Innovative Financing for Special Economic Zones under CPEC

Innovative financing is anything different from standard investing or financing practice that has the potential to deliver significant socio-economic or environmental impact”3.This enlighten that innovative financing develops the activities for the wellbeing of the countries, through new approaches of pooling public and private revenues. The new income streams such as innovative taxes, issuance of bonds, fees, sales or any other scheme for voluntary contribution are reserved for the development purposes. In a few cases, the new financial mechanism has a dual agenda. Firstly, to raise new sources of financing by generating the development funds and secondly, to enhance the efficiency and effectiveness of the financial flows by making them more result oriented. There are different categories of innovative financing that are briefly discussed below:
CATEGORIES OF INNOVATIVE FINANCING
 Taxes, obligatory charges or other dues on globalized activities: create
public revenues from private sector e.g. airline ticket tax, carbon tax etc.
 Voluntary solidarity contributions: In this form, customers can donate a
small amount for a special cause e.g. product RED etc.
 Frontloading and debt-based instruments: Act as the public funds like
issuance of bonds even in international markets e.g. diaspora bonds, green bonds, the International Finance Facility for Immunization and debt conversions.
 Public-private incentives and state guarantees: This includes the initiatives that leverage public funds to create investment incentives for the private sector. For instance, through state subsidies or commitments to purchase a product ata set price.
This study aims to discuss the importance of innovative modes of financing for thedevelopment of Special Economic Zones in Pakistan under China Pakistan EconomicCorridor (CPEC)……….