CPEC bringing socio-economic development for Pakistan

Islamabad : Officials insist the multibillion dollars’ worth of the China-Pakistan Economic Corridor project is significantly contributing to Pakistan’s socio-economic development.

In recent years, the total value of CPEC has increased from $46 billion to $62 billion, which is equivalent to 20% of our country’s current economic aggregate. The impact of CPEC on our country has not only been limited to the economic field but also has a significant impact on other fields.

Although our country has been importing Chinese goods for more than a decade, the CPEC project and the relaxation of trade policies have strengthened the commercial relationship between the two countries and imports have continued to grow.

The officials told ‘The News’ that Pakistan imported more than half of its electrical appliances, equipment and machinery from China and also imports nuclear power plants, high-tech industrial machinery, steel, silk and garlic.

They said the electronics market used to be dominated by Japanese brands, which were high in quality but expensive. Chinese brands began to provide substitutes for these Japanese brands at relatively low prices, and China filled this gap by providing substitutes for high-priced Japanese and German products.

“Brand loyalty has become a thing of the past, emerging global brands are recognized, especially by consumers who are very picky and who use social media,” said Humayoun Bashir, marketing manager of a Chinese multinational company.

“Many people feel that this wave of cheap imports is bad for local industry. The actual import figures are much higher than the official import figures provided by SBP. Pakistan’s imports from China are second only to those from the United States, and China may be Pakistan’s second largest importer after the United States, but Pakistan’s exports to China account for only 60pc of its imports, with a trade deficit of 40pc and it is expected to expand in the coming years. Many Pakistanis believe this model of high imports from China as a new opportunity for Pakistan’s retail trade, “said Mohammed Ahmed, owner of a small and medium-sized enterprises.

It has been shown that the development of transportation infrastructure will promote the thriving real estate industry, while real estate values along CPEC will rise sharply in suburban and rural areas.