ISLAMABAD: Pakistan will complete a large road network connecting it to Central Asian countries and China with the object of promoting trade and investment, the country’s privatization minister said on Wednesday, as Islamabad eyes regional connectivity to ensure economic growth.
Pakistan has increasingly sought cooperation in terms of trade and investment with regional allies and financial institutions such as the International Monetary Fund (IMF) in recent months to recover from a macroeconomic crisis.
Pakistan recently offered Central Asian states to become part of the China-Pakistan Economic Corridor project, under which Beijing has pledged around $65 billion in energy, infrastructure and other projects in Pakistan. Islamabad believes the corridor presents a strategic opportunity for landlocked Central Asian states to transport their goods more easily to regional and global markets.
Privatization Minister Abdul Aleem Khan met French Ambassador Nicolas Galle in Islamabad on Wednesday to discuss trade and bilateral ties between the two countries.
“He [Khan] said the road network to China and Central Asian countries will be completed to promote trade in the region,” state broadcaster Radio Pakistan reported.
Khan said Pakistan was privatizing its loss-making public entities to strengthen its economy, adding that these institutions have the potential to perform better and earn profit.
“The French envoy expressed his country’s interest in investing and business activities across various sectors in Pakistan,” the state broadcaster said.
“They also discussed various proposals for enhancing bilateral trade between the two countries.”
Prime Minister Shehbaz Sharif has repeatedly said Pakistan aims to seek regional alliances and mutually rewarding financial partnerships with allies, rather than loans, to steer its economy toward recovery.
The South Asian country narrowly avoided a sovereign default last year when it secured a last-gasp $3 billion financial assistance package from the IMF. Pakistan’s economic crisis has seen its inflation reach double digit figures, foreign exchange reserves plummet to historic lows and its currency weaken significantly against the US dollar over the past two years.
