Chinese SMEs investment in Pakistan creating employment opportunities

APP News Agency

25th Oct, 2021. 09:59 am

Chinese SMEs investment in Pakistan creating employment opportunities. Image: File

BEIJING: In recent years, more and more Chinese Small and Medium-sized Enterprises (SMEs) have invested in Pakistan and cooperated with the Pakistani small and medium-sized enterprises, creating a large number of employment opportunities for Pakistan and making more and more contributions to Pakistan’s tax revenue.

This was stated by Cheng Xizhong, visiting professor at Southwest University of Political Science and Law, Senior Fellow of the Charhar Institute, in an article published by the China Economic Net.

The Pakistani government attaches great importance to the development of small and medium-sized enterprises, he said, adding: “I believe it is a correct decision.”

Cheng said that he still remembered that in 2019, Pakistani Prime Minister Imran Khan met with an investment delegation comprising more than 100 Chinese enterprises in Lahore.

Prime Minister Khan warmly welcomed Chinese Small and Medium-sized Enterprises to invest in Pakistan, and said that the Pakistani government was committed to simplifying the registration process of foreign investment and improving the investment environment.

PM Khan expressed the hope that the Chinese SMEs would contribute to increasing employment and poverty reduction in Pakistan, he added.

First, the prosperity of the market economy comes from fair competition, he said, adding that with the development of modern economy, on the one hand, there is a trend of centralisation, and on the other, a large number of small and medium-sized enterprises are emerging.

These two forces, two trends and the dual structure in the market economy constitute the basic forces to promote the prosperity and growth of the national economy.

Second, due to the large number of small and medium-sized enterprises, which are distributed in various fields of the national economy, they are increasingly becoming an important factor of economic growth.

Third, the SMEs mainly exist and develop in labour-intensive industries, with less investment, flexible operation mode and low technical requirements for the labour force, he added.

They are the main channel for the reemployment of the unemployed and the employment of new labour force, and play a stabilising role in social development.

Fourth, the SMEs are not only an important source of technological innovation, but also have a higher efficiency of innovation because of their flexible operating mechanism, keen response to emerging markets and convenient technology renewal and product adjustment.

The time for transforming science and technology into real productivity is also greatly shortened. Therefore, they play an important role in creating new technologies and developing new products.

Fifth, people who run Small and Medium-sized Enterprises often play multiple roles. They are not only the decision-makers and managers, but also the participants in product research, development and production; therefore, the SMEs are the cradle of cultivating entrepreneurs.

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