All-weather friend

PRIME Minister Yousuf Raza Gilani's pledge to extend all his help in the setting up of an overseas economic zone in the country for Chinese investors is welcome. Under the proposed scheme a special industrial park would be built for manufacturing a variety of goods. This venture, being launched jointly by Haier Group and Ruba Group, has the potential to give new dimensions to the bilateral trade ties. More importantly, The Chinese Economic Zone is being established under the Free Trade Agreement (FTA) between the two countries that came into effect last year. It would be a big boost to the private sector. It is heartening to know that the Haier Group, which has outlets spread throughout the world has shown its interest to invest in Pakistan. It brings an initial investment of $35 million as announced by Chairman Lu Keng. The scheme also implies the success of the FTA. Hopefully, joint ventures in the private sectors of the two countries will grow. A replication of such a model on other fronts with other counties should also be pursued.

However, in the first place there are some measures we need to take. Individual enterprisers are more concerned about security and stability of a place they are putting their money into. Bomb attacks scare them away. The government needs to improve the overall law and order situation in the country to attract foreign capital.

China is our all-weather friend. Its help in numerous projects has been crucial to our development. The Saindak Gold and Copper Project, Karakoram Highway, Chashma Nuclear Power Plant, Heavy Mechanical Industrial Complex in Taxila, Gwadar Deep Seaport, Kamra Aircraft Rebuild Factory are just some of the ventures that speak volumes about the depth of our relations. These mega projects were carried out as a result of state cooperation. However, Haier-Ruba joint venture marks the beginning of a new chapter of cooperation between the two countries. It is hoped it would be equally satisfying.

Posted on: 20-June-2008

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