On April 12th, the Pakistan finance and Innovation forum on infrastructure was hold successfully in Karachi, the capital city of Pakistan. Guan Jianzhong, president of Dagong Global Credit Rating Group, attended the forum and delivered a keynote speech titled Credit Rating and the financing mode of infrastructure, providing informative opinions on the development of infra financing in Pakistan.
Nowadays, it’s a global consensus that infra investment has become the new driving force of economic growth, both nationally and globally. However, the above recognition, at the sacrifice of global economic crisis, hasn’t gained any constructive achievement in practice. While the question on the capital demand by infra investment has been raised, it’s still unclear as to how an overall solution framework could be provided. Though in reality there is a clear-cut financing demand by the infra, and the available capital in the market is sufficient, the lack of credit rating has rendered the disconnection of capital flows between creditors and debtors, hence hampering the contribution of infra investment to global economic growth, due to the unavailability of the indispensable information needed by the creditors to evaluate the credit risks of the debtors. Therefore, the study on credit rating and infra financing mode, and the corresponding brand-new solution, are critical to the global economy as a whole.
In his speech, Guan Jianzhong introduced Dagong Credit Rating Methodology on Global Infra, pointing out that government-led infra financing by relying on fiscal income or loans endorsed by the government, can no longer resolve the infra financing problems faced by Pakistan. According to the views of Guan Jianzhong, innovation on the infra credit rating methodology and the business mode of infra investment constitutes the foundation to the establishment of the market-oriented infra financing mode. The infra financing innovation helps to attract inflows of more global capitals to Pakistan and increase its investment opportunity among the one belt one road countries.
Guan Jianzhong also talked with Muhammad Shahbaz Sharif, chief minister of Punjab, Pakistan, exchanging views on credit system design and mutual cooperation.
The trip to Pakistan by Guan Jianzhong has been highly appraised by politicians of Pakistani government and officials of financial institutions, it helps to promote the construction of Sino-Pakistani economic corridor; also it’s a practice for Dagong to implement its global rating responsibility and to participate in the one belt one road development.