Brazilian envoy says CPEC game changer for region

LAHORE: Claudio Lins, Brazilian Ambassador to Pakistan says the China-Pakistan Economic Corridor (CPEC) will be a game changer for the region and global investors are eyeing the outcomes of the CPEC projects. The envoy shared this view during an interview.

Q: What is the potential of bilateral trade between Pakistan and Brazil given that it amounts to around $300 million a year?

A: I am not only surprised but also disappointed at the current level of trade between Pakistan and Brazil. I think there is a huge potential of improvement. A few years back the trade volume between the two countries reached $700 million that I think was still much below potential.

Economies of Pakistan and Brazil are complementary, which means that Pakistani exports would not hurt Brazilian economy, which anyhow imports those items from other countries. Similarly Brazilian exports would have no impact on domestic industries of Pakistan. Bilateral trade would be a win-win situation for both the countries. It is the absence of interaction between the businessmen of both the countries that has limited the trade volume. There is more trade with China and India which are in competition with the Brazilian economy.

Q: Is the low bilateral trade because of the security perception about or political instability in Pakistan?

A: I have been in Pakistan for almost a year. The situation has vastly improved both on the political front and security. Pakistan’s army has done a commendable job in tackling terrorists and promoting a sense of security. However, the past perceptions still persist. I am sure that investors would soon realise to exploit the huge investment potential of this country. The CPEC is indeed a game changer. Global investors are waiting for its completion. Once this corridor is operative, investors from all over the world would storm Pakistan. I am sure Brazilian investors would be among them.

Q: Which of the Pakistan’s products do have demand in the Brazilian market?

A: Pakistan is good in chemicals, plastic products, pharmaceuticals, surgical instruments, sport goods, fertiliser and machinery. It is simply a matter of exploring the Brazilian market prudently. There is a need to increase contacts between the businessmen of the two countries. Pakistan businessmen have probably not explored the Brazilian market seriously. It may be due to its far away geographical location. There is definitely a good market for surgical instruments and pharmaceuticals in Brazil. The Pakistan football is of top quality but its exports have been limited due to supplies from the low cost countries, like Vietnam.

As far as pharmaceutical sector is concerned, let me tell you the ever since I landed in Pakistan I am using medicines produced by local companies. I must admit that the quality and efficacy of these drugs is at par with the world’s standards. The rates of these medicines, however, are 1/10th of the rates that Brazilians have to pay for the similar drugs. The pharmaceutical industry should seek permission of the authorities in Brazil to market their products. I am sure there would be few medicines that would be permitted for marketing.

Q: Brazil is cited as the best example in the world for reducing inequality through equitable growth policies. Can Pakistan replicate the model?

A: I am now 56 years old. When I was born the Brazilian economy was in dire straits. There was misery all over. The economic pundits were of the opinion that the inequality would be reduced through accelerated growth. However, the higher growth brought immense benefits to the rich and more misery to the poor. It was then that the planners started promoting equitable growth policies.

Our policies paid huge dividends. The World Bank advised other countries to follow our model. Inequality in Brazil has not been completely removed but has been appreciably reduced.

Pakistan, like many other countries of the world, is formulating similar equitable growth policies. Benazir Income Support Program was, in fact, designed on almost the same pattern as practiced in Brazil to reduce inequality.

Q: In which fields, Brazil can offer cooperation to Pakistan?

A: We are fulfilling 42 percent of our energy mix through alternate energy sources. Blending ethanol in gasoline is one of our specialty as is the generation of hydroelectricity. We are ready to assist Pakistan in both the spheres.