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
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
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
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
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
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.