There is a lack of implementation machinery for facilitating Chinese private sector’s MoUs, deals, contracts and agreements. The private sector has failed to move beyond ‘family businesses’, better known by the acronym ‘seth culture’. The private sector has entrenched domestic lobbies in the economy, while the public sector confronts institutional tussles and adopts a solo flight approach. Pakistan needs to attract Chinese private sector investors by offering additional incentives. If it does not, without timely wide-ranging comprehensive policy reforms, CPEC could develop into a debt trap.

Source: The Express Tribune December 11, 2017 04:30 UTC