Chinese aerospace firm explores $5–10 billion investment in Pakistan

A Chinese aerospace investment group is considering investing between $5 billion and $10 billion in Pakistan across several sectors, including aerospace, according to a statement issued after a meeting with the Board of Investment.

As per reports, the development emerged during a meeting between Federal Minister for Board of Investment Qaiser Ahmed Sheikh and a delegation from Aerospace Development Industry Investment Group Co., led by its Party Secretary and Chairman of the Board Lu Jinhai.

During the meeting, the Chinese delegation briefed the minister on the company’s global operations and investment activities. The firm operates as an international investment group involved in strategic industrial investments in areas such as aerospace development, advanced technologies, artificial intelligence, electric vehicles, drone technologies and energy projects.

According to the statement, the company expressed interest in exploring investment opportunities in Pakistan’s mining and minerals sector, advanced technology industries and industrial development projects.

“The delegation expressed keen interest in investing between $5 billion to $10 billion in Pakistan across multiple sectors, including mining and minerals, advanced technology industries, and industrial development,” the statement said.

The delegation also indicated interest in cooperating with Pakistan on skills development initiatives as part of its long-term engagement with the country.

It also conveyed its willingness to support the objectives of the One Belt One Road initiative and expand economic cooperation and regional connectivity.

The minister welcomed the company’s interest in Pakistan and said the government was seeking to attract greater foreign direct investment.

He also briefed the delegation on measures being taken to improve the investment environment, including regulatory reforms aimed at simplifying business procedures and facilitating investors.

Highlighting existing economic ties, the minister noted that Pakistan and China already have a Free Trade Agreement in place and said Pakistan is focusing on increasing value-added exports.

The delegation was also informed about incentives offered in Pakistan’s Special Economic Zones, including exemptions from income tax and sales tax on the import of machinery, along with other benefits designed to encourage industrial investment.

The Board of Investment reiterated its commitment to supporting foreign investors and facilitating investment projects in the country.