Staff Report
ISLAMABAD: CPEC has provided Pakistan an excellent opportunity to transform from an Agriculture-based economy to an industrial-based that can help decreasing poverty to a significant level.
Economists in Pakistan believe that CPEC to provide solid support to the industrial sector to modernize itself and become more efficient and competitive for achieving the desired goals.
The various energy projects, coupled with improvements in infrastructure and road networks have already addressed some of the key constraints to growth and for poverty allivation.
Various projects completed under the CPEC have employed more than 100,000 Pakistanis. More importantly, the development of Special Economic Zones (SEZs) would enable industries to smooth supply chains, enhance collaboration and innovation capabilities, and help reap significant economies of scale. Analysts believe Pakistan will be the biggest beneficiary of CPEC.
It has already won hearts in Pakistan. This project has emerged on Pakistan’s horizon as the biggest source of jobs for Pakistani youth.
The experts added, Pakistan also needs to learn a lesson from China’s five-year plan policy.
As the building of SEZs takes pace, Pakistani authorities expect the transfer of technology and spillovers from China into Pakistan in a few years. While China has already transferred coal and road construction technology to Pakistan, authorities here are expecting the transfer of technology in the pharmaceutical, auto sector, and chemicals industry which will boost the economic activity here employing a great number of people.
Authorities are expecting the relocation of Chinese firms making pesticides and synthetic fertilizers to Pakistan. The relocation of such firms to Pakistan becomes a possibility and CPEC envisions joint ventures in fertilizer and pesticide manufacturing between the Pakistani and Chinese enterprises which will open job opportunities for thousands of graduates of Agriculture sciences.
The plastic industry can see a boom in terms of investment and technology transfer under CPEC. Pakistani also needs to learn from iron friend China which has introduced “made-in-China 2025”. Pakistan needs to offer incentives to encourage local and foreign companies to set up factories and plants in Pakistan which can employ a huge number of local labor both skilled and unskilled.
Independent analysts and experts in Pakistan believe, Pakistan can not achieve desired growth unless the manufacturing sector and exports are strengthened. Pakistan needs an export-driven growth strategy following China’s vision.
