Rashakai Special Economic Zone to create numerous jobs for locals, friendly to females & tribal youth
by Tahir Ali
ISLAMABAD, Nov. 20 (Gwadar Pro) - China-Pakistan friendship is changing the fate and the face of an area that straddles one of the most fascinating parts of Central Asia. In fact, China-Pakistan Economic Corridor (CPEC) is a first in history, and a unique set of development projects, which is paving the way for a new type of international and regional cooperation.
Under CPEC, there is one project named Rashakai Special Economic Zone (RSEZ), which is poised to uplift Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province by attracting local and foreign investors, creating thousands of jobs, increasing the female work force and integrating tribal youth into business activities. Jobless local youth will themselves better their lives via skilled and semi-skilled jobs in a budding industrial sector. They will not be compelled to being hard physical labour inside their country or outside as their only option to feed their families. RSEZ will generate development, provide employment, and bring in economic and social services, which the native residents of this area could only dream about for decades. These dreams and hopes are on their way to becoming reality!
The government of KP and its Khyber Pakhtunkhwa Economic Zones and Development and Management Company (KPEZDMC) and the China Road and Bridge Corporation (CRBC) plan to develop RSEZ with an investment of $ 128 million, spreadingover an area of approximately 1,000 acres of land.
The inauguration ceremony of RSEZ was scheduled for November 21. However, due to the recent increase in Covid-19 cases, it has been postponed.
“We are all ready for the inauguration.As the current wave of coronavirus subsides, Prime Minister Imran Khan will inaugurate the zone,” Abdul Karim Tordher, Special Assistant to Chief Minister KP on Industries, told Gwadar Pro.
He said the internal development work would begin after the inauguration. However, external developments such as road construction, laying of electricity and gas pipelines and other services are proceeding with full swing.
According to Abdul Karim Tordher, the objectives of the zone are to develop, market, operate a successful, sustainable SEZ as a feasible business proposition for economic growth and employment generation. The total project investment is $ 128 million, out of which project development would cost $ 94 million while $34 would go to financial, marketing and operating expenses.
Talking about the expected economic impact of RSEZ, Abdul Karim Tordher said the zone would generate more than 200,000 jobs (50,000 direct and 150,000 indirect). Under an agreement, Pakistanis and Chinese would obtain 80% (preferably from KP) and 20% of the jobs respectively.
According to official documents, the expected impact from the products sales per year at RSEZ is $ 1.157 billion while the aggregate income from products sales in 25 years would be $ 29 billion. The potential investment from setting up of enterprises in RSEZ is $ 1.630 billion while the expected potential foreign direct investment (FDI) is $ 494 million. The indirect taxes (revenue) expected from the zone is $ 4.9 billion. The RSEZ would contribute about 2.30% to the provincial GDP. The concessional period of the zone is 30 years, following which the RSEZ would be handed back to KPEZDMC.
In the official documents, RSEZis listed as prioritized Special Economic Zone (pSEZ). Abdul Karim Tordher said that four industrial zones were approved under CPEC and the one at Rashakai is going to be built on ‘priority bases’ to dispel the impression that the people of northwestern Pakistan are neglected when it comes to the benefits of CPEC.
Muhammad Ashfaq Paracha, Chairman Nowshera Industrial Estate and member of ruling Pakistan Tehreek-i-Insaf (PTI) told Gwadar Pro that RSEZ is a “transformational project that will change economic revolution in the entire region”. He played a key roleinacquiringland for the zone, which consists 778 acres of land (702 acres industrial and 76 acres commercial plots).
According to him, RSEZ is located at an ideal place, which is the confluence of major five districts of KP and is reachable via roads, motorways and railways. Ashfaq Paracha foresees the zone asan“imminent trade hub of Khyber Pakhtunkhwa” that would house over 400 industries including mechatronic, pharmaceutical, food processing units, textiles, garments, and medical equipment,etc.
While counting numerous benefits of RSEZ, he termed the zone as a source of empowerment for the females of the province. “Every year’s thousands of females graduate from various universities of KP but very few of them get jobs. The government cannot fit them, so working in industries is best option for them,” Mr. Paracha said.
According to the 2017 census, women make up 49% of the 207,774,520 population of Pakistan while their participation in the labour force is only 24%. Due to social barriers, the majority of parents especially in Khyber Pakhtunkhwa do not allow their daughters to find work in other parts of the country. “Now, females will get jobs in industries and above all they would commute between their offices and homes every day,” according to Ashfaq Paracha.
He said mostly the graduates lacked technical and professional skills. As during their studies, they do not have access to industries to use the knowledge they read in books. “RSEZ will providethe students with opportunities during their studies.After completing their degrees, they will get white-collar jobs in the zone,” he said and added that the zone will also attract tribal youth from the erstwhile Federally Administered Tribal Areas(FATA)with jobs and business activities.
The KP Government has sanctioned a fund of Rs. 1billion for the skill development of students at Government College Nowshera. “We want to prepare them to compete with non-local jobseekers while acquiring high positions at RSEZ,” the official said.
In addition to business activities, RSEZ is bringing CPEC City for the local population, which would be built in lines with the principles of modern urban planning.
“The government has purchased around 1000 acres of land for CPEC City. Section Four and Section Five of the city have already worked out,” said Ashfaq Paracha. The city will consist of educational and commercial zones, public residences, apartments, parks and modern sports facilities.
