Pakistan is now facing the worst economic crises in its history these crises are caused by many direct and indirect factors like; energy crises, political instability, terrorism, no FDI (Foreign Direct Investment) etc. All these factors are related to each other, one factor causes the other and as a whole these affects the economy.

Literally no one want to invest in Pakistan due to the unstable conditions; even the financiers who have already invested are now pulling out their investments and transferring them to other countries such as Malaysia and Bangladesh. High inflation has made life very hard for the middle class and lower class people in Pakistan. Another factor that adds to our dilemma is low Human Development Index (HDI), which makes the cost of living very high. In this scenario it is very difficult for locals to establish business and make investments.

Government of Pakistan is taking many initiatives to stabilize the economy and resolving other issues. State Bank of Pakistan has presented a good monetary policy this year, due to that GDP is expected to increase. Considering all the factors it is very difficult for Pakistan to come out of these crises alone. China has always been interested in investing in Pakistan due to its strategic and trade interest. China invested a huge amount in major fields. There are 19 ongoing projects in Pakistan with China. Chinese investment has always supported Pakistan’s economy directly and indirectly.

China has been our guardian angel as it wants to make large investment in the energy sector and in the Pakistan Railway; it has already purposed these to the government. The stability and growth of industrial sector is very important for Pakistan and the incoming Chinese investment will resolve many issues which will lead to progress. Energy sector could become more efficient with the Chinese investment, in the absence of energy crises the industrial sector will grow.

Pakistan also has a large untapped human capital which can provide services at cheaper cost; this can bring in the foreign investors. Pakistan Foreign Direct Investment will increase and the existing companies will perform better and efficiently, unemployment will decrease, more opportunities will be available to entrepreneurs to explore the markets. This help from China can slowly stabilize the floundering economy of Pakistan.


Lahore, November 27.