Connectivity to create opportunities, also widen gap

FCCI chief asks regional states to frame policy for sustained growth

FAISALABAD: Regional countries should formulate a practical policy to achieve sustained economic growth in the wake of enhanced connectivity resulting from China-Pakistan Economic Corridor (CPEC) coupled with restoration of peace in South Asia, suggested Faisalabad Chamber of Commerce and Industry (FCCI) President Syed Zia Alumdar Hussain.

Speaking at an event titled “CPEC - Gateway to Progress, Prosperity and Connectivity”, organised by the Association of Chartered Certified Accountants (ACCA), Hussain pointed out that without doubt the connectivity would create economic opportunities but at the same time it would also widen the gap and increase competition between developed and underdeveloped countries of the region.

“Under this risky situation, the underdeveloped countries will need to harness their skills to compete with their developed counterparts,” he emphasised. “If such countries do not improve their production, they will only end up becoming a dumping ground for surplus goods of developed countries.” The FCCI chief was of the opinion that vast differences existed between economic parameters of the countries falling within the region and asked all of them to concentrate on upgrading technologies of the underdeveloped countries.

“Otherwise, the scale of Chinese economy will inversely affect the industry and small and medium enterprises (SMEs),” he cautioned.

He stressed the need for forging joint ventures with Chinese companies in a bid to ensure technology transfer and address liquidity crunch.

The FCCI president noted that China’s rapidly enlarging economy was expected to surpass the economies around the world by 2050. He called the Belt and Road a huge initiative for Pakistan and other countries. The initiative includes numerous mega projects like the 21st Century Maritime Silk Route, Bangladesh-China-India-Myanmar Economic Corridor, China-Mongolia-Russia Economic Corridor, China-Central Asia-West Asia Economic Corridor and China-Indochina Peninsula Economic Corridor.

Published in The Express Tribune, January 3^rd, 2019.

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