The Special Economic Zones will create the environment for the Chinese industries to relocate to Pakistan, according to Prime Minister Imran Khan.
At the groundbreaking ceremony of the Allama Iqbal Industrial City in Faisalabad PM Khan said, “[Chinese] Premier Li [Keqiang] has assured me that they would send Chinese industries to us if we create the right environment.”
Faisalabad Industrial Estate Development and Management Company’s (FIEDMC) SEZ’s mega project is planned over 4,000 acres. It is being established under the China-Pakistan Economic Corridor (CPEC).
After unveiling a plaque to launch the construction of the project PM Khan said, “This [SEZs] is not only important because the Chinese are ready to invest in our country, but also because they will transfer their technology to us, increase our productivity and set up technical institutes.”
PM Khan said that Vietnam has benefitted a lot by the Chinese industries, increasing its exports, GDP and wealth.
Allama Iqbal Industrial City is one of nine SEZs that are being planned under the CPEC Industrial Cooperation Framework.
The government of Pakistan and China has declared three of them Allama Iqbal Industrial City, the Rashakai SEZ in Khyber-Pakhtunkhwa and Dhabeji SEZ in Sindh as prioritized SEZs.
It is expected that the mega project in Faisalabad will create 300,000 jobs for the people of Punjab in the next five years. It will attract an investment of around Rs400 billion in automobiles, value-added textiles, engineering, pharmaceuticals, food processing, chemicals, construction materials, FGCG and packaging industries.
Furthermore, it will contribute to the GDP of the country by increasing exports and encouraging import substitution.
Imran Khan said, “Industrialisation is inevitable as the agricultural sector alone cannot produce enough jobs for the country’s youth.
“Pakistan will follow the successful Chinese model of allowing wealth creation that has allowed China to steer around 700 million people out of poverty within three decades.”