PM invites Chinese firms to relocate industries to Pakistan under ‘win-win’ partnership model

Pakistani and Chinese companies signed agreements and memorandums of understanding (MoUs) worth more than $7 billion during a business conference in Hangzhou on Sunday to promote cooperation and investment across multiple sectors.

The agreements and MoUs were signed during the Pakistan-China B2B Investment Conference on information technology and telecommunications, battery energy storage systems (BESS), and agriculture.

Prime Minister Shehbaz Sharif participated in the Pakistan-China Business Conference held in Hangzhou, where representatives of companies from both countries formalised the agreements aimed at expanding bilateral economic cooperation.

Addressing the conference, the prime minister invited Chinese investors to invest in and launch joint projects in Pakistan in sectors including agriculture, information technology, special economic zones, and mining and minerals.

“Pakistan needs skills and investment, not loans and aid,” PM Shehbaz said, adding that it was the need of the hour to convert the MoUs worth billions of dollars between the two countries into formal agreements.

The premier said attractive facilities would be provided to investors in the special economic zone in Karachi and highlighted opportunities in modern agricultural methods and mechanised farming.

“China can export agricultural products worth up to $10 billion; Pakistan has large reserves of minerals,” he said.

PM Shehbaz also praised Chinese President Xi Jinping, saying he had transformed China into a global-standard economic and military power.

The prime minister said Pakistan would soon become China’s partner in the journey of regional development.

The prime minister also invited the Chinese companies and entrepreneurs to relocate their industries and businesses to Pakistan, enter into joint ventures with the local firms, and benefit from the country’s investor-friendly policies, describing the initiative as a “win-win model” for both nations.

He said that labour in China today had become pretty expensive and that China was obviously moving towards a very high level of industrialisation.

He observed that the industry where China was no longer competitive because of expensive labour could come to Pakistan, bring in plant and machinery, enter into joint ventures with Pakistani entrepreneurs, manufacture goods, and export to third countries.

“This model will be a win-win model for Chinese and Pakistani entrepreneurs, and this will be something of a roaring success in times to come, whether it is textile or leather or other areas,” the prime minister maintained in his speech broadcast on national TV channels.

He also invited Chinese businessmen to come and see the export zone in Karachi, where they would have great opportunities to understand business propositions.

Referring to the potential in mines and minerals, he said that it was also a very important area where Pakistan had large deposits of minerals and gemstones.

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About the agriculture sector, he said Pakistan was basically an agrarian economy. Last year, they sent 1,000 boys and girls to China for advanced training, who returned and are doing a great job, but this was just the first step.

The prime minister emphasised that they really needed to move forward and have opportunities to improve their per-acre yield, have the highest quality seeds, best agricultural practices and mechanisation through which they could really advance their agriculture sector by many folds.

He said China imports about 100 billion dollars’ worth of agricultural products from abroad. Pakistan’s share was just a fraction, adding that they needed their cooperation in this regard.

The prime minister hoped that in this manner, they would be able to produce agri products as per their requirement in terms of quality and other controls and if they worked together as iron brothers in this sector, they would be able to not only provide massive job opportunities in the rural areas of Pakistan but also be able to raise hundreds of thousands of small, medium entrepreneurs in the rural areas and have value addition and export those items to China.

In the next five to seven years, he said they expected an increase in their agricultural product trade to China by about 10 $billion, which was not a big task.

PM Shehbaz said IT and AI had huge potential, while special economic zones were also very important and shared that at the port city of Karachi, they had come up with a special economic zone spreading over more than 6,000 acres of land, where all basic amenities would be provided so that Chinese investors and Pakistani entrepreneurs together could invest there.

He said this special economic zone would have modern infrastructure, a seamless business environment and would offer a red-carpet treatment and one-window operation to the Chinese.

“I would like to offer this opportunity to all of you to come forward, and we are going to offer land to you on a long-term basis in terms of lease,” he added.

The prime minister further elaborated that it would be given on long-term lease at very attractive terms and conditions. This world-class special economic zone and the model would be replicated elsewhere in Pakistan through the huge Chinese contribution.

He further added that under President Xi’s dynamic leadership, their friendship was deeper than the deepest ocean and higher than the Himalayas, but ever since they had launched their space programme, it had reached new heights.

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The prime minister said that they had signed MoUs worth billions of dollars, starting from Shenzhen and here in Hangzhou, stressing that these MoUs now needed to be converted into agreements.

He also expressed his satisfaction to hear that 30% of these MOUs had been converted into agreements, which most definitely ran into billions of dollars.

The premier said Pak-China friendship goes back to the days of the Silk Road.

“Everything is now being operated through digitisation, and China excelled in this field more than any other country in the world, and Pakistan is a great partner because it has a very young population,” he said.

PM Shehbaz said that they had undertaken programmes at the federal and provincial levels, empowering the youth in colleges and schools, giving them training and third-party international certification so that they got very productive employment.

The prime minister further said that it was no coincidence that they were celebrating 75 years of the great friendship between Pakistan and China, and this third B2B event in a row, starting from Shenzhen to Beijing and now here in Hangzhou, was a reflection of the same.

He also appreciated the city’s beauty, its organisation, structure and wonderful management, adding that the city showed beyond any doubt the footprints of President Xi Jinping, who as governor and as secretary general of the city during 2002 to 2007 did a remarkable job to transform this province and this city into one of the fastest-growing cities around the globe.

The prime minister said President Xi Jinping is a visionary leader who has, over the years, made China a world-class economic and military power, second to none and Pakistan, as a true and sincere friend of China, took a lot of pride in this.

Pakistan, Alibaba sign MoUs for digital transformation

The prime minister made a visit to the headquarters of Alibaba Group in Hangzhou, where he was warmly received by Chairman Joe Tsai. Senior ministers and officials of the Government of Pakistan and top executives of Alibaba Group were also present.

During the meeting, Chairman Joe Tsai appreciated Pakistan’s constructive role and efforts for regional and global peace and stability. He acknowledged the government of Pakistan’s commitment to digital transformation, technological innovation, and creating an enabling environment for international investment in Pakistan.

 The premier underscored the government’s firm resolve to empower Pakistani youth through technology, skills development, and global partnerships.

On the occasion, PM Shehbaz and Chairman Tsai witnessed the signing and exchange ceremony of several strategic Memoranda of Understanding (MoUs) and agreements between Alibaba Group and Pakistani public and private sector entities. These are aimed at accelerating Pakistan’s digital transformation and technological advancement in partnership with Alibaba Group.

Earlier, IT Minister Shaza Fatima Khawaja, Special Assistant to the Prime Minister on Industries and Production Haroon Akhtar, Omar Saeed, CEO of Servis Group of Pakistan and Chairman Jin Yongsheng of Long March Tyre, Qian Xiaojun, President of IBI Goulian Gufen also spoke on the occasion and highlighted the major perspectives for joint ventures and cooperation in diverse sectors and shared their experiences.

Later, the prime minister also witnessed the signing of pacts between companies from the two countries.