ISLAMABAD, July 29 (INP): Pakistan has successfully entered into a promised CPEC PHASE-II.  Enormous expectations are Associated with this phase of a $64 billion investment project. The prominent among all other hopes is that of reduction of rising unemployment in the country.   Currently, Pakistan’s unemployment rate stands at 4.2 percent.  However, it is noted by research conducted by the Pakistan Institute of Development Economics (PIDE) that 37 percent of educated youth are unemployed.  Amidst this worrisome situation of unemployment, the CPEC phase-II offers extensive opportunities for the unemployed youth of Pakistan. 

Essentially, the Special Economic Zones (SEZs) have greater potential to reap the fruits of success destined while initiation of CPEC during the historic visit of Chinese President Xi Jinping in 2015. Circumscribing the discussion mainly as to what extent the CPEC Phase-II holds the potential to limit Pakistan’s rising unemployment is a point that needs discussion and debate. CPEC Phase-II is beyond infrastructure and connectivity projects, rather it is purely a phase of economic activities through Special Economic Zones (SEZs). The SEZs contains small and medium enterprises (SMEs). 

The industries and production units will be given tax cuts and facilities such as uninterrupted energy supply by the state. This indicates that the industrial growth is certain under CPEC Phase-II and it is destined to achieve desired goals of economic growth in Pakistan. In an interview, Professor Dr. Muhammad Idrees, dean of faculty of Social Science, Quaid-I- Azam University, Islamabad shared his exclusive thoughts about the possible outcome of CPEC Phase-II in its relation to overcoming the rising unemployment in the country.  

He said that the Special Economic Zones (SEZs) will curtail the scourging unemployment by 2 percent in the next six years through employment opportunities in engineering, and management. And entrepreneurship. He also added that the CPEC holds significance to creating 1.2 million by 2028. CPEC will bring prosperity because the country will be industrialized through Special Economic Zones (SEZs). There are nine SEZs have been planned across the country. The SEZ will provide several facilities and incentives for investors that will bring investments, he added. Furthermore, Dr. Idrees explained that the prioritized SEZs launched by CPEC have attracted huge attention. For Dhabeji SEZs. Dhabeji will create 75,000 jobs and bring a $3b investment by 2025. Rashakai SEZ is being marketed and developed in China. 

This SEZ will bring $1b in investment while creating 50,000 jobs by 2030. Allama Iqbal Industrial City (AIIC) will create 300,000 jobs and bring a $ 5b investment. It will allow the relocation of Chinese industries as China is running out of cheap labor; this provides Pakistan with a great opportunity. Certainly, the CPEC projects in phase II are indispensable to the economic gains of the multi-billion project.  However, this requires more vigilance in operationalizing these projects of special economic zones. Among others, it is important that the government institutions and ministries must coordinate the Ministry of Planning and Special Initiatives.  This will bring a shared effort to make CPEC gains visible, especially for extenuating the rising unemployment in Pakistan.

Credit: Independent News Pakistan (INP) — Pak-China