Pakistan has decided to exempt Chinese investors from 37 projects besides completing prior actions like payments of dues to power producers and creating revolving funds for future interest payments to the existing investors to perk up investment in phase-II of the multi-billion-dollar China-Pakistan Economic Corridor (CPEC). The announcement was done during the Prime Minister’s four-day visit to Beijing on the eve of Winter Olympics 2022.
According to Special Assistant to the Prime Minister on CPEC, Khalid Mansoor, it is a historic decision to shift their investment proposals to the compliance regime as it will to be the responsibility of the Chinese investors to comply with the law of the land. This step will legally empower Chinese entities to invest in the various Special Economic Zones (SEZs) without prior approval. The investments will be subjected to audit and violations of the law would entail penalties. The Prime Minister has made a personal commitment of fulfilling his part of the promise and claims to address all challenges the investors face under CPEC.
Special Economic Zones are integral to the success of CPEC. They are designed to attract foreign direct investments in the region as it can put Pakistan on a path towards sustainable economic development. If successful, SEZs can generate jobs, economic growth and income levels for various demographic regions across the country. These socio-economic benefits can translate into developed and more planned regions and ultimately help the real estate sector increase its supply of the number of available houses.
Leave a Reply