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Engineering Corporation, Dong Fang Electric Corporation, China Ocean Shipping
Corporation and Air China are making good profits. The profit gains of existing projects
by the Chinese private sector companies in Pakistan would ensure the enhanced level of
investment from the Chinese private sector. In February 2006, private sector companies
of both countries signed agreements, at Pakistan China investment forum of worth $ 500
million to conduct joint ventures in different areas like real estate development, Karachi
mass transit communication network, chemical, fertilizers, automobile and agro based
industries. The estimated time of completion of these projects was four to five years.
National Bank of Pakistan and China Development Bank also signed an agreement for
providing joint financing to the joint ventures (Government of Pakistan, 2008). In wake
of the political will from both sides for promoting economic cooperation, volume of
Chinese business in Pakistan is appreciating. These are surly enormous potential for the
future growth.
Ministry of Finance, Government of Pakistan and the Investment Division and
Board of Investment (ID&BOI) jointly organized Pak-China investment Forum in
Islamabad on 26 th February, 2008 in order to provide an interactive platform to the
recently launched Pak-China Investment Company (PCICL) and to help it in devising its
‗business plan and expand its clientele‘ (Association Press of Pakistan, 2010). PCICL
would perform investment banking business on commercial basis to carry out activities in
the finance, infrastructure, services, mining, industrial manufacturing and non
manufacturing sectors of Pakistan. The Ministry of Privatization & Investment, the
Government of Pakistan, Mr. Shazada Alma Manoo acknowledged in his welcome
remarks the strength of bilateral relations between the two countries which is deeply
rooted in the ethos, minds and hearts of both the nations. He further added that China and
Pakistan are strategic partners and have been cooperating in many gigantic projects
including upgrading of the Pakistan Railways. The establishment of Pak-China
Investment Company is another important milestone in economic relations as the
company shall play the role in unleashing the potential of Pakistan. Mr. Iqbal Ashraf, MD
PCICL, highlighted the objectives of this company said that Pak-China investment
company is ‗established not only to promote economic cooperation between the corporate
sectors of both countries but they also intend to redefine the role of Development Finance
Institution (DFI) in underdeveloped countries‘. Mr. Chen Jianbo, the CEO PCICL also
echoed the same feelings and pledged the same goals to carry out. He informed the
participants of the meeting that PCICL is part of the five year economic development
program between Pakistan and China. It would provide assistance to business sectors of
Pakistan looking for Chinese investment with the largest paid capital of $ 200 millions
(Association Press of Pakistan, 2010).
Over the years China emerged Pakistan‘s largest defense supplier. Military
cooperation between the two has deepened with joint projects producing armaments
ranging from fighter jets to guided missile frigates (Pant, 2010). China is a steady source
of military hardware to the resource deficient Pakistan Army (Pant, 2010). It has not only
given technology assistance to Pakistan but has also helped Pakistan to set up mass
weapons production factories (Pant, 2010). Pak-China defense collaboration witnessed
another landmark in the September 2003 when jet fighter JF-17 thunder made its maiden
flight in China. It is a lightweight all weather aircraft which can perform multi-role with a
capability to fly at a speed of 1.6 mach and a high thrust to weight ratio. It was completed
COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 162
JANUARY 2011
VOL 2, NO 9