ISLAMABAD: Pakistan Business Council (PBC) discussed for a “measured watch” on increasing Chinese steps in Pakistan’s economy.
PBC on Wednesday also called for a calculated response with Pakistan’s fiscal, monetary and exchange rate adjustments to manage the balance of payments.
The Pakistan Economic Forum that was also attended by Prime Minister Shahid Khaqan Abbasi saw numerous group representing 66 of the largest industrial groups in the country.
In the discussion, it was stated that the massive China-Pakistan Economic Corridor (CPEC) offered opportunities for the economy to benefit from improved infrastructure and high job creation but “wanted a cautious approach to monitor future openings”.
“Chinese investment must be seen to serve as an enhancer to domestic businesses, not as an ‘extractor’ from them,” the Dawn quoted the PBC’s report.
“Already damaged by the free trade agreement (FTA) with China, many businesses in Pakistan are concerned that Chinese companies will use the CPEC ‘umbrella’ to further increase their share of the domestic market, through the proposed special economic zones (SEZs), or through the incorporation of Xinjiang within CPEC,” the report further said.
Earlier on Jan 13, it was reported that differences are reportedly developing between Pakistan and China over which of these two countries will eventually stand to benefit strategically from the USD 60 billion China-Pakistan Economic Corridor (CPEC) project in the long run.
An article published by The Diplomat has suggested that existing critical monetary, security and capacity issues could hamper the CPEC's future, as both Islamabad and Beijing are repeatedly and consistently flagging their concerns, doubts and frustrations about project-related lacunae.
China would also not want to annoy India, as both have high value bilateral economic and strategic commitments with each other.