Introductory remarks for CPEC-2.
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 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 result
New Developments
The recent visit of China's Vice President, Mr. He Lifeng, to Pakistan
has strengthened the close ties between the two countries. China's
significant investments, loans, and grants have consistently boosted
Pakistan's economy and reinforced the strong strategic partnership
between them.
China has pledged to send $1 billion to Pakistan for social sector
development and has committed to 63 projects totaling $35 billion
over the next ten years. This significant investment comes at a time
when other international actors are hesitant to engage with Pakistan.
The investment is expected to create job opportunities for 2.3 million
people and boost annual economic growth.
Frame work of CPEC 2.0
As Pakistan and China move forward with Phase 2 of CPEC, they're
taking a comprehensive approach. This includes not just building
infrastructure but also focusing on social and economic empowerment
and environmental sustainability. They've announced the formation of
working groups for five new economic corridors, aligned with the 5Es
framework: Exports, E-Pakistan, Environment & Climate Change,
Energy & Infrastructure, and Equity & Empowerment. This aims to
boost employment and development in these critical areas.
Additionally, they're introducing a "one plus four" model for special
economic zones (SEZs), encouraging partnerships between Chinese
provinces, industry groups, state-owned enterprises, and Pakistan. This
approach seeks to enhance the competitiveness and attractiveness of
the SEZs to investors, promoting 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.
