Full Version: China Deepens Business Ties With Pakistan
China deepens business ties with Pakistan
By Syed Fazl-e-Haider
QUETTA, Pakistan - China stepped up its presence in Pakistan this week with the opening on Monday of the Pak-China Investment Co Ltd (PCIC) in the business and financial hub of Karachi to be followed with the establishment of offices in northeastern Lahore, the second-largest city and capital of Punjab, on December 27. The move, aimed at boosting trade btween the two countries, comes amid continued concerns over the safety of Chinese workers in Pakistan.
PCIC, established under the Pak-China Five-Year Development Program, will serve as a window for the China Development Bank
to evaluate joint ventures between the two countries. The bank, which operates under the State Council, or cabinet, is primarily responsible for funding large development projects.
The countries are seeking to triple bilateral trade to US$15 billion in the next five years from $4.2 billion in 2006 under a free-trade agreement signed just over 12 months ago. They recently signed agreements worth around $300 million under which Pakistani products would be exported to China, involving 15 Pakistani companies and covering goods such as cotton, chrome ore, leather and rapeseed meal.
The PCIC, established in July with paid-up capital of 4.25 billion rupees ($69 million) with the government in Islamabad a direct shareholder, will help Pakistan to secure Chinese investment in various sectors and help Pakistani exporters target openings in China, according to officials. The company will perform investment banking business on a commercial basis.
Among other goals, Pakistan, estimated to have more than 780 million tons of iron ore that contains 35% of iron, wants to import plant and machinery from China for ore exploration to make the most of its natural resources and build more steel capacity. The ore grade is similar to China-sourced ore, making Chinese machinery compatible with Pakistan's needs.
Chinese investment is also being sought across a range of manufacturing, from steel production, construction and earth-moving equipment to the auto sector. Potential joint venture targets include naphtha cracker, oil refining and hydropower projects, and coal mines. In agriculture, Islamabad has sought backing to set up cattle, dairy and poultry farms and animal and poultry feed manufacturing plants.
Pakistan is to establish separate industrial zones for Chinese investors in Lahore and Faisalabad, both in Punjab province. The provincial government is taking its own steps to welcome their northern neighbours, establishing a link with the chief minister's offices for the convenience of Chinese investors to ease hurdles and establish a favorable atmosphere.
The countries are boosting contacts as the 100 and more Chinese companies that already operate in Pakistan remain worried over the safety of the roughly 3,000 Chinese engineers, technicians and entrepreneurs working there.
In July, three Chinese were killed in Peshawar, northern Pakistan, while in February last year three engineers were gunned down with their Pakistani driver in southwest Balochistan province, where they were helping to construct the multimillion dollar Gwadar seaport, a joint venture by Pakistan and China. Another three had been killed in Gwadar in May 2004 by a car bomb. Groups in the area complain that they lack basic resources such as drinking water, according to reports.
Also in 2004, kidnappers abducted two Chinese engineers working on a dam construction project in South Waziristan province and threatened to kill them unless several al-Qaeda members held by Pakistan were released. One was freed, while one died in a rescue operation.
The poor law and order situation has persuaded some Chinese firms to limit their interest in Pakistan. Three oil and gas service companies including Great Wall, and BGP, a unit of state-owned CNPC, recently refused to sign new oil and gas-related contracts to conduct seismic surveys and to supply rigs for drilling in the country.
The free-trade agreement with Pakistan followed similar accords with the Association of Southeast Nations and Chile.
Syed Fazl-e-Haider is a Quetta-based development analyst in Pakistan. He is the author of six books, including The Economic Development of Balochistan.
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http://www.atimes.com/atimes/South_Asia/IL19Df01.html
Such initiatives are great. However, the immense trade potential is in my opinion still very much untapped. Pakistan has a huge export market that's virtually untouched. The country is suffering from trade deficit due to unbalanced import strategy. That's just unacceptable.
"Three oil and gas service companies including Great Wall, and BGP, a unit of state-owned CNPC, recently refused to sign new oil and gas-related contracts to conduct seismic surveys and to supply rigs for drilling in the country."
