PREMIER Shehbaz Sharif has returned home after very successful and comprehensive five day official visit to the People’s Republic of China from June 4 to 8 on the invitation of Chinese President Xi Jinping and Premier Li Qiang for wider talks aimed at upgradation and expansion of ties in various fields. He met top corporate executives of leading Chinese companies in the fuel, energy and IT sectors besides addressing Pakistan-China Business Forum at Shenzhen. The two sides also undertook discussions to further strengthen the all-weather strategic cooperative partnership, upgrade the China Pakistan Economic Corridor, advance trade and investment, enhance cooperation in security and defence, energy, space, science and technology, education, promote cultural cooperation and people to people contacts thus setting the future trajectory for Pakistan China friendship. Chinese visionary President Xi Jinping has already opened new economic avenues for Pakistan to excel.
Since its launch, CPEC, the game changer has been facing multiple challenges. The initiative is divided into three phases. The short-term phase (2015 – 2022), the medium-term phase (2021-2025) and the long-term phase (2026 – 2030). The official launch of China Pakistan Economic Corridor took place on 20 April 2015, when the then Pakistani Prime Minister Nawaz Sharif and the Chinese President Xi Jinping signed 51 agreements and Memorandums of Understanding with a combined value of US $ 46 billion. The second phase of CPEC is aligned to very objectives. To accelerate industrialization, it was decided to set up special economic zones (SEZs) in each province of Pakistan. The first of these, Allama Iqbal Industrial City (AIIC) became operational in Faisalabad in early 2020. Pakistan and China have intensified efforts to establish a working group on five new economic corridors under the second phase of the CPEC, aligning with the 5Es framework.
Both Pakistan and China have agreed to expedite the second phase of CPEC and establish a working group on five new economic corridors, including the corridor of job creation, corridor of innovation, corridor of green energy and corridor of Inclusive regional development. Pakistan has already initiated the implementation of the 5Es framework, which includes Export, Energy, Equity, E-Pakistan and Environment. This framework will align with the five new economic corridors to advance region’s prosperity in each sector under the visionary leadership of Chinese President Xi Jinping. The “One Plus Four” model is proposed, wherein each SEZ in Pakistan would be partnered with one province from China, one industry group to develop specialised clusters within the SEZs, one SEZ from China to provide technical expertise and a state-owned enterprise to spearhead SEZ in Pakistan. Collaborative framework would expedite the establishment and growth of SEZs, enhancing their competitiveness and attractiveness to investors. The success of SEZs depend upon their ability to become clusters of specific industries, fostering economies of scale and creating a vibrant eco system conducive to innovation and growth. Under CPEC, the Gwadar Port and the M-8 Motorway, will strengthen trade links and facilitate regional integration.
It is encouraging that both China and Pakistan have paid due priority and attention to make Xi-Shehbaz meeting tangible and result oriented. Before leaving for China Premier Shehbaz Sharif convened a comprehensive preparatory meeting where he issued a number of directives to different ministers and departments to create strategies aimed at attracting Chinese industries to establish their operations in Pakistan, assuring them of the government’s complete support and facilitation. Premier Shehbaz Sharif’s visit to China assumed special significance as it took place at a time when the federal government was about to present the budget for the next financial year and the date of its presentation has been delayed because of Premier’s visit which means it has very close linkage with the budgetary plans of the country. China has been a reliable source for external inflows and there are also expectations from people of Pakistan that the friendly country China would continue to help accelerate the pace of socio-economic progress through CPEC.
Ahead of the visit the government of Pakistan had approved the construction of 241 km long Thakot-Raikot section of Karakorum at a cost of US $ 2 billion. This project has special importance because of its potential to give boost to economic and commercial relations between the two countries but more important is the need to launch and implement the second phase of China-Pakistan Economic Corridor which has the prospects to help overcome Pakistan economic worries. Prime Minister’s recent visit to China along with high level business delegation will open new avenues of prosperity and development. Industrial revolution with the close cooperation of China will change course of the region. This is take off position. The corridor is at the verge of boom. At this stage firstly Pakistan will have to focus on uninterrupted supply of energy to the entire industrial zones in the country. Secondly, government of Pakistan will have to make law and order situation foolproof by all means. To safeguard foreign investment and Chinese officials Pakistan will have to crush terrorists across the board. Conducive environment and sound law and order conditions are always helpful for investment and industrialization in the region.
—The writer is author of several books based in Islamabad.
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