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Pakistan province invites Chinese investment

By Hu Yang (chinadaily.com.cn)
Updated: 2011-04-22 16:21

BEIJING - Punjab, the most populous province of Pakistan, is making major efforts to invite Chinese enterprises to participate in its construction, proposing the public-private partnership mode to benefit both sides, according to the provincial leader.

Punjab is planning to build two major ring roads, one in Lahore and one in Rawalpindi, to accommodate its accelerating economic development. A forum was held on Thursday in Beijing by the Pakistan Embassy to introduce the two projects to Chinese enterprises.

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Muhammad Shahbaz Sharif, the chief minister of Punjab, attended the forum. He and his delegation, which comprises parliamentarians, senators, investors and industrialists, are on an official visit to China, starting April 18.

The government will grant land use rights and accordingly claim some stake, while the concessionaire company would be responsible for the remaining costs such as construction and land development and gets the remaining stake.

In return, the concessionaire can collect tolls from the entire ring road and would have the right to develop and sell plots adjacent to the road. The government has planned economic zones along both roads.

The concession period for the Lahore road is set at 17 years, and for the Rawalpindi road, 20 years.

The Punjab government hopes Chinese enterprises can play an important role in the road construction projects, said government officials from Punjab at the forum. The forum invited Chinese enterprise representatives to learn about and discuss the projects.

Sharif, the chief minister, said at the forum that China and Pakistan shared deep friendships over the years, and now the cooperation should rely more on mutual benefits instead of one-sided aid.

He promised full government support for Chinese enterprises working in Pakistan. As for terrorism concerns, he said Pakistan will do its best to protect the interests and safety of Chinese projects and personnel there as if protecting their own, and he believes Chinese companies and workers would be safe in Pakistan.