INP-WealthPk

Second Phase of CPEC to Help Control Unemployment in Pakistan

June 13, 2022

Abdul Ghani ISLAMABAD, June 13, (INP-WealthPK): The Special Economic Zones (SEZs) being set up under the China-Pakistan Economic Corridor (CPEC) will reduce joblessness in the country to a great extent by creating employment opportunities and attracting investment, WealthPK reports. The second phase of CPEC, a project of $64 billion, is expected to attract huge investment. The authorities have pinned hopes on the project to control the growing unemployment in Pakistan. Currently, the unemployment in Pakistan stands at 4.6 percent. However, a research study conducted by the Pakistan Institute of Development Economics (PIDE) shows that 37 percent of educated youth in the country are unemployed. An important aspect of the second phase of the gamechanger CPEC is the establishment of SEZs. The SEZs will provide a lot of employment opportunities to the educated Pakistani youth by boosting economic activities in the country. It is believed that the second phase of CPEC is focused on the promotion of economic and industrial activities in the country instead of infrastructure and connectivity projects. The SEZs being set up in the second phase of CPEC will consist of small and medium enterprises that play a major role in strengthening the national economy. The government has promised to give incentives to the industries and manufacturing units at SEZs like tax exemption and an uninterrupted supply of electricity and gas. The commitment of both Pakistan and China shows that CPEC would achieve the desired goals. During an exclusive interview with WealthPK, Prof Muhammad Idrees, the dean of the faculty of social science at Quaid-i-Azam University, Islamabad, also expressed optimism about the successful execution of all phases of CPEC and its positive impacts on the economy of Pakistan. He said that SEZs would help to reduce the growing unemployment in the country by two percent during the next six years. He said that SEZs would provide employment to Pakistani youth in the fields of engineering and management besides helping local entrepreneurs. He added that the CPEC was a significant mega-project that would create 1.2 million jobs by 2028. Prof Idrees said that CPEC would bring prosperity to Pakistan through industrialisation with the help of SEZs. He said that nine SEZs would be established in different parts of the country. The SEZs would provide facilities and incentives to investors that would attract investment, he added. He said that Dhabeji SEZ in Sindh would create 75,000 jobs and bring a $3b investment by 2025. He said that Rashakai SEZ in Khyber Pakhtunkhwa would attract a $1b investment and create 50,000 jobs by 2030. He added that Allama Iqbal Industrial City in Punjab would create 300,000 jobs and bring a $5b investment. Prof Idrees said that the establishment of SEZs would also allow the relocation of Chinese industries, providing Pakistan with a great opportunity. He said that the second phase of CPEC is important for getting the economic gains of the multi-billion project. “However, more vigilance is needed in making SEZs operational,” he said. He stressed the need for better coordination among different government institutions and ministries to make the second phase of CPEC a success and control the rising unemployment in Pakistan.