PESHAWAR – Despite substantial population growth, the Asian continent hasachieved remarkable successes after shifting the engine of economic andindustrial growth from Global North to Global South during the last fewdecades.
The positive transformation has also been witnessed in South Asia includingPakistan where communication infrastructure, economy, trade, forest,agriculture, education, health, transport, media and industrial sectorshave improved significantly. It was primarily due its prime geographicallocation, different climates, rich mines and mineral wealth, deep seaportsand massive human resources.
Resultantly, the flow of direct foreign investment (DFI) were diverted toPakistan as evident from billions dollars multifaceted China PakistanEconomic Corridor (CPEC), a major component of China’s One Belt, One Road(OBOR) Initiative, which has entered into industrialization phase aftersigning of the landmark Rashakai Special Economic Zone (SEZ) DevelopmentAgreement between Pakistan and China.
Following official announcement of CPEC, around 37 zones were proposed asSpecial Economic Zones (SEZs) for all provinces of the country out of whichestablishment of nine SEZs were prioritized including Rashakai Nowshera,Dhabeji, Bostan Industrial Zone, Allama Iqbal Industrial City Faisalabad,ICT Model Industrial Zone Islamabad, Industrial Park Pakistan Steel MillsPort Qasim, Mirpur Industrial Zone AJK, Mohmand Marble City and Moqpondassin Gilgit-Baltistan.
However, Rashakai SEZ is holding a unique competitive advantage due to itsproximity to first juncture of CPEC route, close location with Peshawarairport and ML-I besides a significant resource and manufacturing base inthe entire region.
Conceptualized by the KP Economic Zone Development and Management Company(KPEZDMC), Rashakai SEZ is a flagship project of the KP Government thatwould be established on 1,000 acres land with collaboration of China onPeshawar-Islamabad Motorway (M1) in Nowshera district.
“The 1,000 acres land of Rashakai SEZ would be developed in three phases.The total area designated for Industrial use is 702 acres and as perFederal SEZ Areas Regulations, of which 159 acres would be developed inPhase I, 279 acres in Phase II and 264 acres in Phase III. Likewise, 76acres land was allocated for commercial purposes,” said Spokesperson ofBoard of Investment (BOI), Islamabad while talking to APP.
The project initiated after MOUs were signed during KP-China Roadshow inApril 2017. The KP Government after long deliberations signed theConcessional Agreement with China Road and Bridge Corporation (CRBC) todevelop Rashakai SEZ during Prime Minister Imran Khan historic visit toChina where he attended Second Belt and Road Forum (SBRF) and BeijingInternational Horticulture Exhibition (BIHE) 2019.
The project with an expected foreign investment of US $128 million had beenawarded SEZ status on August 6, 2019 before its Concession Agreement wassigned in April 2019. On September 14, 2020, Pakistan and China signed thehistoric Rashakai SEZ Development Agreement in Islamabad, paving the wayfor construction of the mega CPEC project in Khyber Pakhtunkhwa.
The BOI spokesperson said the agreement has provided a comprehensiveroadmap for establishment of Rashakai SEZ while holding the federal andprovincial governments besides the developer jointly responsible for itstimely development and completion on modern lines.
The project would be developed under Public Private Partnership (PPP) modeby KPEZDMC of the KP Government in collaboration with China Road & BridgeCorporation (CRBC). SPV Company of these two firms named Rashakai SpecialEconomic Zone Development and Operations Company (RSEZDOC) has been createdfor implementation of the Devolopment Agreement on fast track basis.
The Spokesperson said Rashakai SEZ has been promoted to capitalize theinvestment inflow under ambit of CPEC, ensure inclusive economicdevelopment of KP, creation of job opportunities for youth, acceleratingpace of economic and industrial development besides bolstering generationof the country’s exports.
Industries related to various sectors ie taxtile, garments, industrial,home building materials, general merchandise, electronics and electricalapppliances, automobile and mechanical equipment would be setup in RashakaiSEZ in the first phase, he said.
“Significant progress has been made on the gigantic project and its groundbreaking is expected during a high-level visit of the Chinese Presidentthis year,” he added.
He said Rs1.8 billion has been committed by the Government for provision of210 Megawatts electricity, and Rs1.2 billion for 30 mmcfd gas from FederalPSDP.
The BOL Spokesperson said process of provision of required utilities,facilitation for allocation of fiscal incentives and concession toco-developer has been accelerated to ensure its timely completion.
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He clarified that investors of Pakistan, China and any other country canmake investment in CPEC SEZs. “BOI is ready to facilitate local and foreigninvestors through regulatory reforms and providing technical support forinvestment in SEZs.”
Fuad Ishaq, former President Sarhad Chamber of Commerce and Industry (SCCI)said Rashakai SEZs offer great opportunity to domestic and foreignenterprisers, businessmen, entrepreneurs and investors besides expatriatesPakistanis to invest and earn capital profits in a competitive environmentin a short time.
He maintained that KP was rich in fruit, leather, marble, gems, textile,sports arms manufacturing, livestock, dairy, fish farming, furniture wood,carpets, pharmaceuticals, transport, engineering and food sectors and ifthese processing plants were established on quality standards at RashakaiSEZ can enhance the country’s exports especially to Afghanistan, CARs andGulf countries manifolds.
Fuad Ishaq said labour-intensive industries, SMEs and infant industrialunits would grow and new jobs opportunities for skilled workforce would becreated.
He said coronavirus has adversely affected industrialization in KhyberPakhtunkhwa and urged the government to exempt engineering machinery fromall taxes and duties to generate employment opportunities for youth andbolster the country’s exports in large scale. He said local industrieswould be flourished only by providing the same facilities as being providedto SEZs.
Manzoorul Haq, former Ambassador of Pakistan said most of modern SEZs indeveloped countries employ advanced technologies like robots, artificialintelligence and 3D printing and special courses in our polytechniceducational institutes should be introduced in order to take full advantageof SEZs.
He said establishment of academia–industry linkages and campuses ofengineering universities in premises of SEZs would help open new avenues ofresearch and provide work experience to our students in the fields ofengineering, IT, industries and human resource management.
Abdul Karim, Special Assistant to Chief Minister KP for Industry andCommerce said Rashakai SEZ agreement was a landmark devolopment that wouldgive enermous boost to the economic and industrial development of Pakistan.
He said signing of agreement was meant that the project had reached asubstantial development stage and commencement of construction would startsoon in large scale.
He said Rashakai SEZ is directly located on Peshawar-Islamabad Motorway andis linked with CPEC route through Burhan Interchange on M1 in a 20 minutesdrive and 30 minutes of Peshawar Airport, which is of its unique advantageto become an international centre of trade and investment.
He said it would serve an export base to Pakistan, Afghanistan and CentralAsian Republics (CARs) following construction of Peshawar-Torkhum Motorwayand ML-1.
KPEZDMC has established an industrial facilitation center at Rashakai SEZto provide timely services to industrialists, investors and keep liaisonwith the relevant departments under one roof, he said.
He hoped the project would create direct and indirect jobs opportunitiesfor about 0.5 million people.
