CPEC 2.0: full speed ahead

[SensiblePakFan]

A HOST of geopolitical developments may breathe new life into the China-Pakistan Economic Corridor (CPEC) that was perceived to be running out of steam since the PTI government assumed power in 2018.

Covid-19 has caused disruptions around the world this year, but CPEC-related activities appeared tepid even before the pandemic struck.

CPEC-watchers see the launch of two hydel power projects in quick succession in Azad Kashmir and a special economic zone (SEZ) in Faisalabad this month as early signs of the rejuvenation of the multi-billion-dollar programme. To remove roadblocks and ensure timely progress, the government is also working on the CPEC Authority Bill 2020 that will further empower the dedicated authority created last year.

Regional realignments and the changing dynamics in the Middle East, West and South Asia may work in Pakistan’s favour. The oil shock and greater realisation in the Arab world of a shared future seem to be drawing even the hostile nations closer. Iran under US sanctions has drifted closer to China vis-à-vis India for being undeterred by an aggressive US stance. The Afghan peace process is moving despite minor setbacks. The pandemic and border tension with China have compromised India’s capacity to irritate Pakistan. All these developments are said to be conducive for CPEC progress.

Talking to Dawn earlier, PTI leaders dismissed the perception about Chinese reluctance, insisting that it is peddled by its political opponents and the forces hostile to Pakistan. Chinese diplomats in Pakistan repeated the official position of being committed to the Belt and Road Initiative of which CPEC is a key component.

Independent experts found the assumption that the Chinese prefer a particular political party in Pakistan baseless.

Despite official positioning, the visibility of Chinese nationals in Pakistan is not the same as it was in 2016–18. The circulation of Chinese officials, experts and staff was noticeable in government departments and ministries, hotels, airports, shopping malls, etc. Chinese sources admit that the inflow of visitors from China has declined, but they insist that about 13,000 Chinese working on CPEC projects are still in Pakistan. It is also true that the pace of Chinese investment did wane after the initial injection of about $40 billion in multiple power and infrastructure projects and Gwadar Port. China intended to invest $62bn in Pakistan over 15 years under CPEC that was launched in April 2015.

“There might be some glitches here and there, but broadly the work on the first phase progressed smoothly. The exit of the PML-N or the entry of the PTI in Islamabad did not affect it. The first phase targeted to close the logistic and energy gaps in Pakistan that blunted development efforts. Many projects of the first phase have completed and the rest are in different stages of development.

“The graduation to the second phase may not be swift, but the interaction between the two sides started in 2019. It spanned industrial, trade and social development sectors, involving a greater participation of the private sector and civil society organisations in both Pakistan and China. The second phase may be less capital-intensive, but it is definitely more complex. Besides, the IMF and FATF affairs did consume the PTI government’s attention in 2018-19 and the health emergency sapped its energy and resources in the first half of 2020. Still we were not off course on CPEC,” a top official associated with CPEC shared his views on the condition of anonymity.

Independent experts admitted that China reacted to the demand of revisiting the agreed-upon deals by some PTI leaders. But they found the assumption of Chinese preference for a particular political party in Pakistan baseless. “Historically, China has been supportive of the country irrespective of the internal power dynamics,” commented one. Others attributed Chinese coldness after the initial euphoria to the challenges that China encountered in Pakistan while dealing with a fractured system. Some blamed the downward swing in the economy that took the sheen off the shiny multi-billion-dollar CPEC programme for Chinese annoyance.

“Compared with the past, there is a notable decline in enthusiasm amongst nations for extraterritorial port projects. In particular, entering the second phase of the One Belt One Road, China has been served a rude dose of reality. Managing trade flows through an offshore port, they are realising it is not just a one-time engineering challenge. It involves constant political gymnastics with stakeholders from across the spectrum.

“While India promoted Chabahar as a competitor to Gwadar, they built it with a narrow goal in mind: winning reconstruction projects in Afghanistan. Since President Trump rescinded the Joint Comprehensive Plan of Action (JCPOA) or the Iran nuclear deal and tightened sanctions, the Chabahar post has been a big question mark. Despite exception granted to India for using Iran as a conduit, no major contractor in Afghanistan, fearful of getting blacklisted by the United States, was willing to risk using Chabahar. Unless Iran is brought back into the economic mainstream, it is unlikely that the port will pick up steam again.

“With Chabahar now officially on hold, Gwadar has emerged as the only viable supply point for Central Asia. CPEC future depends significantly on the success of various foreign-funded infrastructure projects in this landlocked region, and continued enthusiasm of leaders of Central Asian States for opening their economies to the world,” said Dr Ameem Lutfi, a post-doctoral research fellow at the Middle East Institute, National University of Singapore.

“The evolving geopolitical situation is a plus for CPEC. The Afghan peace process, China’s entry into Iran and India’s exit from Chabahar will help secure our borders and strengthen CPEC.

“Regarding suspicions over China’s enthusiasm for CPEC, the assumption is factually incorrect. In fact, there is renewed vigour in CPEC with two new hydel projects announced in Azad Kashmir. As for the Gwadar Port, it is a centrepiece of CPEC. Its development is transformative for Balochistan. The reservations of Baloch insurgents stem from suspicions, failed and flawed policies of the past and propaganda of hostile external forces,” commented Mushahid Hussain Syed, chairman of the Senate foreign relations committee.

https://www.dawn.com/news/1571408/cpec-20-full-speed-ahead

 

[Mamoon]

The correct title is CPAEC.

China Pakistan Army Economic Corridor.

 

[Buffet]

Chinese Dream: Xi’s attempted coup against Pakistan

China's Communist leader has managed the creation of a supra-constitutional CPEC Authority




Xi Jinping is all set to sideline the democratically elected representatives and civil servants of the people of Pakistan so as to expand his direct influence over the political and economic processes of the country.

Since 2016, Xi, the general secretary of the Communist Party of China has been forcing the Pakistani establishment to put pressure on the government (it was Nawaz Sharif’s government back then) to sideline the Planning Ministry’s role in the implementation and monitoring of the multibillion-dollar China-Pakistan Economic Corridor (CPEC).

Xi pushed for the creation of a supra-constitutional CPEC Authority that would freelance the management of the predatory infrastructure and power-generation projects under his direct command.

The proposal was rejected then, but last year it was again presented before the prime minister of the country – now Imran Khan. The reason given was timely completion of the projects.

This time the prime minister is a full-fledged puppet of the military establishment, and therefore it was easier than before to manipulate the law to fulfill Xi’s desire to take over the Planning Ministry of Pakistan, and in future the country itself.

I consider Pakistan’s Ministry of Planning, Development and Special Initiatives one of the most crucial state institutions, whose senior bureaucrats could implicitly scrutinize and resist Xi’s draconian CPEC scheme, as they had access to all of the secret documents on the agreement and were involved, directly and indirectly, in the decision-making process.

So long as the reins were under the control of civilian institutions led by representatives of the people and civil servants, thorough accountability of Xi’s master plan at least at some level and at some point in time – if not at once – was possible. Sidelining the civil institutions altogether would allow Xi to play on both sides of the board.

The agreement was so highly confidential that even the secretary of maritime affairs once refused to show it to the Senate Standing Committee on Finance. So one can imagine what an above-the-law sort of deal it must be.

The CPEC Authority was established in October last year using a presidential ordinance (without parliament’s approval) for four months and then was given another four-month extension. But Xi wants permanent control. And now that the establishment has its puppet in the Prime Minister’s House, it is putting all of its efforts into making the Authority more powerful and a permanent part of the constitution by pushing it through parliament.

Xi doesn’t want the Belt and Road Initiative or any of its components to be held accountable or face resistance. He knows that his Chinese Dream of indoctrination of a majority of free people of the world by 2050 will not be fulfilled if the people of the countries victimized by the BRI come to know about his strategy to destroy their futures and those of their future generations.

The truth is that he is burdening those countries in debt traps while they are already suffering from intense balance-of-payments crises. Xi will slowly poison Pakistan and other poor economies by creating extreme shortages of foreign-exchange reserves. In the end, these countries will have to accept the invasion of their political and economic systems by the Communist Party of China.

Four months ago, an inquiry into the workings of independent power producers (IPPs) took place in which two major coal-fired power-plant projects that were built under the CPEC – Huaneng Shandong Ruyi Energy and Port Qasim Electric Power Company – were found involved in corruption as they had misrepresented interest during construction to loot almost US$226 million from the dollar-strapped Pakistani economy.


