West-Central Asia Zone Projects’ to boost economy

Implementation of China Pakistan Economic Corridor (CPEC), increasing manufacturing and infrastructure projects in the West-Central Asia Zone are strong business indicators that will boost Pakistan's economy in 2016.

According to media, large scale manufacturing output rose to 3.9 per cent in the first quarter of fiscal year 2016 from 2.6 per cent in like period of FY-2015. According to the report, State Bank of Pakistan indicated some improvements that were already visible from the changes in the key macroeconomic indicators.

"Economic activity seems to be gearing up as LSM has recorded a noticeable increase over the last year", it added. The State Bank of Pakistan also indicated the sectors, which were performing well. It said that a large number of projects will also benefit "due to the progress in implementation of the China Pakistan Economic Corridor projects.

The first phase of China Pakistan Economic Corridor with an investment of $46 billion is slated to be completed by end-December 2017 or early 2018, Ahsan Iqbal, Minister for Planning said. "Some of them are already under way.

They include construction of the Gwadar Port- related projects in South- West Pakistan, on Arabian Sea and Straits of Hormuz", it said. Some two dozen huge industrial areas have been marked down to establish industries, banking, energy and service projects to be loafed from Gwadar to China as part of the China Pakistan Economic Corridor. The State Bank of Pakistan also reported that the economy is likely to benefit from improvement in the security conditions and successful and continued fight against terrorism, better availability of electricity and gas, lower cost of imported indusial raw materials and the historic low interest rates.

The State Bank of Pakistan report noted a marked improvement in the security conditions, better energy management, and the persistently low global commodity prices. The business, particularly foreign investors and companies operating in Pakistan, are happy over their prospects and profits.

According to the report, Atif Bajwa, president of Overseas Investors Chamber of Commerce Industry (OICCI) said that their latest Perceptions and Investment Survey 2015 indicates 82 per cent of members foresee continuing growth in their business and are generally committed to making further investments in Pakistan.

The survey also indicated that the Overseas Investors Chamber of Commerce Industry members plan to invest $3 billion in their business and industry in the foreseeable future.