ISLAMABAD: The China Asia Economic Development Association (CAEDA) is preparing to invest up to $13 billion in a Free Trade Zone in Pakistan over the next five years, contingent on necessary policy support from the Pakistani government.
The initial phase of this investment is projected to range from $8 to $13 billion. With current investments increasing, the total investment could reach around $30 billion. CAEDA has communicated to the Ministry of Industries and Production (MoI&P) the need for a favorable business environment to ensure the project’s success.
As part of its commitment, CAEDA has already invested $500 million and sent the first batch of 20 professional Chinese fishing vessels to Karachi. More vessels are expected to follow in the coming months.
The Cross-Border Trade Committee includes several influential corporate members in China, eager to invest in the Free Trade Zone. However, some companies have expressed concerns regarding Pakistan’s political, cultural, and security climate, highlighting the importance of government support.
The Free Trade Zone aims to serve both the global market and local Pakistani needs, with plans to establish a duty-free shopping mall offering international goods to Pakistani citizens. This zone will allow transactions and imports/exports to be exempt from tariffs and taxes, with customs registration for all goods. Taxes will only apply when goods enter the domestic market in Pakistan.
This initiative could significantly enhance trade and economic ties between China and Pakistan, fostering development in various sectors.
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