EDITORIAL: That the Annual Report on Investment Security of China’s Belt and Road Construction (2021) has placed Pakistan among the world’s top 10 economies with the most improved business environment is very welcome news. The report was jointly released by China Belt and Road Think Tank Cooperation Alliance, Beijing International Studies University, and other institutions and analyses the political, economic, social, cultural, and ecological aspects of investment security in countries along the BRI. And, as it duly points out, Pakistan has indeed brought about reforms to simplify the process of setting up and starting new companies as well as obtaining construction permits by implementing a series of preferential policies over the last few years.
Successive administrations in Islamabad have tried to do something about improving what is called the ease of doing business in the country, but it wasn’t until the China Pakistan Economic Corridor (CPEC) took off that the pieces of this puzzle really started to fall into place. The report also noted that CPEC has boosted public confidence, stimulated domestic demand and driven production in Pakistan. It has also pushed the country, in partnership with the Chinese of course, to erect the kind of infrastructure that would not have been possible if it weren’t for the rush of getting everything in place for the Corridor. The CPEC is a small but integral part of BRI and unless everything is in tip-top shape here China’s bigger initiative of recreating the ancient Silk Route trade in the modern setting will never really come to life in the way that it is intended to. That is why the last few years have seen a flurry of activity up and down the country, especially in the always-ignored province of Balochistan; which is now home to the Gwadar port and the bonanza of investments that it will bring.
To give credit where it is due, the present government has made a lot of fuss about doing away with all the bureaucratic red tape and also everything else that needlessly slows down business activity in the country, especially setting up new ventures. And even though it hasn’t exactly been able to stand the regressive old system on its head just yet, clearly enough progress has been made to begin turning a few important heads. China always seems to have a finger on the pulse of our economy, considering that it is not only a tested friend but also the single largest foreign investor in Pakistan, therefore it has been able to lend a hand in more ways than just help with the financing of crucial projects and initiatives.
Now that the capital- and cost-intensive phase of the CPEC is almost over, it won’t be long before everybody is able to see and count the fruits of all the reforms of the last few years. This project is truly a godsend for Pakistan. The country’s infrastructure, in many parts, has begun transforming just to be able to get on the bandwagon. Soon, hopefully, it will also have a welcome bulge in the national reserves to show for a job well done. The achievements of the last few years, and the praise they are generating, ought to convince the government to go the extra mile to complete the process of reforms without which the country will never be able to realise its true economic and financial potential. It is both very unfortunate and very sad that the civil service, the machinery that is supposed to run the country, is one of the biggest reasons for our inefficient outlook. If things were left to it nobody would be praising Pakistan’s improved business environment at this point in time. And unless it is made to pull its socks up, it could well take the whole country down with it.
Copyright Business Recorder, 2021
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