In a bid to strengthen economic ties and attract foreign investment, Pakistan’s Privatization Minister, Abdul Aleem Khan, has pledged full support to Chinese investors in the country’s Special Economic Zones (SEZs). This commitment comes as Islamabad looks to bolster its fragile economy and sustain growth through enhanced bilateral cooperation.
SEZs are designed to provide favorable conditions for businesses, including tax incentives and lower tariffs, making them attractive hubs for investment. Khan emphasized that the Board of Investment would facilitate Chinese investors, ensuring the smooth sale and transfer of land in SEZs and resolving any challenges they face. These statements were made during a meeting in Lahore focused on addressing investment hurdles in SEZs.
China’s Role in Pakistan’s Economic Growth
China, a long-standing ally of Pakistan, has invested over $65 billion in the China-Pakistan Economic Corridor (CPEC) since 2013. CPEC is a critical component of China’s Belt and Road Initiative, aimed at connecting nations through infrastructure and trade networks. This massive investment has played a vital role in supporting Pakistan’s struggling economy, particularly during times of low foreign reserves and external financing challenges.
Security Concerns Impacting Bilateral Ties
Despite the strong economic partnership, security challenges have posed significant risks to Chinese projects and personnel in Pakistan. In recent months, separatist militant groups have targeted Chinese interests in the country.
- In October 2024, a suicide bombing in Karachi claimed by the Balochistan Liberation Army (BLA) killed three people, including two Chinese nationals.
- Earlier this year, five Chinese workers were killed in a separate suicide bombing, marking the third major attack on Chinese citizens in just one week.
These incidents have prompted Beijing to call on Islamabad to ensure the safety of its nationals. In response, Pakistan has vowed to provide foolproof security measures for Chinese workers and projects, reaffirming its commitment to the bilateral relationship.
A Promising Future for Pakistan-China Collaboration
As Pakistan and China continue to collaborate under the CPEC framework, the focus remains on overcoming challenges and unlocking new opportunities. The commitment to facilitating investment in SEZs is a step toward strengthening economic cooperation, with both nations working to deepen their ties in trade, infrastructure, and development.
This partnership not only underscores the strategic importance of Pakistan-China relations but also highlights the potential of SEZs as key drivers of economic growth in Pakistan.