The supra-constitutional CPEC Authority will act as the CPC’s subsidiary in Pakistan and will be responsible for conceiving, implementing, expanding, enforcing, controlling, regulating, coordinating, monitoring, evaluating and carrying out all activities related to the CPEC.

Furthermore, it will have the constitutional power to initiate an investigation and impose penalties against any public office holder (including the prime minister and president of Pakistan) or any other person who is directly or indirectly engaged in CPEC-related activities who willfully resist directions, instructions or specified orders of the CPEC Authority.

Even the prime minister’s powers will be limited to what is specified in the CPEC Authority Bill 2020. So he too will have to obey Xi’s commands.

According to a news report (that soon after its publication was mysteriously taken down), the chairman of the Authority – who, as noted above, is a retired lieutenant-general – will co-chair the Joint Cooperation Committee as the democratically elected planning minister will be removed from this position.

https://asiatimes.com/2020/07/chinese-dream-xis-attempted-coup-against-pakistan/

------------------

With this development , CPEC will be implemented at a higher speed. It seems implementing it at a higher speed is coming at some cost, but decisionmakers have decided that cost is not high.

 

[Syed1]

Chinese Dream: Xi’s attempted coup against Pakistan

China's Communist leader has managed the creation of a supra-constitutional CPEC Authority

View attachment 102420


Xi Jinping is all set to sideline the democratically elected representatives and civil servants of the people of Pakistan so as to expand his direct influence over the political and economic processes of the country.

Since 2016, Xi, the general secretary of the Communist Party of China has been forcing the Pakistani establishment to put pressure on the government (it was Nawaz Sharif’s government back then) to sideline the Planning Ministry’s role in the implementation and monitoring of the multibillion-dollar China-Pakistan Economic Corridor (CPEC).

Xi pushed for the creation of a supra-constitutional CPEC Authority that would freelance the management of the predatory infrastructure and power-generation projects under his direct command.

The proposal was rejected then, but last year it was again presented before the prime minister of the country – now Imran Khan. The reason given was timely completion of the projects.

This time the prime minister is a full-fledged puppet of the military establishment, and therefore it was easier than before to manipulate the law to fulfill Xi’s desire to take over the Planning Ministry of Pakistan, and in future the country itself.

I consider Pakistan’s Ministry of Planning, Development and Special Initiatives one of the most crucial state institutions, whose senior bureaucrats could implicitly scrutinize and resist Xi’s draconian CPEC scheme, as they had access to all of the secret documents on the agreement and were involved, directly and indirectly, in the decision-making process.

So long as the reins were under the control of civilian institutions led by representatives of the people and civil servants, thorough accountability of Xi’s master plan at least at some level and at some point in time – if not at once – was possible. Sidelining the civil institutions altogether would allow Xi to play on both sides of the board.

The agreement was so highly confidential that even the secretary of maritime affairs once refused to show it to the Senate Standing Committee on Finance. So one can imagine what an above-the-law sort of deal it must be.

The CPEC Authority was established in October last year using a presidential ordinance (without parliament’s approval) for four months and then was given another four-month extension. But Xi wants permanent control. And now that the establishment has its puppet in the Prime Minister’s House, it is putting all of its efforts into making the Authority more powerful and a permanent part of the constitution by pushing it through parliament.

Xi doesn’t want the Belt and Road Initiative or any of its components to be held accountable or face resistance. He knows that his Chinese Dream of indoctrination of a majority of free people of the world by 2050 will not be fulfilled if the people of the countries victimized by the BRI come to know about his strategy to destroy their futures and those of their future generations.

The truth is that he is burdening those countries in debt traps while they are already suffering from intense balance-of-payments crises. Xi will slowly poison Pakistan and other poor economies by creating extreme shortages of foreign-exchange reserves. In the end, these countries will have to accept the invasion of their political and economic systems by the Communist Party of China.

Four months ago, an inquiry into the workings of independent power producers (IPPs) took place in which two major coal-fired power-plant projects that were built under the CPEC – Huaneng Shandong Ruyi Energy and Port Qasim Electric Power Company – were found involved in corruption as they had misrepresented interest during construction to loot almost US$226 million from the dollar-strapped Pakistani economy.


The supra-constitutional CPEC Authority will act as the CPC’s subsidiary in Pakistan and will be responsible for conceiving, implementing, expanding, enforcing, controlling, regulating, coordinating, monitoring, evaluating and carrying out all activities related to the CPEC.

Furthermore, it will have the constitutional power to initiate an investigation and impose penalties against any public office holder (including the prime minister and president of Pakistan) or any other person who is directly or indirectly engaged in CPEC-related activities who willfully resist directions, instructions or specified orders of the CPEC Authority.

Even the prime minister’s powers will be limited to what is specified in the CPEC Authority Bill 2020. So he too will have to obey Xi’s commands.

According to a news report (that soon after its publication was mysteriously taken down), the chairman of the Authority – who, as noted above, is a retired lieutenant-general – will co-chair the Joint Cooperation Committee as the democratically elected planning minister will be removed from this position.

https://asiatimes.com/2020/07/chinese-dream-xis-attempted-coup-against-pakistan/

------------------

With this development , CPEC will be implemented at a higher speed. It seems implementing it at a higher speed is coming at some cost, but decisionmakers have decided that cost is not high.

Asia Times ) )







Just read your bolded part and now I'm even more amused ) ) )

 

[Syed1]

CPEC Authority will even impose penalties against PM and President ) ) )



Where do Indians come up with this kind of logic

 

[Bigboii]

full speed ahead!!

 

[Greenstorm]

full speed ahead!!

Another one of those propaganda videos. These fake documentaries and 'analysis' are regularly churned out by multiple Western outlets to mold perception against China. Won't be surpurised if Srivastava group is into it as well.

Meanwhile, CPEC is progressing well even under covid. The kind of infrastructural change we are witnessing now under CPEC is unprecedented in our history. It will take about 5 years before we fully realize the benefits of CPEC. Here is a list of CPEC projects and their current status,

http://cpec.gov.pk/progress-update#

 

[ahsan17]

full speed ahead!!

Not sure how it's stalled. It's a 15 year project, lol. There are a ton of projects still in progress under cpec.

 

[MenInG]

CPEC makes some jealous, others envious !

 

[MenInG]

ISLAMABAD -- Pakistan's federal and regional governments are taking a series of actions, including giving the status of regional subcapital and promoting tourism, to revive the struggling town of Gwadar, whose port -- built and operated by the Chinese -- hardly receives ship calls.

Experts believe these actions will not work unless infrastructure gaps are addressed in Gwadar, which is the center stage of the China-Pakistan Economic Corridor (CPEC), the $50 billion Pakistan component of the Belt and Road Initiative.

In the first days of April, a news item was published in several Pakistani newspapers quoting a Chinese media outlet, Gwadar Pro, as saying that Gwadar had been given the status of capital of South Balochistan. This proved to be incorrect -- there is no South Balochistan.

However, officials of the Balochistan government, who requested anonymity, confirmed to Nikkei Asia that the regional government is in the process of making Gwadar a subcapital of Balochistan that will house several high-ranking government officials in a provincial camp office.

"If senior government officers set up offices in Gwadar [as a subcapital], then it will resolve a lot of problems," Aslam Bhootani, the National Assembly member representing Gwadar, told Nikkei. He added that Gwadar is the future of Balochistan, and declaring it a subcapital would help develop the region.

Analysts do not agree with the government's move to revive Gwadar Port by making administrative tweaks.

Michael Kugelman, the deputy director of the Asia Program at the Wilson Center in Washington, said that trying to bring more prominence and attractiveness to Gwadar through sudden administrative changes is bound to fail unless Gwadar is able to become a truly developed and functional port. "Progress on the ground is what will bring acclaim to Gwadar, and government can't engineer progress through public relations campaigns," he told Nikkei.

"This is a desperate move by the Pakistani government to create buy-in for the Gwadar Port," said Malik Siraj Akbar, a South Asia analyst based in Washington. He told Nikkei that the government is taking these cosmetic measures to create media hype and divert attention from the grievances of the local people in Gwadar.

