ISLAMABAD: Representatives of Chinese businesses called on the Pakistani government on Tuesday to prioritise one-window operations, ensure continuation of supportive policies, and enhance security for investors to foster industrialisation and business growth in the country.

They were speaking at a high-level policy dialogue titled ‘Driving Special Economic Zones (SEZs) Development Under CPEC 2.0: Opportunities for Sustainable Industrial Growth’ hosted by the Sustainable Development Policy Institute (SDPI) in collaboration with the Ministry of Climate Change.

Wang Huihui, chairman of the China Chamber of Commerce and Industry in Pakistan (CCCI), suggested that Pakistan must provide a secure environment for the Chinese private sector to invest in the country.

He also emphasised that Pakistan could benefit from learning about China's Green Special Economic Zones (SEZs) model for sustainable economic growth.

The Green SEZs focus on eco-friendly development, renewable energy, and sustainable practices to create jobs and promote long-term industrial growth, Wang Huihui said.

The CCCI chairman said Pakistan must create a secure investment environment to encourage Chinese private-sector participation. He specifically pointed to the importance of learning from China’s Green SEZ model, which emphasised eco-friendly development and sustainable practices, including the use of renewable energy.

According to Wang, these zones not only contribute to long-term industrial growth but also play a critical role in poverty alleviation and job creation.

“SEZs have the potential to boost Pakistan’s industrial sector, reduce poverty, and foster trade liberalization,” Wang said, noting that CPEC’s infrastructure development could be a game-changer for the country’s economy.

Mushahid Hussain, a prominent Pakistani politician and analyst and chairman of Pakistan-China Institute, underscored China's pivotal role in global economic growth, noting that 30 per cent of worldwide growth came from China.

He praised China’s dual focus on connectivity and green development, highlighting the country’s leadership in technological fields such as AI, robotics, and 5G.

He also pointed to China’s regional expansion, including its $400 billion partnership with Iran and the construction of the Wah Khan Corridor, which will link not only Pakistan but other Central Asian states.

Mr Syed stressed the need for Pakistan to take decisive steps to benefit from China’s global rise, particularly through CPEC and other infrastructure initiatives.

Executive Director of the Pakistan China Institute (PCI) Mustafa Hider Syed also echoed calls for an autonomous body to oversee SEZ development in Pakistan.

He argued that bureaucratic instability, with frequent changes in ministers and officials, hinders progress in the SEZ sector.

Senior Adviser to Energy China Hassan Daud Butt stressed the importance of localisation for the success of SEZs. He pointed to the growing interest from Chinese companies in industries such as packaging and energy, but warned that the government must implement a clear roadmap to address existing challenges.

“China has a long-term vision for CPEC, but we must ensure real ease of doing business for investors,” Butt said.

Additional Secretary and Executive Director at Pakistan's Board of Investment (BoI) Erfa Iqbal said China was shifting from labour-intensive industries and that the focus of SEZs under CPEC should now be on private sector engagement.

She emphasised that while Pakistan faces challenges, the SEZs were not in a dire situation, and there was room for growth in Phase II of CPEC.

She also mentioned ongoing roadshows in Chinese cities aimed at attracting investment in seven export-oriented sectors in Pakistan, including textiles, leather, and fishing, which would continue until December 2024.

Addressing concerns from the International Monetary Fund (IMF) over incentives for SEZs, she clarified that the IMF had recommended phasing out, not eliminating, these incentives.

Shakeel Ahmad Ramay, CEO of the Asian Institute of Eco-civilization, Research, and Development (AIERD), called for a more efficient and streamlined approach to managing CPEC investments.

He criticised the overlapping roles of institutions such as the Special Investment Facilitation Center (SIFC) and BoI, arguing that multiple agencies handling the same responsibilities lead to inefficiency and confusion.