Ayesha Saba

China’s steady economic recovery is likely to create new avenues for cooperation with Pakistan, particularly in the areas of trade, investment, and infrastructure development, said Dr. Hassan Daud Butt, associate professor and former project director of the China- Pakistan Economic Corridor (CPEC), while talking to WealthPK.

“China’s emergence as a global economic power has led to realignment of global economic forces and relations. China has become the largest exporter and the second-largest economy in the world. The rising volume of exports from China has transformed international trade and corporate value chains in a fundamental manner,” he said.

“Apart from its economic and political challenges, a natural calamity of historical proportions has exacerbated Pakistan’s structural problems. Pakistan can materialize the dream of economic progress and development by taking advantage of its strategic location and long-standing affinity with China,” said Dr Hassan.

“One of the most significant spill-over effects of China's growth has been on the global trade. China has become a major exporter of goods and services, and its demand for raw materials and other inputs has helped boost economic growth in many other countries. At the same time, China's low-cost manufacturing has put downward pressure on prices, which has benefited consumers around the world.”

“Pakistan, on the other hand, has been struggling with economic challenges, including a large trade deficit and high levels of debt. China's economic recovery presents new opportunities for Pakistan to further strengthen its cooperation. With China's support, Pakistan has been able to make progress in addressing these issues, including through investments in infrastructure projects like CPEC.” Dr Hassan said, “China has been able to recover more quickly than many other countries due to its effective management of the pandemic and its strong domestic market.”

“Pakistan has untapped potential of diversifying its economy and becoming more integrated with the global economy. A relationship built on the foundations of economic cooperation and integration can serve as a much more robust and sustainable basis for bilateral engagement. Therefore, Pakistan must begin prioritizing and marketing its economic potential in order to become more competitive instead of relying solely on its geostrategic location as a driving force,” said Dr Hassan.

“However, to convince the world to view it from a new lens, the country will need to give a concrete direction to this new strand of thought. It is essential for the state to adopt a more attractive profile throughout the world in order to attract investors and increase trade volumes,” he suggested.

He said, “China is transforming and it is time to broaden our thinking and look for avenues of cooperation with our neighbour within and outside of the CPEC. Moreover, our strategic relationship with China continues, but the long-term social and economic benefits can only be realized if our approach to cooperation with China is people and business-centric.”

Credit: Independent News Pakistan-WealthPk