Upgraded CPEC, President Xi and Shahbaz Sharif

 

 

By

 

Qamar Bashir

 

Former Press Secretary to the President

Former Press Minister to the Embassy of Pakistan to France

Former MD, SRBC, CEO ATV

 

As anticipated, Chinese President Xi Jinping, known for his deep and affectionate sentiments towards Pakistan, was the first head of state to extend congratulations to Mr. Shahbaz Sharif upon assuming the office of Prime Minister.

This gesture reflects President Xi’s special regard for Pakistan, highlighting his reputation as one of the most benevolent leaders globally, particularly towards Pakistan.

As the leader of China, one of the fastest-growing nations worldwide, President Xi’s support will give added confidence to the newly elected Prime Minister, who is soon to face significant economic, financial, and political challenges.

The brief yet impactful message not only conveyed congratulations but also emphasized a revitalized vision for the future of Pakistan-China cooperation which was delineated into five distinct areas, underlining a roadmap for their continued collaboration.

Firstly, emphasis was placed on nurturing and preserving the longstanding friendship between the two nations. Secondly, emphasized exchanges and cooperation across a wide spectrum of fields. The third to advance and upgrade the China-Pakistan Economic Corridor. The fourth to deepen cooperation and foster resilience. Fifth to ensure tangible benefits for the populace of both nations.

While all five elements hold significance, the joint development of an upgraded version of the China-Pakistan Economic Corridor (CPEC) emerged as particularly pivotal, with far-reaching implications.

This revamped iteration of CPEC, built upon a reassessment of its initial framework (CPEC-1) transcends its previous focus on infrastructure, energy, and communication projects. Instead, it embraces a multifaceted approach centered on fostering economic prosperity, industrial development, ICT, livelihood projects, mining and mineral exploration and development, agriculture, political, economic, education, science and technology, cultural, and people-to-people relations. It also covers food security and research, media exchanges, space cooperation, urban sustainable development, climate change, vaccine development, transportation, energy.

In essence, the upgraded CPEC delineates five distinct corridors, each tailored to address key priorities and aspirations.

A Growth Corridor, aimed at driving economic expansion by focusing on infrastructure development projects that directly stimulate economic activity. Such as expanding existing industrial zones and creating new special economic zones to attract foreign investment. It includes improving transportation networks to facilitate trade domestically, regionally and globally, diversify Pakistan’s export basket and expand its industrial base and connect Gwadar with the landlocked countries, thus opening new vistas to the west and beyond.

The Livelihood-Enhancing Corridor aims to bridge socio-economic disparities by empowering individuals and communities by harnessing the potential of the country’s youthful population and capitalize on the growing social consciousness to transition towards a knowledge-driven society. Central to this vision is the development of human and social capital alongside institutional reforms that prioritizes sustained, inclusive growth, emphasizing indigenous solutions and involving all segments of society. Creating an enabling environment for the private sector to drive economic growth and enhance national competitiveness. It focuses on enhancing living standards through investments in education, healthcare, social services, and poverty alleviation initiatives besides uplifting rural communities aimed at improving the overall quality of life for all Pakistani citizens.

The Innovation Corridor will foster technological advancement through the establishment of research and development centers, fostering collaboration between universities and industries, and investing in digital infrastructure aimed at ushering the country into a new knowledge revolution by introducing disruptive technologies such as micro-electronics, computers, telecommunications, human-made materials, robotics, and biotechnology. By catalyzing significant increases in productivity and giving rise to entirely new economic sectors, the corridor serves as a platform for innovation and entrepreneurship. It aims to position Pakistan as a hub for technological excellence, driving economic growth and enhancing competitiveness globally. Through strategic investments and partnerships, the Innovation Corridor seeks to propel Pakistan forward as a leader in technological innovation and advancement.

