Can China help Pakistan? myth and reality

The Express Tribune published a column by a political economist arguing that China can help Pakistan, though the writer says the economy has kept deteriorating despite official claims. Debt is rising and social and development indicators are weakening, according to the piece. The writer also dismisses cryptocurrency as a route to economic revival, saying it has yet to establish its credibility.

The column traces China's support to a 1989 bilateral investment accord, after which Huawei, China Mobile and Haier invested in Pakistan and created thousands of jobs. It cites the Beijing Declaration of 2003, a free trade agreement in 2006 and a 2006 energy framework as later steps in economic cooperation. The writer then argues that the CPEC second phase, which centres on industrial, agricultural, technological and scientific cooperation, can transform the economy.

The writer says the 2019 CPEC Authority was weakened into a facilitation centre without decision-making powers, and holds up Shenzhen as a model. According to the column, Shenzhen grew from a $40 million economy to one above $500 billion after gaining legislative authority in 1992 and introducing one-roof services and approvals within 24 hours. The column concludes that Pakistan must restructure its system to benefit from CPEC, and that the Information Corridor needs professional development to counter propaganda.