ISLAMABAD: China hopes its Foreign Direct Investment (FDI) in Pakistan will get increased in the years to come, as part of the China-Pakistan Economic Corridor (CPEC).
Almost half of the total FDI that Pakistan received in the last fiscal year originated from China alone.
FDI from China amounted to $593.9 million in 2015-16, which is up 131.3% from 2014-15 and constitutes 46.3% of the total FDI Pakistan received over the entire fiscal year.
According to sources in China Ministry of Foreign Trade and economic cooperation, China will become one of the world’s biggest cross-border investors by the end of this decade, with global offshore assets tripling from $6.4tn now to nearly $20tn by 2020, according to research.
Much has, and still can, be written about China’s development journey since the late 1970s, but drastic changes could be said to have occurred in the last two years in shouldering international responsibility. From APEC Beijing summit in 2014 to G20 Hangzhou summit in 2016, China has used the international stage to champion a holistic approach to development and global governance, which acknowledges that domestic wellbeing relies on a nation’s regional neighbors and the international community at large.
Although China’s economy has entered a “new normal,” with economic growth shifting to a slower and more sustainable rate, it continues to be an engine driving the world economy.
In the past five years, China has contributed 35 percent of global economic growth, and it will continue to contribute 30 percent of world economic growth before 2020. Pang Zhongying, with Renmin University of China, said China had taken advantage of multilateral venues, such as the APEC and G20, to further the agenda of inclusiveness.
At the APEC Beijing summit, China was a vocal advocate of connectivity and cross-border collaboration. In terms of trade, the Beijing Roadmap for APEC’s Contribution to the Realization of the Free Trade Area of the Asia-Pacific (FTAAP) has been hailed as a milestone document. With the aim of facilitating trade and cutting tariffs in the region, the FTAAP has successfully evolved from a concept to a practical goal, and the process continues to advance smoothly.
At the G20 Hangzhou summit, Xi championed a Chinese remedy for the febrile world economy — strengthened coordination of macroeconomic policies and joint efforts to boost world economic growth and maintain financial stability. Xi, in his opening address for the G20 summit Sunday, also urged G20 members to break a new path for development, improve global economic governance, build an open world economy, promote trade and investment liberalization and implement the UN 2030 Agenda for Sustainable Development.
The AIIB and other initiatives that have made progress since APEC Beijing summit, such as the BRICS New Development Bank and the Silk Road Fund, will help meet Asia’s enormous infrastructure needs. —INP
