BEIJING: Characterising the China-Pakistan Economic Corridor (CPEC) an exemplary pilot project for economic development in Pakistan, Dr Xu Hongcai, Chinese Deputy Chief Economist, on Wednesday said achievements on diverse economic fronts had started taking place, lending credence to the overarching Belt and Road Initiative (BRI).
Presenting threadbare and comprehensive exposition on the BRI, a unique economic vision to address the contemporary festering economic throes facing the world, at a seminar organized by the People’s Daily at Tsinghua University, Beijing, he said the initiative would ensure level-playing grounds to all the BRI stakeholder countries, enabling to share the due dividends.
In response to a query, the financial expert was of the firm view that political and social stability in Pakistan was sine qua non for the desired success of the CPEC.
The seminar was attended by journalists belonging to news agencies and newspapers of South Asian states, including Pakistan. The BRI road map will pave the course for connectivity among its beneficiaries to wield their potentials and resources in an optimal manner to realize the core objectives of economic growth.
Referring to President Xi Jinping’s speeches and remarks on different occasions about the BRI, he exuded that the initiatives essence was to expand and strengthen the structure of the demand and supply, ultimately delivering sustainable equilibrium in the world economy.
Dr Xu Hongcai said there were crystal clear guidelines as well as advice by the Chinese government to the local companies to make maximum investment in Pakistan under the CPEC and BRI. Hence industrial and commercial banking institutions of China had co-initiated developing cooperation and communication mechanism with their counterparts in Pakistan.
He spelled out in detail various aspects of the Chinese overseas investment under the Belt and Road Initiative, including financial integration under BRI, outcomes of the BR Forum in relation to financial cooperation and China’s latest policy of the utilisation of foreign fund and overseas investment.
China was keen to deepen the financial cooperation along the Belt and Road countries and advance the establishment of a stable currency system, investment and financing mechanism besides credit system in Asia, he added.
Dr Xu Hongcai further stated that Beijing also wanted to expand the scope and amount of bilateral currency swap and settlement between Belt and Road countries.
China, he said, would support the governments, companies and financial institutions with high credit rating along the Belt and Road countries by issuing RMB bonds within its territory. Eligible Chinese financial institutions and companies were allowed to issue RMB bonds and foreign currency bonds overseas.
He maintained that China would beef up the cooperation with other BR countries in financial regulations, sign bilateral MOUs on regulatory cooperation and gradually establish an efficient regulatory coordination mechanism in the region. The Chinese government would improve the institutional arrangements for risk and crisis response, build a regional financial risk warming system and form a communication and cooperation mechanism for dealing with cross border risk and crisis.