CPEC 2.0: Can Pakistan learn from Shenzhen?

Prime Minister Shehbaz Sharif recently praised the remarkable success story of Shenzhen, heralding its evolution into the city of the future. Once a modest fishing village, Shenzhen has emerged as a dynamic hub of modern technology, development, and innovation. With its GDP growing steadily, Shenzhen’s journey of transformation commenced in 1978 with a modest GDP of $40 million, soaring to an impressive $500 billion with a population of 13 million. Impressed by Shenzhen’s achievements, Prime Minister Shehbaz Sharif announced Pakistan’s intention to adopt the Shenzhen model of development. While this declaration demonstrates a positive step towards learning from Shenzhen’s experience, it raises the question: Can Pakistan truly replicate Shenzhen’s success? Before answering this question, it is essential to examine the factors driving Shenzhen’s transformation. What reforms did China implement? What institutional mechanisms and infrastructure facilitated Shenzhen’s growth?