Governing CPEC-Led Industrial Development: Special Economic Zones, Public Policy and Socio-Economic Transformation in Khyber Pakhtunkhwa, Pakistan

Abstract

This paper examines the socio-economic prospects of the China–Pakistan Economic Corridor (CPEC) in Khyber Pakhtunkhwa (KP), with particular attention to Rashakai Special Economic Zone (SEZ), institutional coordination and operational continuity. Using qualitative documentary analysis and an analytical case-study design, it synthesises official information on Rashakai, provincial labour-market indicators and established research on transport corridors, institutions and SEZs. Official information identifies Rashakai as a 1,000-acre zone, including a 247-acre first phase. The analysis finds that physical connectivity and industrial-zone infrastructure create development opportunities but do not themselves demonstrate realised employment, private investment or local supplier benefits. Such outcomes depend on enterprises becoming operational, reliable utilities, effective investor facilitation, relevant workforce skills and coordination across institutions. The article proposes an outcome-oriented monitoring framework distinguishing investment announcements, physical outputs and verified economic results. Because available public records do not provide an adequate firm-level panel or identifiable causal comparison, the paper does not estimate CPEC-attributable job creation or causal economic effects. It argues that credible provincial industrial policy requires measurement of productive activity, local participation and transparent institutional reporting.