CPEC injecting Chinese investment in Pak economy
In this time of global economic crisis, the business community is looking eastward with a hope of growth and prosperity. Economists and big banks are forecasting this year will be a great year for China to contribute to the recovery of the world economy. The Chinese market is expected to bring new opportunities this year for the world.
Inflation rate in the whole world is strengthening its roots while Covid-19 and geopolitical stress have added to global economic crisis and currently there is no positive expectation for its recovery anytime sooner. In this scenario, China is one of the few hopes, which keeps growing on the one hand while expanding the domestic demand on the other.
The World Bank has anticipated that the Chinese economy will grow by 4.3 percent in 2023 while around five percent in the following year despite the immense pressure from pandemic as China has eased travel restrictions. Similarly, the International Monetary Fund (IMF) has also forecast that the Chinese economy will grow by 4.4 percent this year. This is a very major projection, made by the World Bank, in a time when all major economies are on the path of slowing down the expansion of their GDP.
For example, the growth rate of the United States of America’s GDP is expected to lower by 0.5 percent this year while the European region is also set for a flat GDP growth rate. The reason behind this decline in GDP’s expansion is increasing inflation, high interest rates, absence of investment and international conflicts. China has already eased pandemic-related restrictions by shifting its focus from preventing infections to herd immunity owing to the significant increase in demand for goods and services.
Currently, the technology industry of China has become a centre of attention for the whole world and individual and institutional investment is being flown into it. Although China is facing a temporary decline in its economy coupled with Covid-19 spread, it has witnessed a huge achievement in different sectors including Artificial Intelligence, Eco-Friendly vehicles and Digital economy with a number of others. China is not only growing its different sectors but also maintaining high-quality to sustain its consumers.
For a long time China has been serving the consumers world-wide while on the other hand it has become a mega market which imports around 2.5 trillion dollar goods and services from different countries. China has been continuously enhancing its quality of production and also expanding its domestic demand. Chinese officials are of the view that by expanding its domestic demand, China can retain its position as the world’s mega market and this is how business communities across the world can be benefited.
China has adopted a new policy to introduce opportunities for the world by bringing down overall tariffs. It has lowered down more than one thousand categories of goods. Majority of the business community and financial institutions world-wide are foreseeing that if China continues with the same dedication and speed, it will lead the world in the next few years.
Being all-weather friends, China is committed to support Pakistan and they proved it so many times. Now Pakistan should also shift its focus to China by expediting the CPEC projects because this strategic project can bring stability and prosperity in our country and Pakistan can become a centre of attention for many world powers.
In this New Year, so many hopes are attached with CPEC which includes fuelling up of Chinese investment, Free Trade Agreements, Special Economic Zones and many more. On the contrary, there are some challenges to it either which includes Pakistan’s economic crisis, Political Uncertainty and security hazards.
In this whole scenario, Pakistan has been enjoying complete support from China. Despite all the challenges, more than 30 projects are in work and it is expected that the majority of the projects will be finalized during this year.
The current government has also resolved for a better economic situation and improved foreign relations now time will show that if this government can succeed in its mission by shifting its focus from degrading the opposition to growth and stability of the country’s economy. This is a high time for all the political parties to move over the personal and political scorings and be united for the sake of the country as there are so many challenges, we are fighting that includes drowning economic conditions, flood effects, emerging security threats, elevated inflation rate and many more.
