Private sector can benefit from CPEC

BEIJING: The multi-billion dollar China-Pakistan Economic Corridor (CPEC) is an open initiative that allows private-sector players from China, Pakistan and other countries to participate in the project. As Pakistan strives to attract more Foreign Direct Investment (FDI), the private sector’s share of CPEC projects is likely to increase, according to an article published by Global Times, a Chinese newspaper, on Wednesday. The Pakistan government is working to make the country more appealing to foreign privately owned companies by offering incentives such as investor facilitation services to attract new capital inflows. CPEC is the major driver of FDI in Pakistan, driven by China’s rising investment in roads, railways, power facilities, industrial zones and other infrastructure. The multibillion dollar project has improved local infrastructure, which is a precondition for Pakistan’s economic take-off. Although Pakistan’s external debt is a source of concern, its economy is on an upswing. Pakistan’s positive economic outlook will make it a more attractive destination for private players. The question remaining is how to encourage private-sector companies to capitalise on business opportunities under CPEC.

Published in The Express Tribune, July 26^th, 2018.

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