ISLAMABAD: Pakistan’s economy is in a challenging situation, as inflation, poverty, foreign reserves, and many other macroeconomic variables are out of control. The poverty rate for the fiscal year 2022-23 is expected to be 37.9%, which is very high, and the economic growth is expected to be around 4%, which is low. The country, therefore, needs China’s assistance to eradicate poverty and grow economically, reports WealthPK.
Dr Ijaz Ali, economic analyst at the Centre for Business and Economic Research (CBER), told WealthPK that increasing poverty and low economic growth hinder a country’s progress. The GDP growth rate of almost 4% and poverty rate of almost 38% is very alarming for the government, he added.
He said China had taken a very big step to eradicate poverty in Pakistan and to help it achieve sustainable growth. China’s assistance will be very helpful in solving these issues, he added.
Dr Ijaz further said that according to Lin Songtian, President of Chinese People’s Association for Friendship with Foreign Countries (CPAFFC), China would help Pakistan achieve goals of urbanization and modernization through infrastructure development, industrialization, and capacity building of the youth. It would help Pakistan in solar energy, rail connectivity and industrialization.
The Global Development Initiative (GDI) proposed by China will assist Pakistan in epidemic control and poverty reduction. The first list of the GDI project pool includes 50 practical cooperation projects in poverty reduction, food security, industrialisation and other fields, as well as 1,000 new capacity-building programmes.
“Various projects are in the pipeline with China at a high level that may be of help in reducing poverty. Projects involving five million low-cost housing units, industrial subsidies, employment, institutional reforms in the health and education sectors can better pave the way for poverty reduction,” he added.
Dr Ijaz said in July 2018, the Pakistan-China fibre optic line was laid down to boost digital technology in Pakistan. According to him, such initiatives are not only beneficial for boosting GDP growth, but also for raising the people’s living standards.
A better understanding of the Chinese model of eradicating poverty is crucial for designing better policies that use scarce resources efficiently. China’s poverty alleviation programme was customized for the rural and urban poor separately. The urban administrations often opted for tailor-made policies to get quick results, while the rural programmes were mainly financed by the central government.
Dr Ijaz said China wanted to promote e-commerce in Pakistan which will be very helpful in poverty alleviation. Pakistan has to increase internet penetration. The common goal of poverty alleviation can also be embedded in the China Pakistan Economic Corridor. It is a worthwhile resource and can become a successful channel to promote e-commerce. Pakistan must learn from the Chinese success story to end multidimensional poverty.
