1- PAK-CHINA ECONOMIC COOPERATION
2-
ECNEC APPROVES RS. 70 BLN PROJECTS
3-
THE ECONOMY OF SINDH
4-
UTILIZATION OF SALINE LAND
5- AUTOMOBILE INDUSTRY

 

PAK-CHINA ECONOMIC COOPERATION

 

Pakistan's textile industry is much more advance and has the capacity to meet the demand of Chinese industry.

By AMANULLAH BASHAR
Sep 16 - 22, 2002

 

 

China a true friend indeed who, has provided credible assistance in various sectors of the economy such as power generation through coal and nuclear fuel, heavy engineering complex, development of Gwadar port, has now offered expanded cooperation in the textile industry.

Like other developed countries, China is also looking for relocating its textile industry and has already set up of them in Canada and Nigeria.

A 10-member high powered Chinese delegation that visited Faisalabad, Lahore, Karachi and Islamabad last week has expressed intention to set up some textile units in Pakistan in collaboration with the private sector. Pakistan having a strong industrial base particularly in the textile sector can take advantage of the Chinese expertise especially in developing a vendor industry for producing spare parts for the textile industry within Pakistan.

So far textile industry in Pakistan has to entirely depend on imported parts, accessories and textile machinery.

Chinese textile industry is also interested in joining hands with Pakistani partners to market the textile products produced by the joint ventures in the world market.

In this connection a 10-member Chinese delegation led by Cao Xinyu, the Vice-Chairman, Chamber of Commerce for Import and Export of Textile and members from Ministry of Industries visited Pakistan. Actually, the visit of the Chinese delegation is the follow up of the visit of the Chinese Prime Minister to Pakistan last year. Since then, the economic interaction between the two countries and businessmen has increased manifold.

Leader of the Chinese delegation has informed that China has decreased the duty on import of polyester fibre, creating opportunities for Pakistani companies to export polyester fibre to his country.

A Memorandum of Understanding has also been signed with APTMA for exchange of information and for knowing details about each other market and investment environment. Pakistan's textile industry is much more advance and has the capacity to meet the demand of Chinese industry.

While referring to his discussion with Pakistani textile sector he said that talks were held for purchase of cotton yarn, fabrics, silk and raw cotton during match making meetings.

Chinese visitors were in agreement with the laws and regulations as well as general environment in Pakistan. Pakistan has provided incentives to textile industry and the Export Processing zone also have good investment climate. He suggested to create a mechanism for this endeavour, understanding each other was the foundation for mutual business promotion. Areas identified for joint venture investment are including chemicals, knitwear and dynamo besides procuring Pakistan's yarn and gray cloth.

Cao Zinyu was of the opinion that textile industry is the focal point of the visiting delegation. The countries, which enjoy competitive advantage, could establish a comprehensive partnership in textile sector, by importing and exporting raw cotton and value added goods.

Shuja Shah, Secretary Board of Investment assured the visitors that Pakistan is very keen to enhance economic and trade relations with China. Pakistan has initiated an investment friendly policy to encourage foreign investment offering them attractive incentives. A 100 per cent investment is allowed without the government authorization in every sector of the economy and the transfer of profit and dividend is also allowed to the investors in Pakistan.

Pakistan has a long standing relationship with China in trade and economic fields and wanted to further expand the scope of cooperation between the two countries.

Pakistan has obtained liberal market access to some extent during last few months and both the countries may exploit the opportunity by mutual cooperation. Liberalization of textile trade may be beneficial for promotion of trade. It is an appropriate time to forge critical partnership in liberalized market. The visit of Chinese delegation has very appropriate timing for textile industry in Pakistan and businessmen anxiously wanted to meet the delegation to discuss scope of cooperation.

It may be pointed out that the private sector is playing an important role in economic activities of China and particularly in the textile sector where they are making great contribution in strengthening the economy.

He said "we want to further heighten the mutual cooperation and we are looking to strengthen of the existing trade and economic relations between the two friendly countries.

The Chinese delegation discussed opportunities of investment in different sectors and expressed keen interest in joint ventures. The visitors will be submitting its report to Beijing after discussions with the government officials and private sector representatives where final decision would be taken.

It may be mentioned that Abdul Razak Dawood, federal minister for commerce during his recent visit to China had asked the Chinese business community to procure Pakistani gray cloth which quality-wise is much better than of India from where the Chinese textile industry imports its requirement for gray cloth.