In the second phase of CPEC, there is a pronounced emphasis on industrialisation, notably through the development of Special Economic Zones (SEZs). 

Speaking to WealthPK, Jamshed Ahmed, Investment and Industrial Specialist at the CPEC Authority, which functions under the Ministry of Planning, Development and Special Initiatives, said in 2016, Chinese experts were commissioned to conduct site visits aimed at evaluating the feasibility of potential locations for SEZs. “The main objective was to determine which sites were the most suitable for industrial development, and initially, 34 to 39 sites were identified as appropriate and feasible for the purpose.” 

He said the provincial governments were also taken on board to reach a consensus on their preferences regarding the sites suitable for SEZs. He added nine zones and areas were subsequently identified as potential sites for SEZs. 

Ahmed said that four zones, one in each province, were identified and listed as priority areas with plans for expansion to other regions thereafter. 

The CPEC Authority official said that Allama Iqbal Industrial City (AIIC), which is a priority SEZ, was being developed on approximately 3,217 acres of land in Faisalabad. “It has the advantage of being close to the M-3 Industrial City, which have textile, pharmaceutical, information technology, chemicals, automotive and service units.”

Ahmed said the construction work on AIIC had been in progress since November 2019. He added 20 to 25 Chinese companies were setting up their units there.

He said Rashakai SEZ was being developed in Khyber Pakhtunkhwa over an area of 247 acres. He said plots had been allocated to 24 enterprises, including a Chinese steel manufacturing company. He said some units in this SEZ were nearing completion and would start production in coming months.

The official said Rashakai had been strategically developed to boost trade and connectivity as it was located conveniently at the gateway to the international market.

“Likewise, Dhabeji SEZ is being developed near Thatta district in Sindh on 1,530 acres of land. The site for SEZ is the most viable one among other options in the region as its strategic proximity to Port Qasim and Karachi Port has garnered considerable interest from Chinese investors,” he said. 

The location offered substantial cost advantages in terms of inland transportation, facilitating direct export operations from the ports, he added.

The official said Bostan Industrial Zone in Balochistan covered an area of 1,000 acres, which is situated on the border between Pishin and Quetta. 

“The availability of different means of connectivity (airport, seaport, dry port, railways and roads) makes this zone feasible for business activities and ensures the mobility of the labour force. The zone is situated at a distance of 23km from Quetta Airport.”

Talking about the pace of progress on these SEZs, the CPEC Authority official said in the case of projects awarded to Chinese contractors, the progress was closely monitored by their headquarters in China.