Revitalizing Pakistan's Economy: CPEC SEZs as Catalysts for Growth

The Special Economic Zones (SEZs) established within the framework of the China-Pakistan Economic Corridor (CPEC) are poised to serve as catalysts for Pakistan's economic stability and growth.

In a conversation with WealthPK, Dr. Fazal-ur-Rahman, Director of the Pakistan Institute of China Studies at Sargodha University, expressed optimism about CPEC and its affiliated projects, characterizing them as a groundbreaking endeavor destined to attract foreign investors. This initiative, he asserted, would generate a surge in employment opportunities and business prospects, both locally and for international investors operating in Pakistan. The SEZs and industrial parks, meticulously designed to tap into global opportunities and abundant resources, promise to propel the nation toward economic prosperity, according to Dr. Rahman.

He further stressed that these SEZs would lead Pakistan on a path to progress and prosperity akin to the success of Singapore, forging ahead through trade initiatives. Khalid Mansoor, former advisor to the Prime Minister on CPEC affairs, emphasized the importance of focusing on projects that create jobs for the populace. He underscored the need to align political, social, and business elements to foster sustainable growth, drawing from the Chinese experience.

Khalid Mansoor described Gwadar as the "golden gate to Asia" and highlighted CPEC's pivotal role in Asian trade. Under the project, a total of 28 mega projects have been completed in Pakistan, with 18 dedicated to energy and 10 to infrastructure. Mansoor also pointed out that over 0.3 million Pakistani workers are involved in these projects, leading to the development of a skilled labor force under Chinese guidance. Infrastructure projects in railways and roads are expanding opportunities for regional and international trade, with an estimated 10,000MW of energy set to be added to the national grid next year through various hydel and solar initiatives under CPEC.

The mega projects slated for completion by 2025 include ML-1, the Karachi-Hyderabad Motorway project, economic zones, and hydropower ventures. With these undertakings finalized, Pakistan is expected to join the ranks of the world's top 25 economically stable nations, Mansoor added.

The list of completed projects up to 2022 comprises notable developments such as the Pak-China Friendship Hospital, Pak-China Technical and Vocational Institute in Gwadar, New Gwadar International Airport, Gwadar Eastbay Expressway, Khuzdar-Basima Road (N-30), Hakla-D.I Khan Motorway, 720MW Karot Hydropower Project, 884MW Suki Kinari Hydropower Project, and 330MW HUBCO ThalNova Thar Coal Power Project (Thar Energy). China Three Gorges South Asia Investment Limited's recent statistics indicate 36 energy projects under CPEC in the pipeline, involving a $27 billion investment, most of which are projected to conclude by 2030. In 2022 alone, 11 energy projects, worth $18 billion, and $7 billion worth of infrastructure projects were successfully completed in Pakistan.

Notably, Special Economic Zones have historically served as a potent economic tool for nations seeking to boost their economic growth. Pakistan's commitment to SEZs began with the signing of the SEZs Act in 2012. Currently, nine SEZs operate within the ambit of CPEC, offering a transformative narrative of promise and change for Pakistan, leveraging Chinese expertise and cooperation. Since the inception of CPEC, the SEZs have gained prominence, infusing adjacent cities and regions with renewed optimism for economic advancement. Under the CPEC framework, the Chinese and Pakistani governments have solidified their commitment to deepen cooperation in trade and industry, while simultaneously advancing infrastructure and energy projects. Besides the Gwadar Free Zone, plans encompass a total of nine SEZs, including three priority SEZs in Sindh, Punjab, and Khyber Pakhtunkhwa: Dhabeji SEZ, Allama Iqbal Industrial City, and Rashakai Economic Zone, respectively.