Unlocking the Potential of Special Economic Zones under CPEC: A Strategic Analysis of Success Factors and Barriers in Pakistan

Abstract

This study explains the drivers and barriers influencing the success of Special Economic Zones (SEZs) in Pakistan, with a focus on SEZs proposed under the China-Pakistan Economic Corridor (CPEC). A quantitative approach was employed, collecting data from 68 stakeholders, including industrialists, academicians, policymakers, and zone developers, through surveys and interviews. The results indicate that strong government support, robust regulatory frameworks, and effective linkages are essential for SEZ success. However, challenges such as political interference, inadequate infrastructure, and a lack of skilled labor significantly hinder progress. Comparative analysis of stakeholder perspectives identifies key areas for improvement, including aligning SEZ policies with national development goals, fostering linkages, and enhancing transparency. The findings provide actionable insights for policymakers to optimize SEZ strategies, improve institutional autonomy, and foster sustainable investments under CPEC. This research offers a comprehensive, stakeholder-informed analysis of SEZ success factors in Pakistan, addressing a critical gap in the literature on CPEC-related economic development.