SPECIAL ECONOMIC ZONES UNDER CPEC PHASE 2
BY: ISMAIL SALARZAI
ISMAIL SALARZAI
I’m an undergraduate student of third Semester at Al-Kawthar University, Karachi,Pakistan and pursuing Bachelor’s Degree in Computer Science.
The China -Pakistan Economic Corridor or (CPEC) is the most important development projects for Pakistan. China and Pakistan are friends and this project will make their friendship even stronger. The first phase of (CPEC) project focused on infrastructure initiatives. It includes roads, energy plants and transport networks but phase 2 of (CPEC) mainly focuses on industrial cooperation, growth of agriculture and to establish special economic zones (SEZS). These zones can attract investment and will create more employment opportunities for the people of Pakistan and will make a good positive image and promote Pakistan industrial growth among the world’s investors, companies, collaborators, brands to invest for long term in Pakistan. So, by doing this automatically the growth of economy will rise and will build Pakistan strong economic country to compete the world high economic states. China was not as modern and successful as it today, there is a lot of struggles behind China’s success. veryone is talking about China-Pakistan Corridor Phase2 but no one knows that what is (CPEC) Phase2. First of all, we should know about the Special Economic Zones that what are the special economic zones.
Special Economic Zones are designated areas or places where businesses receive initiatives like tax exemptions, simplified relation and improved infrastructure. These zones specially focus on attraction of both domestic means internal or locally inside the country and foreign means externally or outside the country or worldwide investment while encouraging industrial products and exports under the second phase of (CPEC). Several (SEZS) are being developed across the county to stimulate economic activity and support industrialization. Through CPEC China has increased the quantity of electric motorcars this year as compared to the previous year. China is economically transformed in the late 1970s when the government introduced economic reforms and established (SEZS).
These zones help China to compete with the modern world and now China is one of the most powerful economically strong country in the world and trading all over the world to export and introducing their own products to the world. Cities such as Shenzhen, Zhuhai and Xiamen where the centres of industrial growth and foreign investment. Shenzhen was a small fishing village but it transformed from a small fishing village into one of the world’s advanced technology and manufacturing hub. China always focused on developing a skilled workforce means skilful persons through education and vocational training programs. The government ensured the full availability of modern infrastructure like roads, ports and also electricity. Policies remained stable and investor friendly which increased business confidence. These all are the success of Chinese Special Economic zones.
How Pakistan can get advantage from this project. It is very simple and clear that Pakistan also has opportunities and have potential to focus on Special Economic Zones and to become engines of economic growth. These zones will increase exports and will convince the investors and companies to invest in Pakistan for long term and this is only possible when we should focus on (SEZS). These zones will create more opportunities for the youth of Pakistan because there are many Students who are graduated but there are no employment opportunities for them because of a smaller number of jobs but high number of candidates. The SEZS can also reduces regional economic disparities by promoting of industrial development in all provinces. Furthermore, the collaboration with Chinese firms can provide access to advanced technologies and international markets to Pakistani businesses. There are many objectives and lessons that Pakistan can learn from China development and success.
Infrastructure: Reliable transportation, electricity and communication are essential for attracting of investors.
SHR: SHR stands for “Skilled Human Resources” Technical education and vocational training for students should be strengthened to meet industrial demands.
Consistency of policy: The policy should be focused on consistency it means that if the policy was made but after few months or year the consistency of the policy stops working or stops by the government so by doing this result will not be in favour of Pakistan because success need consistency and without consistency success is not possible. And the investors prefer stable and predictable policies not frequent which changes and discourage long term investment.
EOG: This is a specific CPEC phase “Early operationalization of Gwadar”. It includes making Gwadar as a special economic zone. Special economic zones should be focused on producing of goods for international markets rather than only for local demands. There are many problems for special economic zones of Pakistan which faced by Pakistan continuously like bureaucratic delays, electricity and energy shortages and limited industrial competition. The industries are running on the base and availability of all these resources including electricity, energy and water as well. If all this resources available so the investors will look for investment inside the country but unfortunately there is a lack of resources so that’s why there is no competition of industries to compete. To solve all these issues the government should provide all the resources and improve coordination among institutions, energy policy consistency and invest in work force development.
Conclusion: Special economic zones under the CPEC phase2 represent a significant role and opportunity for Pakistan’s economic development. Pakistan can take advantage from this to build economic development. Pakistan has a lot of opportunities because China can help Pakistan if not for Pakistan but for their own comforts , so Pakistan can take advantage of this opportunity to build special economic zones under the China’s development projects because China is modernized country and they know that how to build a strong modern country which compete with the modern world. China can give technical education to the students if Pakistan provide a fully funded scholarship to the students of Pakistan to take education of development in China. From Chinese development experiences demonstrates that special economic zones can run industries, attract investors and can create opportunities but all this will be only possible if the infrastructure will be strong. We should learn from China’s successful model and adapt it to our local conditions and we can minimize the benefits of (CPEC) PHASE 2 and can achieve sustainable, stable growth.
