The establishment of the Special Economic Zone (SEZ) at Rashakai under the aegis of China Pakistan Economic Corridor (CPEC) will boost industrialization and create more jobs in Pakistan. On September 14, Chinese enterprises signed the Development Agreement of Rashakai SEZ with Pakistan, which is the first SEZ development agreement signed between China and Pakistan under the framework of CPEC, to which both governments attach great importance.
The signing of the agreement means that the project will soon enter the substantive construction stage, which is believed to play an important demonstration and leading role in industrial cooperation between the two countries, boost the high-quality development of CPEC and strengthen the internal driving force of Pakistan’s economic development.
According to the Board of Investment (BOI), the Rashakai SEZ, also known as the REZ will pave the way for the establishment of new zones, which will lead to a prosperous and industrial Pakistan. Besides the REZ, which is located in the Khyber Pakhtunkhwa Province, other SEZs being established under the CPEC, include the China Special Economic Zone Dhabeji at Thatta, in the province of Sindh; Bostan Industrial Zone in the Province of Balochistan; Allama Iqbal Industrial City (M3), Faisalabad in Punjab; ICT Model Industrial Zone, Islamabad; Development of Industrial Park on Pakistan Steel Mills Land at Port Qasim near Karachi; Special Economic Zone at Mirpur, Azad Jammu Kashmir; Mohmand Marble City in former FATA and the Moqpondass SEZ at Gilgit-Baltistan.
The SEZ at Mirpur will have a mixed bag of industries, the details of which are being worked out while Mohmand Marble City will cater to the marble industry
The BOI informs that while the various zones are being prepared for business, REZ is gearing up to handle Fruit and Food processing and Packaging along with Textile Stitching and Knitting. Dhabeji project is working on the feasibility of industries to be included. Bostan Industrial zone will comprise Fruit Processing, Agriculture machinery, Pharmaceutical, Motor Bikes Assembly, Chromite, Cooking Oil, Ceramic industries, Ice and Cold storage, Electric Appliance and Halal Food Industry. The Allama Iqbal Industrial City, which has been planned as the largest SEZ, will include the industries comprising Textile, Steel, Pharmaceuticals, Engineering, Chemicals. Food Processing, Plastics and Agriculture Implements. The Islamabad Capital Territory Industrial Zone will provide for the industries pertaining to Steel, Food Processing, Pharmaceutical & Chemicals, Printing and Packaging and Light Engineering. The Industrial Park at Port Qasim will house facilities to support Steel, Auto & allied, Pharma, Chemical, Printing and Packaging and Garments industries. The SEZ at Mirpur will have a mixed bag of industries, the details of which are being worked out while Mohmand Marble City will cater to the marble industry. The Moqpondass SEZ at Gilgit-Baltistan will address the industries of Marble, Granite, Iron Ore Processing, Fruit Processing, Steel, Mineral Processing Units and Leather.
The geographical proximity between Pakistan and China will help in populating SEZs as well as contribute to mutual economic gains. For the REZ, at least Rs3 billion have been allocated to provide 210 MW of electricity and 30 million cubic feet per day (mmcfd) gas. The timely construction and development of the zone will be possible with the provision of all the basic facilities required as the REZ is being constructed with the help of an investment worth Rs128 million, covering an area of 1,000 acres. The REZ was designated as a special economic zone in August 2019 and portends prosperity for the region.
The writer is a retired Group Captain of PAF. He is a columnist, analyst and TV talk show host, who has authored six books on current affairs, including three on China