Lately, the government has also started to promote Gwadar as a tourist destination. The most high-profile visitor to Gwadar last week was U.S. Charge d'Affaires Angela Aggeler, who was the first U.S. diplomat to visit Gwadar in the last 15 years. Last week the chief minister of the Balochistan government, Jam Kamal Khan, inaugurated the Coastal Tourism App for District Gwadar.

In the recent past, government has sponsored trips of celebrities and sportsmen to attract tourism to Gwadar. The government has also promoted a newly built cricket stadium in Gwadar as one of the most beautiful cricket stadiums in the world.

Kugelman thinks the visit of the U.S. top diplomat was an attempt by Pakistan to drum up international support for Gwadar. Pakistan is keen to telegraph its willingness to take on investors that go beyond Beijing and wants Gwadar to be on the world's radar. "The problem for Islamabad is that Washington doesn't perceive the investment climate in Pakistan to be nearly as attractive as it is elsewhere, especially in the growing economies of Southeast Asia and elsewhere in the Indo-Pacific," he analyzed.

Akbar was more critical of the approach used by the government. "You can't run a port by merely organizing cricket matches and concerts or via Twitter campaigns," Akbar said, adding that the government needs a more serious approach toward Gwadar and must prove that Gwadar has the infrastructure needed to operate as a modern port city.

The government's attempts to promote Gwadar have further highlighted the infrastructure gaps in the port town.

Nasir Rahim Sohrabi, a prominent social activist, tweeted on Sunday that the main market of Gwadar had been without electricity for 11 days, which exposes the infrastructure gaps in the so-called Singapore of the future.

Bhootani agrees that Gwadar is developing very slowly and said it will take some time before this project can kick off.

"Gwadar Port was established 15 years ago, but so far it has failed to deliver," he said. When there will be no electricity and proper road connectivity for heavy traffic, then Gwadar can't kick off as a viable commercial project, he added.

https://asia.nikkei.com/Spotlight/B...esperate-moves-to-revive-Belt-and-Road-s-port

 

[Bigboii]

CPEC makes some jealous, others envious !

you yourself posted the reality of CPEC...

 

[Last Monetarist]

https://tribune.com.pk/story/2297655/pakistan-to-seek-debt-restructuring-of-cpec-power-projects

Islamabad will seek debt restructuring of $3 billion against the China-Pakistan Economic Corridor (CPEC) energy projects in an effort to eliminate the need for increasing the power tariff by Rs1.50 per unit, Special Assistant to the PM on Power and Petroleum Tabish Gohar told The Express Tribune.

“The country is scheduled to make Rs435 billion or nearly $3 billion principal repayments to 12 Chinese independent power producers in three years,” he added.

“The government will request China to consider restructuring of the $3 billion repayments for 10 to 12 years, which in return will reduce the tariff increase requirements by Rs1.50 per unit.” The initiative is part of the hosts of proposals that the PTI government is exploring to minimise tariff increase requirements estimated in the range of Rs4.60 to Rs5.65 per unit under a recently approved Circular Debt Management Plan.

China has set up 12 power plants under the CPEC and the repayments of the Chinese debt are included in the electricity tariffs. The consumers would pay them in rupees. However, the government would return them in dollars. Explaining the preposition, Gohar said Pakistan would request China to set up a one-time CPEC debt refinancing fund of $3 billion, which will be used to pay to the Chinese companies.

After 12 years, the government would recover the amount from the consumers to repay to China, he added. “The proposal has been discussed with the Chinese ambassador to Pakistan and now it needs to be taken up at the highest level by both the countries,” the SAPM elaborated.

“We do not want to embarrass our friend but the fact is that half of the IPPs’ payments are related to Chinese power projects.”

The government had also earlier made an attempt to renegotiate the IPPs deals in light of the Mohammad Ali Inquiry Committee report, but China declined to reopen these deals, sources told The Express Tribune. The debt payments are due against Kohala hydropower project, Karot hydropower project, Suki Kinari power project, Port Qasim power project, Sahiwal power plant, Hubco power plant and Engro power generation project among others.

In addition to the $3 billion principal payments, the dividend payments also stand at $1.5 billion during the next three fiscal years. Against the inflows of $19 billion, the outflows of CPEC power projects are estimated over $31 billion on account of both dividend and the debt repayments over a period of 20 years, as per documents of the planning and development ministry from December 2018 . The commercial loans for setting up power plants had been arranged at an interest rate of London Interbank Offered (Libor) plus 4.5%.

However, it is the return on equity, which in some cases is as high as 34.2%, that will cause an outflow of $11.3 billion.

The total outflows of debt against one-dozen power projects had been estimated at $19.8 billion.
The previous PML-N government had termed the CPEC energy projects debt as “foreign investments”.

The Express Tribune had reported in December 2018 that Pakistan could only sustain these repayments by enhancing its exports.

In case the country remained unable to increase exports despite removal of energy bottlenecks, it would be difficult to manage these repayments.

Gohar said the government wanted to reduce the buildup of circular debt that was estimated to increase to Rs4.7 trillion in two years.

“About 40% of it will be reduced by increasing tariffs that too if we are unable to achieve goals like restructuring of debt and rationalisation of taxes,” he added. “Prime Minister Imran Khan has given us the task not to increase the prices against the required adjustments of Rs4.60 per unit.

The SAPM further said the circular debt management plan had been chalked out on the assumption of Rs168 per dollar exchange rate. “If the exchange rate remains at Rs155 for thr next two years, the tariff increase requirement will come down by another Re1 per unit.”

Gohar noted that there were good chances that the International Monetary Fund (IMF) might also relax timelines to increase the tariffs that were due in June and July.

“As against the current level of Rs2.6 trillion, the power sector circular debt would only come down to Rs1.1 trillion by end of fiscal year 2023 if we successfully implement a three-pronged strategy,” he added.

At the end of the PML-N government tenure, the circular debt was Rs1.15 trillion.

The average tariff is projected to increase to Rs20.25 per unit by fiscal year 2023 from the current Rs15.4 per unit. Gohar said there was a need to rationalise the taxes on electricity bills and fuel that would reduce tariff increase requirement by another Re1 per unit. “The plan to buy out 11 IPPs of 3300 MW capacity at discounted value of about $1 billion would reduce the power tariff increase requirement by 60 paisa per unit.”

The PM's aide said the World Bank had endorsed the proposal of buying old power plants and was ready to finance it. “The WB’s interest is that these old fossil fuel projects can be replaced with renewable energy projects.”

There is also a proposal to hand over the Hyderabad and Sukkur power distribution companies to the Sindh government -- a move that would save Rs100 billion per annum.

Gohar said the Sindh government was keen on taking over these companies and also willing to reduce the government’s liabilities to zero in five years. “If these proposals remain unimplemented, the government will have to increase the tariffs.”

 

[Poseidon]

CPEC will take atleast 15 years to complete its all projects, till thn indians just relax.

 

[MenInG]

The China Pakistan Economic Corridor (CPEC) power projects are also hit by the circular debt and the government has not been able to clear Rs188 billion due payments in breach of a bilateral energy framework agreement.

Although, the outstanding payments are only 18.4% of the billed amount, it has started affecting the financing models of the Chinese sponsors of the Independent Power Producers (IPPs), set up under the CPEC agreement.

“Pakistan has so far paid Rs832 billion on account of power purchase price to the Chinese IPPs,” Special Assistant to Prime Minister on Energy Tabish Gohar told The Express Tribune. Gohar said that the Central Power Purchase Agency Guaranteed (CPPA-G) could not clear Rs188 billion worth dues.

The outstanding amount is only 18.4% of the total billed amount of Rs1.02 trillion, which is not a very large sum, he added. The PM’s aide said that 82% payment ratio was very good given the fact that total outstanding circular debt has increased to Rs2.6 trillion.

Under the CPEC Energy Framework Agreement, Pakistan was supposed to set up a CPEC Revolving Fund equal to 22% of monthly invoice, which shall be backed by the sovereign guarantees provided by the Ministry of Finance.

The purpose of the fund was that in case the power purchaser fails to make payments, the dues of the Chinese firms will be settled against this account to ensure uninterrupted payments to Chinese sponsors of energy projects. Pakistan and China had signed CPEC Energy Framework Agreement in November 2014.

“We could not establish the Revolving Fund,” said Gohar.

