CPEC needs boosting by governmental efficiency

In order to promote industrial cooperation, in particular the construction of industrial parks, Pakistan needs to undertake far-reaching reforms, amend laws and set policies in several areas.

This also requires coordination between the parties and greater efficiency in the government, says Liu Zongyi, a senior executive of the Shanghai Institute for International Studies in an article in the Global Times.

It is difficult to change the constitution and laws in Pakistan because of its political system. The constitutional amendment and legislative changes can only be achieved through political negotiations. However, the country is not fully prepared for it.

In addition, the Pakistani government must realize that industrial growth has its own laws. The industry in each country must move from the bottom to the top of the value chain. The third industrial revolution has inspired the development of the industrial separation of cross-industry specialization into intra-industry and intra-product specialization.

Agricultural and industrial parks should be given high priority in the construction of the CPEC. Apart from cooperation in processing and manufacturing areas, cooperation in agriculture is an important part of industrial coordination and has more weight for Pakistan.

As a pillar industry and comparative advantage for Pakistan, agriculture can quickly bring economic benefits and alleviate poverty.

The recently announced long-term CPEC plan included key areas of cooperation, including textiles, chemicals, medicine, steel, appliances, technical equipment, building materials, manufacturing, agriculture, horticulture, ICT, finance and logistics.

It is likely that industrial cooperation and the construction of industrial parks would encounter resistance for political reasons. According to Liu, the conflict between federal and local authorities, conflicts of interest between different provinces and partisan infighting have influenced the construction of the CPEC.

Some political parties and local stakeholders will use the CPEC, the LTP and bilateral industrial cooperation to achieve their political goals.

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