Daily Times

Sustainable economic development is a dream of every nation for which all available resources are utilized. If we turn the pages of history, we find numerous examples of how resilient nations achieved the uphill task of getting their people out of poverty and becoming economic giants. The success story of China is perhaps the most striking example in this regard. Over the past few decades, China has transformed into a global economic powerhouse, with no other country matching the pace of its economic growth since 2010. As per the statistics of the World Monetary Research Organization, the Asian economy will be in the number one position by 2050, with China leading, followed by America, Japan, Germany, and France. Additionally, the Western countries’ GDP will remain at 35 percent, whereas developing countries’ GDP will be 65 percent. Six countries of Asia, including India, Japan, Indonesia, Korea, Turkey, the Philippines, Iran, and Bangladesh, will be important position holders in the Asian economy.

This begs the question: Where does Pakistan lie in the global economic landscape? How will it navigate its existing economic and political challenges? No doubt, the prospects for Pakistan’s economic prosperity lie in the shape of its geostrategic location, abundant natural resources, being a gateway to regional connectivity and having a tech-savvy youth which makes up almost 65% of the country’s entire population. However, despite the availability of all resources, unfortunately, Pakistan has not been able to translate the potential into lasting economic progress. Instead, the country has been constantly stuck in a web of economic challenges. Overcoming these hurdles and unleashing Pakistan’s true economic potential requires a concerted effort and strategic approach.

The imposition of heavy taxes is a major impediment to economic growth, especially since the manufacturing sector is facing problems due to fluctuating energy prices.

One of the key drivers for economic transformation in Pakistan is attracting foreign direct investment. FDI not only provides much-needed capital but also tends to bring in advanced technology, expertise, and access to global markets. However, Pakistan has struggled to attract foreign investors owing to political instability, security challenges, infrastructural inadequacies, and economic recession. China China-Pakistan Economic Corridor is a game-changer project for Pakistan. The start of the second phase of CPEC is not only a continuation of the economic empowerment journey but has also further cemented the Pak-China friendship based on the vision of regional connectivity, peace, and prosperity of humanity. Industrial growth and an increase in exports are key factors for economic revival. To attract foreign investors, local businessmen should come forward and start investing in energy, agriculture, communication and IT sectors. The platform of SIFC is fully operational to address any impediment in this regard. Pak-China joint venture for textiles and steel industries revival will be another breakthrough for the much-needed economic revival.

While agriculture is the backbone of our economy, it falls short of meeting our food needs hence, compelling the country to rely on imports. To achieve food security and reduce our dependence on imports, we must follow the Chinese agriculture industry model as it is not only self-sufficient but also generates huge profits by exporting agricultural products. Chinese companies are interested in corporate farming, and in this regard, research work is being carried out in collaboration with the Chinese study group. The recent visit of a Pakistan business delegation to China in this context is expected to yield positive results.

Additionally, the imposition of heavy taxes is a major impediment to economic growth, especially since the manufacturing sector is facing problems due to fluctuating energy prices. This issue merits permanent solutions to provide a conducive environment for the business community.

Though the latest survey by the Pakistan business confidence index has shown that the growth and confidence of the business community have improved as compared to last year, there is still a long way ahead. To achieve the target of sustainable economic growth, political stability coupled with a conducive environment and cheap industrial inputs is required.

The writer is a freelance columnist.