Today: 1 June 2025
4 February 2022
2 mins read

CPEC needs structural reforms: ADB

To fully explore the potential benefits of CPEC, ADB proposed some policy actions which could raise income from exports and enhance the fiscal capacity of the government…reports Asian Lite News

Stressing the need for structural reforms, the Asian Development Bank (ADB) has said Pakistan can improve its economic connectivity if the USD 60 billion China-Pakistan Economic Corridor (CPEC) is implemented successfully.

“The CPEC is an initiative to build economic connectivity and regional integration between the PRC and Pakistan. However, the CPEC alone will not bring optimal results. Structural reforms for private sector development are needed as well,” the ADB said in a report.

“Also, tax reforms are essential to broaden the tax base and enhance the perceived fairness of the tax system. Infrastructure built under the CPEC should be fully utilized to expand trade and regional cooperation. Furthermore, the government should expedite the development of the nine SEZs planned along the CPEC routes,” the report added.

The ADB report titled, “Economic Corridor Development (EDC) in Pakistan” highlighted that despite signing Free Trade Agreements (FTAs) and Preferential Trade Agreements (PTAs), Pakistan could not boost its exports.

On taxation issues, the ADB suggested that a high-level constitutional body, similar to India’s Goods and Service Tax Council, may be established through the Council of Common Interest (CCI), with clear accountability to resolve tax-related issues across the country.

The ADB report states that the CPEC investments improved Pakistan’s connectivity. To fully explore the potential benefits, it proposed some policy actions which could raise income from exports and enhance the fiscal capacity of the government.

The report also suggested that possible reforms could include the following, but would not be limited to rationalising business regulations and taxation, improving trade facilitation and logistics, augmenting human capital development, and labour market efficiency, and strengthening financial inclusion along with deepening the capital market.

“Second, broaden the tax base to unleash the country’s tax revenue potential while improving the perceived fairness of the tax system,” the ADB report said.

The ADB also advised Pakistan to realise the expected gains from the concessions granted by partner countries under the FTA) and preferential trade agreement (PTA). Despite market access obtained by the government, Pakistan exporters have not taken full advantage of the concessionary tariffs to increase their share in partner countries’ imports, the report said.

ADB analysis indicates that Pakistan is facing an acute infrastructure financing gap of about 5 per cent of GDP. (ANI)

ALSO READ: China warns athletes over free speech during Olympics

Previous Story

China warns athletes over free speech during Olympics

Next Story

Wang Yi, Lavrov discuss Ukraine, Afghanistan

Latest from -Top News

UAE aid for Gaza in global focus

Titled Hope Remains, the documentary brings to light the UAE’s leading role in providing vital aid and support to the people of Gaza. The International Humanitarian and Philanthropic Council has released a

Syria, Israel begin quiet talks

The announcement came just hours after Israeli warplanes reportedly carried out new airstrikes in Syria’s coastal provinces of Tartus and Latakia, hitting a range of military targets. Syria has confirmed the commencement

Gaza truce deal hits new snag

US says Hamas’ reply to the ceasefire plan was “totally unacceptable” and accused the Palestinian group of dragging the negotiations backward. The latest attempt to broker a ceasefire in Gaza has hit

IAEA flags Iran enrichment spike

The International Atomic Energy Agency (IAEA), in two separate but related reports, said Iran has boosted its uranium stockpile enriched up to 60% purity by nearly 50% since February. Iran has vehemently

World needs Dubai’s ambition: Morgan

Piers Morgan has hailed Dubai’s transformation as an example of what visionary leadership can achieve. British broadcaster Piers Morgan has praised the extraordinary ambition and vision of His Highness Sheikh Mohammed bin
Go toTop

Don't Miss

Mao’s Cultural Revolution altered culture of China

The CCP has changed significant parts of the chemistry of

NAWAZ 4.0: PAKISTAN ARMY’S NEW SAFE BET

Analysts are unanimous in noting that Nawaz lowered his attacks