The world is heading toward third economic recession, warns British Prime Minister David Cameron, saying that “red warning lights are once again flashing on the dashboard of the global economy.”Cameron made this statement on the state of global economy while just returning to his country after attending the G20 summit of world leaders in Australia.The world is preparing a ground for a big economic match and Pakistan cannot be singled out which is said to be its likely venue.
The United States has lost its monopoly to China as the biggest economy of the world and Japan hasfallen atthe third place, announcing that its economy is facing recession. Italy, part of the G-8 countries, is already in recession and Germany is showing marginal growth. Despite all odds, Pakistan is on the verge of economic takeoff, but it cannot avoid the heat of developments in the world. Pakistan and China are embarking on a prestigious plan to set up economic corridor from Kashgar to Gwadar and the country will earn $15 billion annual revenue in term of providing transit facility. China is also set to start various projects in Pakistan, including an oilrefinery to meet its requirements through land route. Pakistan has also signed projects with central Asian states and any recession in the global level will definitely affect economic growth in China and it will have negative impact on the Pakistan economy also.
Pakistan has 1,000 kilometers coastal line and its ports provide easy access not only to China, but also to Afghanistan and central Asian states. The country has the potential to become a big economic hub and transit point for the countries in the region. However, security is also a main issue in Pakistan which is the biggest threat to trade and investment in the country.
On another note, Russia is being isolated by the western powers and it also want access to warm waters and looking toward Pakistan for economic cooperation. However, there is a need to keep eye on elements, which are supported by Indian secret agencies and are bent upon harming the interests of Pakistan. The leadership on the political divide should also learn from past mistakes and work for the welfare of the people instead of playing politics with the people.
