CPEC's Next Chapter: Empowering Pakistan through Digital Evolution
In a transformative phase of the China-Pakistan Economic Corridor (CPEC), the second stage is poised to reshape Pakistan's business landscape through a digital revolution, heralding a new era of domestic and foreign investments, according to Adnan Khan, a socioeconomic development specialist at the CPEC Centre of Excellence.
Khan highlights the evolution from CPEC's initial phase (2015–2020), where urgent issues like the energy crisis and connectivity took precedence. The second phase of CPEC expands its focus, prioritizing industry collaboration, export diversification, and the advancement of technology and other sectors.
Central to this shift is the establishment of four new working groups under CPEC, concentrating on digitization in the industrial and agricultural sectors, as well as the development of information technology and science and technology sectors. The rapid global strides in technology present fresh business opportunities and act as a catalyst for productive growth.
Pakistan holds promise in both traditional and digital domains. A tangible example of this transformation is the extension of cross-border optical fiber from Gilgit-Baltistan to Karachi and Gwadar, facilitated under CPEC's second phase. Moreover, China's backing of projects related to artificial intelligence signals Pakistan's commitment to harnessing these advancements.
China's digital economy plays a pivotal role in economic recovery and growth, suggesting that nations like Pakistan can draw inspiration from China's success in unlocking digital innovation.
Kaukab Ikram Mughal, an honorary secretary at the Chartered Institute of Logistics and Transport, underscores the global trend toward a paperless and digital environment, urging Pakistan to follow suit. While acknowledging the challenge of inadequate digital infrastructure, Mughal calls for increased investment in digital infrastructure, including fiber-optic networks and improved mobile network coverage.
Chinese and Pakistani scholars propose the creation of the CPEC Centre for Digital Transformation to enhance transparency and digitalization of CPEC projects. This center aims to attract more investors and businesses by leveraging information and communication technologies (ICT) to manage and monitor the progress of CPEC initiatives.
The Pakistan Vision 2025 initiative aims to expedite digitization, expand the knowledge-based economy, and drive socio-economic growth. The digitization policy has already led to a 70% increase in IT exports over the past three years, creating opportunities for the country's tech-savvy youth, a substantial segment of the population.
As CPEC projects evolve, the digitization of Pakistan's economy remains a pivotal priority for sustainable growth and prosperity.