Private sector’s participation sought for corridor’s development

LAHORE: Private sector should be taken onboard with regards to the development of the China-Pakistan Economic Corridor (CPEC) to ensure wider socioeconomic benefits for the people of the two countries, advised an economic policy think tank.
Economic corridors are meant to enhance trade and business, and none has worked solely on the basis of being run by the government alone, said Islamabad-based Policy Research Institute of Market Economy (PRIME).
Private sector’s participation is a must, which is, unfortunately, not yet taken into confidence regarding information sharing, planning or implementation of the CPEC, it said in its report, titled ‘China Pakistan Economic Corridor: A Primer’.
The report was based on the interviews of various government officials and trade leaders, including federal minister for planning and China-Pakistan Economic Corridorproject director.
The officials, who were interviewed, said the government is still pondering over ways to benefit from this opportunity.
The report said the private sector has shown concerns over sustainability of the project and the consequences of the extra protections provided to Chinese firms under the agreements.
The report said the proposed economic corridor is being built to achieve the goal of economic integration between China and Pakistan through enhanced communication and the increased trade.
“From Pakistan’s perspective, CPEC has been termed as a fate changer,” it said.
China-Pakistan Economic Corridor is well in line with the Pakistan government’s earlier plan of establishing a national trade corridor, proposed in 2005, with the public sector financing of around nine billion dollars.
Almost 75 percent of the planned $46 billion dollars is for the energy sector, which is entirely in the independent power producers’ mode.
The report indicated that there are a lot of opportunities for private sector to develop infrastructure of transmission and distribution of power along theChina-Pakistan Economic Corridor route.
Private investors can collaborate with Chinese counterparts to develop industrial parks and transmission and distribution infrastructure.
Around $11.5 billion will be invested in the infrastructure projects, primarily in the form of the Western alignment, express ways and Gwadar airport and several other projects.
This will be in the form of Chinese government to government loan on commercial and concessionary terms.
The report said Pakistan has a golden opportunity to cash in on the fact that the world’s second largest importer is in its neighbour.
Pakistan can reduce its trade deficit by increasing its exports.
The think tank said Pakistani goods failed to penetrate into this large market. It said local industries have tremendous trade potential as well as strong base.