Islamabad (TDI): Pakistan is diversifying its investment landscape, courting Chinese Business-to-Business investment to complement CPEC projects.
The China Asia Economic Development Association (CAEDA) is set to invest up to $13 billion in a free trade zone in Pakistan in the next five years.
Besides, over 25 major Chinese companies are reportedly interested in investment in Pakistan.
Pakistan has approved appointment of twenty new trade posts in China with the aim to increase exports and attract foreign investment.
The Ministry of Commerce has allocated 5.5 billion rupees this year for trade missions.
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Additionally, the Economic Coordination Committee has approved a grant of 226.7 million rupees to promote foreign investment.
The move also aims attracting foreign direct investment, and support efforts to relocate Chinese industries to Pakistan.
China is Pakistan’s largest trading partner, it also contributes to the country’s substantial trade deficit. For 2023-24, Pakistan’s exports to China totaled $2.56 billion, while imports reached $14.51 billion, leaving a trade gap of nearly $12 billion.
The prime minister has already directed the development of a plan to strengthen economic diplomacy by hiring local staff to better coordinate with Chinese authorities and support B2B engagement.
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According to a report by BR, following consultations between the Ministry of Commerce, the Board of Investment (BoI), and the Ministry of Foreign Affairs, the Prime Minister approved the creation of the new trade positions in China.
The Finance Division also supported the plan and recommended additional funding.
