ISLAMABAD: The projects being executed under the China-Pakistan Economic Corridor (CPEC) have given a boost to various sectors in the country, especially cement and automobile industries, WealthPK reports.
Experts believe that the ongoing work on different projects under CPEC will create demand for various items that will leave positive impacts on the local industry. They said that CPEC projects will raise the demand for cement by 1.5 to 3 million tonnes per year.
Globally, the price of coal, the major item used in concrete manufacturing, has dipped by $50 per tonne. The decline in power charges depicts a bright future for the concrete industry. Recently, the concrete industry saw 15 to 16 percent growth. The experts believe concrete manufacturing will grow to 15 million tonnes.
“CPEC is not a three-year but a 10-year venture. It is not simply the construction of roads. It has special economic zones, new businesses and shifting of enterprises from China to Pakistan. People will need more residential units, foundations, new schools, universities and hospitals because their purchasing power will increase. It increases demand for cement,” the chief executive officer of Lucky Cement, Muhammad Tabba, told WealthPK.
He said that their factory would increase its production from 7.5 million tonnes to 15 million tonnes in the next few years. Lucky Cement has invested $200 million in its new plant to meet future requirements.
Presently, the automobile industry of Pakistan produces around 225,000 units every year. With the execution of CPEC projects, it is expected to increase the number to 500,000 units per year in the near future.
According to the Pakistan Association of Automotive Parts and Accessories Manufacturers, the production of motorbikes in the country has increased from 87,000 units to 21,000,000 units per year after the execution of CPEC projects, showing a 22-time raise.
Taking advantage of cheap labour in Pakistan, Chinese automobile firms can begin manufacturing vehicles at the local level. The government has offered tax exemption to Chinese companies in Gwadar.
Chinese automobile firm Foton Group will invest in the automobile manufacturing sector of Pakistan.
Auto BMW Brilliance China, another firm established by China and Germany jointly, said that Chinese automobile companies wanted to put resources into Pakistan and outline arrangements to set up manufacturing plants there.
The establishment of vehicle manufacturing plants by Chinese firms will help in the development of Pakistan’s automobile sector and strengthen the national economy.
According to research, demand for steel will increase to six million tonnes from four million tonnes per year owing to the execution of CPEC projects. It says that a total of 475 steel units are functional in the country but they are unable to meet the demand after work has been initiated on CPEC. There is a need to set up more large-scale units to meet the demand for steel items, it adds.
-INP
