Govt forms panel to accelerate relocation of Chinese industries to Pakistan

A seven-member panel has been formed by the Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal, to formulate a comprehensive policy framework for relocating Chinese industries to Pakistan. 

This move follows directives from the Prime Minister aimed at enhancing the country’s industrial collaboration under the China-Pakistan Economic Corridor (CPEC). 

As per media reports, the committee, led by the Additional Secretary of the Board of Investment (BoI), comprises members from the Commerce Ministry, the Ministry of Industries and Production, the Finance Division, the State Bank of Pakistan, the Federal Board of Revenue, and the CPEC Secretariat. 

The panel’s primary focus is to identify challenges in industrial relocation, propose solutions, and develop an incentive package to attract Chinese investment and make Pakistan regionally competitive.

Alongside this, progress on various CPEC projects was reviewed, including year-round operations at the Khunjerab Pass. The pass was successfully opened for freight transport during the winter of 2023, with approximately 300 vehicles crossing the border. 

Chinese officials have indicated their readiness to reopen the pass, with formal concurrence expected in October 2024, coinciding with a visit by China’s Premier.

The discussions also covered the alignment of CPEC with Pakistan’s 5Es framework, with relevant ministries working on growth, innovation, livelihood, green initiatives, and open corridor concepts. 

Additionally, progress on the Karachi-Hyderabad segment of the ML-1 project, a key rail infrastructure development under CPEC, was discussed, with negotiations continuing to expedite the project.

The meeting also touched on the supply of electricity to Rashakai Special Economic Zone (SEZ), where the Power Division has been tasked with devising a long-term solution. In the short term, collaboration between the Power Division, PESCO, and NEPRA will energize the internal network of the zone.

Additionally, the FBR was urged to expedite the issuance of a regulatory framework for vehicle imports through Gwadar Port to facilitate Chinese company M/s Hangeng Trade Company.