As preparations for the 10th Joint Cooperation Committee (JCC) meeting of the CPEC get into full swing, this year the meeting will be held in an environment where production and distribution systems across the globe have been impacted by the COVID -19 virus and therefore, cooperation within regional partners and global markets is imperative. In this changing scenario, the meeting will be held in an increased atmosphere of cordiality, friendship, mutual trust and desire to explore new avenues for cooperation. But as we approach the meeting dates, the negative campaign by naysayers will commence maintaining proclivity as has been the pattern in the last seven years since China announced its Belt and Road Initiative (BRI) and Pakistan commenced CPEC. The most popular and frequently repeated false narrative is around the ‘Debt trap” which I believe has outlived its life.
Under the nine completed projects and 13 ongoing projects, over 70,000 direct jobs have already been created under CPEC and another 450,000 direct jobs could be generated in the next 4 to 5 years which mainly depends on the commencement of the Special Economic Zones (SEZ’s) and the Gwadar Free Trade Zone. Despite COVID -19, since the last JCC, significant progress has been made on projects under Gwadar with the port becoming operational for Afghan transit trade, the first fishing vessel with 200 tonnes of cargo arriving on November 20, IA/PPA for 300 MW power plant in the final stage of process, work on Gwadar airport and vocational centres is starting and that of connecting the port to the Coastal highway through the East Bay expressway is nearing its completion. More importantly, new investors registering in the free zone are creating new opportunities for local employment. Since the start of development work in Gwadar, its opponents have been critical of progress, as is now the case for ML-1 Project where the foes know that it is another game-changing project which will transform the way we travel and trade.
On the industrial cooperation front, the challenge will be to attract investment that brings the export-led industry with new technology and support import substitution at a time when economies are getting insulated as an immediate response to the pandemic and investors are becoming risk averse. Pakistan on its part, is working on policies favourable to market transactions, such as being open to foreign direct investment, protecting property rights to encourage entrepreneurship and promoting sustainable knowledge investment. With Rashakai, Dhabheji and Faisalabad SEZs all set for starting development work, efforts need to be made to remove bottlenecks in the banking processes, provision of utilities and crafting regionally competitive incentive packages spurring growth and employment under the vision of the PM Imran Khan. The industrial development is likely to take place in two stages as in the initial stage it is expected that the SEZs will be occupied by labour intensive industries followed by modern hi-tech industries that will demand workers possess a combination of high-tech skills.
On the socio-economic development front, both sides are keen to accelerate the progress as the recent natural calamities including the COVID-19 pandemic have made us realise that in order to combat the challenges, partnerships need to be strengthened to draw a new normal where harmony can be achieved through economic integration. In the coming years there will be burn-centres across major cities of Pakistan. Healthcare equipment including ambulances are also being provided through Chinese grants and some of the latest technology is coming in vocational training and HEC projects are also going in the same direction by providing virtual training to students.
As a developing country in transition, Pakistan faces numerous challenges and opportunities in the process of industrialisation. In this process to becoming “Gateway of Prosperity”, CPEC will be confronted by a number of opponents who are aware that the initiative is not only linking Pakistan and China but is also creating new job opportunities, poverty reduction, and development to boost sustainable industrial growth. In response to this negative narrative, all we have to do is echo Mr Zhao li Jian Spokesman & DDG, Information Department, Foreign Ministry, China who recently stated that “any attempt to sabotage the China-Pakistan Economic Corridor (CPEC) project would not succeed”.