Pakistan should look up to Shenzhen Economic Model for the development of SEZs
Pakistan must follow Chinese Shenzhen model’s footsteps to harvest the full potential of its Special Economic Zones (SEZs). Prime Minister Imran Khan called CPEC a golden opportunity for industrial development, and SEZ as the first step towards prosperous Pakistan. Chinese city Shenzhen grew from a small fishing village to a first-class industrialist city and contributed a huge share in China’s economic development, science and technology advancement, also enhance commerce and trade manifolds. The development through the Shenzhen model is often called “Shenzhen Miracle”. Under the Shenzhen Miracle, lies three causes which led to prosperous Pakistan, first among which is the Chinese reforms and opening up of the market. Secondly, it was Shenzhen city’s strategic location, as it was adjacent to Hong Kong attracted a huge chunk of Foreign Direct Investment (FDI) which led to industrial development and made it an export-oriented economy. Thirdly, it was the availability of cheap labour in the shape of young migrant workers. These three reasons brought a drastic change in the economic outlook of Shenzhen city and China overall over the period of 40 years.
ISLAMABAD: Pakistan needs to follow China’s Shenzhen model, in developing its special economic zones(SEZs), says Gwadar Pro App on Sunday. It is a welcomed step that Prime Minister Imran Khan has formally inaugurated the Allama Iqbal Industrial City, a special economic zone (SEZ) under the China-Pakistan Economic Corridor (CPEC).
He termed CPEC as a golden opportunity for industrial development of Pakistan and the SEZ the first step towards the prosperous future of his country. The PM said China is Pakistan’s close friend, and Pakistan has a great opportunity to make progress by learning from China who is developing with leaps and bounds in every field.
China has indeed made great achievements in the past 70 years since the founding of the People’s Republic of China. Shenzhen SEZ is definitely one of the biggest achievements.
Shenzhen, as China’s first SEZ, has grown from a small fishing village to be a first-tier city taking the lead in the economy, science and technology, and commerce and trade in China in just four decades. Shenzhen’s story is called “Shenzhen Miracle”.
What’s behind the “Shenzhen Miracle”? There are three reasons. One is China’s reform and opening-up policy. Under the background, Shenzhen has got favor policies, like tax incentives to attract foreign direct investment and boost industrial development.
The second one is the city’s location. Shenzhen, adjacent to Hong Kong, could easily get foreign investment and develop export-oriented economy. Shenzhen found its first pot of gold from export processing industry.
The last one lies to labor. China has plenty of cheap labor forces and these young migrant workers have promoted the economic development and invigorated big cities. Without them, Shenzhen couldn’t undergo dramatic changes in 40 years.
In developing SEZs, Pakistan can make their own “Shenzhen Miracle, as it also have big potential, the Gwadar Pro added The PM has further stated, “Many Chinese industrialists want to invest in Pakistan. He said he met many Chinese businessmen during his visit to China last year and they showed keen interest in investing here in SEZs.
The relocation of industries from China will be a critical part for Pakistan’s economy. Chinese business community has expressed intentions to relocate their businesses to Pakistan. Federal Minister for Planning, Development, Reforms and Special Initiatives Asad Umar said that although there was tough competition, they were quite hopeful that Chinese industries would be relocated into Pakistan.
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