- Hopes and hard realities
While proceeding to the three-day Boao conference, the Chinese version of DAVOS, Prime Minister Abbasi was effusive about the huddle. As he put it, Baoa’s mantra of ‘An Open and Innovative Asia for a World of Greater Prosperity,’ is not only pertinent but also timely. Abbasi was all for Asia becoming more integrated with countries in the region forging partnerships in diverse fields including economy, trade, technology, energy, ecology and social sectors. Abbasi also referred to CPEC which is the flagship of China’s BRI as a transformative project. Pakistan now looks forward to the setting up of SEZs, which Abbasi believes will not only strengthen the economic and industrial base of the country but also generate thousands of jobs.
The Boao forum will provide an opportunity to the prime minister to project the progress achieved by Pakistan in successfully implementing CPEC projects. The visit will also help in presenting Pakistan as a successful economic partner in the region as well as in the global context.
But the buzz word at the Conference is openness in opposition to President Trump’s protectionism. President Xi is expected to assure the hundreds of foreign investors and leaders present that US protectionism will not lead China to follow suit. China is supposed to deliver a strong warning about letting the tariff disputes escalate into a trade war.
As things stand Pakistan’s business community, which has flourished under protectionist policies for decades, is not prepared for competition which it can avoid no longer. Pakistan is fast losing markets abroad. Last week Pakistan decided to delay FTA-II with China under pressure from the business community. Earlier FTAs with Turkey and Thailand had met with strong opposition. The secretive economic managers of the PML-N government have hesitated to take Parliament into confidence over the vulnerabilities of local industry and how they plan to overcome these in the shortest period. They have even kept the CPEC plans under wraps treating it as a special gift to the PML-N government from Beijing. Transparency is an existential requirement in policy matters today. Pakistan has to take important economic policy decisions to enable the local industry to be competitive by taking all stake holders into confidence.