By Samia Khalid ISLAMABAD, Nov 03 (INP-WealthPK): Pakistan has started a series of reforms targeted at boosting economic growth along China-Pakistan Economic Corridor (CPEC). One of the main pillars of this collaboration is industrial cooperation, with Special Economic Zones (SEZs) planned along CPEC routes across the country. China has successfully implemented SEZs, paving the way for industrialization, economic development, and prosperity. Therefore, China's experience with SEZs can help and identify best practices for Pakistan. SEZs are also a major source of attracting Foreign Direct Investment (FDI) to the host country, resulting in higher foreign exchange earnings, exports, and government revenue. SEZs have also aided in the transfer of technology, the adoption of contemporary management methods, and the upgrading of skills in most emerging economies. SEZs may be costly to governments in terms of tax breaks provided to attract investors, but they have helped several countries modernize their economies.

Industrial Cooperation/ Special Economic Zones
Project	Location
Rashakai Special Economic Zone	Nowshera, Khyber Pakhtunkhwa (KP)
Dhabeji Special Economic Zone	Thatta, Sindh
Allama Iqbal Industrial City	Faisalabad, Punjab
Bostan Special Economic Zone	Balochistan
In-Pipeline Projects
ICT Model Industrial Zone	Islamabad
Industrial Park on Pakistan Steel Mill Land	Port Qasim near Karachi
Mirpur Industrial Zone	Mirpur, Azad Jammu Kashmir
Mohmand Marble City	Mohmad District, KP
Moqpondass Special Economic Zone	Gilgit-Baltistan

Source: CPEC Authority, Ministry of Planning, Development & Special Initiatives During the 6th meeting of the Pak-China Joint Cooperation Committee (JCC) on CPEC in Beijing, China, there was an agreement upon the development of nine SEZs in Pakistan (seven provincial and two federal). From these, all four provincial SEZs, namely Rashakai SEZ in KP, Allama Iqbal Industrial City in Punjab, Bostan SEZ in Balochistan, and Dhabeji SEZ in Sindh, have been authorized by the Board of Approvals and are at various stages of development. The Pakistani government has committed to delivering utilities to the stipulated zero point of these SEZs and has put aside Rs4 billion in the federal budget for the Public Sector Development Programme (PSDP) FY2021 to help speed up the development of these SEZs (Economic Survey of Pakistan 2020-21). The Rashakai SEZ is being constructed in three phases by China Road and Bridge Corporation and Khyber Pakhtunkhwa Economic Zones Development and Management Company. The Rashakai SEZ covers roughly 1,000 acres of land and is currently making construction and investment attraction efforts. The proposed SEZs under CPEC provide new potential for bilateral economic collaboration, investment, human resource development, long-term industrialization, and, most importantly, CPEC consolidation. Nonetheless, the projected SEZs, in particular, and CPEC in general, confront a number of obstacles. There are a few policy suggestions for turning glitches into capabilities:

1. Once an SEZ site has been chosen in cooperation with all stakeholders, stick to it and allow no involvement of other interest groups.
2. Policies should be developed in close coordination with Chinese and Pakistani firms. In this context, the Chinese experience can be effective for policy implementation.
3. Decentralize decision-making as much as feasible with private sector’s participation to address governance issues.
4. To present a favorable picture of SEZs, provide them comprehensive media coverage. This will help attract potential investors from China and Pakistan.
5. More modern vocational and technological institutes like Pak-China Technical and Vocational Institute at Gwadar must be established in collaboration with China because China's vocational and technological institutions are modern and sophisticated. Master trainers from those institutions can be invited to share their knowledge. Moreover, establishing vocational training relationships with Chinese institutions is also a good idea.
6. Establish incubators in SEZs in collaboration with Chinese companies so that Pakistani start-ups may observe and learn from them. This will quickly enhance entrepreneurship.
7. To take advantage of the impending possibilities, all ministries should cooperate to ensure the timely completion of the SEZ projects. For the SEZs to succeed, the provincial and federal administrations should work together as "one team."
8. Trade costs and time will be saved by reducing delays and barriers, particularly in export-oriented businesses. In this regard, we should work closely with relevant Chinese institutions.

CPEC not only provides an economic component to bilateral ties but also acts as a catalyst for the economic growth of Pakistan. SEZs will certainly benefit both China and Pakistan in a variety of ways, from infrastructural development to the industrial partnership. The SEZs, which are expected to be CPEC's signature feature in the second phase, have the potential to turn into profitable undertakings for both countries and their people provided the aforementioned suggestions are implemented.