Center for New Structural Economics (CNSE) and Pakistan ink MoU on China Pakistan Economic Corridor (CPEC) Project

On 15^th, May 2017, Prof. Justin Yifu Lin, the Director of CNSE signed MoU with Project Director of CPEC, Hassan Daud Butt, in the presence of Federal Minister for Planning, Development and Reform (PD&R) of Pakistan during the Belt and Road Forum for International Cooperationin Beijing. The MoU is on leveraging special economic zones (SEZs) under the theoretical guidance of New Structural Economics, aiming to form synergy on policy formulation on SEZs, promote investment and achieve structural transformation in order to promote the China Pakistan Economic Corridor.

Leveraging SEZs is a key part of CPEC. In April, 2017, Prof. Justin Yifu Lin visited cities including Istanbul, Lahore, Karachi at the invitation of Ahsan Iqbal, Federal Minister for Planning, Development and Reform (PD&R) of Pakistan. Lin passed on China’s development experience on “GaigeKaifang” (Reform and Open) since 1979. This policy has led China’s GDP per capita increases from 30% less than Pakistan to 5.6 times more than Pakistan in 2016. Lin also explained the historical opportunity for Pakistan’s economy that lies within China-Pakistan cooperation with China’s steady emerging. During this visit, Lin met with important government department including MPD&R, Ministry of Finance and Ministry of Commerce, as well as entrepreneurs from the Chamber of Commerce. Local main media published a host of positive reports about this visit.

Pakistan government showed strong interests to New Structural Economics and its implementation in developing countries. The government then signed MoU with Lin on leveraging SEZs, promoting investment and fostering structural transformation. CNSE acts under the commitment to transfer knowledge to results, and is devoted to providing theoretical guidance to promote CPEC within the global layout of Belt and Road Initiative. In further cooperation, CNSE will combine the theory with ground research, and guide Chinese firms to recognize the opportunities in Pakistan in order to relocate. The center will pass on China’s experience to Pakistan, and help Pakistan seize the window of opportunity for structural transformation. The final purpose of the project is actual investment, employment, export and economic growth.