According to the Annual Report on Investment Security of China’s “Belt and Road” Construction, Pakistan is among the top ten countries in terms of improving the business environment (2021).
The study was jointly issued by ‘China Belt and Road’ Think Tank Cooperation Alliance, Beijing International Studies University, and other organizations, according to China Economic Net.
According to the study, Pakistan has made reforms in recent years to make the process of starting a business and acquiring a building permit easier by enacting a number of favorable policies.
In terms of economic security, Pakistan’s economic security has increased by 220 percent since 2010, indicating an overall trend of progress. The China-Pakistan Economic Corridor (CPEC) has significantly increased public confidence, encouraged local demand, and enhanced output.
However, since 2019, Pakistan’s rapid marketisation of the local exchange rate has resulted in market volatility, currency depreciation, and persistent inflation, compelling the government to hike the benchmark interest rate.
Meanwhile, the report stated that the superpower game has a significant impact on South Asia as a whole, adding that “China, the United States, Russia, Japan, and other countries outside the region have historical ties and practical cooperation here, which complicates the geopolitical environment of South Asia.”