Islamabad: In a significant move to deepen their longstanding partnership, Pakistan and China are set to enhance their economic cooperation through several new initiatives discussed during a meeting between the China Asia Economic Development Association (CAEDA) and Ahsan Iqbal, Pakistan’s Minister for Planning, Development, and Special Initiatives. The meeting, which took place in Islamabad, focused on collaborative ventures including the establishment of a “Pakistan Zero-Tariff Trade Zone” and a service center for Chinese imports, alongside ventures in agriculture and B2B investments.
According to Press Information Department, the CAEDA delegation, led by Mr. Qian Qiu Zhu and Mr. Jian Jun Guo, expressed a robust interest in various sectors of Pakistan’s economy. Minister Iqbal warmly welcomed the delegation, emphasizing the “iron brothers” relationship between the two nations and reaffirming Pakistan’s commitment to the security of Chinese nationals working on projects like the China-Pakistan Economic Corridor (CPEC). This assurance comes in the wake of a recent terrorist attack in Karachi, which Minister Iqbal denounced as an attempt to disrupt the bilateral project.
During the discussions, Minister Iqbal outlined the upcoming phase of CPEC, highlighting the shift towards fostering B2B partnerships that build on the foundational government-to-government cooperation established through earlier infrastructure projects. He detailed Pakistan’s Economic Transformation Plan, which aims to attract foreign direct investment and boost exports to rejuvenate the economy, particularly targeting the export sector.
The Minister also presented opportunities for the relocation of Chinese industries to Pakistan, where lower labor and production costs could benefit Chinese companies by allowing them to export goods to Europe and the United States more economically, avoiding higher tariffs currently imposed on Chinese imports.
Furthermore, Minister Iqbal showcased Pakistan’s agricultural potential, particularly in regions like Gilgit-Baltistan, which could serve as new sourcing grounds for products like cherries, desirable in Chinese markets. He also emphasized Pakistan’s abundant resources in minerals, fisheries, agriculture, and textiles as prime areas for enhanced Chinese collaboration and investment.
Special Economic Zones (SEZs) were discussed as vital platforms for Chinese business engagement, with commitments to provide comprehensive support to Chinese investors through the proposed one-stop service center. This center is intended to facilitate matchmaking between Pakistani and Chinese enterprises, simplifying processes and enhancing bilateral cooperation.
The initiatives discussed at the meeting mark a pivotal step in further solidifying the economic ties between Pakistan and China, promising to bring mutual benefits through increased investment, job creation, and technological exchange.