Islamabad: Federal Minister for Planning, Professor Ahsan Iqbal, met with a delegation of Chinese experts led by Ambassador Wang Fukong from the Chinese Foreign Ministry. The delegation, consisting of representatives from ten Chinese ministries, is visiting Pakistan to enhance economic ties and explore solutions to Pakistan’s economic challenges through the second phase of the China-Pakistan Economic Corridor (CPEC).
According to China Pakistan Economic Corridor announcement issued on 31 July 2024, Professor Iqbal highlighted several key areas where Pakistan seeks to improve, drawing on the expertise of the Chinese delegation. He emphasized the need for Pakistan to adopt an export-led growth strategy to avoid balance of payments crises, noting that growing imports without corresponding foreign exchange reserves exacerbate these crises. Learning from China’s export success, Pakistan aims to diversify its export base and enhance its manufacturing capabilities for global market competition.
Professor Iqbal pointed out that only 12 percent of Pakistan’s economy is based on manufacturing, underscoring the need to expand this sector. He called for collaboration with Chinese experts to develop industrial zones, improve manufacturing technologies, and train the workforce, using China’s rapid manufacturing sector growth as a model for sustainable economic development.
Despite being a top producer of ten different crops, Pakistan’s average production levels are low. Professor Iqbal identified the potential for significant improvements in agricultural productivity by adopting modern farming techniques, advanced irrigation methods, and better crop management practices from China.
Pakistan, the third-largest milk producer globally, has an average milk production per animal of only 1500 liters, compared to the global average of 6000 liters. Professor Iqbal sought advice from Chinese experts on improving dairy farming practices, enhancing animal health, and increasing milk production efficiency to boost Pakistan’s dairy industry.
Addressing the challenge of attracting foreign direct investment (FDI), Professor Iqbal noted the disparity between Pakistan’s FDI of 2 million dollars and Vietnam’s 38 million dollars. He emphasized the need to create a conducive environment for investors, streamline regulations, and offer incentives, drawing on China’s successful FDI strategies.
Professor Iqbal also stressed the importance of transitioning from an import-based to an export-based GDP growth model to address the trade imbalance and achieve economic stability. Learning from China’s trade policies and export strategies, Pakistan aims to enhance its trade balance and achieve sustainable growth.
Discussing the impact of the International Monetary Fund (IMF) program, Professor Iqbal noted that the elimination of subsidies has triggered inflation and attributed economic difficulties to the previous regime’s planning, which led to significant depreciation of the Pakistani rupee. Seeking advice from Chinese experts on managing inflation and stabilizing the currency, Pakistan aims to navigate these challenges more effectively.
The visit of the Chinese delegation highlights 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.