ADB proposes measures to maximize CPEC benefits

ISLAMABAD, February 2: The Asian Development Bank (ADB) has proposed certain policy actions to fully explore the potential benefits of China Pakistan Economic Corridor (CPEC) and to raise income from exports and enhance fiscal capacity of the government.
A case study on Economic Corridor Development (ECD) in Pakistan released by the ADB on Wednesday proposed to utilize the transport infrastructure built under the CPEC more effectively and efficiently to maximize investment return by converting it  into a multilateral initiative.
For instance, it said economic connectivity and integration with the landlocked Central Asian countries could provide the CAREC participating countries with efficient and effective access to global markets through the strategically located Gwadar port.
This could help Pakistan maximize its strategic location and become the economic hub in Central, West, and South Asia. In this context, links with the CAREC countries could be strengthened, particularly on trade-related issues, such as standards, sanitary and phytosanitary measures, customs procedures, rules of origin, e-commerce, and intellectual property rights.
Consequently, Pakistan could increase toll and tax revenues while developing mutually beneficial economic partnerships for boosting export income.
The primary objective of ECD is to enhance the competitiveness and productivity of economies to promote a higher, more sustainable, and inclusive development process. Once ECD is successfully installed, ECD becomes a sound industrial and diversified regional base by attracting investments into sectors, such as manufacturing, for both domestic and export markets. Through the process, countries with successful ECD become competitive and productive, which results in poverty alleviation through job creation.
Meanwhile, the study also called for expediting the development of the nine Special Economic Zones (SEZs) planned along the CPEC routes. Given their high-risk and high-return nature, SEZs should be developed based on global best practices and local knowledge with an aim to attract the China’s export-oriented sunset industries.
The China’s wage rise and the policy shift from low-end manufacturing to technologically advanced manufacturing have made the production of export-oriented goods and services unfeasible in the China. The Chinese government, therefore, is expected to relocate these industries to other developing countries.-DNA