CPEC phase-II

While talking to a delegation of journalists, Special Assistant to Prime Minister on Information, Lt (Gen) Asim Saleem Bajwa said that work on second phase of China Pakistan Economic Corridor (CPEC) will start soon, which encompasses projects in agriculture, industry, trade, science and technology sectors. He said that CPEC phase-II will generate mass employment and industrialisation, for which the highest priority is to make functional special economic zones (SEZs) in all four provinces. Agriculture and manufacturing are two major national income contributory sectors of the economy. The share of agriculture in gross domestic product is around 20 percent and it provides approximately, 60 percent employment. Notwithstanding of its being central pillar of the economy, the inefficiencies of this sector have not been addressed by successive governments, be it water scarcity, high input cost, low per acre yield, damage caused to standing crops by climate change impact, diseases, insects and pests and deficiencies in quality and marketing of its products. The owners of small and subsistence farming are always at the receiving end. Establishment of SEZs in all federating units of the country will herald next stage of industrialisation based on latest technologies. However, there is an impression among the local entrepreneurs that setting of these zones may be delayed for various reasons, including the land acquisition, and installation electricity grid stations, gas supply network and linkages with railway communication system. The broad parameters of investment in joint ventures between the local entrepreneurs and their Chinese counterparts are also not clear. Chairman State Engineering Corporation had cautioned the business community in a meeting of Islamabad Chamber of Commerce and Industry two year ago to move forward from the use of existing second generation technology, if they really want joint ventures in SEZs and protect local industry located outside these zones. He had also emphasised intensive skill development of local manpower to be able to handle latest technologies. Let us hope that projects of technology transfer and skill development shall be implemented in the second phase of CPEC. The ground breaking ceremony of Allama Iqbal SEZ had been performed in December, last year. Next in line was the Rashakai economic zone, for the ground breaking of which no tentative or firm date is in sight. The PC-1for building necessary infrastructure in the shape of smooth electricity and gas supply are, perhaps, still under evaluation in the concerned ministries to get the costs of these projects approved from CDWP and finally from ECNEC. Upgradation and refurbishment of Peshawar to Karachi main railway line project in included for financing under the umbrella of CPEC. The cost of the project is $9.2 billion, including Chinese loans of $8.253 billion and funding of $917.23 million from PSDP allocations. The approval of PC-1 of the projects has hit snags a number of times in CDWP meetings. The approval was once again deferred last month, when Planning Ministry and other ministries raised objections to various aspects that pertain to the financing of the project and asked the Ministry of Railway to remove loopholes in PC-1.