Shakeel Ramay suggests CPEC Authority must be stuffed with genuine economic experts

After the successful execution of first phase of CPEC, it was perceived that there is a need for a strong central body which can facilitate smooth implementation of second phase of CPEC. A strong body can help overcome the challenges of coordination and bridge the gap between investors and institutions during the second phase of CPEC. It was required to expedite the process of industrialisation and agriculture cooperation along with other sectors.

As we know, industrialisation and agriculture modernisation are entirely different from the infrastructure-building. It requires involvement of multiple ministries, departments and agencies. It led to establishment of CPEC Authority.

Since the inception of CPEC Authority, it is working hard to engage all the stakeholders and acting as centre of interaction among all. Although, political tug-of-war hampered performance and pace of work in the initial stages, the CPEC Authority did not comprise on its perceived objective. It continued to deliver, and during the brief stint of Gen Asim Bajwa it became focal point for CPEC cooperation.

The CPEC Authority earned respect of all stakeholders due to its dedicated work and delivery on it promises. It even did not compromise on its work during COVID-19 and ensured smooth working of all CPEC projects. That was a huge success by keeping in mind the global shutdown of business, and it was duly appreciated by all the stakeholders.

Howbeit, the present set-up and structure of CPEC Authority will not be able to fulfil the needs of second phase of CPEC. Presently, it is acting as focal node for facilitation and a watchdog by keeping an eye on the ongoing work. To fulfil the requirements of second phase, there is need for a more powerful and vibrant authority. Thus, the authority should be reformed. Following are a few suggestions for the consideration by the government.

First, the status of CPEC Authority should be elevated. It is good to note that government is appointing new person with status of federal minister. However, for a meaningful contribution during the second phase, the CPEC Authority should be given power to make decision and implement decisions in close collaboration with relevant ministries and departments.

Second, there is need for consolidating services and work related to CPEC under the CPEC Authority, especially for industrialisation and agriculture. Currently, activities are quite scattered and time-consuming. For example, to get licence or for registration of company or business or avail services, investors have th deal with multiple ministries and departments at federal, provincial and local levels. On top of that provincial governments have different policies for taxes and investment, which is quite disturbing for investors.

In a nutshell, it is a cumbersome process which discourages investors and industrialists to invest in Pakistan. Thus, work should be consolidated at the CPEC Authority and be empowered to give licence, connections of service like electricity, gas etc. and tax services.

Third, the Authority should not confine itself only to management. It should also work to create a vision for future of CPEC and related interventions. Thus, there is a need for restructuring the Authority to perform dual role. The Authority should have two main departments supported by relevant wings.

A department of governance needed which would work to ensure smooth execution of programmes, transparency and accountability. It should be supported by the management, facilitation, execution and implementation wings.

There is a need for a specialised research department to look for innovative ways to attract investment and execute existing programmes. It should be supported by policy and analysis wings. The major tasks should be to devise new policy frameworks, analysis of international markets, investment policies of world and monitoring of programmes and projects.

Fourth, make the CPEC Authority apolitical body. It would not be a difficult job, as all the political parties and stakeholders have consensus on the CPEC. They consider it essential for the economic revival of Pakistan and transformation of its economy. So, all the political parties and stakeholders must ensure that it is immune from politics and change of governments. For that purpose, there is a need of special legislation from the parliament.

Fifth, for inclusiveness and to ensure participation of all provinces, the government must formulate a powerful committee with the name of National CPEC Committee (NCC) under the chairmanship of Prime Minister of Pakistan. The committee must include five leading political parties, leader of opposition, services chiefs and chief justice of Pakistan. This committee will help tackle challenges which have emerged after the 18th Amendment. The committee should also provide vision and direction for strengthening the cooperation.

Sixth, to ensure higher standards of work and transparency, there would be a need for strong monitoring and accountability mechanisms. For that NCC can create a sub-committee and depute the work of transparency and accountability to it. It would be the most suitable forum as it has representation of all major stakeholders. The sub-committee should have the mandate to monitor all the activities and extend support for smooth functioning of CPEC projects without any politics or political point-scoring.

In conclusion, the CPEC Authority must be stuffed with genuine economic experts with background and understanding of China. The experts must have comprehensive knowledge of the Chinese model of economic growth and development, governance, international relations and political system. It is required because western experts do not understand China as they try to compare apples with oranges.