Advancing into the Next Phase: Momentum Grows for CPEC's Second Stage
In recent weeks, the second phase of the China-Pakistan Economic Corridor (CPEC) has seen significant progress, dispelling doubts raised by critics who sought to criticize the government for perceived delays in CPEC activities.
In recent weeks, the second phase of the China-Pakistan Economic Corridor (CPEC) has seen significant progress, dispelling doubts raised by critics who sought to criticize the government for perceived delays in CPEC activities.
Remarkable developments include the groundbreaking ceremonies for two colossal hydropower projects valued at $11 billion, advancements in financial negotiations with China regarding the $7.2 billion ML-1 railway project, the tangible realization of special economic zones, rapid growth of the Gwadar port city, and the expansion of CPEC to encompass agriculture, science, technology, and tourism sectors. All these endeavors clearly indicate that CPEC is forging ahead as a game-changing project.
Despite the disruptive impact of the COVID-19 pandemic on business and economic activities worldwide, work on CPEC projects continues diligently, with strict adherence to government-issued standard operating procedures (SOPs) aimed at containing the virus.
To streamline operations and facilitate both local and foreign investors, the government is actively working on the CPEC Authority Bill 2020, which, once approved, will empower the authority to expedite project progress without delays.
CPEC Authority Chairman Lt Gen (retd) Asim Saleem Bajwa highlighted the government's commitment to providing a unified platform for addressing all matters related to CPEC projects, making it easier for investors to resolve their issues seamlessly. Prime Minister Imran Khan's steadfast support for the project, coupled with his directive to resolve technical and economic challenges with Chinese authorities, has been instrumental in overcoming initial obstacles during the early phases of the Pakistan Tehreek-e-Insaf (PTI) government.
Currently, nine out of 17 energy projects are completed, while eight others are under construction. Work on the remaining five projects is slated to begin soon. A significant milestone was achieved earlier this month with the inauguration of the Diamir Bhasha Dam and Azad Pattan Hydel Power Project, not only boosting clean energy production but also transforming barren agricultural land into fertile fields. This venture is expected to attract $11 billion in foreign investment and generate over 6,000MW of electricity.
Furthermore, the shift towards renewable energy sources and the use of indigenous coal in power projects are on the horizon, with ongoing mining activities in Thar. These changes align with the government's vision to transition from expensive non-renewable energy sources to cleaner, cost-effective alternatives.
Recent geopolitical developments in the Middle East and South Asia have also breathed new life into the multi-billion dollar CPEC project. Escalating tensions between China and India, coupled with Iran's decision to discontinue its agreement with India on the Chahbahar Port, have created favorable conditions for CPEC. Pakistan is actively positioning itself to capitalize on these regional dynamics.
Progress on the Western Route of CPEC is promising, with the Burhan to Dera Ismail Khan (DIK) Motorway near completion, the DIK to Zhob road project advancing to the Joint Coordination Committee (JCC), and work on the Hoshab-Awaran Road set to commence soon.
In the realm of industrial development, CPEC is poised to enhance productivity, boost exports, reduce imports, and create job opportunities through the establishment of special economic zones (SEZs). Progress on three out of nine priority SEZs, including Rashakai in Khyber-Pakhtunkhwa, Allama Iqbal in Punjab, and Dhabeji in Sindh, is well underway. Chinese companies are showing keen interest in investing in these SEZs.
The agriculture sector, a crucial source of livelihood for many, is also set to benefit from CPEC. Prominent Chinese corporations are exploring opportunities in corporate farming in Pakistan. Collaborative efforts with provincial governments to identify underutilized or low-yield lands for farming, combined with partnerships between Chinese and local businesses, are poised to foster cross-border cooperation and promote economic growth.
In summary, CPEC's second phase is surging forward, overcoming challenges, and aligning with evolving regional dynamics to unlock its full potential as a transformative economic corridor.