Chinese Experts Visit Pakistan to Advance Second Phase of CPEC

A high-level meeting was held today between Federal Minister for Planning, Professor Ahsan Iqbal, and a delegation of Chinese experts headed by Ambassador Wang Fukong from the Chinese Foreign Ministry. This delegation, comprising representatives from ten Chinese ministries, is visiting Pakistan to strengthen economic ties and seek solutions to Pakistan's economic challenges through the second phase of the China-Pakistan Economic Corridor (CPEC).

During his address, Professor Ahsan Iqbal outlined several key areas where Pakistan can improve, seeking guidance from Chinese experts who have demonstrated significant advancements in these fields.

Professor Iqbal emphasized the necessity of shifting to an export-led growth strategy to prevent balance of payments crises. He noted that as Pakistan’s economy grows, the increase in imports, without matching foreign exchange reserves, exacerbates these crises. Learning from China's success in boosting exports, Pakistan aims to diversify its export base and enhance its manufacturing capabilities to compete in global markets.

Highlighting that only 12 percent of Pakistan’s economy is based on manufacturing, Professor Iqbal stressed the need to expand this sector. He called for collaboration with Chinese experts to develop industrial zones, improve manufacturing technologies, and train the workforce. China’s experience in rapidly scaling up its manufacturing sector can provide a blueprint for Pakistan to follow, ensuring sustainable economic growth.

Despite being one of the highest producers of ten different crops, Pakistan’s average production levels are low. Professor Iqbal pointed out the potential for significant improvements in agricultural productivity. By adopting modern farming techniques, advanced irrigation methods, and better crop management practices from China, Pakistan can increase its agricultural output and efficiency.

Pakistan is the third-largest milk producer globally, yet its average milk production per animal is only 1500 liters, compared to the global average of 6000 liters. Professor Iqbal sought insights from Chinese experts on improving dairy farming practices, enhancing animal health, and increasing milk production efficiency. Implementing these improvements can substantially boost Pakistan’s dairy industry.

Addressing the critical challenge of attracting foreign direct investment, Professor Iqbal highlighted the stark contrast between Pakistan’s FDI of 2 million dollars and Vietnam’s 38 million dollars, despite Vietnam having half the population. He emphasized the need to create a conducive environment for investors, streamline regulations, and offer incentives. Learning from China’s successful FDI strategies can help Pakistan attract more investment and drive economic growth.

Professor Iqbal underscored the importance of transitioning from an import-based to an export-based GDP growth model. The current trade imbalance leads to a deficit, which hampers economic stability. By learning from China’s trade policies and export strategies, Pakistan can enhance its trade balance and achieve sustainable economic growth.

Discussing the impact of the International Monetary Fund (IMF) program, Professor Iqbal noted that the elimination of subsidies has triggered inflation. He attributed part of the economic difficulties to the previous regime's irresponsible planning, which resulted in significant depreciation of the Pakistani rupee. Seeking advice from Chinese experts on managing inflation and stabilizing the currency can help Pakistan navigate these challenges more effectively.

The visit of the Chinese delegation underscores the importance of bilateral cooperation between Pakistan and China. Professor Ahsan Iqbal expressed optimism that collaboration with Chinese experts would yield practical solutions, paving the way for sustainable economic development and prosperity in Pakistan.