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Chinese firm blames bureaucracy

for investment delays

ISLAMABAD: China Gold-OX Pakistan Limited has communicated to Chief Executive General Pervez Musharraf that Pakistan bureaucrats have created hurdles in the way of a foreign investment of Rs 1.5 billion. The firm wanted to manufacture 5,000 to 20,000 Chinese tractors locally.

The price of tractor will be Rs 100,000 to Rs 125,000 with accessories if they are allowed to be either manufactured locally or imported under the SRO 921(1)/94, the Chinese firm has pointed out to the General in a representation against those bureaucrats who have reportedly created hurdles in its way to invest the money.

The Chinese firm's letter addressed to the General Pervez Musharraf said: "It is more than five weeks now that we are waiting for the reply of National Tariff Commission chairman, to our letter dated December 1999 to the effect."

"We regret that as per our short time of experience in Pakistan, we have come to know about working of government departments and we are surprised that they are not bothered to help the foreign investors and joint venture projects due to reasons unknown to us. Why they show these delaying tactics and cold shoulders to foreign investors investment coming to Pakistan," the letter states.

The firm mentioned that "We are here to invest Rs 1.5 billion in Pakistan. And want to set up one of the greatest manufacturing and assembling plant of tractors and automobiles in Pakistan and we chose this country because China and Pakistan have friendly relations for more than three decades. We have also plans to export approximately 5,000 to 20,000 tractors, three-wheelers, pick-ups, vans, generator sets, diesel engines etc to Africa, South America and Asian countries from Pakistan."

Earlier, the firm said that it approached the Central Board of Revenue chairman who directed us to contact National Tariff chairman. We introduced ourselves as the leading manufacturers, exporters, stockiest, suppliers of agriculture tractors, spare parts, automobiles, etc. We told the NTC that the above machinery would be manufactured in Pakistan under the joint venture with our principals as the leading Chinese group.

The firm said its principal are M/s China Zhengzhou Gold-OX Group Limited (GOG). The range of management involves the production and sale of big, medium-and small-size power diesel engines, tractors and other agriculture vehicles.

In this venture with China Gold-OX Pakistan, the firm further informs that our principal investment will be about Rs 1.5 billion, which will be met by shipment of China Gold-OX tractors and machinery without opening of letter of credit from Pakistan side in their favour. Moreover these tractors and machinery will be sold out in Pakistan and the sale proceed will remain here to set up joint venture factory/assembling plant, manufacturing plant, construction works etc.

Now the case is with the Board of Investment, which has further delayed the project by asking the agriculture ministry to report whether it agrees to this proposed manufacturing of Chinese tractors in Pakistan.ÑFortuna