Indications suggest that regional geopolitics and the global geostrategic chessboard are specifically targeting Pak-China bilateral relations and the CPEC project, leading to the proliferation of speculations and rumors within the country, akin to a spreading fire in the jungle. A systematic propaganda campaign has been initiated against CPEC, labeling it as a debt trap and a supposed security risk for Pakistan’s foreign relations with Western powers and financial institutions alike.
Rumors are high that after the Dasu Hydropower dam suicidal attack Chinese policymakers have decided to wind up the CPEC energy projects and shifted its priorities to Wakhan Corridor to get connected with Afghanistan and ultimately with Central Asian Countries.
Conversely, the Chinese leadership, policymakers and its Foreign Ministry all reiterated their unconditional support to government of Pakistan against its fight against terrorism and continuation of the CPEC Phase-II in the country thus negating the Western-sponsored propaganda against any paradigm shift in the Chinese policy and showing the real colors of Pak-China strategic friendship based on mutual respect, sacrifice, trust, accommodation and, above all, joint persuasions to achieve the desired goals of immense socio-economic integration, connectivity, prosperity and economic sustainability.
However, hot issues of safety, security of the Chinese nationals working in the country along with the CPEC projects must be protected through mutually agreed security arrangements. Chinese investigators arrived in Pakistan to join a probe into a recently held suicide attack in Bisham which claimed the lives of six people, including five Chinese nationals. It is high time to fix the faults and faulty lines to provide a risk-free environment for the Chinese workers, investment and joint ventures in the country.
Prime Minister Shehbaz Sharif urged his cabinet members to immediately commence work towards achieving the targets set in a five-year roadmap he shared with all the relevant ministries. It consists of core responsibilities, accountabilities and wide implementation of meaningful structural reforms in the diverse sectors of economy, production, energy, manufacturing, collection of taxes, digitalization, modernization/innovation, qualitative development, human development and last but not the least, immense overhauling in agriculture, green transformation and above all export-oriented growth in which the CPEC Phase-II may play a vital role to achieve all these goals. It seems that one of the main focuses of Prime Minister Shehbaz is to provide all possible facilities to create a business and investment friendly environment to foreign investors in the country. Moreover, provision of easy “Doing Business” will also be reformed and re-implemented.
Another strategic priority is to overcome delays and red tape through the Special Investment Facilitation Council (SIFC). The hiring of global consultants, the relevant rules should also be followed. The prime minister stressed the utilization of the country’s talented human resources for achieving the targets. Additionally, to reduce the burden of foreign debts, increase GDP, create jobs, develop agriculture and IT sectors, bring reforms in the energy sector and end smuggling should also be strategic goals to be achieved within the next five years, transforming the country and its economy towards self-reliance and self-sufficiency. It is suggested that quick overhauling in our judicial system, implementation of complete accountability, zero tolerance to corruption and any bureaucratic hurdle and no compromise on safety and security of the Chinese nationals and CPEC projects should be the way forward.
Unfortunately, due to structural impediments, lack of infrastructure and easy availability of trained human resource, incompetence, inefficiencies and the economy is mired with numerous ills which need to be fixed for achieving the goals of economic stability, social development and qualitative growth in the days to come.
It is ironic that provinces have also miserably failed to develop their own independent systems and mobilize their own resources by not collecting due agricultural income tax from the rich landlords and failure in imposing progressive taxes assigned and devolved to them in the wake of Constitution 18th Amendment Act 2010.
The burgeoning fiscal deficit, historic high inflation, discount rate of 22 percent, stagflation, rising unemployment, huge circular debt in electricity and gas sectors, continuous funding from taxpayers’ money of inefficient and loss-bearing state-owned enterprises (SOEs) have become main issues for the economic stability and sustainability in the country. Mounting debt burden and meeting revenue (tax and non-tax) targets would not be easily achieved. It is suggested that the corporate tax rate should not be more than 20 percent including super tax etc. The income tax rate should be lowered to maximum 10 percent with an alternate tax of 2 percent on net wealth exceeding Rs.100 million, whichever is higher.
Moreover, reducing fiscal deficit to the level of 4 percent of GDP, it is important to curtail unproductive and wasteful expenses by 30 percent, increase non-tax revenues by leasing out valuable state lands and assets e.g. palatial government houses etc., through public auction and for specific activities to generate employment and boost economic activity and taxes at all levels, federal, provincial and local should be made simple, low rate, broad-based and payable with ease. It is suggested that all possible facilities and incentives need to be extended to all kinds of entrepreneurs and innovators, especially Small & Medium Enterprises (SMEs) to concentrate on innovations, growth and productivity. Banking sector must be proactive in lending to SMEs and big businesses. Collection of local/provincial taxes e.g. property, vehicle, retail and service taxes etc., should be rigorously implemented by allocating funds to local governments to provide services of health, education, civic amenities of all kinds and recreation etc.
In summary, there should be zero tolerance on terrorism, radicalization and unlawfulness in the country. It is high time to implement the National Action Plan to eradicate terrorism from our country, society and ranks. Our national narrative against a Perception War has miserably failed. It is time to act and act immediately because it is a full-fledged war hurting our country, society, economy and bilateral relations with our strategic partner China. It is suggested that policy makers of both countries should sit together to resolve the hot issue of safety and security of the Chinese nationals and CPEC projects in the country. It has certain national, regional and global connections which need to be resolved through pragmatic foreign policy and economic diplomacy.
There is an urgent need to replace the existing security model of the Chinese nationals and the CPEC projects. New integrated, information based, modern and mutually monitored system is the need of the hour. Building of special security zones, special combined forces, special information system and special supervisory wings must be pursued and implemented. Constant drone surveillance and overhauled travel plans should also be implemented.
On the strategic levels, policy makers should seek the Chinese assistance to convince Taliban to curb increasing terrorism activities and infiltration to Pakistan soil enabling us to provide foolproof security to Chinese and CPEC projects. Regional sponsorship of socio-economic terrorism must be handled with iron hands.