The circular debt, which was Rs1.15 trillion in June 2018, has swelled to Rs2.6 trillion. The government has now made a three-pronged strategy to reduce this debt to June 2018 level in the next two years. The strategy that talks about improving efficiency, timely payment of subsidies and increasing tariffs has yet to test the waters.

Under CPEC, a 300 megawatts coal-fired power plant has also been planned to be set up in Gwadar, which is now facing significant delays.

One of the reasons behind delay in start of the construction work on the Gwadar coal project was default on the guarantees issued by China Export and Credit Insurance Corporation (Sinosure), said Gohar.

Sinosure had charged 7% fee on the insurance of the loans given to the Chinese companies that set up CPEC power projects.

But Gohar said that Gwadar imported coal project should not be constructed. If firm commitments have been given, these would be honoured, he added.

Against an investment of $300 million in the project, Pakistan would return $1 billion in the next 20 years, said the special assistant. Gohar maintained that the Gwadar power plant-II would not be installed, as the government has banned imported-coal based power projects.

Gohar said that the Power Division proposed that the government can provide electricity to Gwadar by extending National Transmission and Dispatch Company network. The project can be funded from the budget, he added.

Gohar said that the government has also downgraded the Chashma-5 nuclear power project from a committed to a candidate project.

This has been done under the National Electricity Policy, being approved as part of a loan condition of the World Bank.

“The nuclear generation capacity additions, shall be incorporated in the IGCEP on the basis of cross-sectoral decisions by way of consultative process, taking into account inter alia, economics of generation, resultant tariff, and demand of the sector,” according to the policy.

Gohar said in future only those nuclear power projects will be set up, which are economically viable. In case some projects are strategically important then the Ministry of Finance will have to allocate budget.

The government now plans to undertake only those projects that have achieved letter of support and are required to fulfil COD deadlines, projects that have specific timelines under the government to government and multilateral arrangements.

The government also has a plan to China to consider restructuring of the $3 billion IPPs repayments for 10 to 12 years. The initiative is part of the hosts of proposals that the PTI government is exploring to minimise tariff increase requirements estimated in the range of Rs4.60 to Rs5.65 per unit under a recently approved Circular Debt Management Plan.

China has set up 12 power plants under CPEC and the repayments of the Chinese debt are included in the electricity tariffs.

Published in The Express Tribune, May 9th, 2021.

 

[MenInG]

The development of Gwadar and its free zone is marred by a host of obstacles and the centre-piece of China-Pakistan Economic Corridor has yet to show even its first glimmer of the promised industrial hub – reveals findings of an official report.

The report – commissioned by the Cabinet Committee on the CPEC –has recommended revisiting the Port Concessions Agreement with Chinese operators aimed at addressing some of the major obstacles to the development of Gwadar.

Gwadar is also described as the crown of the CPEC.

“Long being marketed as the center-piece of the CPEC, Gwadar has yet to reach the heights of expected industrial development that can serve as catalyst for domestic and foreign investment,” said the official assessment by the Board of Investment.

The Gwadar “has yet to even show its first glimmer of the promised industrial hub that can serve as a catalyst for domestic and foreign investment”, revealed the findings of the report.

The assessment also showed that although Pakistan had extended a lucrative incentive package, the lack of investment interest in Gwadar Free Zone was “inexplicable”.

The report had also been submitted to the Prime Minister’s Office in June this year along with a set of recommendations to correct the wrongdoings.

The key recommendation of the report is that the government should revise the Concession Agreement with China but the Prime Minister Office did not agree to it due to its overarching implications for Pak-China economic relations.

The development of Gwadar Free Zone relies heavily on its Concessions Agreement which does not envisage any role for the federal entities that have been mandated with economic and investment policy making, according to the report.

It added the exclusion of federal stakeholders, which are in a position to regulate and expedite the development of this zone, and provision of authority solely to the Gwadar Port Authority to act on behalf of the federal government has made the Concessions Agreement limited in its scope and applicability.

In November 2015, the China Overseas Port Holdings Company Limited (COPHCL) finalised a new 40-year lease of the Gwadar Port. Under the agreement, the port operators get 91% of port revenue and 9% goes to the federal government.

The lower than expected progress on the Gwadar Port and its Free Zone has raised many questions given the fact that it was the top priority of Prime Minister Imran Khan and Chief of Army Staff General Qamar Bajwa.

The Chinese operators of the Gwadar port – the China Overseas Ports Holding Company Pakistan Limited (COPHC) had recently made a presentation on the prospects of the Gwadar port and its marketing plan to the CPEC cabinet committee, which too was below the cabinet body’s expectations.

The work on the construction of the 2,281 acres tax-free industrial, logistics, warehousing and export zone commenced in June 2016.

The BOI report showed that at the time of its findings, 44 Chinese and Pakistani companies had registered in Gwadar Free Zone. Out of these only five Chinese origin firms were operational.
The findings revealed that no study had been carried out to analyse the development of Gwadar in the presence of Chahbhar port of Iran despite the fact that the Gwadar has been under development since 2013.

In February this year, the Cabinet Committee on the CPEC had directed the Board of Investment (BOI) to present an independent assessment of investment potential of Gwadar Free Zone along with recommendations to unlock the potential. The report has been prepared on the basis of field visit by the BOI team in April this year.

CPEC to enhance Pakistan’s national strength, international status

“On ground visit to the Gwadar Free Zone revealed that the present area of the Gwadar Free Zone is neither suitable nor suffice for the establishment of heavy industry.”

Without finalisation of Gwadar Free Zone regulations, companies are being permitted to set up their businesses that may create legal complications at the later stage, according to the BOI report.

Nearby the Gwadar port, the obstacles to infrastructure development include inadequacy of transportation, poor power and water supply, difficulty in securing permits and support from local government, persistent terrorist attacks on projects and personnel, and difficulty securing capital given those risks and continued non-performance of the port itself.

Outside the zone, the other industrial projects in Gwadar district are not only marred with the infrastructural problems but are also facing other obstacles owing to lack of regulatory oversight and incapacities of the departments involved, it stated.

The major impediments to investment and industrialisation of Gwadar uncovered by the BOI were problems with the incentive package and regulatory oversight issues in Gwadar Free Zone, the security situation, infrastructural impediments, lack of clarity and industrial development under new master plan, issues in Gwadar Industrial Estate and dis-coordinated efforts at the federal level.

There were also limitations with regard to the third party participation despite the fact both China and Pakistan have been advocating participation of the third countries in the CPEC.

“While both the countries have been reiterating that CPEC is open to third party participation, the same is not the case in the Gwadar Free Zone. “The slogan that CPEC is open to all does not hold water if the centerpiece of the CPEC is exclusive to the Chinese”.

“After having interacted with relevant stakeholders of Gwadar Overseas Port Handling Company Limited (COPHCL), GPA & GDA and thoroughly reviewing the current progress of Gwadar Port development, Colonisation plan of Gwadar free Zones, various under construction Projects etc, CPEC Authority has developed firm plans to coordinate with all such stakeholders along with the involvement of GoB, Pakistan Army and Navy and monitor the actual progress regularly against plans to achieve noticeable accomplishment of execution expeditiously,” said Khalid Mansoor, Special Assistant to PM on CPEC Affairs.

“My first priority is to expeditiously develop the business and marketing plan for Gwadar port and free zones and roll it out with actionable steps to exploit Gwadar deep sea port potential, attract investment of key Chinese Companies in variety of sectors as per the country’s requirement to achieve much needed industrialisation for achieving import substitution and export-oriented relocation of industries from east China to Gwadar and populate both south and north free zones. Such strategy will also yield huge employment opportunities, Insha Allah,” he added.

The SAPM said he was working on the objectives closely with COPHCL and Embassy of China in addition to progressing all the sectoral initiatives mutually signed off in recently concluded JCC Meeting.

The BOI has also proposed that to promote third party participation, the Gwadar Port Authority may introduce the long-awaited Gwadar Free Zone regulations to regulate the Gwadar Free Zone Company Limited and open the zone for the other countries.

The BOI said that in order to remove these impediments and give way to an industrialised Gwadar, some major policy reforms were required at the federal, provincial and local government levels.

The BOI recommended that the federal government should have a role to realise full Gwadar potential after the Gwadar Port Authority remained unable to resolve the bottlenecks.

The BOI also proposed to have uniformity in policies regarding foreign company, branch and liaison offices for registration terming the visa critical.

