According to newspaper reports, a visiting Chinese delegation has expressed the desire to launch joint ventures with their Pakistani counter parts to manufacture auto parts and accessories in the country. With increase in the per capita income of individuals and increased purchasing power, the burgeoning auto industry is already doing overtime to meet the growing demand for vehicles in the country. An eight-member Chinese delegation is reviewing the possibilities of joint ventures in the fields of automobiles accessories, town planning and vertical buildings infrastructure. Officials of the Pak-China Joint Chamber of Commerce and Industry briefed the delegation about the growing demand of energy-efficient automobiles, car accessories and vertical buildings in Pakistan. The automotive industry is one of the fastest growing industries of the country, accounting for 4 percent of the gross domestic product, and has engaged nearly two million skilled work force in it. With increase in the demand for automobiles, the demand for accessories has also increased. The Chinese businessmen also want ventures with Pakistan in the field of mechanical parts, electric motor parts and electronic items. China has vibrant manufacturing industry which could be relocated to Pakistan if it is facilitated.
According to the delegation, Chinese business community sees vast opportunities in Pakistan and wants to invest in the auto sector where the quality and the price of vehicles will create an environment of competitiveness in the local market. If started today, the process of relocation of industries will complete in three years. Pakistan has already introduced a five-year automotive policy for 2016-2021 under which investors under A category will be allowed to import plant and machinery at concessional rates and duty-free. A residential locality ‘China Town’ in Lahore is also proposed which will hopefully attract more investment in real estate and construction sector of the country.
The offer of investment from Chinese business community is a window of opportunity for Pakistan which must be kept open for the prosperity of the country. The country is facing political instability and economic fall down, but sanity will prevail in the power corridors of the country and the process of investment will be allowed to continue in every circumstances. There are several other sectors where there are vast potentials to cooperate and launch joint ventures. China is shifting from light industry to heavy industry and the small units can be relocated to designated industrial areas of Pakistan.
