ISLAMABAD, JUN 28 /DNA/ – Former President of the Islamabad Chamber of Commerce and Industry (ICCI), Dr. Shahid Rasheed Butt, on Friday lauded Prime Minister Shahbaz Sharif for his efforts to attract Chinese investment and relocate Chinese industries to Pakistan.
The cost of doing business has increased in China, while tensions with the West are also hampering its exports and resolution to these problems lies in relocation of industries, he said.
Shahid Rasheed Butt said in a statement issued here today that Chinese investors are trying to improve their businesses by relocating to other countries where labor is cheap and overall business costs are lower as compared to China.
The business leader said that Chinese investors have moved industries and businesses to their enemy countries, like India, but they are not willing to relocate their businesses to the closest and friendliest country, Pakistan.
All policymakers here understand the reluctance of Chinese investors, but they do nothing to address their concerns, he said.
Shahid Rasheed Butt said that PM Sharif recently visited China and signed MOUs with many companies. Now he wants to transform these MOUs into reality. Presently, PM is exerting a tremendous deal of effort to make the effort a success.
The PM recently said that it was of It is of utmost importance to encourage both domestic and international investment in Pakistan. However, his assertion will be tested soon, that we are cultivating a business-friendly environment to facilitate the relocation of Chinese industries to Pakistan through joint ventures.
This is due to the fact that Pakistan’s bureaucracy is notorious for stalling investment and foreign companies view it as a major barrier to direct investment.
The government is pushing two policy actions to allay the fears of Chinese investors: legislation to establish a one-stop shop for luring investments in the Special Economic Zones and the development of a business facilitation facility in Islamabad, he informed.
The goal of both of these steps is to allay any investor concerns, which will be a very beneficial development. He said that the issues that Pakistan faces in terms of its internal security will continue to take precedence over the investment decisions that Chinese corporations make, regardless of whether or not there are improvements in business policies.
Chinese investors have brought up the safety of their employees in Pakistan, which was likely the most important concern they raised.
He recalled that a senior minister of China’s Communist Party had raised these issues more forcefully recently. He was speaking to representatives of Pakistan’s political parties in Islamabad, and he cited deficiencies in Pakistan’s internal security as a major cause for the decline in investor trust.
Despite the fact that Beijing has always been concerned about the safety of its employees, the targeted attacks, particularly the one that took place in Bisham, which is located close to the construction site of the Dasu dam, have significantly undermined China’s confidence in our capacity to protect its interests from militant groups, he observed.
It will be necessary to enhance the business climate in addition to the security conditions in order to make Pakistan a destination of choice for Chinese investors, he said.
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