BEIJING – After Energy and Infrastructure projects the Pakistan China CPECenters the next phase of industrialization.
Rashakai, one of the nine special economic zones prioritised under theChina-Pakistan Economic Corridor (CPEC) framework, is likely to startcommercial operation during the first quarter of this year.
The two sides are negotiating details on the implementation of the RashakaiSpecial Economic Zone, which will be inaugurated as early as the firstquarter of 2019, official sources said on Sunday.
During the 8th Joint Coordination Committee (JCC) meeting held in Beijinglast month, China’s National Development Reforms Commission (NDRC) andPakistan’s Board of Investment (BOI) signed the Memorandum of Understanding(MOU) on industrial cooperation, which will facilitate the cooperation inthis regard.
In November 2015, Pakistan proposed to set up an industrial cooperationworking group under JCC, claiming that Pakistan has advantages such asadequate labour force and huge market potential to develop manufacturing.
China agreed to strengthen cooperation in industries like steel, cement,automobile, construction materials, home appliances, textile, lightindustry, and apparel, etc.
In March and April 2016, Pakistan had sent two delegations to China forstudying China’s best practice in SEZ development. In November 2016, thetwo sides established the joint working group and held the first meeting onindustrial cooperation, during which the two sides agreed to work out themechanism, key areas of cooperation and key projects.
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Later on, in the 6th JCC Meeting in the same month, Pakistan had submitteda list of nine special economic zones to China.
From 2017 to 2018, China’s expert panel had three successive on-site visitsto nine proposed special economic zones, trying to make a comprehensiveanalysis and proposal on the strategy of industrial development forPakistan.
Through interactions with provincial governments, business associations andenterprises, the expert panel understood their demands in local development.
In early 2018, Islamabad had instructed BOI to formulate moreaccurately-targeted and more favorable policies on top of currentpreferential policies for two to three special economic zones that were tobe listed as key projects under CPEC.
Under the CPEC, so far nine special economic zones have been identified tobe established in different areas of Pakistan. One each in Punjab, KhyberPakhtunkhwa, Balochistan and Islamabad, two in Sindh and one each in FATA,Kashmir, and Gilgit-Baltistan.
