CPEC-II as a Catalyst for Green Industrial Growth
The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel (BMP) has urged the government to use the second phase of the China-Pakistan Economic Corridor (CPEC) as a springboard for green industrialization. They stressed that a shift to sustainable production is vital for ensuring long-term economic growth.
BMP Chairman Mian Anjum Nisar highlighted the need to embed renewable energy, low-carbon technologies, and responsible manufacturing into new corridor projects to cut import bills, strengthen competitiveness, and protect the environment. He noted that while CPEC’s first phase focused on infrastructure and energy, Phase II provides a strategic opportunity to advance industrial cooperation with China, integrate green finance, and develop eco-friendly industrial parks.
Pakistan has already gained from Chinese investments in renewables, solar technology, and electric vehicles, but BMP believes these advances must be scaled and systematised. With global markets now rewarding sustainability, failure to adapt risks the loss of vital export opportunities. Nisar stressed that CPEC-II should not be seen merely as a continuation of roads and power projects but as a tool to transform energy consumption and production. By prioritising renewable power, efficient technologies, and green Special Economic Zones, Pakistan can reduce its carbon footprint, stabilise energy costs, and improve export competitiveness.
He cautioned that rising energy, fuel, and raw material costs are undermining factories and inflating consumer prices, warning that industries will struggle against global shocks unless production becomes greener and more efficient. Green industrialization, he argued, is no longer optional—it is an economic necessity. Without this shift, Pakistan risks losing ground to countries such as Vietnam, Bangladesh, and Turkey, which are already adapting to greener supply chains.
To accelerate this transformation, BMP recommended targeted incentives, including tax breaks, subsidised green finance, and preferential treatment for sustainable companies. Dedicated green industrial zones under CPEC-II—equipped with clean energy, water recycling, and eco-friendly supply chains—would attract foreign direct investment and technology transfer while strengthening Pakistan’s value-added exports.
The panel also called for integrating green finance tools like bonds, debt-for-nature swaps, and concessional funding into CPEC’s framework, enabling Pakistan to leverage China’s climate finance ecosystem. Effective alignment of industrial, energy, trade, and environmental policies across ministries, along with clear regulations and streamlined approvals, would reduce investor uncertainty and accelerate progress.