ISLAMABAD: The experts on Monday emphasized 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).
The Sustainable Development Policy Institute (SDPI) under the auspice of Green CPEC Alliance hosted a pivotal webinar titled “Development of SEZs under CPEC: Learning from China’s Green Model,” exploring strategies to create sustainable Special Economic Zones (SEZs) in Pakistan by drawing on China’s expertise in green industrialization, said a press release issued here.
The session brought together prominent experts and policymakers to discuss integrating environmental sustainability with economic growth in the SEZ framework under the China-Pakistan Economic Corridor (CPEC).
Dr Erfa Iqbal, Executive Director General/Additional Secretary, 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,” Dr Iqbal stated. She underscored that the SEZ model, proven globally and in China, is being applied in Pakistan to create centers of excellence for economic development.
“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 emphasized the inseparability of economic and environmental progress, asserting that Pakistan’s economic development must align with global carbon emission reduction goals.
In his keynote address, Mustafa Hyder Sayed, Executive Director of the Pakistan-China Institute, emphasized 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 criticized the location of Rashakai SEZ, terming it politically motivated rather than strategic.
Engr Ubaid ur Rehman Zia, Head of Energy Unit at Sustainable Development Policy Institute (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 USD 2 billion. Similarly, Pakistan’s Electric Vehicle market has started developing, again through China’s support.
Mr Ubaid mentioned that the SEZs under CPEC serve as a key opportunity for localization of Pakistan’s Renewable Energy and Electric Vehicle Market, which would support its low-carbon development. He further urged the Chinese private sector to come and invest here.
Prof 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 audits, energy optimization, and sectoral carbon peaking plans, he demonstrated how policy alignment and technological innovation have 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 Muhammad Abid underlined Pakistan’s energy transition gaps as opportunities for innovation. He called for joint research initiatives with Chinese institutions to localize green energy solutions and fast-track technological transfers through regional cooperation.
Prof Dr Saeed Badshah from IIUI outlined challenges facing Pakistan’s SEZs, such as high costs of renewable energy infrastructure, land procurement difficulties, and a lack of skilled labor.
He urged the establishment of a strong regulatory authority for renewable energy (RE) in SEZs and highlighted RE’s potential to provide long-term cost savings and create job opportunities.
Commodore Dr Imran Ul Haque from Bahria University emphasized 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 standardized 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, localized 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 industrialization.
The webinar highlighted the immense potential of learning from China’s proven green SEZ model while adapting it to Pakistan’s unique context, signaling a promising pathway for sustainable industrial growth under CPEC.
