Chinese industrial relocation empowers SMEs in Pakistan
by Mariam Raheem
Recently, Pakistani Prime Minister Imran Khan presided over a forum on investment promotion for Chinese entrepreneurs in Pakistan, which was attended by representatives of eight Chinese private enterprises. PM Imran Khan said that China is an important source of investment in Pakistan, and sorting out and solving the difficulties encountered by Chinese enterprises is of great significance for Pakistan to realise industrialisation and promote the transfer of more Chinese industries to Pakistan.
As the main body of the market economy and the basic force to promote social stability, mall and medium-sized enterprises (SMEs) have made important contributions to promoting a country’s economy.
“The relocation of Chinese SMEs to Pakistan will bring Pakistan more advanced technology, higher quality products, stronger brand potential, and a broader international market. Pakistan’s economy will definitely stay increasingly prosperous with the help of Chinese SMEs.” Mr Rehmatullah Javed, Chairman, Grand Group of Companies told Gwadar Pro in a recent interview.
Mr Javed has seasoned experience in the establishment and promotion of SMEs. According to him, the problems faced by small and medium-sized enterprises in Pakistan are mainly financing difficulties, lack of technological development and branding awareness.
“The reasons for these problems are that we do not have venture capital funds, and commercial banks require guarantees when issuing loans. With the help of the Chinese financing, we can introduce the Chinese financing module to Pakistani SMEs and those who qualify can always get financing. Technical support, skill development and capacity building programs are beneficial for the promotion of SMEs” Mr Javed highlighted.
Preferred sectors for SME financing include export-oriented goods and services, largely using domestic technology and resources. “In addition to the world-famous textile, leather and other industries, Pakistan’s light industrial manufacturing is developing rapidly, and the auto parts and IT industries are also emerging industries.” Mr Javed underlined that “Chinese SMEs are most welcome to invest in the above areas. By establishing more linkages with China, Pakistan can get more technology to improve its value chain, assembly lines, branding, technology, etc.”
SMEs promotion is an important component under the China-Pakistan Economic Corridor (CPEC), especially in the second phase. “We hope that the Special Economic Zones (SEZs) can be developed with the realisation of clusters, science and technology parks and environment peripheries and other facilities. We also hope that the private sector and SMEs will play an increasingly important role in the construction of CPEC and Pakistan-China economic and trade cooperation,” Mr Javed concluded.
This article originally appeared on Gwadar Pro.