Joint Ventures under CPEC and Prospects for Pakistan’ Industry: A Remarkable Yield of One Belt One Road Initiative

Abstract

China Pakistan Economic Corridor (CPEC) is a revolutionary project having remarkable implications for the economy and considered as fate changer of this region. The mega project of CPEC creates regional connectivity among Central and South Asian countries under the one belt one road (OBOR) initiative. The CPEC project includes the establishment of the country-wide 9 priority special economic zones (SEZs) providing the opportunities of possible joint ventures for local businesses with the world class export oriented Chinese and foreign companies to relocate in the industrial parks and special economic zones (SEZs) developed by Pakistan. As the Joint ventures (JVs) are mutually formed by two or more firms having positive outcomes such as economic benefits and enhanced market potential prospects for the partners (Carnovale and Yeniyurt, 2014), they can successfully habitat the SEZs. This paper defines and assesses the significance of joint ventures for the Pakistan’s economy and offers the possible JVs opportunities under CPEC as a fruit of bilateral regional connectivity with China. The work highlights the latent comparative advantages of specific geographical regions of Pakistan covered in SEZs and offers insights for potential industrial clusters for maintained governance, improved skill-set, knowledge sharing, technology transfer and spill over effect causing the industrialization and trade promotion in Pakistan.