The second phase of the China-Pakistan Economic Corridor (CPEC 2.0) establishes a new phase in Pakistan and China economic partnerships because it shifts from infrastructure-based development to productivity-based development. The original CPEC phase dedicated its efforts to solving Pakistan’s major infrastructure problems which included energy deficits and road system needs and port construction requirements. The new phase of industrial development demonstrates the strategic plan to establish permanent economic growth which creates jobs and builds Pakistan’s ability to compete with other nations in both regional and international markets.

CPEC 2.0 centers its main focus on industrial growth which it achieves through building and running Special Economic Zones (SEZs). The zones will drive industrial development because they will attract domestic and international investments while they support export-based production and technology acquisition. The SEZs establish a base for business development through their tax advantages and better facilities and simplified rules. Pakistan needs this industrial development because its manufacturing industry has always faced challenges with wasteful operations and expensive production methods and unreliable energy resources. The second phase of CPEC now advances toward building productive systems after the first phase established necessary infrastructure.

The process of developing new employment possibilities holds equal importance with job creation efforts. Pakistan faces both benefits and drawbacks from its expanding population which includes a significant portion of young people. When people lack work options, the economy will experience growth problems which will result in an unbalanced and........

© Eurasia Review