Collaboration Between Pakistan and China Key to Green SEZs under CPEC
The experts on Monday stressed the importance of fostering closer collaboration between Pakistan and China to learn from China’s successful development of green Special Economic Zones (SEZs) under the China-Pakistan Economic Corridor (CPEC). The aim is to raise a climate-competitive industry in Pakistan, critical for advancing low-carbon development and supporting global sustainable development goals (SDGs).
A webinar hosted by the Sustainable Development Policy Institute (SDPI) and the Green CPEC Alliance titled “Development of SEZs under CPEC: Learning from China’s Green Model” brought together experts, policymakers, and stakeholders to discuss strategies for integrating environmental sustainability into Pakistan’s economic growth through green industrialization. The session highlighted how Pakistan can utilize China’s expertise in developing eco-friendly SEZs to align economic development with environmental goals.
P.c. China Pakistan Economic Corridor
Dr. Erfa Iqbal, Executive Director General of the Board of Investment, emphasized the ongoing development of SEZs in Pakistan, with four already operational and the others progressing rapidly. She underscored the importance of integrating environmental considerations into the country’s economic planning, welcoming guidance from Chinese experts to facilitate the transition towards green SEZs. Dr. Iqbal revealed that a one-stop service office for foreign investors would soon be operational in Islamabad to streamline investments.
Mustafa Hyder Sayed, Executive Director of the Pakistan-China Institute, pointed out that Pakistan’s industrial future lies in the creation of eco-industrial parks. He urged the development of green innovation supply chains and the establishment of small-scale industrial parks that could evolve into larger green eco-industrial zones. He also criticized the Rashakai SEZ’s location, stating that it was politically motivated rather than strategically chosen.
Experts also discussed Pakistan’s growing role in the solar and electric vehicle markets, bolstered by collaborations with China. Ubaid ur Rehman Zia, Head of the Energy Unit at SDPI, highlighted the significant growth in Pakistan’s solar photovoltaic market, with over $2 billion worth of solar capacity imported from China in 2024. He emphasized that CPEC’s SEZs present a unique opportunity for Pakistan to localize its renewable energy and electric vehicle markets, key to achieving low-carbon development.
Dr. Peng Wang from the Guangzhou Institute of Energy Conversion shared Guangdong Province’s success as a low-carbon industrial zone, providing a blueprint for Pakistan. Through policy alignment, technological innovation, and green manufacturing audits, Guangdong exceeded its carbon reduction targets. Dr. Wang suggested that Pakistan could adopt similar measures, including city- and sector-level carbon neutrality plans.