Return On Investment | Editorial

With Chinese investors of Independent Power Producers (IPP) and other CPEC expressing concerns about the delay in payables, the government has promised to give out $1.4 billion to ease their tensions. Assuring a Return on Investment (ROI) is integral for proving the potential success of a business venture, especially one that is as massive as CPEC. The government must ensure that timely payments are made to protect these projects at their stage of infancy and encourage more confidence in the Pakistani market.

The authorities had admitted to the fact that there had been an immense delay in the payments that the investors were due. While we can appreciate how accommodating China has been, we must also not push those who have taken a chance on us. Millions of dollars were invested in Pakistan, and showing that it was not all in vain is imperative. Otherwise, we will have to deal with the inevitability of work being stalled and contractual payments being delayed long enough to change the fate of the project. So long as our investors are aware and reassured of the fact that their decision to funnel finances into our economy through CPEC was a good one, operations can continue with ease and perhaps even expanded with confidence.

Currently, we are at the initial stages of the project in which inspiring investor confidence ensures its longevity and also allows for the government to generate additional business. Our local market will be considered productive, less uncertain and profitable which, in turn, will attract further interest. In light of the possibilities that lie ahead, the government must work towards establishing a system that clears payments timely and rather automatically. A revolving fund is likely to help as consumer bills can be recovered and some of the money obtained can be used to give back to the 135 Chinese companies operating in Pakistan and for regaining their trust.​

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December 2021
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