ohar Ijaz, the interim Federal Minister for Commerce, spearheaded a 20-member delegation of Pakistani businessmen to Beijing in the second week of December. The delegation spent extremely busy time interacting with multiple stakeholders including government officials, business leaders, and investors. The main agenda of the visit was to showcase Pakistan’s investment-friendly environment, strategic location, Special Economic Zones (SEZs), and skilled workforce across sectors like textiles, agriculture, technology, infrastructure, and energy.

The minister’s fruitful interaction with Chinese officials led to considerations for amending the Free Trade Agreement (FTA), granting Pakistani products preferences akin to ASEAN countries. China has also committed to supplying trade finance in Yuan, offering a $5 billion loan for industry relocation to Pakistan’s SEZs or Export Processing Zones, and an additional 30 RMB for immediate trade finance.

The development underscores Pakistan’s readiness to unlock the full potential of the China-Pakistan Economic Corridor (CPEC), an integral component of China’s Belt and Road Initiative (BRI), catalysing boosting exports and meeting debt and investment obligations.

Having navigated the initial milestones, the CPEC has entered phase II. This phase, also known as CPEC 2.0 is poised to build upon the initial infrastructure development, ushering in a new era of collaboration that spans diverse sectors including, mining, industry, green and low-carbon development, health, space cooperation, digital economy, development cooperation and export of agricultural products to China.

A decade since President Xi Jinping proposed the BRI, its flagship project, the CPEC, stands as a testament to the collaborative success between China and Pakistan. The corridor has played a significant role in propelling Pakistan’s economic and social progress, orchestrating a substantial upgrade to the nation’s infrastructure. Beyond the tangible improvements, the CPEC has not only enhanced the well-being of the populace but also fortified people-to-people contacts, fostering deeper regional connectivity.

In April 2015, during the visit of President Xi to Pakistan, he emphasised that the construction of the CPEC should play a leading role in the practical cooperation between the two countries.

The CPEC’s initial emphasis centered on generating electricity and developing infrastructure, laying the ground for subsequent mega projects aimed at socio-economic development. China has invested nearly $26 billion in direct projects in Pakistan.

The commercial operations have been successfully initiated for a total of 13 power generation projects, boasting an installed capacity of 8,020 MW. Additionally, a High-Voltage Direct Current (HVDC) transmission line, capable of evacuating 4,000 MW, has been accomplished. The ongoing progress includes the anticipated completion of the 884 MW Suki-Kinari hydropower Project by mid-next year.

Other projects, such as the 700.7 MW Azad Pattan Hydro Power project, 1,124 MW Kohala, and the 300 MW Gwadar Coal Power Project are currently in the pipeline.

In the realm of infrastructure, six significant connectivity projects have reached completion, including the Havelian-Thakot section of the Karakoram Highway, the Multan-Sukkur (M-5) Motorway, and the Hakla-D.I. Khan Motorway, the Optical Fiber Cable network, the Eastbay Expressway, and the Orange Line Metro Train.

Given that many of these highways traverse the remote regions of Pakistan, they have effectively unlocked these areas for business, ushering in a wave of prosperity.

The Gwadar Port is the centerpiece of the CPEC and a key to Pakistan’s emerging role as the hub of regional connectivity. The New Gwadar International Airport Project, a contemporary and globally oriented airport initiative, is steadily progressing towards its completion with support from the Chinese government.

Numerous projects have been undertaken for the benefit of the local community in Gwadar like the establishment of a cutting-edge Pak-China Friendship Hospital, Technical and Vocational College, and water desalination plant in Gwadar among other endeavours. These transformative projects aim to enhance the infrastructure, education, and health facilities, contributing to the overall prosperity and well-being of the people in the region.

In the initial stage of CPEC development, around 236,000 job opportunities have been generated for the local people of the country, including hi-tech jobs for engineers.

Presently, the population of Pakistani students studying in China has surpassed 30,000. Among them, certain individuals have been granted scholarships by the Chinese government, while others have secured scholarships directly from diverse provinces, universities, and even corporate entities. Of them, more than 20,000 students are actively engaged in learning Chinese, which extends beyond education to serve as a means of cultural integration.

To create teacher interaction through interactive online and distance learning, bridge the gap of good faculty, and meet the shortage of faculty members across the country, the Chinese government has extended the Smart Classroom Project to 50 public universities in Pakistan. The projects use all equipment made in China and integrate communication and information technology to realise the interconnection of distance teaching.

Over the past decade, numerous Chinese enterprises have actively engaged in efforts to contribute to the economic and social development of Pakistan. These endeavours have not only strengthened the deep connection with the Pakistani people but have also played a pivotal role in advancing the stable growth of the all-weather strategic cooperative partnership between China and Pakistan.

Chinese companies provided state-of-the-art training to Pakistani students. Initially hired as interns and trainees, these individuals were later offered permanent employment with attractive packages. They now actively contribute to projects like CPEC and others, earning substantial and competitive salaries.

In addition to training students, Chinese companies have also provided vocational and technical training to less educated individuals in Pakistan. Moreover, to address the gender gap, these companies have actively promoted female representation in their workforce. Notably, at the That Block-II Open-Pit Coal Mining Project, approximately 50 female drivers operate large dump trucks — an extraordinary and unprecedented development in Pakistan’s history.

Chinese companies have extended their support by sponsoring numerous local students, with a special emphasis on those from Balochistan to pursue high-tech training opportunities in China.

Now the CPEC has entered Phase II of high-quality development, emphasising the swift completion of ongoing projects and targeting the expansion of CPEC, including financial services, insurance, eco-tourism, agriculture, and joint ventures in education and industrial development.

In the realm of infrastructure and energy expansion, both parties have recognised the importance of upgrading Main Line-1 for Pakistan’s socio-economic development. Its swift implementation is underway, with the D.I. Khan-Zhob Road Project also in the pipeline. Pakistan is actively pursuing Photovoltaic and other renewable energy projects to align with green, low-carbon, and environmentally friendly energy sector development. These initiatives will not only address the country’s energy needs but will also contribute to mitigating climate change threats.

In the next phase, accelerating agricultural cooperation between the two nations is crucial, given its significant potential. Progress in crop breeding and pest control, particularly under CPEC, is notable. Recently, 50 tons of Pakistani sesame, cultivated through CMEC’s contract farming, were exported to China. Plans include expanding sesame cultivation to 30 thousand acres, aiming for a substantial 10,000 tons of exports to China. It’s now time to broaden cooperation in crop cultivation, disease prevention, agricultural mechanisation, technology exchange, and trade in agricultural products.

There is a pressing need to execute the Framework Agreement on Industrial Cooperation to bolster Pakistan’s industrialisation efforts and incentivise Chinese companies to establish manufacturing facilities, particularly within Special Economic Zones (SEZs) in Pakistan.

The relocation of manufacturing facilities has the potential to significantly boost the country’s exports. However, over the past decade, Pakistan has failed to establish even a single SEZ out of the agreed-upon five SEZs under the framework of CPEC, originally slated for completion by 2020.

Pakistan must recognise the true potential of the CPEC as a catalyst for boosting exports and meeting debt and investment obligations. As part of the BRI, China has agreed upon over 3000 projects totaling $1.2 trillion. Out of these, projects amounting to $800 billion are already underway. Out of China’s $62 billion investments, Pakistan only succeeded in materialising $ 26 billion. To fully realise the benefits of the $62 billion investment, Pakistan needs to expedite the development of SEZs and ensure a secure and conducive environment for investors.

The writer is an Islamabad-based journalist specialising in security issues, minorities, and regional politics. He tweets @TahirJourno