‘Pakistan needs CPEC to stimulate growth’

LAHORE: Pakistan’s economy needs the China-Pakistan Economic Corridor (CPEC) project as a stimulus for rapid growth, said a minister. 

“Not only will CPEC investment boost our economy, but will create synergies for continued sustained growth,” said Minister for Planning Ahsan Iqbal, addressing an event organised by the Institute for Policy Reforms (IPR).

Chairman Humayun Akhtar Khan at IPR said CPEC has received wide attention, but given its importance, “needed in depth discussion.” 

He requested the government to elaborate project completion timelines, financing plan and strategy for effective implementation. 

Connection between markets, both within the country and with the region, would change the fundamentals of doing business in Pakistan and in the region.

Executive Director Ashraf Hayat at IPR questioned how has government planned to ensure sustainability of external debt obligations. 

Hayat said CPEC will add three billion dollars to Pakistan’s already high debt repayment by 2020. Total repayment obligation would reach $10 billion, he added. 

Pakistan’s current account deficit would also increase because of increase in power machinery and repatriation of profits by independent power producers. 

“CPEC projects are extremely important, but to ensure sustained growth, government must have plans,” Hayat said. 

He also stressed on the need for transparency in CPEC implementation both in terms of information sharing and in government procurement decisions.

Deputy Chief of Mission of the Chinese Embassy in Islamabad reiterated the commitment of the Chinese government to the CPEC project. 

“This bilateral relationship will further deepen and would strengthen Pakistan and the region,” he said.

Managing Director Dr Hafiz Pasha at IPR, elaborating the macro-economic and operational implications of CPEC implementation, said these projects are critical for Pakistan.