The commercial launch of Rashakai Prioritized Economic Zone has been held today, on Friday, the 28th of May 2021.
Prime Minister Imran Khan will be attended the ceremony as a chief guest. Speaking on the occasion Imran Khan said, “I will try my best that we incentivize foreign businessmen and the Pakistani businessmen who previously have been setting facilities/factories abroad.” He said that these businessmen have not been coming to Pakistan, because of the inefficient documentation and other processes.
He added, “We should be grateful that we haven’t been impacted that badly by the pandemic”, thanking NCOC for their efficient and timely policies of not imposing full-fledged lockdown.
— Government of Pakistan (@GovtofPakistan) May 28, 2021
Imran Khan said that in the future, the current account may be the indicator that might go negative as the Pakistani economy grows, and more capital imports (machines, etc.) would be happening in the future. He said Pakistan has to be careful about this so that Pakistan doesn’t have to go to IMF again.
He said the government remains stable. Prime Minister said we need more economic zones, as they are part of the second phase of CPEC investment in Pakistan. He said these industrial zones will help Pakistan get out of the debt trap under export-led economic growth.
Prime Minister of Pakistan Imran Khan asked CM KP Mehmood Khan to inform him about any hindrances in the completion of the project and ensured his central government’s full support in developing the industrial sector of Pakistan.
Details of the project
According to reports, the construction work for the Rashakai Special Economic Zone (SEZ) will begin today as a $366 million investment by China’s Century Steel Private Limited.
This SEZ is part of the China Pakistan Economic Corridor cluster, and it will prove to be a milestone in respect to attracting investment from the foreign sector as special incentives given by the government to set up industries continue.
It will also result in creating employment opportunities at a large scale in KPK. The Rashakai Special Economic Zone (REZ), located near M-1 Nowshera. According to project details on the CPEC’s official website, the total area designated for Industrial use is 702 acres and as per Federal SEZA Regulations, of which 159 acres will be developed in Phase I, 279 acres in phase II, and subsequently 264 acres in Phase III. For commercial use, an area of 76 acres has been allocated.
رشکئی ترجیحی خصوصی اکنامک زون کی تکمیل چین کی ریاستی ملکیتی انٹرپرائز “چائنا روڈ اینڈ برج کارپوریشن (CRBC)” اور “خیبر پختونخواہ اقتصادی زون ڈویلپمنٹ اینڈ مینجمنٹ کمپنی (KPEZDMC)”کے اشتراک سے کی جا رہی ہے۔
— Prime Minister's Office, Pakistan (@PakPMO) May 28, 2021
According to the picture uploaded by different government sources on Twitter, the major intended industrial sectors include Import/Export-oriented products; Automobile and parts; Processing and Manufacturing; Construction related material; home appliances; and lastly Pharmaceuticals.
A policy research institute under CPEC, named CPEC Centre of Excellence went to Twitter to claim that the Rashakai SEZ’s development cost is $128 million. The expected investment in this particular SEZ is expected to be $4 billion, however, the total economic impact of the project on Pakistan is estimated at $30 billion.
Lastly, according to the research institute, the project will create almost 200,000 job opportunities for people.
Ground Breaking of RASHAKAI Prioritized Special Economic Zone
. Project Development Cost 128 Million USD
. Expected Investment 4 Billion USD
. Expected Economic Impact 30 Billion USD
. 200,000 Job Opportunities
. Total Area 1000 Acres #cpecmakingprogress pic.twitter.com/NFkHtMnFqK
— CPEC Centre of Excellence (@CpecOfficial) May 28, 2021
The CPEC website for the Rashakai SEZ states that the industry clusters proposed/planned are Garment and Textile Products; Home Building Materials; General Merchandise; Electronics and Electrical Appliances; and lastly Automobile and Mechanical Equipment.