China Is Taking Over Pakistan Is Not True
China Is Taking Over Pakistan Is Not True: Pakistani government is very clear about the fact that they welcome investors of all kinds and all parts of the world to come in and participate in building economy of this country.
However there is perception being created that Chinese are taking over with their CPEC project. Western companies have this confusion that they will not get advantages in presence of Chinese investors.
Chinese companies are building roads, power stations and a deep water port in Pakistan after Beijing offered more than $50 billion in funding for Pakistani infrastructure as part of China’s vast Belt and Road initiative. Chinese companies building power stations had obtained soft loans but that was because the money was provided by Beijing, which made such terms a condition of its financing for projects.
Chinese investment has helped spur Pakistan’s economic growth to more than 5 percent. In second phase of CPEC, in which a series of Special Economic Zones (SEZs) will be set up to boost Pakistan’s industries, Chinese companies will not receive preferential treatment. Pakistan’s Special Economic Zones Act stipulates no country or company will get preferential treatment within the SEZs.
Foreign direct investment is separate from the China-Pakistan Economic Corridor investments. More than 20 CPEC projects worth nearly $27 billion are currently being implemented, a senior government official told Reuters, meaning either work has begun on the projects or financing deals have been completed.
Some Western investors appeared reluctant because of an incorrect perception that Chinese companies would get “exclusive advantages” and concessions. However Pakistani government has broadly welcome Britain, the United States, France and Saudi Arabia to explore and engage in the opportunities available within the country of 208 million people and a fast-expanding middle class.
Pakistan is open for business with everyone.