The Green Corridor in Pakistan is committed to promoting environmental sustainability by prioritizing investments in renewable energy sources, clean technologies, and sustainable waste management. Emphasizing the importance of modernization, food security, and agricultural and environmental protection. This vision advocates for energy conservation, commercialization of renewable energy, and the adoption of advanced biofuels and synthetic fuels. It also calls for the implementation of alternative propulsion methods and energy-efficient urban infrastructure. Through these initiatives, the Green Corridor aims to mitigate environmental degradation, enhance energy security, and build resilient communities, ensuring a more sustainable and prosperous future for Pakistan.

The Open Corridor aims to ensure inclusivity and accessibility, extending the benefits of CPEC-1 and II to a wider range of people and regions in Pakistan. This initiative envisions empowering local communities, providing skills training, facilitating access to financing for small businesses, and offering clear information about opportunities. While achieving this ambitious vision requires careful planning and collaboration among stakeholders, it holds immense potential to uplift all of Pakistan through equitable development.

Since its announcement five months ago, the upgraded China-Pakistan Economic Corridor (CPEC) has transitioned from the drawing board to practical implementation. The Chinese Ambassador recently unveiled promising developments regarding CPEC, announcing the successful launch of the Growth Corridor, Livelihood-Enhancing Corridor, Innovation Corridor, and Green Corridor, alongside the Open Corridor.

Concrete plans are underway in collaboration with Xinjiang province to revolutionize Pakistan’s agricultural sector, aiming to modernize and boost productivity. This initiative involves introducing high-quality seeds, leveraging cutting-edge technology and implementing comprehensive training programs to cultivate skilled human resources. Additionally, infrastructure is being developed for storage, preservation, value addition, marketing, and exports of staple crops, cotton, vegetables, and fruits. Development cooperatives in selected agricultural hubs will ensure maximum benefits to farmers regardless of land holdings.

Moreover, several Chinese companies are poised to invest in green energy projects, including photovoltaic and other renewable energy initiatives with low carbon emissions.

They are committed to environmentally friendly and high-tech projects. Many Chinese companies are pledging to establish manufacturing facilities.

The completion of Rashakai SEZ Phase-I was also announced by the ambassador, marking a new stage of high-quality development for CPEC. These advancements inject new momentum into fostering an even closer China-Pakistan community with a shared future.

Sizable progress has been made to convert the Khunjerab Pass into an all-weather border by upgrading customs and logistics services to facilitate seamless trade and movement of people.

Secondly, efforts have been directed towards making the New Gwadar International Airport (NGIA) fully operational, enhancing connectivity and accessibility to the region. Additionally, operationalizing the Pak-China Friendship Hospital and accelerating the expansion of the desalination plant and other key projects have been expedited to improve healthcare facilities and address water scarcity challenges.

Thirdly, multiple memorandums of understanding (MoUs) and agreements have been inked between China and Pakistan, covering commerce, communication, and transport sectors, notably including the Main Line-1 (ML-1) rail project, whose cost has been reduced from $9 billion to $6.7 billion. Spanning 1,733 kilometers, ML-1 will link Peshawar to Karachi, significantly enhancing Pakistan’s transportation infrastructure. Additionally, an MoU between The United Energy Group of China and Pakistan Refinery Ltd for a $1.5 billion investment aims to boost the refinery’s production capacity, significantly increasing the country’s petrol and high-speed diesel production.

Mr. Shahbaz Sharif, a dynamic leader known for his proactive approach, will undoubtedly take President Xi’s letter seriously. The letter, while extending congratulations, underscores an unwavering commitment and resolve to propel both CPEC-1 and the Upgraded CPEC-2 forward with accelerated momentum to yield tangible results. It emphasizes the imperative of giving undivided attention to both phases of CPEC and calls for building the capacity of government and private institutions to handle the influx of massive investment. President Xi’s directive underscores the urgency of developing managerial skills to navigate highly precise and high-value projects, enhancing transparency and expediency in processing proposals and projects, and creating highly efficient and effective enabling conditions to ensure the timely completion of corridors and projects within the agreed-upon timeframe and with the intended output and outcome.

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