The report noted that the information available in the investment guide published by the COPHCL relating to registration of branch and liaison offices of foreign companies is misleading and incomplete.

There was also a need to complete the under process transport infrastructure to connect Gwadar with major markets and cities.

The Chinese operators have marketed a 23-year tax-holiday, 99 years lease agreement, duty free imports and exports and a world class infrastructure and security arrangement.

The findings showed that company registration through SECP was a lengthy process owing to the security clearance by the Ministry of Interior and other prescribed requirements.

The Gwadar Association of Retailers also contradicted the Gwadar Development Authority claim of having a one-window in place for permits and NOCs and said it takes three to six months to get NOCs.

The deviations from Pakistan’s investment policies were also found and the restricted businesses in the Gwadar Free Zone are not clearly stated.

Another major concern cited by the management of Gwadar Free Zone was that the Chinese investors were facing difficulties in the opening of foreign currency accounts due to which the double currency conversion devalues the RMB originating from China, according to the report.

Till date, Gwadar has not been connected to the national grid of power, which is another hurdle in the way of industrialisation.

Gwadar is majorly being developed as a trade corridor rather than an economic corridor, said the BOI.

 

[MenInG]

The government has once again missed its self-imposed deadlines to resolve issues hampering the progress on first-phase projects of the China-Pakistan Economic Corridor (CPEC), which may deepen mistrust among Chinese investors.

Third meeting of the Pak-China Relations Steering Committee reviewed the status of CPEC projects and found that a majority of its directives given in the first week of August had remained unimplemented.

Federal Minister for Planning, Development and Special Initiatives Asad Umar chaired the meeting.

The Ministry of Energy did not implement the orders given by the steering committee, according to people who attended the meeting on Wednesday.

In its last meeting, the government had fixed the end of August as the deadline for the Power Division to devise a policy to deal with the delay in beginning commercial operations of five CPEC power projects having generation capacity of 3,600 megawatts.

The Ministry of Energy had been directed to submit the policy to the Cabinet Committee on Energy to resolve the issue.

“The Power Division informed the committee that proposals for the extension of commercial operation date (COD) of six power projects were under process and the matter will be discussed in the upcoming meeting of CPPA board,” said a statement issued by the Ministry of Planning after the meeting.

The projects are falling far behind their dates of commissioning agreed between the government of Pakistan and Chinese investors due to overall slowdown of work on CPEC projects, Covid-related delays and strikes at some projects.

In case of delay by the power producers, the project sponsors are usually under the threat of paying penalties. However, the delay is partly due to government’s policy decisions.

These power projects - 884MW Suki Kinari Hydropower Project, 720MW Karot Hydropower Project, 330MW Tel project at Thar block-II, 330MW ThalNova Thar block-II and 1,320MW Thar block-I - have been delayed.

The Suki Kinari project is facing a delay of at least 10 months; Karot project is facing delay of four months, Tel Thar project one-year delay, ThalNova project 15-month delay and Thar block-I project at least one-year delay.

Chinese investors have long been complaining about delay in resolving issues on the part of Pakistan. The 10th meeting of the CPEC Joint Cooperation Committee (JCC) had given hope that Pakistani authorities would soon start addressing those problems, however, the committee proceedings suggested that things were still moving at an unusually slow pace to the disappointment of Chinese investors.

A dispute between Sahiwal Power Plant and the Port Qasim Authority over the imported coal handling charges has remained unresolved.

As per the implementation agreement in September 2016, the PQA is charging on a minimum quantity of 3.5 million tons of imported coal but the National Electric Power Regulatory Authority (Nepra) is only adjusting 3.2 million tons of coal as a pass-through item. This has placed an additional burden on the Sahiwal power plant.

The issue to either amend the implementation agreement or allow other importers to use the idle berth space remains pending, the meeting was informed. The plant is also facing problems due to delay in power purchase payments by the government.

The problems in securing visas by Chinese citizens also remained unresolved and the representative of the Ministry of Interior initially claimed that the ministry did not receive any letter in this regard.

But the issue of the Right of Way (RoW) near Karachi of 660 KV HVDC Matiari Lahore Transmission Line has been resolved and power is now being evacuated through the transmission line, according to the Ministry of Planning.

The committee was also briefed on the 880 MW Suki Kinari Hydropower Project. The Khyber-Pakhtunkhwa (K-P) government increased sales tax on construction services from 1% to 2%, which the Chinese investors said was not in line with the rates offered to other similar projects. This issue still remains pending, said the sources.

Asad Umar directed K-P government to resolve the operational issues faced by the project on priority.

 

[MenInG]

Pakistan has requested China to remove obstacles in the way of completion of seven energy and infrastructure projects worth roughly $12 billion, Special Assistant to Prime Minister on China-Pakistan Economic Corridor (CPEC) Affairs Khalid Mansoor said on Tuesday.

“I have written two separate letters to the vice Chairman of National Development and Reforms Commission (NDRC) of China, urging him to remove barriers” hindering the completion of these projects, Mansoor said while talking to a group of journalists.

He said that the vice chairman’s support had been sought for six energy schemes and one infrastructure project – Mainline-I (ML-I) of Pakistan Railways. The cost of energy projects is $5 billion and the minimum estimated value of the ML-I scheme is $6.8 billion.

“We have requested China that the agreed projects should be taken to the development stage,” said Mansoor.

He highlighted that Pakistan was also trying to resolve problems present on its side by working on issues that were creating hurdles and the country was showing flexibility on the $6 billion loan terms that it wanted to secure from China for construction of the rail project.

For the past over three years, the Pakistan Tehreek-e-Insaf (PTI) government has been struggling to prove that it has not slowed down work on CPEC, as the progress on the ground did not move at the pace agreed between the two nations.

To a question about the timing to finalise the loan deal with China for the ML-I project, Mansoor said that Pakistan was waiting for a term sheet from China for finalisation of the loan agreement.

Pakistan would show flexibility on the interest rate, foreign currency component of the loan and tenor of the loan, he added. Pakistan had earlier requested for a loan at 1% in US dollar but “now we are willing to secure the loan at an interest rate of around 2% in an equal mix of Chinese and US currency,” said Mansoor.

The government had approved the 1,733km-long Karachi-Peshawar ML-I project at a cost of $6.8 billion, which Mansoor said the Chinese termed on the lower side. “We have offered China to arrange an all-Chinese competitive bidding for the ML-I project and if bids are higher than $6.8 billion, then the government stands ready to revise PC-I of the project,” said the PM aide.

He said that the military has assured the provision of complete security to the project.

“We are also trying to save Gwadar power plant, Karot power plant, Kohala power plant and three other projects from the adverse impact of delay in power purchase payments to the Chinese sponsors,” said Mansoor.

The ML-I project is already facing a delay of over four years and the two sides have been discussing financing terms for the past two years.

“They (Chinese) are seeking sureties that these new power plants are also not stuck in circular debt,” he added.

He said that the government was actively working to clear Rs250 billion payments of Chinese firms on account of power purchase that were stuck in the circular debt.

The government is paying Kibor plus 2% cost to the sponsors of Chinese power plants on the amount that is delayed beyond a certain period.

“The good thing is that China has not yet called the guarantees, which shows it is still willing to work in Pakistan,” said Mansoor.

While giving a background to the CPEC agreement between Pakistan and China, Mansoor said that the deals were the need of the hour.

“The CPEC is a quid-pro-co. Pakistan went to China to seek help to remove road and infrastructure bottlenecks and in return, China demanded road access to connect its western parts with the Gwadar port”, said Mansoor. Expensive electricity is better than no electricity was the slogan at that time and the country was sustaining losses equal to 2.25% of the GDP, said the PM’s aide.

The Chinese side initially laughed at Pakistan’s plan to end load shedding through Gaddani power park and establishment of coal fired power plants. China then gave an alternate strategy and, one by one, dropped the Gaddani power park and two Punjab-based coal-fired power plants ie Rahim Yar Khan power plant and Muzafargar power plant, he explained.

Irrespective of what people say about infrastructure, the lives of the residents have become comfortable due to the mass transportation projects, said the PM’s aide who also handled $5 billion Chinese investment in his previous position as head of a power company.

The $53 billion investment had been envisaged under the CPEC and “Pakistan has fairly dealt the phase-I of the CPEC”, said the PM’s aide.

