The benefits of the China-Pakistan Economic Corridor (CPEC) entail not just the completion of several infrastructure projections but also the arrival of more future investment opportunities which could transform Pakistan’s economy.
As CPEC enters its second phase, these benefits have started to become more apparent. Various leading Chinese companies have invested over one billion US dollars in different sectors in the second phase of the China Pakistan Economic Corridor (CPEC) in Pakistan. These companies have invested in Faisalabad’s Industrial City and their assembling and production plants have started working.
Sources close to the government have reported that the total value of this latest Chinese investment is $1 billion, with the government hoping that in the near future five more major companies would invest more in Pakistan. This is a large investment, which if executed successfully, will attract even bigger amounts. This scale of investment can have a huge impact on Pakistan’s economy and society; it can trigger significant job growth, boost exports and increase consumer purchasing power, which can put the economy on a positive growth-orientated cycle.
While CPEC had initially been coming in slow, these developments as the project now progresses indicate how consequential it is to make sure that the investment coming in from China is made to work effectively. Some previous Chinese companies have complained of slow work and red-tape in the past and it is important these factors slowing down business be countered.
The government is putting in work—the CEOs of some of the companies met with the Prime Minister, where he took strong exception to the complaints of the delegation concerning various departments and told businessmen that they should report to the PM office directly for swift response and resolution of their problems. This approach should be kept up to ensure that CPEC should be profitable for all stakeholders.
Source: Published in The Nation on 15th September 2021