‘Production-oriented, market-driven economy vital for CPEC potential’

Islamabad: Haroon Sharif, Chairperson. Pakistan Regional Economic Forum (PREF), has said that many view CPEC as either a geopolitical shift or a massive infrastructure project, but in reality, it is an economic development approach based on connectivity which implies a connection between economic hubs in which large amount of economic resources and actors are concentrated along a defined geography.

Mr Sharif was giving a talk on “China Pakistan Economic Corridor 2.0: impact, challenges and opportunities” organised here by Institute of Regional Studies (IRS). Mr Sharif shared his extensive insights based on years of experience in international development and economic diplomacy. He argued that connectivity alone is not enough, it must be complemented by trade expansion and private sector participation. About the development of Special Economic Zones (SEZs) he underscored that merely setting up infrastructure is not enough — there must be a comprehensive policy framework, efficient governance and adequate financing. Economic zones only thrive when there are joint ventures, investment-friendly policies and structured governance models that attract investors. He suggested overcoming the dependency mindset and adopt self-driven solution approach. Debt must be utilised to create productive assets. There was a consensus that Pakistan must transition from a debt-reliant model to private capital-driven economic activity.

He argued that real economic progress will not come from government-to-government (G2G) agreements alone but from a market-driven approach where private investors and businesses lead. Pakistan must create an economic environment that attracts sustainable investment. People need to take ownership which will also help address the security challenges.