According to newspaper reports, a visiting Chinese business tycoon has expressed the hope that China will invest up to $100 billion in Pakistan after the completion of the China-Pakistan Economic Corridor and its related projects. Wang Zihai, the president of Pakistan-China Joint Chamber of Commerce and Industry, has also said that CPEC will link Asia with Europe and will promote trade and business activities in the region. It is heartening to note that hundreds of small, medium and large scale Chinese companies are already working in Pakistan and more Chinese businessmen are interested in investing in various industries, including electronics, automotive, education exchange programmes, insurance, agriculture, textiles, shoe manufacturing, chemicals, battery recycling plant and real estate.At least $46 billion investment deal between Pakistan and China is the first steps towards a closer economic cooperation and it is hoped that business to business cooperation would push the investment to $100 billion mark in the coming years.The two countries have already signed a Free Trade Agreement but due to lack of awareness, the Pakistani business community could not fully utilized it. Despite being neighbours, there is a long distance between the two countries as far as major cities are concerned along with cultural and language barriers. However, the two nations are committed to go along together in business, trade and investment activities.
Pakistan is one of the leading cotton producing country in the world and despite losing one third of its production, it still produces over 10 million bales annually and both Pakistani and Chinese entrepreneurs can utilize the commodity to dominate the world garments and textile markets. China has already offered up to five percent tariff concession on the Pakistani products. However, smuggling and under-invoicing is the biggest challenge to improve balance of trade.China has signed a $24 billion deal with Bangladesh to encourage Chinese private sector investment in that country. Reports suggest China is heading towards heavy industry and is shifting its small production units to Bangladesh. Pakistan should also persuade the Chinese government to establish its small industry along the corridor which will further boost economic relations between the two countries. The government should have to extend tax concessions to the Chinese entrepreneurs and relax its rules to encourage foreign investment in the country. Pakistan has though improved its ranking on the ease of doing business index, but more is required to be done. It is hoped the government will pay special intention to facilitate not only the Chinese investors, but also others.
