Islamabad, 5 June 2024(TDI): Prime Minister of Pakistan Shehbaz Sharif met with Zhu Zhejiang, the founder and chairman of Transsion Holdings, a Chinese multinational company specializing in manufacturing mobile phones.
Zhu expressed interest in expanding investment in Pakistan, particularly in its mobile manufacturing unit, and exploring opportunities in electric bikes, modern agriculture, and fintech sectors, according to a statement.
The prime minister directed federal ministers and Pakistan’s ambassador to China to swiftly develop a plan of action for Transsion and encouraged the company to produce locally and increase exports from Pakistan whose greatest strength was its young workforce.
During the meeting, Zhu informed Sharif about his company’s existing operations in Pakistan, its global exports, and plans for further investments, including an already established unit that employs over 5,000 Pakistan nationals.
Pakistan has frequently sent high-level official delegations to China, its closest regional ally, in the past.
However, most of these visits have been to Beijing and revolved around state-level interactions between the top officials of the two countries.
Business Forum in Shenzhen
Prime Minister Shehbaz Sharif said on Wednesday his administration would provide “full support” to Chinese investors entering Pakistan’s market, as the South Asian nation seeks to woo foreign investors amid efforts to stabilize its $350 billion economy.
The premier was speaking at a joint business forum in Shenzhen, a major global technology hub, where he arrived on Tuesday for the first leg of his visit to China from June 4-8.
At the top of the agenda are business-to-business meetings and efforts to seek an upgrade for the China-Pakistan Economic Corridor (CPEC), a flagship of President Xi Jinping’s Belt and Road Initiative, through which Beijing has pledged over $60 billion in energy and infrastructure Pakistan since 2015.
Islamabad now hopes CPEC collaborations will enter the industrial, IT, and agricultural sectors and is encouraging the involvement of the private sector and business-to-business (B2B) engagements.
Around 79 Pakistani companies are in China to attend the business forum in Shenzhen.
“Today is the opportunity, today is the time,” Sharif said in his address to Pakistani and Chinese executives.
“Today is the moment for you to capture, sit down with our Chinese friends and brothers, and have serious discussions.
“I want to assure you not only as the prime minister of Pakistan but as the chief executive officer of Pakistan that I will give you full support like never before to promote your efforts to stitch these deals so that Pakistan and Chinese businessmen benefit jointly and have mutual benefits.”
In his address at the forum, Federal Minister for Finance and Revenue Muhammad Aurangzeb laid out the government’s broader roadmap, emphasizing export-led growth and the crucial role of special economic zones.
Aurangzeb said Pakistan was seeking foreign direct investment through government-to-government and business-to-business arrangements and was aiming to access international capital markets and tap into Panda Bonds, Renminbi (RMB)-denominated bonds from a non-Chinese issuer, which they sell in mainland China.
Aurangzeb acknowledged “temporary hiccups” in payments and repatriations for Chinese companies but assured that they would soon resolve such issues.
Also read: Prime Minister Shehbaz to inaugurate Pakistan-China Business Conference
Sharif’s latest visit comes at a time when his administration is actively trying to put Pakistan’s economy back on track amid prolonged financial troubles that have compelled the country to repeatedly urge friendly nations and international lenders for loans.
In recent months, Pakistani authorities have said they are no longer striving to borrow money from allies but asking them to make “mutually beneficial” investments and explore the possibility of collaborating with local businesses.
Chinese investment and financial support since 2013 have been key for the South Asian nation’s struggling economy, including the rolling over of loans so that Islamabad can meet its external financing needs at a time when its foreign reserves are critically low.
