The second phase of the China-Pakistan Economic Corridor (CPEC) is paving the way towards industrialization and bringing economic stability to the country, WealthPK reported.
In the first phase of the CPEC, the government played a major role as the projects included were related to infrastructure and electricity. But the second phase necessitated a total shift in management and player roles. In the second phase, industrialists, the private sector, and the business community will play a larger role.
The government’s role will be limited to that of a facilitator, establishing effective regulations, laws, and efficient infrastructure to promote business-to-business (B2B) and people-to-people links.
Chinese enterprises are relocating to other regions of the world. Therefore, Pakistan is utilising this chance and creating a conducive business climate to attract Chinese outbound foreign direct investment (OFDI).
This will improve industry’s competitiveness, technology transfer, import substitution, export-led growth, human capital development, job creation, and a variety of other direct and indirect economic advantages, reports WealthPK.
The signing of the Framework Agreement on Industrial Collaboration has opened up a new universe of economic potential for Pakistani companies to leverage technological and financial cooperation through joint ventures with Chinese companies.
The agreement is intended to strengthen B2B and project-to-project (P2P) ties, balance and modernize existing industry, expedite special economic zones (SEZ) development and promotion, seek technical and financial assistance from China, increase production capacity, and facilitate businesses with financial institutions on both sides.
The CPEC industrial cooperation is open to third-country involvement. Both countries will advertise these SEZs effectively at a global level in order to attract investment from all over the world. The CPEC will also focus on the development of Pakistan’s agriculture, manufacturing, chemicals, textiles, and home appliances.
Aside from that, vocational training and the hiring of local personnel, including professionals, in CPEC projects have been given careful consideration.
