Ayesha Saba

Pak-China joint ventures are key to driving economic growth through industrial collaboration, technology transfer, and leveraging Special Economic Zones (SEZs). These partnerships can boost industrial development and regional stability but require clear strategies, financial backing, and transparent regulations to succeed.

Dr Hassan Dawood Butt, former project director at CPEC Centre and Senior Advisor at the Sustainable Policy Development Institute (SDPI), said joint ventures were a critical tool for deepening industrial cooperation between Pakistan and China. He particularly stressed the potential of Special Economic Zones (SEZs), which are designed as the centres of industrial collaboration and technological advancement. According to him, each SEZ is tailored to specific geographical strengths and production capacities, which could be optimized through partnerships with Chinese firms. By focusing on sectors such as technology, manufacturing, and agriculture, these zones can become engines of economic transformation, providing opportunities for local industries to benefit from Chinese expertise, investment, and technology transfer. He also emphasized the need for diversification within these joint ventures.

He suggested that Pakistan must not only rely on traditional sectors but also explore high-tech industries where technology transfer from Chinese companies could significantly enhance Pakistan’s industrial capacity. For instance, collaboration in fields like renewable energy, telecommunications, and advanced manufacturing could prove to be game-changers for Pakistan’s economic landscape. Talking to WealthPK, former project director at the Center of Excellence-CPEC and head of the Fiscal Policy Section at PIDE, said Pakistan’s strategic location could serve as a conduit for trade not only between China and the Middle East but also among the neighboring countries like Afghanistan, Iran, and the Central Asian Republics. By engaging in joint ventures (JVs) across industries such as manufacturing, construction materials, and technology, these nations can benefit from shared expertise, resources, and markets. Such integration would create a more interconnected and prosperous regional economy.

However, he cautioned that the success of these ventures depended on meticulous planning and transparent regulatory frameworks. Clear policies, effective communication, and a focus on mutual benefits will be essential to overcoming the complexities of cross-border collaborations. He emphasized, “A major hurdle is the lack of coordination among various stakeholders involved in the project. There is also a need for more transparent regulatory frameworks to attract foreign investors and ensure that the joint ventures are beneficial to all parties.” Political stability and regional cooperation are vital to the success of these JVs. Without strong political will and diplomatic efforts to bring the neighbouring countries into the fold, the full potential of CPEC as a model for regional integration may remain unrealized, he observed.

Credit: INP-WealthPk