Under the frail evolving environment of international economy and politics, none of the projects has been more significant and debated than the China-Pakistan Economic Corridor (CPEC). Last year, China and Pakistan marked the 10th anniversary of this project and it is now entered in the second phase. The world has closely been following the progress of the project with anticipation of the momentous transformation of the region as the journey of CPEC has been channelized with both successes and setbacks. At this particular point in time, the most important task is to look back and reflect and ascertain the realities of today, in a bid to create solutions for the future.
Second Phase of CPEC
The second stage of CPEC will have more deeper impact and influence on the development of the region. With the 33 Special Economic Zones (SEZs) being its major constituent. CPEC 2.0 high engagement is very likely to improve economic growth, reduce poverty, and assist in enhancing regional connectivity. However, things have not been smooth to date. Pakistan’s political instability, financial mismanagement, and the looming threat of terrorism have collectively weighed down on and caused delays and setbacks in CPEC project implementation for over a decade now. Notwithstanding the challenges, China and Pakistan have maintained their commitment to CPEC. Their resilience and determination to weather the storms have yielded fairly good results.
New Developments
The latest visit of the Vice President of China Mr. He Lifeng to Pakistan has attracted the imbued relations between the two countries, besides conferring confidence in the shared destiny of both nations. China’s solid relationship with Pakistan, which comes in the form of massive investments, loans, and grants, has often improved Pakistan’s economic outlook besides strengthening the bilateral strategic alliance.
China has promised to send a generous amount of US $1 billion to Pakistan’s social sector development. It has pledged to undertake 63 projects at a cumulative cost of $35 billion during the next decade. Such a massive investment in pouring in at a time spread over many other international entrants seems reluctant to engage themselves with Pakistan. This investment will thus generate work opportunities for 2.3 million people and give much-needed impetus to the annual economic growth.
CPEC 2.0 is a venture that is more than mere financial investment; it entails a concrete strategic vision, resilient leadership, and unflinching dedication to incorporate comprehensive reforms. The Pakistani Government ought to capitalize on CPEC for a push towards economic diversification. This needs good policy-making, besides addressing pertinent issues like inflation and export competitiveness. The fall in exports of textiles shows a vital signal that a general overhaul is now necessary. It also draws attention to policy areas such as agriculture and textile processing, where strategically designed interventions can make the country less dependent on imports.
Through the utilization of China’s advanced technologies and resources, Pakistan now has the chance to emerge as the hub of trade and business in the region. With economic growth and the welfare of its people, guaranteed. However, capitalizing on this opportunity requires daring undertakings, adopting the right measures, fairness, accountability, and good governance.
Framework for CPEC 2.0
As the implementation of CPEC in phase 2 by Pakistan and China increases, a holistic approach needs to be adopted. Incorporating not only infrastructure development but also social-economic empowerment and environmental sustainability. The announcement of the setting up of the working groups on five newly constructed economic corridors focusing on the 5Es framework (Exports’, ‘E-Pakistan’, Environment & Climate Change, Energy & Infrastructure, and Equity & Empowerment) promises a fresh trajectory besides supporting the road map for employment in the critical areas of export, energy, equity, e-Pakistan, and environment, the 5 Es.
Additionally, the “one plus four” special economic zones model, which is proposed, is a novel approach to expanding the competitiveness and attractiveness of the SEZs to investors. Encouraging industry-specific partnerships between the Chinese provinces, industry groups, state-owned enterprises (SOEs), and Pakistan is a viable solution for promoting the development of SEZs. Building and nurturing these ecosystems remains essential for growth, innovation, and job creation.
Conclusion
To conclude, CPEC Phase 2 gives Pakistan an unprecedented opportunity to build a new path toward growth and development. By utilizing China’s backing and know-how, Pakistan has the potential to overhaul its challenges, enhance its economic performance, and establish itself as a dominant force in the region. It would be difficult to achieve such success with the desired outcomes, courageous leadership, strategic planning, and a reform-minded approach will be required. While the world’s eyes are upon us, now is the time for us to act and design our path towards a better tomorrow for us and our descendants.
