The recently proposed Pak-China Industrial Zone near Kala Shah Kako in the provine of Punjab will be the first Chinese industrial zone outside China. Some 20 Chinese companies would make investments and establish projects in the zone.

The China delegation, a Ruba Hajer group, met with Pakistani Minister Shaukat Aziz just recently have requested that Punjab allocate land to the Chinese Industrial Zone on a deferred payment plan. The Chinese proposed that the cost of land will have a recovery period of 15 years.

Pakistan government officials are setting up a steering committee to finalize the incentive package including agencies to provide infrastructure to commence the work on the allocated land. Chinese investors will base their investment plans in accordance with the incentive package.

In recent years, Pakistan’s real estate market was booming. Government’s effort to promote Pakistan as an investment choice helped the property market to gain growth. Current real estate projects in Karachi, Lahore, Islamabad and Gwadar’s future port city have built-in infrastructure to assist the rapid development of housing schemes.

Meanwhile, China’s real estate industry has developed rapidly in recent years and has more than 20,000 property development companies. The Chinese government made policies and measures for urban housing system reforms to foster comprehensive development of the real estate business.

If plans materialize, Islamabad will be the recipient of the proposed 10,000-15,000 houses for low income groups to be constructed by China International Industry and Commerce Co. Ltd. (CIIC). CIIC is confident that the capital city is a safe place in view of the presence of international diplomatic missions and government offices.

Chinese investors are keen on developing real estate projects in Punjab and Gwadar. In Punjab, 200 hectares are allocated for them at M-111 Industrial Estate while in Gwadar, the completion of the deep-sea port project will make it the new business hub in South Asia. Islamabad is planning hotels, theme parks, marinas, boating clubs, and other recreational projects in Gwadar.

Vast potential of Pakistan’s real estate industry awaits Chinese investors. The free trade agreement inked by China and Pakistan aims at the “promotion and protection, treatment of investment, expropriation, compensation for damages and losses, and dispute settlement,” and most of all enhancement of economic cooperation between the two countries.


Ma. Roma C. Agsalud

Miami Real Estate