Pakistan and China intensify efforts on Economic Corridor expansion

WEB DESK: Pakistan and China have intensified their collaboration to establish a Working Group focusing on five new Economic Corridors in phase 2 of the China-Pakistan Economic Corridor (CPEC).

This move aligns with the 5Es framework formulated by Pakistan’s Planning Ministry.

In a meeting between Federal Minister of Planning, Development & Special Initiatives, Professor Ahsan Iqbal, and Chinese envoy Jiang Zaidong, discussions centered on this initiative.

The meeting, held at the Planning Ministry and lasting over an hour, culminated in the decision to expedite phase 2 of CPEC and create a working group dedicated to five new economic corridors.

These corridors include the Corridor of Job Creation, Corridor of Innovation, Corridor of Green Energy, and Inclusive Regional Development.

Both the Planning Ministry and China’s National Development and Reform Commission (NDRC) will draft separate concept papers outlining these economic corridors.

These papers will offer a comprehensive roadmap for each sector and will be consolidated for presentation at the upcoming Joint Coordination Committee (JCC) meeting in 2024.

Under the vision of Prime Minister Shahbaz Sharif, Pakistan has already initiated the implementation of the 5Es framework, focusing on Export, Energy, Equity, E-Pakistan, and Environment.

Minister Ahsan Iqbal stressed the importance of aligning this framework with the new economic corridors to drive Pakistan’s prosperity forward.

During the meeting, Minister Iqbal proposed a strategic approach to maximise the success of Special Economic Zones (SEZs) within Pakistan.

He introduced a “one plus Four” model, wherein each SEZ would be partnered with a Chinese province, an industry group for specialised clusters, a Chinese SEZ for technical expertise, and a state-owned enterprise to lead SEZ development.

This collaborative framework aims to expedite SEZ establishment and growth, enhancing their competitiveness and attractiveness to investors.

The Chinese envoy acknowledged Pakistan’s efforts in implementing CPEC, particularly the initiation of phase 2.

Stressing the need to boost SEZ efficiency for increased foreign exchange, he suggested that SEZ officers visit Chinese industrial parks to observe efficient practices firsthand.

Minister Iqbal highlighted the importance of SEZs becoming industry-specific clusters to foster economies of scale, innovation, and growth.

Discussions also revolved around enhancing regional connectivity, focusing on projects like the Gwadar Port and the M-8 motorway to strengthen trade links and regional integration.

Minister Iqbal commended China’s industrial progress and emphasised Pakistan’s commitment to follow suit.

He expressed gratitude for Chinese assistance in export development and assured the Ambassador of Pakistan’s dedication to ensuring security for CPEC projects, highlighting efforts to safeguard Chinese personnel.