Abstract
The use of special economic zones (SEZs) has played a vital role in the rapid industrialization of China. Shenzhen is largely regarded as a success story regarding implementation of SEZ idea, where a small fishing village has been converted into a thriving economic hub. However, China, owing to its rapidly increasing competitiveness and advance towards high-tech industries, has decided to relocate some of the industries outside its boundaries. Thus, the mega-agenda of the Belt and Road Initiative (BRI) was launched by Chinese President, Xi Jinping in 2015. The BRI comprises six economic corridors connecting China with diverse countries worldwide. The China Pakistan Economic Corridor (CPEC) is considered to be a flagship under the umbrella of the BRI. Under the CPEC, a window of opportunity has opened for Pakistan where the country can draw lessons from the Chinese experiences of rapid industrialization in the form of SEZs. In this regard, the SEZ mechanism remains an effective and significant tool for Pakistan to transform its national industrial outlook. However, the pragmatic practice of developing SEZs under the CPEC is not visible as yet, largely because of the internal and external challenges faced by Pakistan. This chapter tries to understand the general concept of the SEZs, their significance under the CPEC and the BRI, and the parameters of the SEZ mechanism with a Pakistani perspective. Apart from this, the study also explores multiple challenges, which are the major impediments to the successful establishment of the SEZ mechanism in Pakistan, by using the qualitative method and interview technique.
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Appendix: Physical Attributes of the PSEZs and Their Current Status
Appendix: Physical Attributes of the PSEZs and Their Current Status
Name of project | Location and province | Area (acres) | Sector(s) | Current status of project development | Geographical connectivity |
|---|---|---|---|---|---|
Rashakai Economic Zone, M-1 | Nowshera in Khyber Pakhtunkhwa | 1000 | Fruit/food/packaging/textile stitching/knitting | Land acquired | • Airport 50 km • Dry port 65 km • Railway station 25 km • Motorway 0 km • Highway 5 km • City centre 15 km |
China Special Economic Zone | Dhabeji in Sindh | 1000 | To be determined during feasibility stage | Land earmarked | • Airport 80 km • Seaport 85 km • Railway station 5 km • Highway 4.5 km (N-5) |
Bostan Industrial Zone | Bostan (30 km from Quetta by road) in Balochistan | 1000 | • Fruit processing • Agricultural machinery • Pharmaceuticals • Motorbike assembly • Chromite • Cooking oil • Ceramic industries • Ice and cold storage • Electric appliances • Halal food Industry | Availability of allied utilities, i.e. road, street lights, etc. And 200 acres have been developed | • Airport 23 km (Quetta) • Seaports 713 km (Karachi) and 976 km (Gwadar) • Dry port (Quetta) 32 km • Highway (N-50) 0 km |
Allama Iqbal Industrial City (M-3) | Faisalabad in Punjab | 3000 approx. | • Textiles • Steel • Pharmaceuticals • Engineering • Chemicals • Food Processing • Plastics • Agricultural implements, etc. | • Adjacent to existing SEZ of M-3 Industrial City, Faisalabad • Sahianwala Interchange Motorway M-3 | |
ICT Model Industrial Zone | Islamabad (capital of Pakistan and operated by federal government) | 200–500 | • Steel • Food processing • Pharmaceuticals and chemicals • Printing and packaging • Light engineering, etc. | Identification of land i process | |
Development of Industrial Park on Pakistan Steel Mills Land at Port Qasim near Karachi | Port Qasim Near Karachi, federal government | 1500 | • Steel • Auto and allied • Pharmaceuticals • Chemicals • Printing and packaging • Garments etc. | Land has been earmarked. The Pakistan Steel Mills will transfer the land to National Industrial Parks Development and Management Company | |
Special Economic Zone at Mirpur | Mirpur, Azad Jammu Kashmir | 1078 | Mixed industries | • 22 km from main GT road Dina–Jhelum • 130 km from airport • 2 km from inactive railway track • 5 km from proposed dry port at Mirpur • 140 km from Sialkot | |
Mohmand Marble City | Mohmand Agency in Federally Autonomous Tribal Areas | 300 | Infrastructure Regular power and utilities Marble stone | For completed projected see web link (http://fatada.gov.pk/project/marble-city-in-mohmand-agency) | |
Moqpondass Special Economic Zone | Gilgit Baltistan | 250 | • Marble/granite • Iron ore processing • Fruit processing • Steel industry • Mineral processing unit • Leather industry | Land allotted | • Airports 35 km (Gilgit) and 160 km (Skardu) • Sust dry port 200 km • CPEC Route 4 km • On Gilgit–Skardu road |
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Jahangir, A., Haroon, O., Masud Mirza, A. (2020). Special Economic Zones under the CPEC and the Belt and Road Initiative: Parameters, Challenges and Prospects. In: Syed, J., Ying, YH. (eds) China’s Belt and Road Initiative in a Global Context. Palgrave Macmillan Asian Business Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-18959-4_12
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