Islamabad: On Friday, Pakistan and China reached a consensus to establish a Working Group (WG) for five new economic corridors as part of the second phase of the China-Pakistan Economic Corridor (CPEC). This initiative aligns with the 5Es framework, which has been prepared by the Planning Ministry.
During a meeting lasting over an hour at the Planning Ministry, Federal Minister of Planning, Development, and Special Initiatives, Professor Ahsan Iqbal, and Chinese Ambassador to Pakistan, Jiang Zaidong, reached an agreement. As per a news release, the Chinese envoy, Jiang Zaidong, congratulated Ahsan Iqbal on being appointed as the Planning Minister for the fourth time.
In the meeting, all parties consented to accelerate phase 2 of the CPEC and initiated the formation of a working group to develop five new economic routes. These include the Employment Generation Corridor, Innovation Corridor, Green Energy Corridor, and the Inclusive Regional Development Corridor.
The Planning Ministry and China’s National Development and Reform Commission (NDRC) will independently create separate blueprints for the new economic corridors. These documents will serve as comprehensive guides for each sector moving forward. The Planning Ministry mentioned that these blueprints will be combined prior to their presentation at the anticipated Joint Coordination Committee (JCC) meeting, scheduled for 2024.
The Planning Ministry has begun implementing the 5Es framework, encompassing Export, Energy, Equity, E-Pakistan, and Environment. In alignment with the five new economic corridors, this framework aims to enhance Pakistan’s prosperity across various sectors, as per the vision of Prime Minister Shehbaz Sharif. The Minister underlined the significance of boosting Pakistan’s export potential through enterprise growth and employment generation.
The Minister also shared a comprehensive plan to optimize the performance of Special Economic Zones (SEZs) within the country.
Ahsan Iqbal presented a “1+4” model, where each Special Economic Zone (SEZ) in Pakistan would be connected to one Chinese province, one industry group for specialized zone development, one Chinese SEZ offering technical guidance, and a state-owned enterprise driving SEZ advancement.
He highlighted that this cooperative approach would accelerate the development and expansion of Pakistan’s SEZs, boosting their competitiveness and appeal to potential investors.
The Chinese representative commended Pakistan’s progress in executing the CPEC, specifically the launch of phase 2. To enhance Special Economic Zones (SEZs) and boost foreign exchange, the Chinese envoy proposed that those responsible for managing SEZs should visit Chinese industrial parks to learn from the efficiency practices implemented by Chinese officials.
The ambassador emphasized Pakistan’s impressive transformation from an agricultural-based economy to an industrial one. Ahsan Iqbal emphasized that Special Economic Zones (SEZs) will thrive when they focus on concentrating specific industries, promoting economies of scale, and nurturing an environment that encourages innovation and growth.
The conversations mainly centered on improving regional connections, particularly by highlighting the importance of crucial infrastructure developments such as the Gwadar Port and the M-8 motorway. These projects aim to boost trade ties and foster regional unity. Meanwhile, the Planning Minister praised China’s industrial advancements, considering them an inspiring model for Pakistan to emulate.
The minister acknowledged the valuable Chinese support in aiding Pakistan’s export growth. He emphasized that the nation’s primary focus should be on identifying the pace at which they can expand their exports using earned foreign exchange, rather than relying on loans.
The minister assured the ambassador that security is essential for development, and Pakistan recognizes the complete acknowledgment of CPEC construction and security concerns. “Nevertheless, these concerns will not hinder CPEC projects. Pakistan has taken substantial steps to ensure the safety of Chinese workers and will continue to enhance top-level security precautions for Chinese personnel,” he stated.
