ISLAMABAD: Pakistani economist has said that the China-launched Belt and Road Initiative (BRI) is a game changer for international trade.
Mohammad Zubair Khan, a former Pakistani commerce minister, in a recent interview with Xinhua news agency, said that many countries that have a comparative advantage could not enjoy that advantage because of disconnection with other countries.
“With the expansion of the BRI connectivity that was planned and envisioned by China, I think that will change, and we will all benefit from the BRI structure,” he said.
The economist highlighting the China-Pakistan Economic Corridor (CPEC), one of the BRI’s flagship projects, said it is connecting the Arabian Sea with the entire Asia.
The CPEC launched in 2013, is a corridor that links Gwadar Port in Pakistan’s Balochistan province with Kashgar of China’s Xinjiang Uygur Autonomous Region.
Energy transport, and industrial cooperation are part of the first phase of the CPEC, while the new phase expands to the fields of agriculture and livelihood, among others.
“It’s not just about trade with the big economy of China, but the Central Asian economies. They can all be connected through the links into CPEC,” he said.
The development of Gwadar port under the mega project would play a vital role in reducing the bottlenecks Pakistan had been facing in terms of connectivity, trade and access to the international markets, Khan said.
He went on to say the CPEC investment is an integrated approach towards easing Pakistan’s connectivity with the whole world.
The economist added it is very essential that Gwadar is seen in a positive light by all neighbors of Pakistan and helps Islamabad’s integration in the region and across the world.
The expert who represented Pakistan at the first ministerial conference of the World Trade Organization, and has worked with the World Bank and the International Monetary Fund, dismissed the Western allegation that the BRI’s investment model is exploitative and creates debt traps for other countries.
Mohammad Zubair Khan noted the Western model of foreign investment is also the same, so why will Chinese investment be detrimental to the developing nations?
He said most of Pakistan’s debt is owed to Western creditors while China accounts for a very small portion of Pakistan’s total debt.
The economist viewed the Chinese investment in CPEC has been basically in the infrastructure which the Pakistan was lacking. He said this is not driven by China’s own interests, but fulfills the development needs of Pakistan.
He pointed out that the Chinese investment may result in some foreign exchange outflows, but added to the infrastructure much required by Pakistan.
Khan said in the next phase after the development of the agricultural, industrial, and service sectors, the issue of foreign exchange outflows, which is incorrectly called a debt trap, will be addressed, and foreign exchange will start coming into Pakistan.
