China to invest in Pakistan’s automobiles, town planning and infrastructure sectors

  • Delegates have shared their plan for an exclusive China Town in Lahore
Business

LAHORE – An eight-member Chinese delegation has shown interest in investing in Pakistan’s automobiles industry, town planning and vertical buildings infrastructure sectors.

SM Naveed, President Pak- China Joint Chamber of Commerce and Industry (PCJCCI), invited the Chinese businessmen belonging to Sichuan Province Hebei Chamber of Commerce inlcuding Mr Gaoqiang, Mr Xu Yingliang, Mr Cao Wei, Mr Yang Yongang and Mr Cao Zaiqiang.

PCJCCI President and Vice President Rana Mehmood Iqbal on Monday briefed the delegation regarding the demand of innovative energy efficient automobiles, car accessories and vertical buildings in Pakistan.

SM Naveed told the visiting businessmen the automotive industry in Pakistan is one of the fastest growing industries of the country, accounting for 4% of Pakistan’s GDP and employing a workforce of over 1,800,000 people. With the growing demand for automobiles, demand for the car accessories has also increased.

The head of the delegation, Mr Gaoqiang said that we want to venture with Pakistan in mechanical parts and accessories, electric motor parts and accessories and electronic parts and accessories.

According to Mr Gaoqiang, China has extensive manufacturing facilities that could be relocated to Pakistan based on the demand for accessories. He said that China is eager to make a massive investment in the Pakistani auto-sector where the vehicle’s quality and the price will boost the competitiveness in the market. The process of putting the plant together is expected to be completed in 2 to 3 years.

Mr Naveed informed the guests about the automotive policy 2016-2021, according to which, new investors under the category ‘A’ shall be eligible for the duty-free import of plant and machinery on a one-time basis, concessional rate of custom duty 10 percent on non – localized parts and 25 percent on localized parts for a period of five years for the manufacturing of Cars and LCVs, eligible to import 100 vehicle at 50 percent of the prevailing duty for test marketing of the project.

The delegates have shared their plan for an exclusive China Town for Chinese nationals in Lahore, Naveed said and hoped that after the completion of that model China town, the design will be replicated for the local citizens as well.

For a resource-constrained Pakistan, an investment of $62 billion in the projects under the umbrella of CPEC, presents the ideal platform to nullify the effects of past missed opportunities and embark on a path of sustained economic growth.