The GoP needs to flush out the terrorists/law-unabiding citizens, foreign elements, secure the borders and restore law and order in the lawless regions. Couple that with other non-violent preventive measures such as education, job opportunities, health care etc. That should be priority number one. Security will prevail. However much I may disagree with Musharraf's previous policies, he's the only leader capable of achieving this.
"Three oil and gas service companies including Great Wall, and BGP, a unit of state-owned CNPC, recently refused to sign new oil and gas-related contracts to conduct seismic surveys and to supply rigs for drilling in the country."
The GoP needs to flush out the terrorists/law-unabiding citizens, foreign elements, secure the borders and restore law and order in the lawless regions. Couple that with other non-violent preventive measures such as education, job opportunities, health care etc. That should be priority number one. Security will prevail. However much I may disagree with Musharraf's previous policies, he's the only leader capable of achieving this.
QUOTE(BaburMissile @ Dec 18 2007, 09:00 AM) 
Such initiatives are great. However, the immense trade potential is in my opinion still very much untapped. Pakistan has a huge export market that's virtually untouched. The country is suffering from trade deficit due to unbalanced import strategy. That's just unacceptable.
"Three oil and gas service companies including Great Wall, and BGP, a unit of state-owned CNPC, recently refused to sign new oil and gas-related contracts to conduct seismic surveys and to supply rigs for drilling in the country."
The GoP needs to flush out the terrorists/law-unabiding citizens, foreign elements, secure the borders and restore law and order in the lawless regions. Couple that with other non-violent preventive measures such as education, job opportunities, health care etc. That should be priority number one. Security will prevail. However much I may disagree with Musharraf's previous policies, he's the only leader capable of achieving this.
"Three oil and gas service companies including Great Wall, and BGP, a unit of state-owned CNPC, recently refused to sign new oil and gas-related contracts to conduct seismic surveys and to supply rigs for drilling in the country."
The GoP needs to flush out the terrorists/law-unabiding citizens, foreign elements, secure the borders and restore law and order in the lawless regions. Couple that with other non-violent preventive measures such as education, job opportunities, health care etc. That should be priority number one. Security will prevail. However much I may disagree with Musharraf's previous policies, he's the only leader capable of achieving this.
I don't know whether it already exists or not, but Pakistan could create Pak-chinese cambers of commerce in the important economic centres of Pakistan and man them with people proficient in Chinese and trade and spend in setting an appropriate support structure for businessmen who want to explore possibilities. and establish links with counterparts in China. I suppose the gorvernment does a lot, but it is the business world in Pakistan itself which should mobilize to make a room for Pakistan trade in China. Explore marketsin the country and see what they could supply. But definitely create a body that worked for them, as they have done in other ventures, like the Sialkot airport.
Trade with China to reach $15bn: PCICL launched
By Sabihuddin Ghausi
KARACHI, Dec 17: A formal launch of $200 million Pakistan-China Investment Company Limited (PCICL) was held on Monday on the lawns of Governor’s House at a ceremony, chaired by Sindh Governor Dr Ishratul Ibad.
Those who attended the ceremony included caretaker finance minister Dr Salman Shah, SBP Governor Dr Shamshad Akhtar, the Chinese consul-general, diplomats and business leaders.
The Pakistan-China Investment Company is the outcome of a joint venture agreement signed between the China Development Bank and the Government of Pakistan on July 18.
Under the memorandum of association, the PCICL has been set up to establish various subsidiary companies to carry out particular projects in financial, infrastructural, industrial, mining, manufacturing and non-manufacturing sectors.
The company will strive to promote economic collaboration between the two countries by way of improving contacts between capital markets and corporate sectors of the two countries, investment in infrastructure projects, development of real-estate projects, participation in the privatisation process, hotels and tourism projects, development of special economic zones, and act as full service investment and merchant bank, and offer a host of financial and advisory services.
One of the first projects, being taken up by the PCICL, is development of 400-acre industrial estate near Lahore while many other projects are also being considered for investment.
“The Pakistan-China Investment Company Limited brings into active and close collaboration the economic superpower —China — with Pakistan which is an emerging economic market, and it would augur well for regional development and prosperity.
“With a capital base of $300 billion, the Development Bank of China is in partnership with Pakistan in the company,’’ he said.
The Development Bank of China, Dr Salman said, is a bigger bank than the World Bank in terms of resources.
