The key to unlocking the full potential of the China-Pakistan Economic Corridor lies in creating an industrial ecosystem and booming special economic zones, say analysts and diplomats.
The CPEC has begun transforming Pakistan into a more attractive destination for direct investment and presents a unique opportunity to deepen the country's financial market by introducing innovative financial instruments, they said at a forum in Islamabad on Monday titled "10 Years of CPEC: Success, Opportunities and Challenges".
Jamil Qureshi, secretary of Pakistan's Special Investment Facilitation Council, said the CPEC is no longer just a collection of infrastructure projects but a vision for Pakistan's future, where technology is at the forefront of growth and economic relations reach new heights.
Highlighting the importance of building a thriving industrial ecosystem of special economic zones, Qureshi said, "We are pleased to witness the progress and development of Rashakai SEZ in Khyber Pakhtunkhwa, Dhabeji SEZ in Sindh, M3 Allama Iqbal in Punjab and Bostan SEZ in Balochistan as they are all in advanced stages of development."
The government has evolved into the role of a facilitator, focusing on creating policy frameworks, providing security infrastructure and offering incentives to support industrial growth and foster a conducive business environment, Qureshi said.
He added that it established the Special Investment Facilitation Council to foster horizontal and vertical collaboration for investment and business facilitation.
Hamza Saeed Orakzai, chief market development officer at the Special Technology Zones Authority with the government of Pakistan, told the forum that SEZs are one of the five economic pillars.
In the past eight years, Pakistan's GDP grew at only 3.9 percent annually, while the information technology sector recorded an annual growth of 25 percent, he said.
"We have grown from $900 million in exports in IT in 2018 to $3.2 billion last year, and we are expecting $3.8 billion (this year)," he said.
"China is a leader in global technological innovations and we can use Pakistani talent in this area."
Zahid Latif Khan, chairman of the Asian Institute of Eco-civilization Research and Development, said the CPEC presented a unique opportunity to deepen Pakistan's financial market by introducing innovative financial instruments, such as CPEC bonds and Sukuk (Islamic bonds), providing avenues for both local and international investors to take part in these projects.
Shi Yuanqiang, deputy chief of mission at the Chinese embassy in Pakistan, said that over the past 11 years, the CPEC has brought $25 billion in direct investment and now it has entered a new phase of development.
The collaboration in the energy sector has produced fruitful results, Shi said. The total installed capacity of the 14 energy projects that began commercial operations in Pakistan accounts for about one-fifth of the total installed power capacity of the country.
Promising area
Industrial cooperation is another promising area, with the first phase of the Rashakai Special Economic Zone now operational, generating strong momentum in Pakistan's industrial development, he added.
The forum was organized by the Asian Institute of Eco-civilization Research and Development. Shakeel Ahmad Ramay, the institute's CEO, highlighted findings from a recent study by his organization, which showed that without the CPEC energy projects, Pakistan would lose $15-20 billion in GDP growth annually.
"The CPEC has turned Pakistan into a hub of connectivity and is helping Pakistan achieve its dream of sustainable development and prosperity," he said, adding that Pakistan and China should build joint mechanisms for security.
Yu Chao from PowerChina said that the CPEC celebrates not only a decade of success but also the spirit of cooperation and mutual respect between China and Pakistan. The initiative is more than just infrastructure development; it is also a symbol of deepening bilateral ties and aims to bring long-lasting prosperity to the entire region.
vivienxu@chinadailyapac.com