So far, 5,300 MW of new electricity generation capacity has been added and an 880 kilometer long transmission line has been laid. Power projects possessing a capacity of 3,500 MW were still under implementation. Another 4,144 MW capacity projects were at the planning stage, he added.

It is Pakistan’s last chance to industrialise and the key is the development of Special Economic Zones (SEZs) under the CPEC, said Mansoor.

Under the CPEC, nine Special Economic Zones (SEZs) and a free zone at Gwadar have been planned and four SEZs and the free zone are being developed on priority, he added.

Published in The Express Tribune, November 10th, 2021.

 

[MenInG]

The federal government has again failed to make a decision on making around payments to the tune of Rs230 billion to Chinese power plants operating under the China-Pakistan Economic Corridor (CPEC) project and opening a bank account to save their investors from the vicious cycle of circular debt in the future.

Officials from the finance and energy ministries and CPEC Authority held a meeting on Monday, chaired by Finance Adviser Shaukat Tarin, but did not make a decision on the timing of clearing the outstanding dues and opening a revolving account, at least three participants told The Express Tribune.

Under the 2015 energy framework agreement, Pakistan is contractually bound to make timely payments to the Chinese power plants that were set up under the CPEC framework.

However, the Pakistani government has been violating this agreement since 2018 when the Chinese power plants started producing electricity.

“Until the problems faced by the existing [Chinese] investors are solved, no new Chinese investment is expected in Pakistan,” a senior government official said on the condition of anonymity.

So far, 10 energy projects worth $10 billion have been completed and four schemes costing $4.7 billion are under implementation.

Three months ago, Pakistan had again assured China to disburse $1.4 billion or Rs230 billion dues to the Chinese power plants. It had also committed to open a revolving fund that would have deposits equal to 21% of the power generation cost.

The latest assurance had been given from the platform of the 10th Joint Cooperation Committee of the CPEC that met in September.

China has hoped that the Pakistani side would get the article related to the revolving account on the ground soon.

On an average, about Rs5 billion to Rs6 billion every month is paid less to Chinese power producers against the billed amount, said a finance ministry official.

Khalid Mansoor, the special assistant to the prime minister on CPEC Affairs, while commenting on the outcome of the meeting, said the issue had been discussed with all stakeholders and it was moving in the right direction.

Mansoor has been looking after the CPEC affairs after the ouster of former chairman of the CPEC Authority, Lt Gen (retd) Asim Saleem Bajwa.

Since then, there has been no new chairman of the authority.

On November 30, the government advertised to hire a new chairperson on a management pay scale-I for a period of four years.

Read Majority of CPEC projects completed: envoy

In September this year, Planning Minister Asad Umar had said that about $1.4 billion or Rs230 billion were payable to the Chinese power plants, hoping to find a solution “soon”.

The sources said that the latest meeting had been held on the instructions of Prime Minister Imran Khan, who had asked the authorities to fulfill the contractual obligations by opening a revolving fund.

During the meeting no one opposed opening the account but there was an issue about the ceiling of the sovereign guarantees to be issued by the finance ministry. The guarantees will be required to be issued against the money that will be borrowed to open the account and retain a balance sufficient to meet the contractual obligations.

There was also a problem about replenishing the revolving fund amid scarcity of the resources. The finance ministry has already allocated roughly Rs140 billion less in budget subsidies against the demand made by the energy ministry at the time of the budget.

The electricity recoveries remain around 20% less than the total power generation cost due to technical losses, theft and less recovery of electricity bills. At the time of the CPEC negotiations, China had secured commitments to cover these losses through opening a revolving account.

The circular debt -- the unpaid amount to the power producers -- has jumped from Rs1.15 trillion in June 2018 to Rs2.4 trillion in September 2021.

The sources said that the government wanted to clear some of the outstanding dues but it has not yet been able to find a pocket to repay the Chinese dues.

It would need around Rs100 billion to make the first payment, if the government follows the principle of clearing 40% of the outstanding dues agreed with non-CPEC power plants.

However, unlike the other IPPs who renegotiated their tariffs, the Chinese IPPs have refused to give up their due benefits.

The PTI government in the past had announced plans to renegotiate the power tariffs and return on equity given to Chinese investors of the energy projects.

It also wanted to seek a rollover of the $3 billion maturing Chinese repayments.

However, the minutes of the 10th JCC showed that Pakistan gave a commitment to maintain the tax and tariff policies stable.

https://tribune.com.pk/story/2333974/rs230b-payments-to-chinese-power-plants-still-pending

 

[MenInG]

Pakistan has agreed to include the much-delayed Gwadar power plant in its highest priority schemes for clearance of electricity purchase dues in a bid to address the biggest concern of China.

The step will also help provide electricity to the crown of China-Pakistan Economic Corridor – Gwadar – that faces 12 to 16 hours a day load shedding and whatever electricity is being supplied to it is imported from Iran.

Pakistan and China have also agreed to extend completion deadlines of some crucial Gwadar projects besides provision of enhanced security to Chinese citizens working in the port city.

Both the sides ratified these decisions on Friday on the sidelines of the Prime Minister Imran Khan’s visit to China. To give effect to these decisions, Pakistan and China signed the minutes of the 6th Joint Working Group meeting on Gwadar which was held on December 30, 2021, according to a statement issued by the Prime Minister Office.

The minutes were signed by Asad Umar, the federal minister for planning, development and special initiatives, and Ning Jizhe, the vice-chairman of the National Development and Reforms Commission (NDRC).

The sixth JWG meeting had been held to review the implementation status of CPEC projects in the port city that has an important place in President Xi’s over a trillion dollar Belt and Road Initiative.

The Pakistani side agreed to include the 300 megawatts Gwadar power plan in its highest priority schemes for payment of invoices after commissioning of the project, according to the decision.

The project was part of the early harvest schemes of CPEC that had to be completed during the first phase of CPEC (2015-18). But Gwadar project is facing delays after the Chinese insurance company refused to provide guarantees for the loan due to payment problems being faced by other Chinese power projects that started power generation.

Around Rs250 billion of the CPEC power projects had been stuck up in the circular debt of which the government has now decided to clear Rs100 billion.

The revised deadline for financial close of the project had been June 2019 that was further extended to June 2021. China has missed the second revised deadline and Pakistan has again urged China to ensure early financial close of the project.

According to the original plan, the project debt and equity related outflows were to begin from 2018 but due to delays, the inflows have not yet begun.

The China Communications Construction Group (CCCG) is the main sponsor of the $542 million Gwadar power plant project.

Currently, Pakistan imports about 70MW electricity from Iran and out of this 14MW is allocated to Gwadar city. There are 12 to 16 hours a day load shedding in the port city, according to a tariff petition filed by the project sponsors before Nepra.

Till date, Gwadar has not been connected to the national power grid, which is another hurdle in the way of industrialisation.

In return of giving highest priority to the project, the Chinese government will now provide all necessary support and assistance for financial closure to complete the project at the earliest.

The Pakistani side will conduct discussions with Chinese sponsor as soon as possible on the extension of the project’s commercial operation date, according to the decision.

Both the sides also reviewed the implementation status of the Eastbay Expressway project. So far, about 95% project has been completed and China is expected to complete the project by April this year after getting a few extensions.

However, now China has requested an extension in the completion date due to non-resolution of the fish harbor issue, according to the Pakistani officials.

China has again emphasised over security of its citizens working on the Eastbay project site, although it noted that Pakistan did take actions to enhance the security for smooth movement of the Chinese workers to the project site.

For timely completion of the new Gwadar international airport, China has urged Pakistan to take prompt action for the construction of the desalination plant and electricity grid station by the Civil Aviation Authority, which it termed vital for timely completion of the project.

For the completion of the desalination plant in Gwadar, China has now shared a list of three Chinese companies for shortlisting. The project is expected to be completed in a year from the date of award of the contract to the Chinese company.

Pakistan and China have prepared a joint feasibility report for the construction of breakwater and has now requested China to consider the project for concessional financing under the CPEC umbrella.

However, Pakistan has concerns over the marketing plan prepared by the Chinese operators for the promotion of the Gwadar Free Zone. A report by the Board of Investment (BoI) had found that the China Overseas Port Holding Company (COPHCL) was marketing the incentives in the free zone beyond their scope.

The JWG meeting took stock of the decision to route the Afghan Transit Trade traffic through the Gwadar port, which has given new business to the port operators. The completion of the Basima-Khuzdar road by mid of this year is also expected to enhance the commercial viability of the Gwadar port.

