Rashakai SEZ under CPEC begins to contribute to industrial development as the zone is home to 10 different industries under construction already.
Ashraf Orakzai, the director of utilities at Rashakai Special Economic Zone (SEZ) in Khyber Pakhtunkhwa (KP) province, begins his work early each day, regardless of weather conditions, as he believes his role is vital for the country’s future.
Orakzai, originating from KP has been involved with Rashakai SEZ, part of the China-Pakistan Economic Corridor (CPEC) initiative, since mid-2022. He is highly motivated by the project’s potential to create numerous job opportunities and stimulate significant investment and economic activity across both his province and the nation as a whole.
CPEC, initiated in 2013, is a key project under China’s Belt and Road Initiative, linking Gwadar Port in Pakistan’s Balochistan province to Kashgar in China’s Xinjiang Uygur Autonomous Region. This corridor emphasizes energy, transport, and industrial cooperation in its initial phase, while its expanded phase encompasses agriculture and livelihood initiatives.
“As a Pakistani, we all want our country to develop and progress; I believe such projects will be crucial for economic development and poverty alleviation,” Orakzai remarked.
The SEZ is equipped with comprehensive infrastructure, including over a dozen buildings, 7 kilometers of roads, and a complete network of utilities like water, drainage, power supply, and communication systems.
Implemented by the China Road and Bridge Corporation (CRBC), the project is divided into three phases and spans approximately 1,000 acres. The first phase, covering 247 acres, was developed from June 2021 to March 2023, with over 60% of the land already leased, primarily to Pakistani and Chinese companies.
Orakzai noted that the zone is home to ten different industries currently under construction, including those for steel, pharmaceuticals, surgical supplies, and mobile accessories.
Rashakai as CPEC’s first SEZ
As CPEC’s first SEZ, Rashakai is positioned to significantly advance industrial cooperation between Pakistan and China, according to Wu Yuxing, the project manager of CRBC at Rashakai. All infrastructure is built to Chinese standards, with a complete operational support team in place.
Wu also highlighted that the overall scale and quality of services in the park, including operation and maintenance, are of the highest standard.
Located about 90 kilometers from Islamabad and nearly 60 kilometers from Peshawar, the SEZ is well-connected to these major cities, making them accessible within one to two hours. It is also near a motorway, railway network, and an Afghan port.
Orakzai mentioned that one key focus at Rashakai is improving the ease of doing business, featuring a one-window operation facility that includes all relevant departments and a facilitation center.
Interview of CEO KP Economic Zones Development and Management Company, Javed Iqbal Khattak
In an interview with Xinhua, Javed Iqbal Khattak, the CEO of the KP Economic Zones Development and Management Company, a partner in managing Rashakai SEZ, revealed that four new industries, including those in medicine, sulphuric acid, electric cables, and pharmaceuticals, are expected to commence operations this year.
Khattak added that negotiations are nearing completion with a company led by young engineers focused on electric bikes and scooters, which is also anticipated to join soon.
These industries will serve as catalysts for attracting further investments, Khattak noted. He emphasized that the SEZ aims to promote export-oriented and import-substitution industries, which will have a significant impact on Pakistan’s economy.
“According to the agreement, 80% of the jobs will be allocated to locals, which will significantly enhance the development of KP,” Khattak stated.
The local industry will have the opportunity to learn best practices in manufacturing from established multinational corporations, leading to growth in KP’s local vendor industry, he added.
Syed Wajid Bukhari, CEO of the Pakistan Association of Large Steel Producers, emphasized the importance of SEZs for industrial development in today’s world.
He noted that Rashakai holds symbolic significance; its success would convey a positive message to foreign investors. “This development will also signal progress for CPEC, as industrial growth was a primary target of the initiative, supported by the massive infrastructure developed during its initial phase,” Bukhari remarked.
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