Received: 19.08.2021; Revised: 28.09.2021, Accepted: 21.10.2021, Published Online: 08.11.2021

Dr. Tatheer Zahra Sherazi

Dr. Tatheer Zahra Sherazi is Assistant Professor at the Department of International Relations, National University of Modern Languages Islamabad.

Dr. Fouzia Amin

Corresponding Author: Dr.  Fouzia Amin is Lecturer at the Department of International Relations, National Defence University

Dr. Muhammad Raza

Dr. Muhammad Raza is Academic Advisor to President at National Defence University.

Dr. Syed Sibtain Hussain Shah,

Assistant Professor, International Relations, National University of Modern Languages (NUML), Islamabad Campus

Rabeeha Safdar

Rabeeha Safdar is Research Office at Pakistan Institute of China Studies, University of Sargodha

Saqib Hussain

Saqib Hussain is visiting fellow at University of Chakwal


Economic clusters have been accepted as the most efficient rudiments for urban and regional economic strategies. China is one of those countries who has set an example for the growing economies for successful growth and took 850 million people out of poverty. Through the rapid industrialization China has set an example for the rising economies how to transform, design and develop the economic zones. Rapid Industrialization in China was the result of the exclusive expansion of several ‘specialty cities’ with the small, medium and large productions units for the specific product in particular areas for contributing in millions annually. For the same reasons within China different areas have the specific names like world’s ‘footwear capital’, ‘sweater city’, ‘kids cloth city’, sock city’ and so on giving the status of economic engines of various provinces and ultimately of China. Last four decades, particularly the first two decades can correctly define the status of process of reforms and the impact of those reforms on economic growth. Now CPEC has entered into its second phase which is consisted of industrialization and special economic zones which includes along with railway networks, trade promotion and economic development. So out of $62 billion, $18.9 or $19 billion has been made so far while rest is remaining, according to Yao Jing, he also said that ‘a lot of criticism was levelled at CPEC, which also became a victim of conspiracies. Lao explained that around $13 billion is lent from commercial banks of China while rest $6 billion is taken as loans from banks which Chinese energy companies will return from sale of produced electricity and its return payment will be started into 2024. Cluster theory would be used in order to investigate the systematic approach of China towards setting up clusters and subsequent development. Meanwhile the significance of clusters and specified economic zones is a lucrative opportunity for Pakistan to be availed in order to accomplish the its milestone development. The ongoing research is qualitative, descriptive and analytical in nature which suggests China is phenomenal in managing its city cluster policy which can provide a base to Pakistan to initiate its enriching plans.

Keywords: clusters theory, rapid industrialization, CPEC, economic zone, super clusters