Pakistan and China on Friday agreed upon the Framework Agreement on Industrial Cooperation under the China Pakistan Economic Corridor (CPEC) following the arrival of Prime Minister Imran Khan on Thursday.
The premier is in China to attend the Winter Olympics’ opening ceremony and hold meetings with the Chinese leadership.
The agreement was signed with State Minister and Board of Investment Chairman Mohammad Azfar Ahsan and Chairman National Development and Reform Commission (NRDC) He Lifeng.
The goal of the Joint Working Group (JWG) on Industrial Cooperation is to promote foreign direct investment (FDI), encourage industrialization and develop economic zones.
The accord with China is predicted to increase labour productivity in Pakistan and improve industrial competitiveness.
In 2018, China and Pakistan signed a Memorandum of Understanding during the 8th Joint Cooperation Committee (JCC) meeting of CPEC that laid the foundation for future engagements.
Similar accords have been agreed upon for Early Harvest CPEC Projects regarding energy and infrastructure.
Due to efforts from the Board of Investment, China and Pakistan agreed to enhance the existing MoU into a Framework Agreement in 2020. The BoI sent the draft framework with NDRC in November 2020, which was made keeping in view the requirements of the Phase 2 of CPEC.
