According to the annual report on Pakistan’s economy focusing on “China-Pakistan Economic Corridor Review and Analysis” Pakistan’s debt liabilities would increase to $3.3 to $4.5 billion annually by 2025.
Shahid Javed Burki from the Institute of Public Policy at Netsol, reported this in a local newspaper. The report also suggests that government should review every project under CPEC concerning Council of Common Interests for management of CPEC with transparency and efficiency.
Debt in the economy is inevitable, as long as it generates enough revenues to cover all the operational costs and make profits, but growing debt with lack of efficiency and performance creates problems for firms as well as countries.
It was proposed in the report that, Pakistan should improve revenue performance at both national and provincial levels, public sector company’s losses should also be minimized and trade competitiveness should also be improved in Pakistan.
The report stated that with strong planning, efficient allocation of funds and guarantee investments under CPEC projects would yield favorable results and help the country in meeting its future liabilities. The report also highlights Afghanistan’s inclusion in CPEC which could bring in several benefits in the region. It could reduce the regional conflict and ensure security from both sides, revamping the trade transit facilities at China-Pakistan border would also improve the trade in general.
The reports also highlight the need for special efforts in constructing the western route of CPEC and administer incoming investments accordingly, the backward regions along the route should be uplifted considering the local comparative and competitive advantages.