By 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.
In the realm of rural revitalization and seeking international cooperation and
investment to modernize agriculture, enhancing water management, and uplifting
rural infrastructure. These initiatives, targeted over several years, aim to uplift rural
economies, bridge rural-urban divides, and ensure sustainable agricultural growth,
ultimately leading to enhanced food security and improved livelihoods in rural
areas.
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. This not only paves the way for a more secure
food supply for investing countries but also promises significant benefits for
Pakistan, including technology transfer, job creation, and enhanced agricultural
output.
The initiative, encompassing agricultural research and development with a focus
on arid agriculture and water-efficient technologies, has the potential to foster
innovations that could benefit both regions and beyond. This strategic development
in agriculture under CPEC-2 could serve as a paradigm of South-South
cooperation, bolstering Pakistan’s ties with the Middle East and setting the stage
for mutual economic growth and regional stability.
The prospective meeting is set to delve into the untapped $50 trillion worth of
Pakistan's mineral wealth, particularly in regions like Balochistan, NWFP, Gilgit
Baltistan, and Southern Punjab. These areas are rich in a wide array of resources,
including copper, iron ore, chromite, rock salt, gypsum, limestone, marble, coal,
gold, and rare earth metals, alongside an abundance of precious and semi-precious
stones. The focus is not just on bolstering the economy but also on diversifying
Pakistan's resource base, leveraging these vast reserves of both metallic and non-
metallic minerals.
Efforts will include public-private partnerships, comprehensive geological surveys,
and international technical collaborations. This approach aims to bring substantial
foreign investment and advanced mining technologies to Pakistan. The exploitation
of these mineral reserves is expected to significantly boost Pakistan's GDP, spur
new industrial sectors, and lead towards energy self-sufficiency, setting the country
on a path towards a diversified and robust economic landscape.
Hopefully, the meeting will also focus on exploitation of Pakistan's extensive
coastline along the Arabian Sea, a gateway to untapped economic opportunities,
poised for transformation through CPEC-2 and SIFC. This coastline, strategically
situated on major shipping routes, holds immense potential for boosting maritime
trade and shipping industries, both cargo and passenger.
Additionally, the region's natural beauty offers significant prospects for tourism
development, from luxury resorts to eco-tourism. The fertile marine life along the
coast presents opportunities for a sustainable fishing industry, capable of bolstering
food security and export revenues. However, tapping into this wealth requires
considerable investment in infrastructure, sustainable practices, and an integrated
approach to coastal development.
CPEC-2 and SIFC are ideally positioned to catalyze this transformation. They can
drive infrastructure development by building advanced harbor facilities, upgrading
existing ports, and establishing new maritime routes. SIFC's role in attracting both
local and international investment is crucial, particularly in initiating public-private
partnerships for diverse projects, ranging from tourism to marine conservation.
The socio-economic impact of fully developing Pakistan's coastal areas could be
profound. It promises not only enhanced economic growth through trade, tourism,
and fisheries but also a significant upliftment of local communities. The creation of
a myriad of job opportunities across sectors will lead to improved living standards
and community development. Furthermore, a vibrant coastal economy will bolster
Pakistan's international standing as a key maritime player and a desirable tourist
destination. This strategic development, if executed with foresight and
sustainability, has the potential to reshape the socio-economic fabric of Pakistan,
bringing prosperity and growth while preserving the natural allure of its coastline.
The 4th meeting of the CPEC Joint Working Group, occurring at a pivotal moment
just before Pakistan's 2024 general elections, holds substantial significance. The
decisions to accelerate the progress of both CPEC-1 and CPEC-2 are crucial, as
these projects are increasingly seen as the backbone for Pakistan’s future economic
prosperity. With a strong focus on enhancing the country’s financial and economic
status through infrastructural, industrial, and technological development, these
initiatives are expected to lay a robust foundation for the incoming government.
This groundwork promises to offer an advantageous starting point for the new
administration, which will have the opportunity to propel these initiatives forward.
Leveraged by the collective wisdom and intellectual contributions of
representatives from across Pakistan, the new government will be well-positioned
to elevate these projects to new heights, thereby catalyzing a significant qualitative
and quantitative uplift in the lives of the Pakistani people.
