In a major move to encourage Chinese investment, Pakistan has approached the Chinese firms to encourage investment in the cement sector by establishing new plants in the country. Sources told that the issue of new Chinese investment in Pakistan and progress of existing Chinese projects was discussed in a recent meeting between Chinese Ambassador in Pakistan Luo Zhao Hui and senior officials of different ministries at the Planning Commission. The meeting thoroughly reviewed all Chinese projects in Pakistan, which was at-tended by the senior officials of the Planning Commission, Federal Bureau of Revenue (FBR), Finance Division, Ministry of Petroleum, Board of Investment (BoI), Ministry of Railways and Ministry of Foreign Affairs. According to sources, the government has invited Chinese firms to express interest in the establishment of the cement plants in Pakistan. The idea is to ensure maximum investment in potential sectors, particularly cement industry.
The duties and tax concessions on the import of plant, machinery and equipment under different FBR notifications and tax laws are available to the new foreign investors. The procedure of “advance ruling” under Income Tax Ordinance 2001 is also avail-able for new investors to know about their income tax liability in advance before making any investment in Pakistan.
During the meeting, the Chinese Ambassador informed the Pakistani government that during the visit of President Asif Ali Zardari to China, a memorandum of under-standing (MoU) on sharing of knowledge between Chinese and Pakistani Planning Commissions might be signed. The agreement would be instrumental in strengthening long-term relationship between the two countries. The Chinese Ambassador also thanked the government of Pakistan for supporting expeditious planning and implementation of projects being executed by the Chinese companies.