Qamar Bashir
Vice Foreign Minister Sun Weidong of China is in Islamabad to attend the 4th meeting of the CPEC-Joint Working Group on International Cooperation and Coordination marks a significant milestone in the China-Pakistan Economic Corridor (CPEC) initiative. Co-chaired by Pakistan’s Foreign Secretary Muhammad Syrus Sajjad Qazi, this meeting is set to evaluate significant strides in key development areas: rural revitalization, industrialization, green development, and science and technology. As both phases of the project – CPEC 1 and the ongoing CPEC 2 – enter critical stages of development, the meeting’s agenda is crucial in evaluating progress, strategizing future actions, and reinforcing the corridor’s role in regional connectivity and economic growth.
It will take stock of the existing status of CPEC-1 & 2 given the dynamic global economic and geopolitical landscape, reviewing progress, adapt strategies to ensure sustainable and mutually beneficial development for both China and Pakistan and adjust and fine-tune the future course of action.
The meeting will set a future course of action for industrialization by fast-tracking establishing Special Economic Zones (SEZs), designed to spur manufacturing growth and attract foreign investments. With infrastructure development at its core, these SEZs are expected to drive job creation, boost exports, and diversify Pakistan’s economic base in the coming decade. Parallelly, green development will be fast-tracked with investments in renewable energy projects, eco-friendly urban planning, and sustainable transportation. These projects, spanning multiple years, are crucial for reducing environmental impacts and achieving long-term energy sustainability.
The meeting will also channelize the collaborative efforts in cutting-edge fields such as IT, biotechnology, and advanced manufacturing. Establishing research centers and technology parks, these initiatives are poised to catapult both nations into a future of technological innovation and a skilled workforce.
Central to the discussions will be the integration of the Special Investment Facilitation Council (SIFC) in CPEC-2 aimed at fast-tracking international cooperation and attracting global investment to broaden the scope and impact of CPEC by offering potential financial solutions and attracting further investment into these projects.
The meeting is likely to focus on garnering significant interest from a range of regional and international players for CPEC-1 & 2. Nations such as Iran, Afghanistan, and Middle Eastern powerhouses including the UAE, Saudi Arabia, and Qatar, along with European countries, are eyeing the corridor for its vast potential in reshaping regional trade and connectivity.
Iran and Afghanistan are poised to benefit from enhanced trade links and access, with Iran’s potential integration into CPEC serving as a gateway to Central Asia. Whereas, Middle Eastern countries view CPEC as a lucrative investment opportunity, aiming to link their own economic ventures with Pakistan’s strategic location, thus deepening economic ties and expanding their influence in Asia. Joining CPEC offers them a platform for significant economic growth through investment in infrastructure and industrial projects. The corridor promises enhanced connectivity, opening up new market accesses, particularly for landlocked regions.
European countries, while cautious due to geopolitical sensitivities, recognize the corridor’s potential as a new trade route, providing a more direct access to Asian markets. This could usher in a new era of economic cooperation, transcending traditional geopolitical boundaries and if managed effectively, CPEC could become a cornerstone of a new economic order in Eurasia, fostering unprecedented levels of cooperation, development, and regional integration.
The meeting is likely to value the promising opportunity Pakistan offers to transform its vast tracts of virgin, cultivable land into a hub of agricultural productivity, appealing especially to water-scarce but energy-rich Middle Eastern countries seeking to lessen their dependence on food imports.
Encompassing approximately 40% of its total land area, or about 79 million acres, Pakistan’s regions like Balochistan, Sindh, NWFP, and Southern Punjab, with their fertile alluvial soils and ample water resources, are ideal for conversion into large-scale, mechanized farming.
By establishing Special Economic Zones (SEZs) and encouraging public-private partnerships, Pakistan can offer attractive incentives for investment, such as tax breaks and infrastructure support.
