THE IMPACT OF CPEC ON PAKISTAN’S INDUSTRIAL DEVELOPMENT

Abstract

Using a qualitative approach, this descriptive research evaluates CPEC's influence on energy stability, foreign investment, economic development through special economic zones (SEZs), technology acquisition, and labor skill development in Pakistan's industrial sector.  This study deep dives into the CPEC dynamics from the perspective of industrial restructuring and upgrading, the unit of analysis being the CPEC economic zones Rashakai SEZ, Dhabeji, and Allama Iqbal Industrial City. The research uses primary data form a document and literature review, and diverse datasets.  The research outcome reveals that CPEC has substantially improved the investment climate in new industries through Chinese investment, establishment of energy supply infrastructure, and reduction of logistics costs.  While the SEZs offer considerable potential for industrial clustering, development has been stagnated or slowed in the absence of policy clearances, complex land acquisition, and weak federal and provincial institutional collaboration. Integration of local firms into the global value chain and policy idle capacity for technical skills training remain highly disaggregated, and consequently technology acquisition becomes revoked. This research argues that the CPEC has set a primary platform for industrial development and modernization, but significant additional policies must offset the limitations of CPEC alone. This research offers an industrial focus analysis on the CPEC, thus contributing to the literature, and suggesting the need for further research on the value chain and performance of the SEZs.