INDUSTRIAL COOPERATION FRAMEWORKS
CHINA PAKISTAN ECONOMIC CORRIDOR (CPEC)
The CPEC is an ongoing development mega project which aims to connect Gwadar Port of Pakistan to China’s northwestern region of Xinjiang, via a network of highways, railways and pipelines. The economic corridor is considered central to China–Pakistan relations and will run about 2700 km from Gwadar to Kashghar.
China-Pakistan Economic Corridor and its connectivity with Central Asia, Middle East and Africa will help to shape entire region. Overall construction costs are estimated around $46 billion, with the entire project expected to be completed in several years.
The Corridor is an extension of China’s proposed 21st century Silk Road initiative. This is the biggest overseas investment by China announced so far and the corridor is expected to be operational within three years. The corridor will be a strategic game changer in the region and would go a long way in making Pakistan a richer and stronger entity.
The investment on the corridor will transform Pakistan into a regional economic hub. The corridor will be a confidence booster for investors and attract investment not only from China but other parts of the world as well. Other than transportation infrastructure, the economic corridor will provide Pakistan with telecommunications and energy infrastructure.
The Ministry of Planning, Development & Reform (MPD&R) is the focal Ministry for this engagement whereas its counterpart in China is National Development and Reform Commission (NDRC).
INDUSTRIAL COOPERATION UNDER CPEC
BOI is an active member of working group on Industrial parks/ special economic zones of the CPEC which is mandated to identify potential feasible sites for consideration by Joint Working Group. BOI, in consultation with all stakeholders, has identified potential sites in all provinces from Khunjrab to Gwadar to establish Special Economic Zones alongside the corridor. Each economic zone will target specific products and services based on the availability of local raw material, work force and other such factors. Establishment of these zones will attract local & foreign investments and generate huge employment.
BOI AS A PARTNER IN CPEC AND ITS SUSTAINABILITY:
The Board of Investment (BOI), being central facilitation point for all investors, has been entrusted to promote and facilitate investment including CPEC projects.
BOI provides assistance throughout the investment cycle. Investor Facilitation Centre’s have been established in Islamabad and all provincial capitals to facilitate local and foreign investors. BOI as a focal point provides information and assistance for speedy materialization of investment projects.
Apart from facilitating projects, BOI’s role is also important in the context of visa facilitation and opening up of branch offices and liaison offices of entities. Permission of BOI is mandatory for opening of branch or liaison office in Pakistan. BOI also recommends Work Visas to expatriates working in foreign and local companies in Pakistan.
BOI’s role is crucial for materialization and sustainability of the projects being started and to be started under CPEC. BOI welcomes Chinese and other local and foreign investors interested to invest in the country under CPEC or any other initiative.