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BEIJING, Sep 1 (APP):Pakistan-China Institute (PCI), in collaboration with the School of Environment at Tsinghua University organized a Pakistan-China Green Development Dialogue on the sidelines of the visit of Prime Minister of Pakistan, Shehbaz Sharif to China.
During the Dialogue, PCI launched a policy paper titled “From Policy to Practice: Operationalizing Green Special Economic Zones under CPEC via China’s Eco-Industrial Parks Lessons”. The dialogue gathered policymakers, researchers, and industry experts to set out a practical roadmap for Green SEZs in Pakistan.
The event was attended by Dr. Shezra Mansab Ali Kharal, Minister of State for Climate Change of Pakistan; Professor Tian Jinping of the School of Environment, Tsinghua University; Mustafa Hyder Sayed, Executive Director of PCI; XU Tianqi, Director of Area Studies at Chongyang Institute for Financial Studies (RDCY), Renmin University; Dr. Erfa Iqbal, Additional Secretary and EDG-II at the Board of Investment (BOI); Professor Bi Kejia, Associate Professor at the School of Business, Xi’an International Studies University; and Muhammad Umar Farooq, Senior Researcher at PCI, received a press release here from China on Monday.
The paper was authored by Mustafa Hyder Sayed, Muhammad Umar Farooq, and Professor Tian Jinping. It adapts lessons from China’s eco-industrial parks (EIPs) for CPEC SEZs, with a focus on standards, shared infrastructure, finance, operations, and data.
In his welcome remarks, Professor Tian Jinping said that today is about turning ideas into site-level action in Pakistan’s SEZs. China’s eco-industrial parks worked because we set clear standards, built shared utilities, and backed decisions with verified data.
“When parks share treatment plants, steam, and heat-recovery systems, costs fall and compliance improves. Transparent meters and simple dashboards help managers spot waste and match by-products across firms. Capacity building matters as much as hardware; operators must know how to run these systems day to day. If Pakistan pilots, measures, and then scales, results will follow.”
In his opening remarks, Mustafa Hyder Sayed said that our focus is practical implementation, not theory. Green SEZs will succeed when cleaner production lowers operating costs for firms. That means bankable shared utilities, simple rules for SME participation, and incentives tied to verified performance.
The paper lays out how zone authorities can standardize contracts, publish KPIs, and make data-sharing routine. We also emphasize coordination across ministries so approvals and support instruments move together. This is a realistic roadmap for pilots in 2025 that can scale within the CPEC framework.
Delivering the keynote, Dr. Shezra Mansab Ali Kharal said that we need to learn from China’s experience with eco-industrial parks and adapt it to our needs. The green transition does not mean turning all lights off; it means turning better lights on.
“Our goal is a competitive industry that uses fewer resources, cuts pollution, and creates good jobs. Policy alignment between the federation and provinces is essential so firms get one clear signal. We will support upgrades that save energy, recycle water, and manage waste safely. Pakistan can grow industry while protecting public health and the environment.”
Providing an overview of the paper, Muhammad Umar Farooq said that China’s journey shows a simple sequence: start with pilots, write a standard, finance shared systems, train operators, and then raise the bar.
Early cases like the Guitang sugar complex turned bagasse, heat, and residues into inputs for paper, cement, and power.
Later, parks such as TEDA rebuilt the ‘invisible pipes’ with shared utilities and digital matchmaking for by-products.
In 2008, the circular-economy law gave parks legal backing to exchange materials and run joint treatment plants, and standards tightened after 2015. Three streams i.e., eco-industrial standards, circular transformation, and low-carbon programs moved in one direction: do more with less. The lesson for Pakistan is to pilot, measure, certify what works, and scale with simple, verifiable numbers, contract by contract.
Speaking on investment enablement, Dr. Erfa Iqbal said that the Prime Minister’s visit has brought over 300 Pakistani companies to China to build partnerships. SMEs often lack capital and technical capacity, so we are designing tools that level the field. BOI will standardize performance contracts for efficiency and pollution control so firms know exactly what to deliver.
“We will use pooled procurement for sensors and meters to cut unit costs and ensure interoperability. Viability-gap funding will support shared utilities, and a green-upgrade credit line will target SME retrofits. All these instruments will be embedded in the SEZ one-window with simple applications, clear timelines, and bundled technical assistance.”
On financing models, XU Tianqi said that Pakistan should nominate two CPEC SEZs as green pilots in 2025–26 and build a blended-finance stack. Policy-bank concessional lines can fund core shared infrastructure like wastewater treatment and steam networks. Provincial or sovereign guarantees will de-risk construction and bring down borrowing costs.
“Performance-based subsidies should be tied to verified savings in energy, water, and emissions. Carbon-revenue monetization from methane abatement, waste-heat recovery, or co-processing can strengthen cash flows.”
From an operations perspective, Professor Bi Kejia said that non-negotiable KPIs for a Green SEZ include a measurable by-product exchange rate, GHG intensity per unit of output, park-level water-reuse ratio, and safe co-processing of hazardous waste.
“These should be tracked monthly and disclosed on a simple dashboard. Interoperable meters and common data formats are essential so SMEs can participate, not just anchor tenants. Incentives should reward continuous improvement, tariff rebates for high reuse, and bonus-malus service fees linked to verified KPI gains. Shared maintenance services will help SMEs keep equipment running and compliant. This is how you turn targets into daily practice.”
Commenting on the partnership, Liu Shuming, Dean at Tsinghua University, said that the Industry wants solutions that are measurable, financeable, and reliable in operations. Park-level utilities make compliance cheaper when they are designed once and used by many firms. Data that is easy to verify builds trust with investors and regulators. Standards give parks a common language, while training ensures teams can run systems safely.
“We see strong potential for Pakistan to adapt these elements quickly through focused pilots. Tsinghua will continue to support research and capacity building for this agenda.”
The paper concludes with an action plan: adopt EIP-aligned standards, finance shared utilities with blended capital, embed SME support in the SEZ one-window, and deploy digital platforms for by-product and energy matchmaking.