‘China-Pakistan Economic Corridor: Master plan for Chinese penetration into Pakistan’s economy’

‘China-Pakistan Economic Corridor: Master plan for Chinese penetration into Pakistan’s economy’

HONG KONG: The Economic Corridor Project China and Pakistan more than 50 billion dollars seems to be a plan for deep penetration of the Chinese in the Pakistani economy. Many businessmen in Pakistan told Asia Times based in Hong Kong.

According to an article published in the Asia Times, many Pakistanis have complained that damage would benefit CPEC rather than the local economy, especially in the agricultural and industrial sectors.

An industrialist, quoted by the Asia Times, saying that if Chinese manufactured goods are relatively cheap; Its export to other countries via the shortest route Gwadar port will further reduce import costs in the markets that until now were export destination of Pakistan.

According to China’s cheaper and manufactured daily goods, which are transported by trucks from China and Pakistan entering through the Karakoram Highway (KKH), they have already begun to flood Pakistan’s domestic market.

As the cost of production in Pakistan remains relatively high, partly because of the high costs caused by an endless energy crisis, it has hampered the export performance in Pakistan, and it is estimated that the CPEC will allow China to flood the markets Foreigners with the costs of Pakistan.

The International Monetary Fund (IMF) has warned that if Pakistan CPEC projects can generate final payment outflows of $ 3.5 to $ 4.5 billion to Pakistan by 2024, strengthening exports could also pose a real political challenge to the second. Failure to do so will significantly reduce the benefits of CPEC.

It has been suggested that Pakistan establishes its foreign exchange reserves, as higher Yuan (Chinese currency, welcome) additions will further expand Pakistan’s trade deficit. Another IMF report said that in the absence of a robust retail sector, Pakistan’s additional production capacity will have little effect.

The report notes that “delivering increased production capacity across a loss-of-distribution sector could lead to a rapid build-up of more debt and circular fiscal costs while threatening the long-term financial viability of new projects Of energy. ”

“Pakistan’s national food security policy” mentioned the potential of improving agricultural exports to China and sees opportunities through CPEC to achieve, among other things, “food sovereignty.”

However, the policy measures indicated indicate a more important role for Chinese companies, facilitating the export of products from Pakistan to China, but producers receive a fair price. It is not at all clear how this improved interaction between local and Chinese companies will benefit the producers in Pakistan.

“Pakistan’s national food security policy” mentioned the potential of improving agricultural exports to China and sees opportunities through CPEC to achieve, among other things, “food sovereignty.”

However, the policy measures indicated indicate a more important role for Chinese companies, facilitating the export of products from Pakistan to China, but producers receive a fair price. It is not at all clear how this improved interaction between local and Chinese companies will benefit the producers in Pakistan.

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