China, he said, is a huge exporter of resources and Pakistan is well-positioned to receive resources.
China, he declared, is now driving global markets in energy, steel and commodities, and had achieved excellence in a number of fields, while Pakistan, with 160 million population that include 100 million young people of up to 25 years of age, and with an average economic growth of seven per cent in the last five and six years, has all the potential to prove a worthy partner in economic progress.
“We will measure your progress in terms of successful implementation of a number of projects,’’ the minister told the Chinese chief executive and his Pakistani deputy of the company.
State Bank of Pakistan Governor Dr Shamshad Akhtar, in her address, said that the Pakistan-China Investment Company is the seventh financial institution of the country set up with Chinese assistance.
She recalled her association with the Asian Development Bank during which she remained involved in a number of projects in China.
Sindh Governor Dr Ishratul Ibad spoke about economic cooperation between Pakistan and China over the last more than five decades in which the setting up of Pakistan-China Investment Company was an important milestone as it marks collaboration between private sectors of the two countries.
Mr Chen Jianbo, the managing director of the launched company, expressed great prospects for investment by the company.
Mr Jianbo was introduced as a banker, who has, so far, appraised projects worth over $15 billion investment and is managing assets worth $5 billion.
Syed Iqbal Ashraf, the deputy managing director, who represents Pakistan in the PCICL top management, gave a full account of the trade and business relationship between the two agreements and involvement of China in many key projects.
The speakers highlighted many projects that symbolise Pakistan-China friendship. These are Karakoram Highway, Gwadar Sea Port, Heavy Mechanical Complex, Heavy Electrical Complex, Heavy Forge and Foundry, Saindak Copper Mining Complex, the two Chashma Nuclear Power Plants and many other projects of vital strategic nature.
The two-way volume of trade between the two countries is $5 billion which is expected to increase by three times to $15 billion a year in next five years.
A five-year development programme has also been drawn up to increase the level of economic cooperation.
-Dawn
By Sabihuddin Ghausi
KARACHI, Dec 17: A formal launch of $200 million Pakistan-China Investment Company Limited (PCICL) was held on Monday on the lawns of Governor’s House at a ceremony, chaired by Sindh Governor Dr Ishratul Ibad.
Those who attended the ceremony included caretaker finance minister Dr Salman Shah, SBP Governor Dr Shamshad Akhtar, the Chinese consul-general, diplomats and business leaders.
The Pakistan-China Investment Company is the outcome of a joint venture agreement signed between the China Development Bank and the Government of Pakistan on July 18.
Under the memorandum of association, the PCICL has been set up to establish various subsidiary companies to carry out particular projects in financial, infrastructural, industrial, mining, manufacturing and non-manufacturing sectors.
The company will strive to promote economic collaboration between the two countries by way of improving contacts between capital markets and corporate sectors of the two countries, investment in infrastructure projects, development of real-estate projects, participation in the privatisation process, hotels and tourism projects, development of special economic zones, and act as full service investment and merchant bank, and offer a host of financial and advisory services.
One of the first projects, being taken up by the PCICL, is development of 400-acre industrial estate near Lahore while many other projects are also being considered for investment.
“The Pakistan-China Investment Company Limited brings into active and close collaboration the economic superpower —China — with Pakistan which is an emerging economic market, and it would augur well for regional development and prosperity.
“With a capital base of $300 billion, the Development Bank of China is in partnership with Pakistan in the company,’’ he said.
The Development Bank of China, Dr Salman said, is a bigger bank than the World Bank in terms of resources.
China, he said, is a huge exporter of resources and Pakistan is well-positioned to receive resources.
China, he declared, is now driving global markets in energy, steel and commodities, and had achieved excellence in a number of fields, while Pakistan, with 160 million population that include 100 million young people of up to 25 years of age, and with an average economic growth of seven per cent in the last five and six years, has all the potential to prove a worthy partner in economic progress.
“We will measure your progress in terms of successful implementation of a number of projects,’’ the minister told the Chinese chief executive and his Pakistani deputy of the company.
State Bank of Pakistan Governor Dr Shamshad Akhtar, in her address, said that the Pakistan-China Investment Company is the seventh financial institution of the country set up with Chinese assistance.
She recalled her association with the Asian Development Bank during which she remained involved in a number of projects in China.
