CPEC making Pakistan's economy highly integrated with China
Editor's note: Cheng Xizhong, Visiting Professor at Southwest University of Political Science and Law，Special Commentator of China Economic Net, former Defense Attache in South Asian countries. The article reflects the author's opinions and not necessarily the views of China Economic Net.
These days, various media outlets have picked up the exciting news about the Pakistani sound economic recovery and development.
Pakistan's Gross Domestic Product (GDP) growth rate of the fiscal year 2020-2021 is expected to be nearly 5%. Exports were increased by 29.48% to Rs. 2.562 trillion in the first half of the current fiscal year (2021-2022), the exports of services witnessed an increase of 22.94% during the first five months of current fiscal year and IT services’ exports grew by 37.55% to $1051 million during the same period. Its foreign direct investment reached $1.06 billion, a year-on-year increase of 20% during the first half of the current fiscal year.
According to the latest figures released by China’s General Administration of Customs, the total value of China’s imports and exports to Pakistan was increased by 59.1% year-on-year in 2021, with exports up by 57.8% and imports up by 68.9%. Bilateral trade between China and Pakistan, especially Pakistan’s exports to China, hit record levels.
At present, China is the second-largest export destination and the largest source of imports for Pakistan. In 2021, China tops the list of countries in terms of Pakistan’s exports to its neighbors, according to Pakistani media Dawn.
With effective micro-lockdowns for pandemic prevention, record-high remittance inflows, substantial increase in commodity exports, stronger domestic and foreign investment, improving business activity, and economic stimulus measures, Pakistan’s economy is expected to continue to rebound in the new year.
China's GDP in 2021 was increased by 8.1% over the previous year. The rapid recovery and development of Pakistan's economy is closely related to the country's reference to China's development experience, the increasing integration of Pakistan's economy and China's economy, the spillover effect of China's rapid development on Pakistan, and particularly, the smooth progress of the construction of the China-Pakistan Economic Corridor (CPEC).
China and Pakistan are all-weather strategic partners, and bilateral all-round cooperation has yielded fruitful results. As an important platform for all-weather cooperation between the two countries, CPEC has entered a new stage of high-quality development. In the new stage, the two sides are focusing on cooperation in industries, science and technology and people's livelihood. We sincerely wish that Pakistan would make greater achievements in social and economic development in the new year.