It seems that today there is a significant level of uncertainty in Pakistan’s economy, causing concern and discomfort. The stock exchange in Pakistan has been experiencing a decline over the past few months, which may be due to manipulation by non-Pakistani fund managers and the withdrawal of foreign investment. Additionally, exports have decreased significantly and the country is struggling with debt. It is important to note that the performance of the stock exchange does not necessarily reflect the overall health of the macroeconomy, as assessed by organizations like the IMF. It may be necessary for the government to implement policies to address these economic challenges and stabilize the economy.
It is not uncommon for organizations like the IMF and global leaders to express concerns about the stability of an economy, particularly if there are risks that could affect the ability of the country to make loan repayments. In the case of Pakistan, there may be a number of factors that are contributing to concerns about the country’s economic stability and its ability to make loan repayments under the China-Pakistan Economic Corridor (CPEC). These factors could include a high level of debt, a large fiscal deficit, a lack of foreign exchange reserves, and a slowing economy. It is important for the Pakistani government to address these challenges in order to restore stability to the economy and ensure that it can make its loan repayments on time.
The China-Pakistan Economic Corridor (CPEC) as a source of Economic Power
It is agreed that Pakistan may need to seek financial assistance from the IMF and that this support may come with the backing of China. China has invested in Pakistan for mutual benefit and as a good friend. The Chinese government’s investments have had a positive impact on Pakistan’s economy. According to data from the Board of Investment (BOI), it is expected that the Pakistani economy will experience a multiplier effect in 2020 and beyond as a result of the 15 billion dedicated to infrastructure and 35 billion for energy projects under the China-Pakistan Economic Corridor (CPEC). These projects, which focus on necessary infrastructure and energy development, are necessary to attract investment and stimulate economic growth. It is important to note that Pakistan is in control of the CPEC, which will give it more support and negotiating power in the future. Do you want to know the best part? Today, China is guaranteeing IMF for helping Pakistan.
