By Ayesha Saba

ISLAMABAD, July 22: The China-Pakistan Economic Corridor will play a major role in the development of Khyber Pakhtunkhwa province of the country, keeping in view its strategic importance, WealthPK reports.

Under CPEC, special economic zones are being established in KP that will improve the infrastructure, energy sector and industrial growth besides leading to social development. However, it will be a test for the KP government to get the benefits of the CPEC projects to the maximum level.

CPEC route passing through KP will give an enormous boost to the economy and industry of the province. Modern industrial parks will be set up in the province under CPEC, creating job opportunities and attracting huge investment to the province.

Prof Fakhrul Islam, the director of the Pakistan Study Centre at the University of Peshawar, said that CPEC was a part of the Belt and Road Initiative (BRI), which had huge potential for economic stability and sustainability. “CPEC is definitely a game changer but it is also a test of our ability. It depends on our ability to get maximum benefits of foreign investment and expertise,” he added.

He said that projects for special economic zones needed to be prioritised because history showed that large industries were not very successful in the province owing to different reasons. He said that small and agro-based industries should be established in special economic zones. He added that the special economic zones would prove key to progress if the project was executed successfully.

Prof Fakhrul Islam said that a policy reflecting the priorities of the province should be devised in that regard. He said that workers of the province would benefit greatly from the special economic zones as employment opportunities would be created. He said the development of special economic zones would lead to balanced industrial growth and economic prosperity.

“The foreign direct investment (FDI) has left a good impact, especially on developing economies. The government needs to stabilise the political situation of the country. It is vital for the government to chalk out and enforce a long-term strategy for economic growth. Otherwise, very little FDI will come from China and other economies, which will not allow Pakistan to realise its export potential and materialise its developmental objectives,” he said.

He said that the Chinese government had started awarding more scholarships to the students of Khyber Pakhtunkhwa. He added that professors of different Pakistani universities were also invited to China to share views with the people there and enhance consensus on the CPEC.

“Many universities in Pakistan have established ‘China study centres’ and many more are running Chinese language learning centres. Some universities in Khyber Pakhtunkhwa are also establishing such centres. The University of Peshawar has taken a lead by establishing the first ever China Study Centre in the province,” said Prof Fakhrul Islam.

He told WealthPK that the centre was meant to enhance linkages with China through research, learning, projects and people-to-people contacts. He said that the ongoing cooperation between China and Pakistan in the field of higher education and language studies was among the outcomes of CPEC.

The infrastructure in KP has improved significantly after the initiation of several projects under CPEC. The investment made through CPEC projects has termed the economic outlook of the province quite encouraging. The KP government would invest Rs167.9 million in five different CPEC projects including construction, development, rehabilitation and solarisation. The total estimated cost of these projects is Rs2.51 billion. However, the rest of the amount will be released after the completion of the current financial year.

Credits: INP-WealthPk