Daily Times

KARACHI: Businessmen on Tuesday said that the China-Pakistan Economic Corridor (CPEC) investments, loan arrangements and the special incentives being offered to Chinese investors required open debate and discussion.

The Businessmen Panel (BMP) of Federation of Pakistan Chambers of Commerce & Industry (FPCCI) urged equal incentives for Pakistani businessmen in CPEC for a level playing field.

BMP Chairman Mian Anjum Nisar said CPEC was a pivotal project for Pakistan’s economic prosperity and they wanted the same incentives in the project which were given to Chinese investors. He said the government should put in place a framework to ensure 100 percent utilisation of local industry. “If we want to benefit from the corridor initiative, we have to give our companies their due share in the projects,” he said.

Nisar said the CPEC would usher Pakistan in a new era of development and growth. However, he cautioned that it could only be possible if Pakistan’s industry reaped benefits of enhanced connectivity by creating jobs and boosting exports.

Saying that policymakers were overly optimistic about CPEC and its potential benefits, he decried that local goods manufacturers, and industry appeared to be seriously concerned about their future.

The textile industry, for instance, feared a glut of textile goods from the Chinese region of Xinjiang that may ruin their businesses, he said.

He pointed out that Pakistan’s industry was already relying on expensive raw material imports following cotton production shortfall in the country and any increase in raw material demand from China would lead to further price hike and limited availability.

“Other industries are worried that they are going to be eaten up by large-scale Chinese enterprises …” he said.

BMP chairman further said special economic zones (SEZ) hadn’t been started yet which should be our priority and in this regard the government must take due consultation with the business community of Pakistan.

BMP Spokesperson Ahmad Jawad said there was no question that the CPEC was a transformational endeavour but the larger questions of providing level playing field to Pakistani industry remained.

Jawad said China was the world’s largest importer of agricultural products, and Pakistan had to grab its due share through revisiting the free trade agreement (FTA) between the two countries.

“In 2015, China imported $160 billion worth of agricultural products. However, Pakistan’s share in these exports was minuscule-less than half a percent-despite having a large agrarian base and a shared border with China,” he said.

He also added that during transit over long distances, food items faced higher risk of spoilage and contamination. “Because of this, not only additional cost is incurred for preservation and packaging but often exporters have to make use of extra pesticides to increase shelf-life of food,” he said.

“Pakistan, being China’s neighbour, enjoys a unique advantage and CPEC provides an unprecedented opportunity to capitalise on that,” added Jawad.

The BMP official suggested an open debate may take place about the pros and cons of CPEC investments, loan arrangements and the special incentives being offered to Chinese investors.

Published in Daily Times, November 8^th 2017.