CPEC is a journey for economic development and social prosperity

The China Pakistan Economic Corridor (CPEC), a flagship project of the Belt and Road Initiative raised by Chinese President Xi Jinping, is commonly known as a source of economic development for social prosperity. The initiative intends to further improve Pakistan’s economy by enhancing its infrastructure including modern transportation networks, energy projects and special economic zones across Pakistan. 

During a recent visit to Rashkai Special Economic Zone, Pakistani Prime Minister Shahbaz Sharif once again stressed CPEC as a fruit of time-tested bilateral relations for the prosperity of the Pakistani people. 

According to the prime minister, CPEC is lifeline for Pakistan’s economic development and road to prosperity; that is why federal and provincial governments should work hard for the success of this initiative.  

As a living example of Sino-Pakistan friendship, CPEC has tapped into developing transport, energy, education and health projects among others. It is commendable that Prime Minister Sharif has reiterated his commitment that Pakistan will complete all the projects of CPEC in any circumstance. He said Pakistan would continue its efforts for economic development and peace in the region with China. 

The first phase of CPEC has featured road and energy projects to meet Pakistan’s power needs that transformed friendly relations into unique ones where people-to-people exchanges had seen a new phase. Currently the CPEC is entering its second phase, which will comprise regional cooperation and industrialization through establishing industrial zones. 

The Pakistani people consider China as a true friend of Pakistan that can rely upon in all circumstances

The Rashkai Special Economic Zone is a preferential special economic zone of 1,000 acres under the CPEC framework. Once completed, it will provide 200,000 direct and indirect jobs to local people. Fifteen businesses have already allotted industrial plots. 

Prime Minister Sharif also visited the site of Enterprise M / S Century Steel at RSEZ with a total area of 20 acres. Phase 1 of its work will be finished next year with an annual production of 0.5 million tons. On full operation at third phase, its annual production will reach 1.5 million tons.  

“We would like to engage Chinese companies to provide expertise and experience to manage other new economic zones in Pakistan," Sharif said. 

Present during the visit were dignitaries including Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC)’s CEO Javed Iqbal Khattak; General Manager-Pakistan China Road & Bridge Corporation Group (CRBC)  Lyn Ming; Minister for Planning, Development and Special Initiatives Dr Ahsan Iqbal Federal; Federal Minister for Communications Maulana Asad Mahmood, and Chief Secretary, Government of Khyber Pakhtunkhwa, Dr Shehzad Khan Bangash. 

Through that zone Pakistan’s skilled and semi-skilled labor is comparatively cheaper and the joint ventures of Chinese technology and Pakistan’s labor and investment would help the two countries make production at competitive rates and export their products to other countries. 

The history of economic cooperation between China and Pakistan is as old as its friendship. Diplomatic relations between Pakistan and China were established in May 1951. Pakistan was amongst the first countries to recognize China's new government since the founding of the People's Republic of China in October 1949.  

Over the last 71 years, Sino-Pakistan relations have grown exponentially. These include economic cooperation, increased trade and investment, cooperation in defense, culture, agriculture, industry and energy and regional and global challenges. 

China extended its hand for friendship to Pakistan during difficult times, and Pakistan supported the restoration of China's legitimacy in the United Nations and voted in favor of China at every annual session of the UN General Assembly. 

The most notable example of this is the CPEC, which was launched in April 2015 during the visit of Chinese President Xi Jinping to Pakistan by signing a bilateral agreement. 

CPEC is one of the most important projects of the BRI, which includes transport from Kashgar to the Pakistani port of Gwadar on the coast along the Arabian Sea.  

The construction of a trade route consisting of lines will help not only China but also West and Central Asian countries to access the markets of the Indian Ocean and surrounding countries through Pakistan for their import and export. It is based on a bilateral agreement between Pakistan and China. 

Trade is also a notable example of economic cooperation. For example, in 2002, the volume of bilateral trade between Pakistan and China was only US$ 1.3 billion, but in 2020 bilateral trade volume climbed to US$17.4 billion, according to a report at mofcom.gov.cn run by the Chinese Ministry of Commerce.

The second phase of the Free Trade Agreement between Pakistan and China was signed during Prime Minister Imran Khan's visit to China in April last year. As a result, Pakistan's export to China expected to increase further.  

Now China is Pakistan's largest trading partner and Pakistan has the distinction of being China's second largest trading partner in South Asia after India. 

The relations between Pakistan and China continue to expand and deepen because their relations are based on mutual interest, trust, respect and sincerity.  

The Pakistani people consider China as a true friend of Pakistan that can rely upon in all circumstances. That is why, despite the negative propaganda from some countries, there is no rift in the friendly and cooperative relations between Pakistan and China. 

The writer is Secretary-General of Pakistan China Friendship Association Khyber Pakhtunkhwa Pakistan. He can be reached at syeed.gilani@gmail.com  

The views do not necessarily reflect those of China Daily.