Upgraded CPEC,President Xi and Shahbaz Sharif

By Qamar Bashir
As anticipated, Chinese President Xi Jinping, known for his deep and affectionate sentiments towards Pakistan, was the first head of state to extend congratulations to Mr. Shahbaz Sharif upon assuming the office of Prime Minister. This gesture reflects President Xi's special regard for Pakistan, highlighting his reputation as one of the most benevolent leaders globally, particularly towards
Pakistan.
As the leader of China, one of the fastest-growing nations worldwide, President Xi’s support will give added confidence to the newly elected Prime Minister, who is soon to face significant economic, financial, and political challenges. The brief yet impactful message not only conveyed congratulations but also emphasized a revitalized vision for the future of Pakistan-China cooperation which was delineated into five distinct areas, underlining a roadmap for their continued collaboration.
Firstly, emphasis was placed on nurturing and preserving the longstanding
friendship between the two nations. Secondly, emphasized exchanges and
cooperation across a wide spectrum of fields. The third to advance and upgrade the
China-Pakistan Economic Corridor. The fourth to deepen cooperation and foster
resilience. Fifth to ensure tangible benefits for the populace of both nations.

While all five elements hold significance, the joint development of an upgraded
version of the China-Pakistan Economic Corridor (CPEC) emerged as particularly
pivotal, with far-reaching implications.
This revamped iteration of CPEC, built upon a reassessment of its initial
framework (CPEC-1) transcends its previous focus on infrastructure, energy, and
communication projects. Instead, it embraces a multifaceted approach centered on
fostering economic prosperity, industrial development, ICT, livelihood projects,
mining and mineral exploration and development, agriculture, political, economic,
education, science and technology, cultural, and people-to-people relations. It also
covers food security and research, media exchanges, space cooperation, urban
sustainable development, climate change, vaccine development, transportation,
energy.
In essence, the upgraded CPEC delineates five distinct corridors, each tailored to
address key priorities and aspirations.
A Growth Corridor, aimed at driving economic expansion by focusing on
infrastructure development projects that directly stimulate economic activity. Such
as expanding existing industrial zones and creating new special economic zones to
attract foreign investment. It includes improving transportation networks to
facilitate trade domestically, regionally and globally, diversify Pakistan’s export
basket and expand its industrial base and connect Gwadar with the landlocked
countries, thus opening new vistas to the west and beyond.
The Livelihood-Enhancing Corridor aims to bridge socio-economic disparities
by empowering individuals and communities by harnessing the potential of the
country's youthful population and capitalize on the growing social consciousness to
transition towards a knowledge-driven society. Central to this vision is the
development of human and social capital alongside institutional reforms that
prioritizes sustained, inclusive growth, emphasizing indigenous solutions and
involving all segments of society. Creating an enabling environment for the private
sector to drive economic growth and enhance national competitiveness. It focuses
on enhancing living standards through investments in education, healthcare, social

services, and poverty alleviation initiatives besides uplifting rural communities
aimed at improving the overall quality of life for all Pakistani citizens.
The Innovation Corridor will foster technological advancement through the
establishment of research and development centers, fostering collaboration
between universities and industries, and investing in digital infrastructure aimed at
ushering the country into a new knowledge revolution by introducing disruptive
technologies such as micro-electronics, computers, telecommunications, human-
made materials, robotics, and biotechnology. By catalyzing significant increases in
productivity and giving rise to entirely new economic sectors, the corridor serves
as a platform for innovation and entrepreneurship. It aims to position Pakistan as a
hub for technological excellence, driving economic growth and enhancing
competitiveness globally. Through strategic investments and partnerships, the
Innovation Corridor seeks to propel Pakistan forward as a leader in technological
innovation and advancement.
The Green Corridor in Pakistan is committed to promoting environmental
sustainability by prioritizing investments in renewable energy sources, clean
technologies, and sustainable waste management. Emphasizing the importance of
modernization, food security, and agricultural and environmental protection. This
vision advocates for energy conservation, commercialization of renewable energy,
and the adoption of advanced biofuels and synthetic fuels. It also calls for the
implementation of alternative propulsion methods and energy-efficient urban
infrastructure. Through these initiatives, the Green Corridor aims to mitigate
environmental degradation, enhance energy security, and build resilient
communities, ensuring a more sustainable and prosperous future for Pakistan.
The Open Corridor aims to ensure inclusivity and accessibility, extending the
benefits of CPEC-1 and II to a wider range of people and regions in Pakistan. This
initiative envisions empowering local communities, providing skills training,
facilitating access to financing for small businesses, and offering clear information
about opportunities. While achieving this ambitious vision requires careful
planning and collaboration among stakeholders, it holds immense potential to
uplift all of Pakistan through equitable development.