“Long being marketed as the centre-piece of CPEC, Gwadar has yet to reach the heights of expected industrial development that can serve as a catalyst for domestic and foreign investment,” according to an official assessment by the BoI about the status of Gwadar projects.

Gwadar “has yet to even show its first glimmer of the promised industrial hub that can serve as a catalyst for domestic and foreign investment”, the findings of the BoI report revealed.

Pakistan also requested China to extend the 50-bed Pak-China Friendship Hospital to a 300-bed facility and add a nursing school that could be further upgraded to a medical college in the next phase. China has agreed to the extension and upgradation of the facility.

State Minister and Chairman Board of Investment (BOI) Muhammad Azfar Ahsan and Chairman National Development & Reform Commission (NRDC) He Lifeng signed the accord. The objective of the Joint Working Group (JWG) on Industrial Cooperation is to attract Foreign Direct Investment (FDI), promote industrialization and development of economic zones, and initiate, plan, execute, and monitor projects, both in public as well as private sector. The engagement with China under JWG is envisaged to increase labour productivity in Pakistan, enhance industrial competitiveness, increase exports, and sustain diversification in exports basket. During the 8th Joint Cooperation Committee (JCC) meeting of CPEC held in 2018, both sides had signed a Memorandum of Understanding that formed the basis for future engagements between the parties under the ambit of Industrial Cooperation.

As CPEC entered its second phase which primarily revolves around Special Economic Zones (SEZs) development and industrialization, the need for a comprehensive Framework Agreement became imperative. Similar agreements have also been signed for Early Harvest CPEC Projects on energy and infrastructure. With continuous efforts of BOI, both sides reached the consensus to elevate the existing MoU into a Framework Agreement in 2020.After extensive stakeholder consultations and with the approval of the Prime Minister, BOI shared the Draft Framework with NDRC in November 2020, which has been formulated keeping in consideration the needs of CPEC Phase II. The signing ceremony of the framework agreement is a significant outcome of the prime minister's visit and a top agenda from the Chinese side as a testimony to their interest in CPEC.

https://tribune.com.pk/story/2342079/pakistan-moves-to-address-chinas-gwadar-concerns

 

[Last Monetarist]

https://tribune.com.pk/story/2344371/ccoe-considers-discounting-tariffs-of-ipps

The Independent Power Producers (IPPs), that have installed energy plants under the China-Pakistan Economic Corridor (CPEC), have opposed the terms of revised agreements to reduce the rate of return.

The stalemate between the government and wind IPPs continues as well due to hurdles arising from involvement of from multilateral donors.

The government has already struck a deal with other IPPs and made payments to them by reducing the rate of return. Now, the leadership wants the same deal with Chinese IPPs under CPEC and wind IPPs.

However, the government is facing troubles in striking a deal with them due to the involvement of multilateral financers.

The government wants to discount the tariffs of IPPs by reducing the return on equity (ROE), return on equity during construction (RODC), operation and maintenance (O&M) and insurance.

While considering the implementation status of master agreements and amendments to the Power Purchase Agreement with wind IPPs, the Power Division told the Cabinet Committee on Energy (CCoE) that the IPPs under CPEC had not agreed to any of the conditions nor have they drafted any mechanism for discounts.

Officials from the Power Division stated that among the lenders, International Finance Corporation (IFC) and Asian Development Bank (ADB) were eager for reduction in ROE and insurance as per the initial agreement, however no formal commitment was provided because a US-based development finance corporation (DFC) presented an alternate proposal.

The latter offered to extend the debt tenor by five years along with reduction in spread by 0.5%. The development finance corporation claimed that its proposal would entail higher amount of savings compared to the ones stemming from the reduction in ROE, RODC and O&M.

The cabinet body was informed that the CPPA-G had analysed the above claim and determined that as per initiated agreements, the estimated savings from reduction in ROE, RODC, O&M and insurance would be Rs36 billion for four projects financed by the development finance corporation. It would initially provide temporary relief in cash flows for the first six years but the government of Pakistan would eventually have to bear an additional financing cost of Rs10 billion for the relief.

The Finance Division was of the view that the matter may be resolved by the Power Division without causing any financial implication to the government of Pakistan. The Alternative Energy Development Board (AEDB) observed that the offer of the development finance institution might hamper other wind IPPs from proceeding with the initiated agreement and a time limit would be set for the negotiations.

If the stalemate continues, the IPPs would be asked to consider an offer subject to reduction of spread by 1.5% instead of 0.5%.

The Power Division cited that consequent to the approval of the payment mechanism and agreements with the IPPs, 14 wind IPPs entered into initial agreements with the condition that the deals would be signed and executed subject to their lender’s approval.

The wind IPPs have financing arrangements with various international financial institutions (IFIs). In the initiated agreements, the wind IPPs agreed for tariff discounts with regard to the reduction in return on equity (ROE), return on equity during construction (ROEDC), operation and maintenance (O&M) and insurance and agreed to take the matter forward after the approval of respective lenders.

The Power Division highlighted that discussions were also held with the lenders to share the overall power sector reforms and the goal to manage circular debt so that tariff discounts agreed in the initiated agreements could be secured for the government of Pakistan.

Keeping in view the current situation, the Power Division submitted a proposal to CCOE for further deliberation and to draft the way forward.

It suggested to continue negotiations with the wind IPPs, financed by lenders other than DFC, in line with the initiated agreements.

The Power Division further recommended to remain engaged with the development finance institution with a view to convince it to allow its clients to sign and execute the initiated agreements and inform the DFC that its proposal has been analysed and found to be less favourable than the initiated deals.

During the discussion, it was noted by the CCOE that majority of the wind IPPs were keen to proceed with the initiated agreements.

The CCOE was also informed and requested to confirm that the tariff reduction determinations related to the 12 IPPs (under 2002 policy) as determined by the National Electric Power Regulatory Authority (Nepra) have also been notified to recover the discounts on the dates the payment (40%) was released.

The Cabinet Committee on Energy (CCOE) considered the summary submitted by the Power Division titled ‘Implementation Status of Master Agreements and PPA Amendments with Wind IPPs’ and approved the proposals.

 

[MenInG]

ISLAMABAD: Noting that the ongoing second phase of the China-Pak*is*tan Economic Corridor (CPEC) would reinforce Pakistan’s efforts towards economic development with an enhanced cooperation in diverse areas, Prime Minister Imran Khan invi*ted Chinese investors to benefit from the lucrative investment opportunities in Pakistan.

The PM made these rem*arks during a meeting with Chinese State Coun*cilor and For*eign Minister Wang Yi on the sidelines of the OIC moot here on Tuesday.

PM Khan and Mr Yi discussed the current trajectory of China-Pakistan bilateral ties, and the evolving regional and international scenario. The two sides also discussed the situation in Ukraine and reiterated the need for a solution through sustained dialogue and diplomacy.

Mr Khan briefed the Chinese leader on India’s egregious human rights violations in India-held Kash*m**ir and its “irresponsible” behaviour that was an impe*d***iment to regional peace and security.

He also apprised Mr Yi of the so-called accidental firing of a missile from India into Pakistan.

He also emphasised that Pakistan and China must continue deeper engagement to promote peace and stability in Afghanistan, and avert a humanitarian crisis there.

DAWN

 

[MenInG]

China said on Wednesday all the parties in Pakistan could stay united and uphold national development and stability, stressing that the bilateral cooperation and the China-Pakistan Economic Corridor (CPEC) project would not be affected by the political situation in the neighbouring country.

Chinese Foreign Ministry spokesperson Zhao Lijian emphasised that China and Pakistan were “all weather strategic cooperative partners” but added that Beijing always followed the principle of non-interference in other countries domestic affairs.

“As ironclad friend of Pakistan, we hope all parties in the country can stay united and uphold national development and stability,” the spokesperson said, in response to a question about the current political situation in Pakistan.

“History has proven once again that no matter how the international landscape may evolve, how our respective domestic situation may change, China and Pakistan relations will always stand unbreakable and rock firm,” Zhao added.

