ISLAMABAD: The government on Thursday said Pakistan and China aimed to take the $57 billion China-Pakistan Economic Corridor (CPEC) forward in the long term, but it fell short of divulging any details.
Economic Survey 2016-17, launched on Thursday, has for the first time carried a chapter on the connectivity initiative since the two countries signed the energy, infrastructure and other agreements around the CPEC a little more than two years back.
The survey said “CPEC has expanded to encompass cooperation in a large number of sectors under its short to long-term plans”.
Ever since the government has finalised the corridor project, it has persistently refused to divulge the details of the deals it has so far closed with China. This has triggered suspicions about the long-term Chinese plans for Pakistan and impact of the initiative on the country’s economy. The current survey has once again failed to discuss anything about the long-term plan.
The survey has nevertheless tried to allay public fears about the impact of the initiative, arguing that CPEC envisages comprehensive socio-economic development, peace and prosperity for the region.
“Research studies suggest that the initiative will substantively boost growth and job creation,” the economic survey said. “It is also expected to accelerate urbanisation and attract local as well as foreign direct investment in the country through increased competitiveness. The relocation of Chinese industries will bring possible knowledge spillover and technological progress.”
The survey also sought to dispel the impression that the connectivity initiative would put pressure on the external sector of the country. “In the short term, trade deficit is expected to rise as a result of import of machinery and equipment. In the long run, however, it is expected that the current account balance would improve through import substitution and export expansion. The balance of payments position would also improve in the long run as projects under CPEC reach completion,” it said.
Published in Dawn, May 26th, 2017