Sindh Governor Dr Ishratul Ibad spoke about economic cooperation between Pakistan and China over the last more than five decades in which the setting up of Pakistan-China Investment Company was an important milestone as it marks collaboration between private sectors of the two countries.
Mr Chen Jianbo, the managing director of the launched company, expressed great prospects for investment by the company.
Mr Jianbo was introduced as a banker, who has, so far, appraised projects worth over $15 billion investment and is managing assets worth $5 billion.
Syed Iqbal Ashraf, the deputy managing director, who represents Pakistan in the PCICL top management, gave a full account of the trade and business relationship between the two agreements and involvement of China in many key projects.
The speakers highlighted many projects that symbolise Pakistan-China friendship. These are Karakoram Highway, Gwadar Sea Port, Heavy Mechanical Complex, Heavy Electrical Complex, Heavy Forge and Foundry, Saindak Copper Mining Complex, the two Chashma Nuclear Power Plants and many other projects of vital strategic nature.
The two-way volume of trade between the two countries is $5 billion which is expected to increase by three times to $15 billion a year in next five years.
A five-year development programme has also been drawn up to increase the level of economic cooperation.
-Dawn
QUOTE(wiseking @ Dec 19 2007, 04:47 AM)
Trade with China to reach $15bn: PCICL launched
By Sabihuddin Ghausi
KARACHI, Dec 17: A formal launch of $200 million Pakistan-China Investment Company Limited (PCICL) was held on Monday on the lawns of Governor’s House at a ceremony, chaired by Sindh Governor Dr Ishratul Ibad.
Those who attended the ceremony included caretaker finance minister Dr Salman Shah, SBP Governor Dr Shamshad Akhtar, the Chinese consul-general, diplomats and business leaders.
The Pakistan-China Investment Company is the outcome of a joint venture agreement signed between the China Development Bank and the Government of Pakistan on July 18.
Under the memorandum of association, the PCICL has been set up to establish various subsidiary companies to carry out particular projects in financial, infrastructural, industrial, mining, manufacturing and non-manufacturing sectors.
The company will strive to promote economic collaboration between the two countries by way of improving contacts between capital markets and corporate sectors of the two countries, investment in infrastructure projects, development of real-estate projects, participation in the privatisation process, hotels and tourism projects, development of special economic zones, and act as full service investment and merchant bank, and offer a host of financial and advisory services.
One of the first projects, being taken up by the PCICL, is development of 400-acre industrial estate near Lahore while many other projects are also being considered for investment.
“The Pakistan-China Investment Company Limited brings into active and close collaboration the economic superpower —China — with Pakistan which is an emerging economic market, and it would augur well for regional development and prosperity.
“With a capital base of $300 billion, the Development Bank of China is in partnership with Pakistan in the company,’’ he said.
The Development Bank of China, Dr Salman said, is a bigger bank than the World Bank in terms of resources.
China, he said, is a huge exporter of resources and Pakistan is well-positioned to receive resources.
China, he declared, is now driving global markets in energy, steel and commodities, and had achieved excellence in a number of fields, while Pakistan, with 160 million population that include 100 million young people of up to 25 years of age, and with an average economic growth of seven per cent in the last five and six years, has all the potential to prove a worthy partner in economic progress.
“We will measure your progress in terms of successful implementation of a number of projects,’’ the minister told the Chinese chief executive and his Pakistani deputy of the company.
State Bank of Pakistan Governor Dr Shamshad Akhtar, in her address, said that the Pakistan-China Investment Company is the seventh financial institution of the country set up with Chinese assistance.
She recalled her association with the Asian Development Bank during which she remained involved in a number of projects in China.
Sindh Governor Dr Ishratul Ibad spoke about economic cooperation between Pakistan and China over the last more than five decades in which the setting up of Pakistan-China Investment Company was an important milestone as it marks collaboration between private sectors of the two countries.
Mr Chen Jianbo, the managing director of the launched company, expressed great prospects for investment by the company.
Mr Jianbo was introduced as a banker, who has, so far, appraised projects worth over $15 billion investment and is managing assets worth $5 billion.
Syed Iqbal Ashraf, the deputy managing director, who represents Pakistan in the PCICL top management, gave a full account of the trade and business relationship between the two agreements and involvement of China in many key projects.
