Rashakai SEZ under CPEC begins to contribute to industrial development in Pakistan
An aerial drone photo taken on Sept. 17, 2024 shows a view of free zone area of the Gwadar port in Gwadar, southwest Pakistan. (Xinhua/Ahmad Kamal)
Rashakai, as CPEC's first SEZ, is positioned to vigorously promote the next step of industrial cooperation between Pakistan and China under CPEC, said Wu Yuxing, project manager of CRBC at Rashakai.
by Ali Jaswal, Jiang Chao
ISLAMABAD, Oct. 16(Xinhua) -- Ashraf Orakzai, director of utilities at Rashakai Special Economic Zone (SEZ) in Pakistan's northwest Khyber Pakhtunkhwa (KP) province, starts his work early in the morning no matter how tough the weather is since he considers his job crucial for the country's future.
Orakzai, who belongs to KP and has been working at Rashakai SEZ and the industrial park, part of the China-Pakistan Economic Corridor (CPEC) framework, since mid-2022, is highly motivated towards the development of this project as it's going to generate a lot of employment opportunities along with high-scale investment and economic activity not just in his own province but the entire country.
Launched in 2013, CPEC, a flagship project of the China-proposed Belt and Road Initiative, is a corridor linking the Gwadar Port in southwest Pakistan's Balochistan province with Kashgar in northwest China's Xinjiang Uygur Autonomous Region, which highlights energy, transport, and industrial cooperation in the first phase, while in the new phase expands to fields of agriculture and livelihood, among others.
"As a Pakistani, we all want our country to develop and progress, and such projects, I believe, would play a defining role in economic development and specifically in poverty alleviation," he said.
The SEZ has a complete infrastructure of more than a dozen individual buildings, 7 km of roads, and a variety of complete network facilities, including water, drainage, power supply, and communication.
Invested and implemented by China Road and Bridge Corporation (CRBC), the project is divided into three phases, covering a total area of around 1,000 acres.
The first phase, covering an area of 247 acres, was implemented from June 2021 to March 2023, in which over 60 percent of the land has been leased out, mostly, to Pakistani and Chinese enterprises.
There are 10 different types of industries under construction in the zone, including steel, pharmaceutical, surgical and mobile accessories factories, Orakzai told Xinhua.
This aerial photo taken on May 23, 2023 shows the Rashakai Special Economic Zone under the China-Pakistan Economic Corridor in the northwest Khyber Pakhtunkhwa province of Pakistan. (China Road and Bridge Corporation/Handout via Xinhua)
Rashakai, as CPEC's first SEZ, is positioned to vigorously promote the next step of industrial cooperation between Pakistan and China under CPEC, said Wu Yuxing, project manager of CRBC at Rashakai.
All infrastructural facilities are designed according to Chinese standards, including the establishment of a complete operation support team, he said.
"At the same time, the overall scale of the park and subsequent operation and maintenance, and services for the entire industrial chain of enterprises are also top quality," he added.
The zone is located around 90 km from the federal capital, Islamabad, and nearly 60 km from Peshawar, the provincial capital of KP, which brings the two major cities within reach of one to two hours. A motorway, railway network and Afghan port are also within its vicinity.
Orakzai said one of the things specifically focused at Rashakai was the ease of doing business, adding that "we have a one-window operation facility with all the relevant departments as well as a facilitation center."
Talking to Xinhua, Javed Iqbal Khattak, chief executive officer of KP Economic Zones Development and Management Company, a partner of Rashakai SEZ's management, said that four new industries, including medicine, sulphuric acid, electric cables and pharmaceuticals, are expected to start operations this year.
Negotiations have almost been finalized with an electric bike and scooter manufacturing company of young engineers as well, and they are also expected to join later on, he said.
These industries will act as a catalyst to attract others, Khattak added.
He said the SEZ focuses on promoting export-oriented and import-substitution industries, which would impact Pakistan's overall economy.
"As per the agreement, 80 percent of the employment will be given to the locals, which will be a big boost to the development of KP," Khattak said.
The local industry will get the chance to learn the best practices in the manufacturing sector from the well-established multi-national corporations, he said, adding that KP's local vendor industry, most importantly, will flourish with the development of Rashakai.
SEZs are significant for industrial development in a country in today's world, said Syed Wajid Bukhari, CEO of the Pakistan Association of Large Steel Producers, which has member companies of the Pakistan Business Council and the country's largest private-sector businesses and conglomerates including multinationals.
Rashakai is very important symbolically as well because its success would send a good message to foreign investors, he said.
"This development will also be a positive signal for CPEC since industrial development was one of the main targets of CPEC for which massive infrastructure was developed in its first phase," according to Bukhari.
