Chinese delegation interested to invest in Pakistan Battery sector
Free flow and transfer of new technology from China to Pakistan can open new vistas of opportunities especially dry battery sector of Pakistan. It was stated by Mr. Shah Faisal Afridi, President, Pak-China Joint Chamber of Commerce and Industry (PCJCCI) while addressing a 4-member Chinese delegation headed by Mr. Tian Wenchang GM Hebei Dongsanxing New Energy Technology Company .The other members were, Mr. Zhang Yong Gang Business Manager, Mr.Tian Jizpong and Mr. Xiao senior advisor on investment in Pakistan.
The Delegation visited PCJCCI upon invitation of Mr. Afridi to review joint venture opportunities in the Battery industry that would further supplement other related industries such as automobile, generator, solar system and electronics products.
Welcoming the Chinese delegation, President PCJCCI, Mr. Shah Faisal Afridi told that battery sector in Pakistan had great potential. Modern Technology from China in this sector would prove to be very helpful to revive on modern lines. He observed that majority of the battery industry at present was a reflection of obsolete technology. Most of the players in this sector are using outdated methods and means of production, because the local culture is not conducive towards research and development, he added.
Mr. Tian Wenchang head of the visiting delegation, while addressing PCJCCI members said that Chinese entrepreneurs were encouraged to find out tremendous possibilities of investment and joint ventures in Pakistan in the field of Battery sector as well the sub-sectors linked with it.
He said that The Battery Manufacturing industry in China had grown over the last few years, driven by strong development in various downstream industries, including electronic manufacturing, electric power generation, communications and information. He cited that the industry's growth had also been fueled by developments in China's recreation, entertainment and healthcare sectors, which had been expanded due to a rapid economic growth of the country.
On this occasion a member of the delegation Mr. Zhang Yong Gang elaborated that the investment of Chinese Companies in the battery sector will not only enable China to meet increasing demand of the local customers in Pakistan, but will also help Pakistan to capture a fare segment of export market.
Meanwhile, President PCJCCI Mr. Afridi, in a press statement, has urged the government to lessen the tax burden on the local industry so as to facilitate joint ventures with Chinese entrepreneurs. He pointed out that the cost structure of the local industry was bearing a burden of heavy taxes, due to which about 30% of the revenues generated go to the government. Thus, the heavy burden of taxes needs to be addressed prudently, he said and giving break-up of the taxes, he observed that 15% Sales tax and 10% Excise duty, on imported raw materials make the industry uncompetitive both in local and international market.