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President Asif Ali Zardari shakes hand with Chinese counterpart, President Xi Jinping at the Great Hall of the People in Beijing, China, February 5, 2025. — APP
#CPEC #Stateowned #enterprises #corridor
A few days ago, the Ambassador of the People’s Republic of China, Jiang Zedong, consulted with a diverse group of individuals. He briefed the audience on various issues, focusing on President Zardari’s visit to China and bilateral relations between China and Pakistan. He started saying that the relationship was solid with stone. Regardless of the situation, China and Pakistan will continue to work together. He noted that this year, we will celebrate 10 years of President XI’s visit and prepare to be happy in the 75th anniversary of our bilateral relations.
A distinguishing feature of our relationship is that it has high leadership guidance with sincere efforts and positive mentality. The relationship has jointly entered a new phase of the construction of a close -up community as President XI and Pakistani leaders have renewed the position of China -Pakistan relations in the new era, making the two countries the first strategic co -operative partner of the world’s first season.
He clearly mentioned that President Zardari’s visit to China was a success. He said, “President Xi Jinping has said that China is ready to work with Pakistan on our relevant routes for modernization and welcomes Pakistan to take advantage of China’s reform and expand the high quality opening countries. We are ready to remove the construction of the Model Special Economic Zones (SEZS), attract more export -based businesses, seek cooperation in emerging sectors like artificial intelligence (AI), promote cross -border e -commerce cooperation, and improve the cooperation of B2B.
He also highlighted that President Xi Jinping emphasized that security is a prerequisite for development, and development is a guarantee of security. Security cooperation and economic cooperation is completed, and like both the bicycle wheels, they should move forward together. He concluded, saying that we have to make the goal of the highest purpose and take a practical approach to the unanimous cooperation sectors.
The briefing revealed that, contrary to propaganda, Pakistan and China are cooperating to enhance their relations. Their purpose is to make more diversification and find new areas of cooperation. It offers an important opportunity for Pakistan to identify new ways for cooperation that can facilitate economic recovery and development.
In this context, one suggestion is that Pakistan should propose to create a new transit under the CPEC, which is public -owned enterprises corridor (SOESC). SOES-C has the beliefs of economic, social and development.
This can help Pakistan resolve its basic issues with government businesses (SOEs). Currently, many SOEs are working on loss, which needs to provide subsidy to maintain Pakistan. His poor performance is due to poor governance, political interference and lack of economic insight. The ruling elite has used SOE as tools to secure loyalty, votes and strength. As a result, the other governments have exploited the SOE to help and benefit their peers. They kept a large number of people without any diagnosis. Executive management, usually handpecked, often lacked the correct understanding of the business. Bureaucrats and military officers who had little or no capture of business dynamics. They were unable to devise economic strategies to handle these organizations.
It served a dual purpose for the ruling elite. First, loyalty was purchased. Executives facilitated the ruling elite to run the SOE in accordance with the political preferences of the ruling elite. They keep hiring people, whether they need it or not. As a result, the capacity of the SOES has led to the crossing of the doorstep, bringing them to their knees and the most important example is PIA. Second, the ruling elite established a personal business and is running without any competition. Subsequently, SOEs turned into damaging institutions, and the government had to provide subsidy.
Unfortunately, instead of solving these issues, the ruling elite began promoting the IMF and the World Bank ideology for the privatization of SOEs without recognizing the importance of these businesses. They need to understand that states cannot be fully maintained on tax revenue. The state also needs non -sources of tax, and SOE is the biggest source. It will not be enough to rely on tax revenue just as the state spending increases with the growing population. Demands for public services also increase over time. Depending on tax revenue, only the states force to raise taxes on everyday products and private sectors. This creates a double problem: on the one hand, inflation increases, and on the other hand, the private sector begins to lose its competitive superiority in the global market and affect exports badly. Finally, it causes an unstable loan.
Therefore, instead of privatizing the SOs, Pakistan should look for alternatives and routes to revive them. An analysis of the current situation shows that Pakistan can find powers with China, as China has the best SOE in the world. It is suggested that Pakistan should propose a public -owned enterprises corridor (SOESC) under the CPEC. The SOESC works for a joint venture between Pakistani and Chinese SOEs. I am sure that under the CPEC, the SOESC Corridor can help Pakistan convert its SOE into profitable businesses.
However, for this purpose, Pakistan will have to develop a wise and step policy. Pakistan should start analyzing the success of Chinese SOs and the success of the drawing lesson. Birds’ eye theory suggests that the following are the lesson of Chinese SOE:
First, governance is the key to success. The Chinese SOs employ a modern governance model that reduces political interference. The CPC supported merit, not political appointments.
Second, China manages its SOE according to market principles. China introduced a competition between the SOE and made sure that they had no Comfort Zone other than competition. For example, China Mobile, China Telecom, and China Unicom will all have to compete with your yourSelf for better services and they will have to justify their own value and justification for existence.
Third, the CPC and the Chinese government called for the SOE to invest in R&D to guide innovation. Now, the SOEs are at the forefront of innovation, set new standards for work and development. They have very modern and modern means of production and delivery. For example, the China Railway is moving forward to create new infrastructure, create new train models, and increase performance.
Fourth, China asked the SOE to compete globally and gain a place in Fortune 500 companies. As a result, they have a wide market network worldwide.
On the contrary, the Pakistani SOS faces challenges in all these areas. In this way, under the SOESC, joint ventures will enable Pakistan to learn from Chinese SOs. They will also help Pakistan to develop the capacity of SOEs and state institutions so that they can run and make them a profit -maker.
Finally, I am confident that China will be happy to help Pakistan, as China has already helped Pakistan in diverse sectors to enhance Pakistan’s capacity, including the defense industry. For example, China helped Pakistan establish a heavy mechanical complex (HMC) Taxila, al-Khalid tank, and the most recent example of this is the joint product of the F-17 Thunder. Thus, if China can help Pakistan in such areas, it will be easier to help restore SOs and turn them into a productive resource without burden. However, to make it successful, Pakistan will have to devise economic rationality. There should be no run -off the mill presentation.
