Our improved economic security

The Annual Report for 2020-21 on Investment Security of China’s Belt and Road Construction says the reforms undertaken in the economic sphere by Pakistan have placed the country among top 10 economies of the world, and it has an environment most favourable to business among countries of the world. The Chinese think tank says Pakistan’s economic security has increased by 220% in 2019 compared with 2010. The report is significant in the context of the fast growing bilateral trade between Pakistan and China. The value of Pakistan-China annual trade stood at $15.6 billion in 2019, up from $2.2 billion in 2005. The two countries did away with the dollar burden through an agreement in 2019 and decided to conduct trade in their own currencies. This has given a further fillip to bilateral trade.

The report praises Pakistan’s successful efforts at attracting foreign investment and facilitating the investors by improving the security environment and the ease of doing business. The country has taken significant steps such as removing bureaucratic hurdles, in order to simplify the process of setting up and starting a business firm and getting a construction permit. Red tape and cumbersome procedures at various levels involved in obtaining permits and permissions have long arrested the economic growth in most Third World countries, and Pakistan was no exception until recently. The report has praised removal of the obstacles coming in the way of speedy economic development. Removal of these hurdles was necessary to put the engine of the vehicle of economic activity going at a faster rate. This was essential to create jobs for the growing number of job seekers.

The report says the South Asian region has been significantly affected by rivalry between the superpowers, and has emphasised the need for increased cooperation between China, the US, Russia, and Japan as this will lead to economic prosperity of the whole world. It has expressed apprehension of India and Pakistan going to war over Kashmir in which the use of nuclear weapons cannot be ruled out.

Published in The Express Tribune, July 28^th, 2021.

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