ISLAMABAD/BEIJING: Chairman Special Economic Zones Authority (SEZA), Punjab, Pakistan S. M. Naveed has termed Special Economic Zones (SEZs) as a significant factor for shaping the country’s industry.
In an interview with China Economist Net (CEN), he said that nine SEZs under CPEC would be a lifetime opportunity for the country companies to cooperate with Chinese firms for the development of export-oriented production sectors. The SEZs will also enable companies to cluster and tap the advantages of external economies, and will thus give an opportunity to put domestic industries on a higher learning curve.
Special Economic Zones and Pakistan’s Industry
The chairman believes that SEZs under CPEC has the capacity to increase productivity, integrate the country with world value chains and revive its manufacturing sector in the long-run. “The development of Special Economic Zones must be aimed at improving the overall business climate in Pakistan. This can be done via improved infrastructure and trade facilitation to grab the attention of investment from foreign and domestic firms in the SEZs.”
S.M. Naveed further mentioned, “it is also significant to note that Pakistan has a weak legal system, which is also a key hurdle to attract foreign investment in Pakistan. In this connection, Islamabad can learn from Beijing to further strengthen its legislation.” S.M. Naveed said that China has made an incredible triumph in constituting Special Economic Zones to achieve economic growth. It may be recalled that China employed 30 million workforces in Special Economic Zones (SEZs) and alleviated poverty.”
Special Economic Zones and foreign investors
China’s Special Economic Zones (SEZs) have grown rapidly in economic, cultural, and trade terms. The products from the Special Economic Zones (SEZs) are mainly sold to foreign countries. By improving and promoting their economic situation and preferential policies, they (China) attract foreign investors to set up factories in China to produce those products.
The Chairman of the Special Economic Zones Authority (SEZA) said that Pakistan should also focus on cluster-based industrialization, which was a key factor in China’s progress. Regarding the interaction between SEZs of Pakistan and China, he concluded that they are considering arranging conferences, roadshows, and single-product exhibitions in China to impart first-hand knowledge about the SEZs in Punjab coupled with a peaceful and harmonious atmosphere. — APP
