Sunday, June 23, 2024
Main Menu

The Horizon of Internationalization

By Muhammad Anees ul Hassan

An old Chinese maxim states that a fur coat can be made out of scattered feathers and the world can look up at Chinese turning this adage into their actions. It was not a long time ago when foreign investors were hesitant to invest in Pakistan due to security issues and threat of terrorism. But despite of all the nuts there came the jim-dandy opportunity, unique ilk of foreign investments, what is now known as CPEC, the biggest foreign investment in Pakistan, thanks to China for bringing Pakistan with this game changer.

If worked upon in the context of right time and space, CPEC can prove not only to be a milestone in the economic history of Pakistan but it also has the potential to make Pakistan stand out more brighter in the framework of international system as its capacity circle draws the attention of many countries, willing to be stake holders in this project.

To very much extent, the interests of key players in international marketing, can’t be developed in Pakistan as long as the economy of Pakistan is internally stabilized and balanced. Which is why, the above mentioned factors are important to make Pakistan more attractive for foreign investors and CPEC founds the ground for this very matter. Focusing on these areas, in the terms of economic prosperity, CPEC can act as a catalyst in maintaining the tricky balance sheet of economy of Pakistan. An investment of more than $46 billion will make economy more resilient and stable. Various projects come under the headings of CPEC with construction of long motorways, energy projects, social sector development and infrastructure development as the most remarkable ones. CPEC can be an initiative to resolve the chronic energy crisis of Pakistan. There are total 17 energy projects. Pakistan has long history of energy short-falls and is facing energy crisis which are not only affecting Pakistan at domestic level but also affecting industrial structure of Pakistan thus putting the economy of Pakistan on a reverse gear, leading to economic deprivation and CPEC is actually a solution for this very deprivation.

At the same time many motorways and highways that’ll be built under CPEC will provide traders with easy access not only within their own country but also to China and CARs. The cost and time for transfer of goods will decrease, hence increasing the saving rate of transfer per container transferred. Moreover, transportation network like railways networks, roads will also facilitate. The implications of this connectivity might seems to be mere ‘between two countries, China and Pakistan’ to one or may be in South Asian or Central Asian region but the factuality is that it has intercontinental implications from Europe to Asia. It can be guessed from the fact that a container which usually takes 50 days to reach Hamburg from Beijing with $3,000 will arrive in only 15 days saving $1,800 after the completion of CPEC by 2030 as reported by Punjab Board of Investment and Trade (PBIT).

CPEC is gaining popularity at international level, not only at regional level, as it connects China to CARs and Europe making international trade less expensive through easily accessible land routes. Russia is also looking forward to CPEC. In past Soviet Union sought access to warm waters through its war policies, failing miserably. Now, in the new era, time has changed but Russia still needs access to Gwadar port for the sake of trade and in order to sale it gas reserves as buyers of Russian gas in Europe are dwindling. For this very reason, Russia has shown signs of interests in CPEC. It is an important point to note that CPEC will also allow flow of goods and energy to and from the Middle East. Thus forming a connecting network in international trade system connecting Pakistan and China with CARs, Middle East, Europe and providing them all alternative and more feasible sea routes through Gwadar for trade where Pakistan will enjoy the prominent central position. Definitely, Pakistan will reap the fruits in terms of enhancing its trade in international marketing system.

It will have a positive and good impact upon multilateral relations and bilateral relations of Pakistan with other countries resulting in more trade agreements and deals automatically benefiting the economy of Pakistan.

So, CPEC is crucial to Pakistan for gaining a prominent position in international political system and international trade both. It’s the need of the time that government of Pakistan work honestly on the project of CPEC, solving all the pertinent issues regarding it, the way to success and progress.

The writer is a business student at NUML Islamabad

 






Comments are Closed