ISLAMABAD: China and Pakistan on Thursday agreed to finalize, “Framework Agreement on Industrial Cooperation” under the China Pakistan Economic Corridor (CPEC) before the next Joint Cooperation Committee (JCC) of CPEC.
Federal Secretary Board of Investment (BOI), Ms. Fareena Mazhar disclosed this during the much-awaited 10th meeting of the apex Joint Cooperation Committee (JCC) of CPEC held here September 23, wherein it was also mutually agreed by the Pakistani and Chinese sides that the Draft Framework Agreement on Industrial Cooperation under CPEC will be finalized and signed before the next JCC meeting.
It is pertinent to mention that the said Framework Agreement was initiated by the Board of Investment (BOI) and, it was shared with the Chinese side after fulfilling all Codal formalities in November 2020.
Ms. Fareena Mazhar stated that BOI, as the convenor of Joint working Group (JWG) on Industrial Cooperation under CPEC, has undertaken rigorous efforts to facilitate the signing of an MoU between Karachi Port Trust (KPT) and China Road and Bridge Corporation (CRBC) on Karachi Comprehensive Coastal Development Zone (KCCDZ) project, said a press release issued by BOI here.
The Memorandum of Understanding (MoU) will pave way for resolution of infrastructure issues plaguing the city of Karachi, besides fostering maritime development, and providing job opportunities through generation of sustainable economic activity based on transfer of technology to the country’s Maritime Industry.
Consensus was reached to make the KCCDZ project a part of the CPEC framework during the 5th meeting of Joint Working Group (JWG) on Industrial Cooperation held on 15th December 2020.
The meeting was co-convened by BOI and the National Development and Reform Commission (NDRC) of China.
The Draft Framework Agreement emphasizes on Business-to-Business (B2B) and People-to-People collaborations to successfully accomplish the envisaged goals during the second phase of CPEC.
As CPEC Industrial Cooperation requires active participation of private sectors from both sides, Secretary BOI stressed on the pressing need for the establishment of an effective communication mechanism to ensure regular interactions and exchange of ideas with the NDRC.
She underscored the significance of periodic deliberations to explore new avenues of enhanced bilateral cooperation which would also play a key role in mobilizing the engagement of the private sector enterprises.
Furthermore, during the 10th JCC meeting, the Chinese side apprised that efforts are being undertaken by NDRC and pertinent Chinese institutions to expedite the finalization of the Framework Agreement, as it will further cement the Industrial Cooperation between China and Pakistan during the 2nd phase of CPEC.
Moreover, progress update of Dhabeji SEZ, Sindh, Allama Iqbal Industrial City (AIIC), Punjab, and Bostan SEZ, Balochistan was also discussed.
Where by Secretary BOI informed that BOI has speed up provision of utilities to the SEZs and both AIIC and Boston SEZ are open for sale of plot to potential investors.
Both sides also discussed the progress made in the development of CPEC SEZs, especially the Rashakai SEZ in Khyber Pakhtunkhwa, Pakistan, which was recently launched in May 2021 while the signing ceremony of the Development Agreement of the Rashakai SEZ was coordinated by BOI in September 2020.
Secretary BOI, further stated that BOI is working diligently to improve the business environment in the country with special emphasis on industrial relocation from China, envisaging to boost the investors’ confidence that will also pave way for third country participation under CPEC.
BOI has also established a Pakistan China Business to Business (B2B) Investment Portal in collaboration with the China Council for International Investment Promotion (CCIIP) to bring together Pakistani and Chinese businesses for potential Joint Ventures in the country.
She welcomed export-oriented Chinese companies to form JV partnerships in Pakistan and contribute to further strengthening bilateral investment cooperation.
Ms. Mazhar further informed that an MoU on Industrial Cooperation was signed between Pakistan and China in 2018, and based on this MoU, BOI facilitated the Chinese side to take up the initiative of Industrial Diagnosis for the purpose of sharing technical and managerial know-how.
In this regard a Textile Industrial Diagnosis was carried out by Chinese experts in 2019 and its report was well received by relevant stakeholders from both sides in the textile sector. BOI and NDRC agreed to resume industrial diagnosis of other priority sectors of the economy through a mutually agreed Action Plan.