CPEC, a key to Pakistan’s economic growth: KTrade report

ISLAMABAD, Sep 27 (APP): In the run-up to the 75th anniversary of the founding of the People’s Republic of China, a report titled ‘China’s 75-Year Journey: Breaking Myths & Inspiring Hope’ has been published by KTrade Securities Limited, a leading stock and commodity brokerage in Pakistan.

The report highlights China’s remarkable economic growth over the past decades, characterized by speed, consistency, and a broad impact on global markets and emerging economies.

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In an interview with China Economic Net, KTrade Securities Chairman, Ali Farid Khwaja, described China’s 75-year economic journey as an inspiring model for emerging markets and underdeveloped nations.

He remarked that China has successfully dismantled myths that developing countries cannot catch up with advanced economies. “For years, people from countries like India, Pakistan, and Africa believed they needed to migrate to developed nations to seek better opportunities. However, China’s rapid economic growth has demonstrated that it is possible to catch up and become a developed country within a relatively short period,” he added. He also pointed out that China’s economic growth has lifted 800 million people out of poverty, making it a unique success story.

Khwaja explained that unlike traditional models of economic growth, which were often driven by resource extraction, China’s rise was based on domestic reforms and more efficient use of existing resources. He emphasized that China’s development was not a zero-sum game but rather focused on equitable growth. China’s approach of producing high-quality, affordable products in industries such as telecommunications, LED technology, solar energy, and electric vehicles has made these technologies accessible to a global audience. “In certain cases, China even subsidized these technologies for other countries, allowing them to achieve equitable economic growth with their indigenous resources,” he added.

The China-Pakistan Economic Corridor (CPEC), launched in 2013 under China’s Belt and Road Initiative (BRI), was identified in the report as a key driver of Pakistan’s socio-economic development. The report praised CPEC for leveraging Pakistan’s geographical importance and contributing to the country’s growth, particularly in the Large-Scale Manufacturing (LSM) sector. Over the past decade, Pakistan’s LSM index grew by 43%, with further growth expected as Special Economic Zones (SEZs) under CPEC become operational by 2030.

The report also referenced the Asian Development Bank (ADB), which estimates that CPEC could increase Pakistan’s GDP by 2.5% by 2030 through infrastructure improvements, enhanced connectivity, and the establishment of new industries. Additionally, Pakistan’s exports to China grew by 14% in 2022, reaching $3.6 billion, a growth partially attributed to the enhanced connectivity provided by CPEC.

According to the report, China has shifted its focus from a manufacturing-based economy to one driven by services and advanced industries, aiming for long-term stability and environmental sustainability. The country is making substantial investments in emerging technologies such as artificial intelligence (AI), 5G, and renewable energy. China’s leadership in sectors like solar energy and automation positions it to become a global technology leader by 2030. Currently, new economy sectors, including automation, green energy, and AI, account for 55% of China’s GDP growth, despite representing only 20% of the total economy. This early and aggressive shift toward dynamic sectors is expected to fuel China’s future economic growth.

Looking ahead, Khwaja expressed optimism about China’s economic prospects, noting that the country has already achieved the technological capabilities necessary to sustain long-term growth. He emphasized that AI and technologies such as quantum computing will be the key battlegrounds for future development. “As long as China continues to lead in these sectors, it can maintain a high rate of economic growth for years to come,” he concluded.