum during a virtual meeting between Foreign Minister Shah Mehmood Qureshi and Foreign Minister of Hungary Peter Szijjarto.

Qureshi invited Hungarian companies to take advantage of the investor-friendly climate in Pakistan to enter into joint ventures with Pakistani companies, especially in the SEZs under the China-Pakistan Economic Corridor (CPEC) framework.

More than 100 Hungarian and Pakistani companies attended the event.

The invitation the central European country, member of the European Union block, came on the heels of invitation to Japanese, British and other investors to participate in SEZs. Under the CPEC framework, nine economic zones dedicated to industrial development with incentives were to be set up. Tax exemptions for expatriates till 2040 were proposed as incentive to attract investments in SEZs.

Qureshi also called for Hungarian expertise in the fields of agriculture and food, environment, water resource management, engineering, vocational training and urban planning.

Szijjarto said boosting linkages in all areas, particularly the economy, trade and enhanced people-to-people exchanges, would lead to realising the economic potential between the two countries. The minister Szijjarto said Hungary’s policy of opening towards East would provide a good impetus to Pakistan-Hungary relations.

The $60 billion CPEC kick-started five years back concentrating mainly on construction of roads and motorways and power plants to ensure energy security in the wake of massive power shortfall.

Within a last couple of years, a series of power projects transformed the country into energy-surplus destination from the power-deficient one. CPEC framework envisaged 10,000 megawatts of production capacity.

Special economic zones are the next component after early harvest projects under CPEC. Initially, 27 zones were expected to be set up. The number was now reduced to nine.

Government is expecting $1.3 billion worth of exports revenue from industrial chemicals through establishing only SEZs dedicated to biotechnology. It is working on details to set up special economic zones to promote research in chemicals and biotechnology, initially in some major cities of the country.

The SEZs include Rashakai economic zone, Dhabeji, Bostan industrial zone, Allama Iqbal Industrial City, ICT model industrial zone, industrial park Pakistan Steel Mills, Mirpur industrial zone, Mohmand marble city and Moqpondass SEZ Gilgit-Baltistan.