Pakistan-China Joint Chamber of Commerce and Industry (PCJCCI) think tank, at a meeting held in chair with its President Mr. Nazir Hussain, has planned to unlock the economic benefits of the recent Shanghai Cooperation Organization (SCO) Conference. The Think Tank observed that the SCO had offered Pakistan a set of substantial opportunities for export-driven growth by reducing trade barriers and facilitating cross-border trade, benefiting small and medium-sized enterprises, as the Initiatives like China’s Belt and Road Initiative (BRI) and investments through the China-Pakistan Economic Corridor (CPEC) have enhanced infrastructure, lower transportation costs, and boost economic cooperation in the region.
We should adopt technology transfer, joint ventures, and energy imports from Central Asian states to address the prevailing energy shortages and modernize industries by encouraging investment-infrastructure development in the country, said Mr. Nazir Hussain, while addressing the think tank meeting.
The meeting noted that presently, two SCO countries are investing in Pakistan. China is leading through CPEC projects in energy and infrastructure investment, and Pakistan is the third biggest recipient of Chinese development finance worldwide with a portfolio of $70.3 billion. Furthermore, Russia is also investing in Pakistan’s energy sector, including a nearly $2.5 billion natural gas pipeline and a roughly $14 billion package for oil, gas, and power projects. The think tank was of the view that such investments would pave the way for industrialization in the country by developing Pakistan’s infrastructure and energy sector.
PCJCCI office bearers pledged to lay down a strategy to help provide the PCJCCI members with access to larger markets, increasing export opportunities and economies of scale. They noticed that Pakistan would soon be attracting more foreign investment and a more stable standing in global trade negotiations, as the reduced tariffs and streamlined customs procedures are expected to lower trade costs, and boost competitiveness. One of the main benefits of the SCO for Pakistan, they pointed out, is the opportunity to access larger markets in the economies of SCO member states ; China, Russia, India, and the Central Asian republics. This diversification of export markets can assist Pakistan reduce its dependence only on existing trading partners. Sectors like textiles, agriculture, and sports goods hold strong potential for export to Central Asia and Russia, besides China. Deepening trade ties with these countries will not only boost Pakistan’s export volumes but also encourage local industries to improve their quality, and productivity and look towards export opportunities.
PCJCCI office bearers suggested that government of Pakistan must adopt a favorable strategic approach to fully capitalize on the economic potential offered by the SCO. They also suggested to institute a joint coordination committee in collaboration with the trade bodies including the PCJCCI to materialize the opportunities of SCO into real projects and joint ventures of enhanced trade and investments for Pakistan#. (Hiba Ali Gohar)
