According to newspaper reports, Pakistan’s imports from China increased by 30 percent last year. Most of the imports consisted of material for electricity-generation projects, construction equipment and agricultural machinery but it disturbed the trade balance between the two countries. The country’s current account deficits recorded over 121 percent increase between July last year and February and are coming as a challenge for the newly established government of Prime Minister Shahid Khaqan Abbasi. The country is already facing political uncertainty, financial indiscipline and terrorism. India and Afghanistan are trying to manipulate this situation and are doing their best to defame Pakistan in the comity of nation and damage its economy. India has officially launched a disinformation campaign against China Pakistan Economic Corridor to create doubts in the minds of the people of Pakistan and instigate voices of dissents in smaller provinces. Some Pakistani economists, influenced by the Indian propaganda, have already started diatribe against the mega projects. According to them, Pakistan will have to return $90 billion to China over the next 30 years because the corridor would become its liability then an asset. However, they have failed to understand that Pakistan will be able to pay the cost under the head of transit fees.
A new set up is in place in Islamabad and former prime minister Nawaz Sharif has plenty of time and resources to prove his mettle. He has time to devise economic and administrative policies to guide the nation as well as the government on the road of development. Pakistan’s exports are declining, creating a vacuum for China to fill it at the cost of local industry. What the government has to do is to set up industrial zones and export processing zones at the earliest to attract foreign direct investment, including from the Chinese entrepreneurs. As a matter of fact, the process of development has been started in Pakistan and he has to push the government to concentrate on one point agenda and that is to keep consistency in his policies.
The current account deficits are piling up and banking on the Chinese investment alone would not be a wise decision. The volume of foreign direct investment was abysmal last year, but the situation is improving during the current financial year. There is also need to improve electricity supply to the industry to run it to its full capacity. When two countries trade, it is always a win-win situation, but the government should also allay the doubts from the minds of the people that China is allegedly dominating the Pakistani economy. There is no need to pay heed to the negative reports from hostile countries asIndia is a wicket enemy and will continue to spread disinformation about the corridor project through its media machine.