Since its announcement five months ago, the upgraded China-Pakistan Economic
Corridor (CPEC) has transitioned from the drawing board to practical
implementation. The Chinese Ambassador recently unveiled promising
developments regarding CPEC, announcing the successful launch of the Growth
Corridor, Livelihood-Enhancing Corridor, Innovation Corridor, and Green
Corridor, alongside the Open Corridor.
Concrete plans are underway in collaboration with Xinjiang province to
revolutionize Pakistan's agricultural sector, aiming to modernize and boost
productivity. This initiative involves introducing high-quality seeds, leveraging
cutting-edge technology and implementing comprehensive training programs to
cultivate skilled human resources. Additionally, infrastructure is being developed
for storage, preservation, value addition, marketing, and exports of staple crops,
cotton, vegetables, and fruits. Development cooperatives in selected agricultural
hubs will ensure maximum benefits to farmers regardless of land holdings.
Moreover, several Chinese companies are poised to invest in green energy projects,
including photovoltaic and other renewable energy initiatives with low carbon
emissions.
They are committed to environmentally friendly and high-tech projects. Many
Chinese companies are pledging to establish manufacturing facilities.
The completion of Rashakai SEZ Phase-I was also announced by the ambassador,
marking a new stage of high-quality development for CPEC. These advancements
inject new momentum into fostering an even closer China-Pakistan community
with a shared future.
Sizable progress has been made to convert the Khunjerab Pass into an all-weather
border by upgrading customs and logistics services to facilitate seamless trade and
movement of people.
Secondly, efforts have been directed towards making the New Gwadar
International Airport (NGIA) fully operational, enhancing connectivity and
accessibility to the region. Additionally, operationalizing the Pak-China Friendship
Hospital and accelerating the expansion of the desalination plant and other key

projects have been expedited to improve healthcare facilities and address water
scarcity challenges.
Thirdly, multiple memorandums of understanding (MoUs) and agreements have
been inked between China and Pakistan, covering commerce, communication, and
transport sectors, notably including the Main Line-1 (ML-1) rail project, whose
cost has been reduced from $9 billion to $6.7 billion. Spanning 1,733 kilometers,
ML-1 will link Peshawar to Karachi, significantly enhancing Pakistan's
transportation infrastructure. Additionally, an MoU between The United Energy
Group of China and Pakistan Refinery Ltd for a $1.5 billion investment aims to
boost the refinery's production capacity, significantly increasing the country's
petrol and high-speed diesel production.
Mr. Shahbaz Sharif, a dynamic leader known for his proactive approach, will
undoubtedly take President Xi's letter seriously. The letter, while extending
congratulations, underscores an unwavering commitment and resolve to propel
both CPEC-1 and the Upgraded CPEC-2 forward with accelerated momentum to
yield tangible results. It emphasizes the imperative of giving undivided attention to
both phases of CPEC and calls for building the capacity of government and private
institutions to handle the influx of massive investment. President Xi's directive
underscores the urgency of developing managerial skills to navigate highly precise
and high-value projects, enhancing transparency and expediency in processing
proposals and projects, and creating highly efficient and effective enabling
conditions to ensure the timely completion of corridors and projects within the
agreed-upon timeframe and with the intended output and outcome.

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