Joint economic zone opens in Pakistan

BEIJING—China has opened its first overseas joint economic zone in Pakistan in a bid to accelerate domestic enterprises’ overseas investment.
The opening of the joint venture followed last week’s signing of the Free Trade Agreement (FTA) between China and Pakistan.
The joint economic zone, covering 1.03 square kilometres at Manga Mandi, 40 kilometres south of Lahore, was established by China’s leading home appliance maker Haier and Pakistani firm Ruba.
Haier has a 55 per cent stake in the joint venture, while Ruba holds the remaining share in what will be Pakistan’s largest home appliance production base and the first Sino-Pakistani joint venture of its kind, the China Daily reports.
“China attaches great importance to economic relations with Pakistan. Investment in Pakistan benefits both nations,” Chinese President Hu Jintao said after inaugurating the Haier-Ruba Economic Zone in Punjab province.
The two sides are expected to invest around US$250 million in the construction of the zone over the next five years.
The firms hope that a number of domestic electrical appliance firms, ranging from manufacturing to distribution, will be attracted to the zone.
“This project symbolizes the widening and deepening of economic relations between China and Pakistan,” Hu said.
The establishment of the economic zone is expected to further boost economic and technological co-operation between China and Pakistan, China’s commerce ministry said in a statement.
The ministry said a number of Chinese enterprises are interested in investing in the zone, and the Pakistani side has agreed to provide services to Chinese enterprises, in particular small- and medium-sized firms, to facilitate their investment.
Besides manufacturing, Chinese enterprises will also help Pakistan by training staff and providing technological assistance.
The commerce ministry said it is encouraging domestic enterprises to develop similar co-operation zones overseas. Such zones, which could be built by a single company or a group of firms, could play a key role in helping Chinese small- and medium-sized enterprises invest abroad, said an unnamed ministry official.
He said the Chinese government would “fully support them” and expects more such zones to be established in other countries in the next three to five years.
The FTA boosts bilateral trade and investment by scrapping tariffs on hundreds of items traded between the two countries.—APP