The Economic Benefits of the Modern Silk Road – CPEC’
Business readiness for change
ACCA surveyed 500 finance professionals across Pakistan. 79% believe that the changes due to CPEC would be incorporated into their business strategy within five years and the way their businesses work would adapt to the expected growth and change.
Organisations need to consider and analyse the impact of B&R initiative globally and its impact on the way business is conducted in PakistanEfficient allocation of resources to compete globallyOrganisations in the IT and communications industry will need to consider major investment in human and organisational development, to enable them to compete globally and facilitate collaboration between Pakistani and Chinese technology companiesGeo-political influences should be included in the scope of business risk assessments. Competing with Chinese firms on production costs will be tough and it is expected that trading with China will increase because of the infrastructure development linking the two countries, inevitably increasing competitive pressures on local products. Risk-management mechanisms must be adapted to allow timely identification of any business risk.
Finance skills for the future
Better communication (advocated by 68.7% of respondents) and better business analytics (66.1%) to deal with the expected changes, along with taxation knowledge (52.2%) and leadership ability (52%) will also be key for finance professionals in Pakistan to take advantage of the expected changes the CPEC will bring.
Finance and business professions can prepare themselves for the business growth that will take place:
Understand how it will affect their lives and organisationsLearn from the ‘early harvest’ projects taking placeTake stock of the additional skills required to take advantage of infrastructure improvementsVisit China and meet relevant Chinese companiesDevelop detailed future strategies based on the long-term implications of CPECThink carefully about cross-border trade and the Chinese cultural and ethical values