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China: there are several areas where the ongoing cooperation between Pakistan and China should be continued but at least three areas need to be focused for accelerated implementation. These are: one, completion of ongoing projects under CPEC – addition of capacity to the national power grid by bringing the hydropower, renewable energy and coal projects to culmination. The ML1 Railway track has been pending approval and financing for several years and each year of delay adds to the logistical costs to the economy and fiscal deficit by absorbing the losses of Pakistan Railways operating an outdated system. The Gwadar Port has to be made operational by commissioning water supply, electricity generation and other supporting infrastructure. The evacuation of goods from Gwadar to China and vice versa can start once the missing links in the KKH, western corridor, Khuzdar-Ratodero Road etc are filled in. Two, despite the revised free trade agreement with China, the volume of Pakistani exports has not made any significant penetration in the Chinese markets. An actionable plan developed in conjunction with the private sector to be monitored by the cabinet regularly should aim to achieve at least one per cent of Chinese imports by 2030. This would require investment in expanding production of goods and services in which Pakistan has comparative advantage, performance linked incentives, a liberal tax and ease of doing business regulatory regime. Pakistani professionals and managers should be attached with the Chinese companies for some time to better understand their market conditions, standards and requirements.

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The News

Publication Date

10-21-2022

Pages

1-4

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