POLITICAL ECONOMY OF SPECIAL ECONOMIC ZONES UNDER CPEC IN PAKISTAN: PROSPECTS AND CHALLENGES

  • Dr. Sarfraz Batool,Syed Nouman Ali Shah,Hamza Muhammad
Keywords: Pakistan, SEZs, CPEC, Development, Administrative, Political, economic.

Abstract

Many economic experts consider the establishment of Special Economic Zones (SEZs) a vehicle to rapid industrial growth in developing countries. In the age of connecting economies, most of the developed countries of the world are following the approach of SEZs to achieve the goals of sustainable development. However, the results of SEZs vary from country to country due to their respective political, administrative and regulatory policies. Basically, the SEZs are special delimited areas, mostly located in the vicinity of the border areas, wherein the business rules are kept relaxed as compared to the rest of the country to attract the foreign as well as local investment. Pakistan intends to establish around 40 SEZs under the mega project of CPEC. The State seems to be committed in introducing administrative, political and economic reforms to provide the conducive environment for the business activities in these zones. The impetus behind the establishment of the SEZs is that these zones would accelerate the process of industrialization, create job opportunities for Pakistanis, attract Foreign Direct Investment, increase the volume of export and consequently enhance the economic growth of the country. This paper will critically analyze the following research questions: How the establishment of SEZs under CPEC is crucial for the economic development of Pakistan? What is the expected role of state to make these SEZs a success story? What challenges and risks are involved in establishing the SEZs in Pakistan?

References

Aggarwal, A. (2019). SEZs and Economic Transformation: towards a Developmental Approach. Transnational Corporations, 27-47.
Akinci, G. (2017). ECONOMIC ZONES 3.0 – THE NEXT GENERATION: Discussion on Making SEZs the Best Place to do Business? . WFZO Conference (pp. 1-22). Colombia: World Bank Group.
Akinci, G., & Crittle, J. (2008). Special economic zone : performance, lessons learned, and implication for zone development . Washington D.C.: Foreign Investment Advisory Service (FIAS) occasional paper.
Cartier, C. (2002). Transnational urbanism in the reform-era Chinese city: landscapes from Shenzhen. Urban Studies, 1513-1532.
Chen, X. (1995). The Evolution of Free Economic Zones and the Recent Development of Cross-National Growth Zones. Cambridge,USA: Blackwell Publishers.
Chen, X. (2009). The Evolution of Free Economic Zones and the Recent Development of Cross-National Growth Zones. International Journal of Urban and Regional Research , 593-621.
Dr. Karim Khan, &. S. (2016). Special Economic Zones (SEZs) and CPEC: Background, Challenges and Strategies. PIDE, 1-20.
Farole, T. &. (2011). Special Economic Zones: progress, emerging challenges and future directions. World Bank Publications, 1-346.
Gebrewolde, T. M. (2019). Special Economic Zones: Evidence and Pre-requisites for Success. Policy Brief: International Growth Centre, 2-13.
Ghani, D. S. (2019). Industrialization and SEZs are hallmark of BRI & CPEC. SASSI University.
KCCI. (2019). Special Economic Zones: A Fast Track Solution to Pakistan's Industrial Development. KCCI Rewsearch & Development Department, 2-22.
Mahmood, Z. (2018). Opportunities and Challenges of Special Economic Zones under CPEC for Pakistan. “The International Academic Seminar on Industrial Cooperation and construction of Industrial Zones,CPEC (pp. 1-21). Beijing, China: Center for Pakistan Studies of Peking University & China Three Gorges International Corporation.
Obortunity. (2019, 12 04). Obortunity. Retrieved 08 27, 2020, from CPEC News & Research: https://www.obortunity.org/2019/12/04/spotlight-pakistan-set-for-economic-jumpstart-under-second-phase-of-cpec/
UNCTAD. (2019). World Investment Report. Geneva: UN Publications.
USIP. (2018). China's Role in Myanmar's Internal Conflicts. Washington D.C.: USIP Senior Study.
Waqar, M. M. (2018). Special Economic Zones: A Comparative Analysis for CPEC SEZs in Pakistan. CPEC Working Paper, 1-26.
Waqas Ahmed, Q. T. (2020). Sustainable and Special Economic Zone Selection under Fuzzy Environment: A Case of Pakistan. MDPI, 1-23.
Wong & Chu, K.-Y. W. (2017). Export Processing Zonesand Special Economic Zones as generators of Economic Development: The Asian Experience. Routledge: Taylor & Francis Group, 1-16.
World Bank. (2008). SPECIAL ECONOMIC ZONES: PERFORMANCE, LESSONS LEARNED, AND IMPLICATIONS FOR ZONE DEVELOPMENT. The WorldBank Document, 1-73.
Zeng, D. Z. (2010). Special Economic Zones: Lessons from the Global Experience. PEDL synthesis paper series, 1-28.
Published
2020-10-13