By Samia Khalid ISLAMABAD, April 04 (INP-WealthPK): The China-Pakistan Economic Corridor (CPEC) is leading Pakistan towards a manufacturing economy, reports WealthPK. Large-scale manufacturing (LSM) increased by 8.2% in January 2022 as compared to 3.6% in January 2021, according to the Pakistan Bureau of Statistics (PBS). Moreover, the quantum index of manufacturing (QIM) in January FY22 was reported at 136.7 points (base year 2015-16), the greatest production ever. In 2021, the profitability of the top 100 firms listed on the Pakistan Stock Exchange (PSX) increased by 62%, the largest increase in the previous 10 years. Adnan Khan, a socio-economic development specialist at CPEC Authority, said while talking to WealthPK that Pakistan connects the Middle East, Africa, and the rest of the globe by providing trade routes. This includes three continents, 68 countries, 1/3 of the world’s GDP, and 62% of the global population. “Moreover, trade moving inland gets access to China, the Central Asian States, and beyond to Russia. Industrial cooperation between Pakistan and China under the CPEC is intended to make Pakistan a regional manufacturing centre, while the development of industrial zones would provide significant investment possibilities for local entrepreneurs and absorb a large amount of labour,” he said. Adnan Khan said that shifting industries from China to Pakistan would result in export promotion, import substitution, technology transfer, and job creation, all of which are important goals for the government. The official said Pakistan’s special economic zones (SEZs) provide the most competitive regional incentives for investment. This includes a 10-year exemption from all income taxes as well as duty-free imports of any plant, machinery, equipment, parts, and accessories essential for manufacturing and service provision. Export-oriented enterprises can also benefit from customs and other duty exemptions. “In addition to the Gwadar Free Zone, four of the total nine CPEC SEZs are nearing completion. Additionally, 19 multi-industry SEZs are open for business for investors wishing to put up units in the next two years in terms of infrastructure availability. These SEZs have a total land area of 5,300 acres,” said Adnan Khan. The official said Allama Iqbal Industrial City is one of the five CPEC-related SEZs that the government is currently developing at a fast pace. Others include Dhabeji SEZ in Sindh province, Rashakai SEZ in Khyber Pakhtunkhwa province, and Bostan SEZ in Balochistan province. The fifth fast-tracked SEZ is in Gwadar, whose area has recently been increased from 60 acres to over 2,200 acres. “A large number of foreign investors have expressed interest in investing in these SEZs, and the government has provided facilities to these investors,” said the official. Adnan Khan further stated that the Investment Facilitation Center within the CPEC Authority provides a direct interface to Chinese companies. “All issues related to Chinese enterprises get the urgent attention of government departments, and their issues are resolved expeditiously. In addition to providing a plug-and-play environment, legal empowerment is being ensured for the SEZ management companies to provide maximum facilitation to investors within the SEZs,” he said. Adnan Khan said as many as 147 Chinese companies are already operating in Pakistan, and their representatives have visited the prime minister twice in recent months to express gratitude for the resolution of their outstanding problems. Adnan Khan said the successful execution of projects under CPEC will result in import substitution, export orientation, and employment creation in a variety of sectors. “This will make Pakistan a manufacturing center. Moreover, the industrial promotion package would not only revitalize industrialization in the country, but also expand our manufacturing sector,” he said.