IN a delayed but welcome move, Pakistan and China have formally launched Phase-II of the epoch-making China-Pakistan Economic Corridor (CPEC), which will surely go a long way in taking their strategic and multi-dimensional bilateral cooperation to new heights.
The two countries on Thursday inked bilateral accords worth $8.5 billion in various sectors, with Prime Minister Shehbaz Sharif terming the development a “long march of economic growth”. The Chinese and Pakistani companies have signed $7 billion memoranda of understanding and $1.54 billion joint ventures (totaling $8.5 billion) in sectors including agriculture, electric vehicles, solar energy, health, chemical and petrochemicals, irons and steel besides others, at the Second Pakistan-China B2B Investment Conference held in Beijing. The Prime Minister unveiled a new vision for Pakistan-China economic cooperation, announcing the formal launch of “CPEC 2.0” which will attract investment into diverse sectors.
The Prime Minister has aptly described the fresh momentum in bilateral relations as a ‘long march’, which would lead to growth of enormous opportunities of investment and job creation. This is already confirmed by fundamental changes in the development pattern of the country during implementation of the first phase of the CPEC. There is universal consensus in Pakistan that the Chinese cooperation and investment under the umbrella of CPEC has helped the country address some of its chronic problems like poor infrastructure and energy shortages that badly affected the overall march towards progress and development. Early harvest projects in the energy sector made Pakistan surplus in electricity generation and incidentally a visible transformation towards solar solutions is taking place with the active cooperation of our great neighbour. It is known to all that China does not believe in bureaucratic rigmaroles as it decided to make heavy investments in Pakistan and proceeded ahead with speed to accomplish all agreed projects that are now playing their role in promoting socio-economic welfare of the people. It was in this backdrop that people of Pakistan wholeheartedly wanted to expand the scope of the CPEC but myopic thinking on part of some circles within the country under venomous propaganda and foreign pressure caused somewhat disruption in the momentum already gained. Credit surely goes to the present coalition Government led by PML(N), which has leaders like President Asif Ali Zardari and Prime Minister Shehbaz Sharif/former PM Mian Nawaz Sharif, who played their role in the launch and evolution of the CPEC, for making efforts for rejuvenation of the historic project. Besides propaganda, it is also a fact that security issues, exacerbated by our internal and external enemies, as well as red tape are also to be blamed for lack of required progress on the CPEC and delay in the launch of its second phase. With this in view, the Prime Minister has done will in extending assurances to the prospective entrepreneurs that his Government will ensure removal of red tape hiccups and facilitate them in all possible manners. The level of commitment was reflective in his remarks that he will not tolerate a second’s delay, explaining that a Chinese entrepreneur was recently facilitated within 24 hours. The PM understandably emphasized the role of Special Economic Zones (SEZs) in attracting investment, offering competitive advantages such as cheaper skilled labour and joint ventures to produce high-quality export goods and hopefully his Government will also prioritize removal of hindrances in establishment and development of such zones. Shehbaz Sharif also tried to assuage concerns of Chinese about security issues, extending an assurance that security of Chinese nationals was a top priority. It is encouraging that CPEC 2.0 will shift focus toward business-to-business (B2B) investments in agriculture, IT and AI, minerals and industrial relocation. This is important in view of the efforts being made by the Government to modernize agriculture, boost production and promote food exports. Industrial relocation can also become an attraction for Chinese entrepreneurs if we speed up establishment of SEZs and offer necessary incentives to investors. Pakistan has the potential to become an IT hub but here again we have not been able to clear hurdles sending dismal signals to investors. China is there to support Pakistan as was also reiterated by Prime Minister Li Qiang that his country will continue to work closely with Pakistan on CPEC 2.0, with its five new corridors and it is now for us to avail the opportunity. It is also high time that projects like Gwadar, ML-I, KKH and water reservoirs are implemented on priority basis because of their economic benefits.
