Green SEZ to raise climate competitive industry: experts

By Our Correspondent
January 21, 2025
A view of plan of Rashakai Special Economic Zone.— APP/file

Islamabad:The experts have emphasised the significance of enhanced collaboration between Pakistan and China to learn from the latter’s experience in developing green special economic zones (SEZs) to raise climate competitive industry aligned with global sustainable development goals (SDGs).

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The expressed were participating in webinar on ‘Development of SEZs under CPEC: learning from China's Green Model’ organised here Monday by Sustainable Development Policy Institute (SDPI) under the auspice of Green CPEC Alliance hosting a pivotal exploring strategies to create sustainable Special Economic Zones (SEZs) in Pakistan by drawing on China's expertise in green industrialisation.

Dr Erfa Iqbal, Executive Director- General, Board of Investment, highlighted the ongoing efforts to accelerate Pakistan’s SEZs development, including satellite imaging, marketing plans and incentives for foreign and local investors. She highlighted the importance of integrating environmental considerations into economic planning and welcomed collaboration with Chinese experts to guide the transition to eco-friendly SEZs.

Of the nine SEZs under CPEC, four are already operational with progress on the remaining zones moving at full throttle," she said underscoring that the SEZ model is proven globally and in China and now being applied in Pakistan to create centres of excellence for economic development. She said that government-to-government, government-to-business and business-to-business initiatives are all underway to strengthen our SEZ framework. The first one-stop service office for foreign investors will soon be operational in Islamabad, she revealed.

She emphasised the inseparability of economic and environmental progress, asserting that Pakistan's economic development must align with global carbon emission reduction goals.

Mustafa Hyder Sayed, Executive Director, Pakistan-China Institute, emphasised the need for eco-industrial parks as the next step for Pakistan's industrial growth. He noted the importance of green innovation supply chains, robust research and development initiatives and financial markets to drive sustainability.

He underscored the necessity of starting with small-scale successful industrial parks that could evolve into green eco-industrial parks. Stressing the importance of strategic site selection for SEZs, Sayed criticised the location of Rashakai SEZ, terming it politically motivated rather than strategic.

Engr. Ubaid ur Rehman Zia from SDPI mentioned that Pakistan is currently the leading market for Solar PV growth. In 2024, Pakistan-China collaboration led to import of around 16 GW of solar PV capacity in Pakistan, worth over $2 billion. Similarly, Pakistan’s Electric Vehicle market started developing, again through China’s support. He mentioned that the SEZs under CPEC serve as a key opportunity for localisation of Pakistan’s Renewable Energy and Electric Vehicle Market which would support its low-carbon development. Dr Peng Wang from the Guangzhou Institute of Energy Conversion shared Guangdong Province's success as a low-carbon industrial zone. Highlighting initiatives like green manufacturing, energy optimisation and sectoral carbon peaking plans, he demonstrated how policy alignment and technological innovation enabled Guangdong to exceed its carbon reduction targets. Dr Wang suggested similar structured reforms for Pakistan, including city and sector-level carbon neutrality plans.

Dr Imran ul Haque from Behria University emphasised the role of eco-industrial practices in transforming SEZs. Drawing inspiration from Guigang Sugar’s success as China's first eco-industrial park, he advocated for adopting circular economy principles, including industrial water reuse and solid waste management. He highlighted the need for standardised Environmental, Social and Governance (ESG) reporting in Pakistan to ensure consistent implementation of green standards.

The panelists unanimously agreed on the critical role of green supply chains, localised innovation and strong policy frameworks to ensure the success of green SEZs in Pakistan. They stressed the interdependence of environmental sustainability and economic development, advocating for a multi-stakeholder approach to foster green industrialisation. Prof Saeed Badshah from IIU and Dr Muhammad Abid also spoke on the occasion.

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