CPEC 2.0: FAST TRACKING THE CORRIDOR OF PROGRESS

TEXT: Khalid Mansoor Special Assistant to the Prime Minister on CPEC Affairs

China Pakistan Economic Corridor (CPEC) is a manifestation of the decades old close brotherly relations between Pakistan and China. As an important pioneer project of the Belt and Road Initiative, CPEC has taken the lead in achieving high-quality development and brought tangible benefits to the people of both countries. CPEC has made remarkable progress in its first phase (2015-2020). Majority of the projects planned in the transportation infrastructure and energy sectors have been carried out successfully and many are in the execution stage.

In the first Phase of CPEC, 1800 kilometers of new motorways highways and urban mass transit projects were executed along with laying of 820 kilometer of optic fiber cable. CPEC also added more than 5,300 megawatts of new power generation capacity to our national grid and has played a leading role in reducing energy shortages in the country. Projects of another 3,500 MW are currently under implementation while the energy projects at the planning stages have 4,144 MW capacity. The transmission system has also been upgraded, with more than 880 kilometers of transmission lines having been laid under the CPEC umbrella. The future focus for energy projects are environment friendly renewable projects, like the hydroelectricity projects at Suki Kinari, Kohala and Azad Pattan.

We are now moving into second phase of CPEC, with focus on industrialization, agricultural modernization, Information Technology and Scientific & Technological cooperation. The purpose is to reap the dividends of the investment made in the first phase that has created an enabling environment for investment in other sectors as existing voids in infrastructure and energy have been filled.

Special Economic Zones (SEZs) development is being given the highest priority. While investments have already started in two of the four priority zones, work is also underway for full development of all four zones. The Gwadar Free Zone has been expanded to a new North Zone which has an area of over 2200 acres. Local and international investors have shown strong interest in SEZs. Investment in SEZs is open for the global investors. SEZs offer attractive incentives for investments including 10 years tax holiday, zero import duty on plant and machinery and facility of 100% profit repatriation.

CPEC Authority is working closely with BoI and other Ministries to enable "plug & play" facilities in the SEZs. CPEC Authority is also in the process of setting up an "Investors' Facilitation Center" for the investors in CPEC SEZs. The Center will work closely with all the government departments to make the investment process smooth and hassle-free.

Separate JWGs for Agriculture, Science & Technology were agreed in 2020. Potential areas of cooperation in Agriculture include Agricultural Mechanization, development of Agri Value Chain, Corporate Farming and Capacity building through Research. The Ministry of National Food Security & Research is already working with its counterpart in Beijing to develop project proposals in these areas.

Similarly, the Ministry of Science and Technology has also identified specific projects for collaboration with the Chinese side, which will be shared during the next meeting of the JWG.

An MoU for a new JWG for Information Technology was signed during the 10th Joint Cooperation Committee (JCC) meeting held on 23rd September 2021. Potential areas for cooperation under the new JWG include optic fiber network expansion, special technology zones, mobile manufacturing facilities, internet of things, Digital payment system, Cloud Computing, Cyber Security, Services Support Center and Skills Development Center etc.

These new areas of CPEC offer exciting opportunities, which can go a long way in the transformation of Pakistan's economy. The Ministries and departments need to take full benefit of these opportunities and propose projects with win-win propositions. CPEC Authority is closely working with all such departments to achieve that objective.

Copyright Business Recorder, 2021