Some experts are no longer optimistic about the China–Pakistan Economic Corridor (CPEC), in their views, Beijing will no longer be able to continue the CPEC with the fervour it had seen in the past.
As the virus reaches Iran and medical experts are examining the potential harm to Pakistan, Economists are examining how the slowdown in the Chinese economy is benefiting Pakistan’s economy.
It is clear that due to the outbreak of a new type of coronavirus in China, export orders of many items including garments, textiles and mobiles have been cancelled, which has reduced productivity in China.
Other countries in the region, including Pakistan, are benefiting economically. In addition to this crisis, China has reduced the import of many goods globally, which has led to the fall in prices of these items.
Talking to NewsBox, Qaiser Ahmad Sheikh, a prominent Chiniot-based industrialist, says the crisis has benefited the Pakistani economy in many aspects: “China is a major oil importer. Due to this crisis, Beijing has reduced its oil imports, causing the price of oil to drop from $ 64 to $ 54.”
“Pakistan imports large quantities of oil and this puts a burden on our economy, Pakistan’s import bill has been reduced and we have got cheaper oil. Similarly, we also import palm oil. Prices of palm oil have also come down due to this crisis, which has benefited us”, he added.
According to Qaiser Ahmed Sheikh, the textile and garment industries have also benefited greatly: “China and Pakistan are both involved in textile sellers. With the cancellation of orders in China, we have benefited from the textile, garment, surgical goods and sports goods. ”
Many experts believe that Pakistan can get more benefits if it takes an interest in the issue. Lahore-based analyst Ahsan Raza says China’s textile industry has lost more than $ 20 billion. He says Pakistan’s “Minister of Commerce and government officials should look into more areas and create opportunities for the Pakistani industry.” Pakistan can play its part in the gap that has arisen in many sectors, including rice and garments. ”
The shock that has plagued the Chinese economy because of the Coronavirus crisis in China has led many experts in Pakistan to conclude that Beijing will no longer invest as much in CPEC.
Recently, China’s Ambassador to Pakistan Xiao Jing has assured at a ceremony that works on the CPEC, that CPEC will not be affected. However, many experts refuse to acknowledge this