The speakers highlighted many projects that symbolise Pakistan-China friendship. These are Karakoram Highway, Gwadar Sea Port, Heavy Mechanical Complex, Heavy Electrical Complex, Heavy Forge and Foundry, Saindak Copper Mining Complex, the two Chashma Nuclear Power Plants and many other projects of vital strategic nature.
The two-way volume of trade between the two countries is $5 billion which is expected to increase by three times to $15 billion a year in next five years.
A five-year development programme has also been drawn up to increase the level of economic cooperation.
-Dawn
By Sabihuddin Ghausi
KARACHI, Dec 17: A formal launch of $200 million Pakistan-China Investment Company Limited (PCICL) was held on Monday on the lawns of Governor’s House at a ceremony, chaired by Sindh Governor Dr Ishratul Ibad.
Those who attended the ceremony included caretaker finance minister Dr Salman Shah, SBP Governor Dr Shamshad Akhtar, the Chinese consul-general, diplomats and business leaders.
The Pakistan-China Investment Company is the outcome of a joint venture agreement signed between the China Development Bank and the Government of Pakistan on July 18.
Under the memorandum of association, the PCICL has been set up to establish various subsidiary companies to carry out particular projects in financial, infrastructural, industrial, mining, manufacturing and non-manufacturing sectors.
The company will strive to promote economic collaboration between the two countries by way of improving contacts between capital markets and corporate sectors of the two countries, investment in infrastructure projects, development of real-estate projects, participation in the privatisation process, hotels and tourism projects, development of special economic zones, and act as full service investment and merchant bank, and offer a host of financial and advisory services.
One of the first projects, being taken up by the PCICL, is development of 400-acre industrial estate near Lahore while many other projects are also being considered for investment.
“The Pakistan-China Investment Company Limited brings into active and close collaboration the economic superpower —China — with Pakistan which is an emerging economic market, and it would augur well for regional development and prosperity.
“With a capital base of $300 billion, the Development Bank of China is in partnership with Pakistan in the company,’’ he said.
The Development Bank of China, Dr Salman said, is a bigger bank than the World Bank in terms of resources.
China, he said, is a huge exporter of resources and Pakistan is well-positioned to receive resources.
China, he declared, is now driving global markets in energy, steel and commodities, and had achieved excellence in a number of fields, while Pakistan, with 160 million population that include 100 million young people of up to 25 years of age, and with an average economic growth of seven per cent in the last five and six years, has all the potential to prove a worthy partner in economic progress.
“We will measure your progress in terms of successful implementation of a number of projects,’’ the minister told the Chinese chief executive and his Pakistani deputy of the company.
State Bank of Pakistan Governor Dr Shamshad Akhtar, in her address, said that the Pakistan-China Investment Company is the seventh financial institution of the country set up with Chinese assistance.
She recalled her association with the Asian Development Bank during which she remained involved in a number of projects in China.
Sindh Governor Dr Ishratul Ibad spoke about economic cooperation between Pakistan and China over the last more than five decades in which the setting up of Pakistan-China Investment Company was an important milestone as it marks collaboration between private sectors of the two countries.
Mr Chen Jianbo, the managing director of the launched company, expressed great prospects for investment by the company.
Mr Jianbo was introduced as a banker, who has, so far, appraised projects worth over $15 billion investment and is managing assets worth $5 billion.
Syed Iqbal Ashraf, the deputy managing director, who represents Pakistan in the PCICL top management, gave a full account of the trade and business relationship between the two agreements and involvement of China in many key projects.
The speakers highlighted many projects that symbolise Pakistan-China friendship. These are Karakoram Highway, Gwadar Sea Port, Heavy Mechanical Complex, Heavy Electrical Complex, Heavy Forge and Foundry, Saindak Copper Mining Complex, the two Chashma Nuclear Power Plants and many other projects of vital strategic nature.
The two-way volume of trade between the two countries is $5 billion which is expected to increase by three times to $15 billion a year in next five years.
A five-year development programme has also been drawn up to increase the level of economic cooperation.
-Dawn
we expect too much from the government, these initiatives must be led by the private sector, to be sustainable. It is up to us the public to build companies that trade with Chinese.
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