Pakistan attracts Chinese investors with exclusive incentives in solar and EV sectors
17 November 2024
Published in: The Nation
Pakistan is set to attract Chinese investors with exclusive incentives in the booming solar and electric vehicle (EV) sectors, said Pakistan’s Trade and Investment Counselor to China Ghulam Qadir.
Addressing the 4th Beijing International Engineering Procurement Conference & Exposition for Engineering Construction Supply Chain (EPC Expo), focused on sustainable trade between China and Pakistan, Ghulam Qadir emphasized that the Pakistani government has introduced special incentives designed to strengthen bilateral cooperation in green technology.
“These sectors are pivotal for Pakistan’s sustainable future and present lucrative opportunities for Chinese businesses,” Qadir noted according to a report carried by China Economic Net (CEN) on Friday.
He highlighted the potential for collaboration on high-impact projects, including streamlined licensing processes, tax breaks, and favorable import policies aimed at reducing setup costs and accelerating the transfer of EV and solar technology to Pakistan.
“Pakistan offers a consistent 10-year policy framework of tax exemption for import of plant, machinery, and equipment for new and BMRE for manufacturing of solar panels, parts & allied equipment’s with equal treatment in sales tax for local manufacturers and importers and ten-year tax holidays. Bank financing loans at low interest rates for setting up local manufacturing and international-standard in-country testing facilities/labs”, he added. “Pakistan sees China as a vital partner in transforming its energy and transportation landscape,” Qadir stated.
“Our combined efforts in solar power and electric vehicle development can not only meet shared climate goals but also fuel substantial economic growth in both countries.”
He said that Pakistan aims for 30% of its local vehicle production to be electric by 2030 whereas comprehensive EV Policy 2020-2025 wherein incentives for local electric vehicle manufacturing are granted to the manufacturers and reduce reliance on imported fuel.
He highlighted potential projects and collaborations, including co-manufacturing initiatives, technology transfer agreements, and joint ventures designed to streamline production and reduce costs.
Qadir mentioned that as countries globally look toward greener solutions, Pakistan aims to leverage Chinese expertise and investment in EV and solar technologies to accelerate its energy transition.
It is to be noted that the 4th Beijing International Engineering Procurement Conference & Exposition for Engineering Construction Supply Chain was scheduled to be held at Beijing Beiren International Exhibition & Convention Center from November 14-16, 2024.
