Engagements with China have been very constructive for Pakistan, and the government is eyeing Chinese investments to boost Pakistan’s economy. In the latest move, the Prime Minister has signaled the relocation of Chinese industries to Pakistan, including leather, textiles, and footwear. While this is not a sudden development, it is one agreement among many that seeks to expand the already existing industries in the country. The expansion of these industries will mean more jobs, more exports, and hence, more revenue.

However, this expansion will also lead to increased energy consumption. Judging from the joint energy projects, these details must have already been considered by the experts. Despite the need for this relocation, the government must also be aware of its duty to protect local industries. Pakistan already produces leather goods, fabrics, and footwear domestically. Moving Chinese industries here must not dismantle or disrupt the local production cycle and the livelihoods of those tied to these professions. Domestic industrialists must be taken on board, briefed about the plan, and their reservations must be addressed.

If this step is taken without proper preparation and the local industry is displaced, the relocation of Chinese industries will only amount to inviting a multinational corporation to steal away livelihoods and establish its supremacy. For Pakistan and its struggling industry, this is the least desirable outcome from an agreement that is supposed to stabilize the economy. Foreign investments are surely the need of the hour, but they must be thoroughly planned.

If the Chinese bring the leather, textiles, and footwear industries, will two separate streams work in parallel, or will a conjunction be created for the local industries to integrate into the Chinese-led production houses? These and other questions must be addressed by the government. Once all the details are sorted, the Chinese industry will be more than welcome to relocate.