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This article attempts to underscore the extraordinary significance of Special Economic Zones (SEZs) in the industrialization and economic growth of Pakistan as well as the development and consolidation of China–Pakistan Economic Corridor (CPEC)—which is a core component of the Belt and Road Initiative (BRI). Though Pakistan has previously experimented with SEZs, its scale, outreach and impact on the country’s economy and society remained very limited. Thus, the proposed SEZs under the CPEC offer new opportunities for mutual economic cooperation, investment, human resource development, sustained industrialization and, above all, the consolidation of CPEC. Nevertheless, there are several challenges ranging from structural issues to security problems that the proposed SEZs, in particular, and CPEC, in general, face. The article, thus, provides a comprehensive set of strategies to convert challenges into capabilities.
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