Responding to another question, Spokesperson Zhao said: “We believe that the China-Pakistan overall cooperation and the China Pakistan Economic Corridor construction will not be affected by the political situation in Pakistan.”

https://tribune.com.pk/story/2351374/china-says-cpec-wont-be-affected-by-political-situation

 

[daytrader]

Ahsan directs winding up of CPEC Authority

ISLAMABAD: Minister for Planning and Development Ahsan Iqbal on Friday called for immediate removal of problems faced by the Chinese investors and contractors working on China-Pakistan Economic Corridor (CPEC) including swift processing of their visa cases.

During a visit to CPEC Authority offices, the minister also directed the authorities concerned to prepare a structure so that the CPECA could be wound up and integrated into the Ministry of Planning and Development because it was in conflict with rules of business of the various ministries.

Mr Iqbal told Dawn that the CPECA was dysfunctional and was in conflict with the role of line ministries. Under the rules of business, ministries had the basic roles in the implementation of policies and projects under the CPEC but a parallel organisation only created duplication of work and lack of ownership.

Asad Umar
Responding to some media reports that the CPECA’s chairmanship had been given to newly sworn in federal minister Chaudhry Salik Hussain of PML-Q, the minister said he was not aware of any such move and added that it was illogical to have a parallel set up.

He recalled that PML-N had strongly opposed the creation of CPECA through an act of parliament because it was unnecessary and superfluous as the planning ministry had discharged the role very diligently and effectively in the past.

He said the opposition members had dissented to the act because it appeared to be a parallel Planning Commission with little utility and become a “white elephant”.

Mr Iqbal in his dissenting note had recalled that more than $29 billion worth of investment had been channelised by the Planning Commission successfully without any authority and with the support of various ministries which should continue for successful implementation.

Meanwhile, Mr Ahsan invited his predecessor Asad Umar to a farewell briefing on the development initiatives of greater public importance that PTI started and should continue in public interest. Mr Umar could not be reached for comments.

DAWN

 

[MenInG]

Of the one dozen China-Pakistan Economic Corridor schemes, including water supply and electricity provision, worth $2 billion under way in Gwadar, only three projects having a value of over $300 million have been completed.

According to the CPEC Authority, the progress review of the projects revealed that all the schemes having socio-economic benefits for Gwadar – considered as the crown jewel of CPEC – were falling behind their original completion schedules.

The CPEC Authority, which Planning Minister Ahsan Iqbal wants to wrap up, gave the status update report to the new government last month.

So far, only three schemes have been declared completed by the CPEC Authority, including $4 million Gwadar Smart Port City Master Plan, which cannot be called a project.

The other two schemes are the Physical Infrastructure of Gwadar Port and the Free Zone Phase-1 costing $300 million and Pak-China Technical and Vocational Institute that has been built with a $10 million Chinese grant. Even there is no indigenous electricity for the port, as the country imports power from Iran to meet the city’s energy needs.

CPEC remained dormant during most of the time of the previous PTI government but lately there had been some progress after the last political regime brought in Khalid Mansoor as special assistant to the PM on CPEC affairs. Yet, he could not take these schemes across the finishing line.

The $179 million Eastbay Expressway – a road link connecting the port with free zone and the city – that should have been completed a few years ago, is still shown as an under-implementation scheme, although on documents the project is 99% completed. China has provided interest-free loan for the scheme. The CPEC Authority expects that the project will be completed by June.

Work on necessary facilities like fresh water treatment, water supply and distribution network project worth $72 million is still 65% completed. The project should have been readied by 2017. In its documents, the project is shown as funded by the federal government.

According to the original plan, China was supposed to commit 90% financing for the project. In 2016, Pakistan had requested the National Development Reforms Commission (NDRC) of China to provide a grant for the project.

China had informed Pakistan that the grant might take at least two years for approval and the country could not afford to wait that long.

The report revealed that Gwadar’s water requirements by 2020 would be 20 million gallons per day, as against the earlier supply of only two million.

Water was planned to be pumped from the sea for purification and onward supply to the residential and industrial areas in Gwadar.

The project includes construction of a pipeline from Swad Dam with a capacity of five million gallons per day and Shadi Kure Dam with a capacity 2.5 million gallons per day to supply water to Gwadar City. It would upgrade the existing distribution system which was not sufficient to carry the available water as it consisted of six inches diameter pipeline which needed to be replaced by a 12-inch diameter pipeline.

Now, the new expected completion date is June 2022.

In addition, two other schemes, $14 million worth of 1.2 million gallons per day desalination plant in Gwadar remained at a very initial stage of work, with only 3% work done. The government expected that the project could be ready before the end of the current year.

The second project –$32 million worth five-million gallons per day desalination plant remained at the planning stage, according to the CPEC Authority.

The New Gwadar International Airport which, too, should have been completed a few years ago, remained under the implementation stage and hardly 36% work was done on the scheme, according to the CPEC Authority. China is providing $230 million grant for the project.

Hardly 20% work was finished on the $100 million Pak-China Friendship Hospital, Gwadar. The project involved upgradation of the existing 50-bed hospital to 150 beds. The hospital was being constructed on 68 acres of land. Despite its importance for the local population, the project did not come on the radar of the previous PTI government.

The Gwadar Airport and Gwadar Hospital projects had faced problems in importing certain steel materials which attracted anti-dumping duties.

The $285 million scheme for the Infrastructure of Gwadar Free Zone Phase-II was only 3% complete, according to the CPEC Authority.

The CPEC Authority progress report is in line with an assessment of the Board of Investment that wrote to former prime minister Imran Khan that “long being marketed as the centre piece of CPEC, Gwadar has yet to reach the heights of expected industrial development that can serve as a catalyst for domestic and foreign investment”.

“On ground visit to the Gwadar Free Zone revealed that the present area of the zone is neither suitable nor suffice for establishing heavy industry,” it added.

Pakistan had also planned to set up 300 megawatts Gwadar power plant to provide home-based electricity. But the report showed that hardly 3% work was done on the scheme.

The power project was marred with problems due to the PTI government’s failure to clear Rs300 billion dues of those Chinese power plants that were already in operation. It led to the closure of 1,980MW Chinese IPPs, which was unthinkable till a few months ago.

The $266 million Breakwater project at the port remained at the planning stage and its PC-I had been submitted to the Planning Commission for funding from the Public Sector Development Programme.
Similarly, another Dredging of Berthing Areas and Channels project remained at the feasibility stage level.

The Gwadar Smart Environmental and Sanitation System costing $14 million and Gwadar Fish Harbor and Boat-Making Industry on West Bay with $32 million investment also remained in the pipeline, according to the CPEC Authority.

https://tribune.com.pk/story/2355606/only-3-cpec-projects-in-gwadar-completed

 

[MenInG]

The Senate Standing Committee on Planning was informed on Friday that the China-Pakistan Economic Corridor (CPEC) Authority will be abolished and all matters of the project will be handed over to the Planning Commission.

A meeting of the standing committee was held under the chairmanship of Senator Saleem Mandviwala at Parliament Lodges, wherein the CPEC Authority Amendment Bill, 2021, was discussed.

The ministry officials informed the meeting that according to the vision of Federal Minister for Planning Ahsan Iqbal, the mega project would be handed over to the Planning Commission. They added that the authority had not done any significant work, therefore, its disbanding is being considered, and a final decision will be taken soon.

The committee chief then adjourned the matter till a final decision is taken.

Talking about the non-implementation of the proposals sent by the senators to the ministry on Public Sector Development Programme (PSDP) projects, the chair expressed his serious concerns.

He said that he was only informed by the concerned ministry that all budget proposals sent by the committee have been rejected and no explanation was given for this rejection.

"We were told in the house last year that if the PSDP budget proposals were received by the ministry before March, they would be considered," he added.

But despite the submission of PSDP proposals before March, they were not considered, he noted.

The ministry officials said that the senators' budget proposals had been sent to the provinces and concerned departments, prompting the committee chairman to ask why the committee had not been kept informed. “If we had been informed, we would have talked to the provincial departments about these projects ourselves," they added.

The ministry officials told the committee that the ministry's development funds have already been slashed for the current financial year, and the budget has been reduced from Rs900 billion to Rs500 billion.

The chair sought full details of the correspondence with the provinces and other departments regarding the senators' budget proposals.

Officials assured the committee of provision of all the details as soon as possible.

During the meeting, the standing committee also approved the special report on Gwadar Port after detailed consideration.

The planning secretary said during the meeting that Balochistan, Gilgit-Baltistan (GB) and Azad Jammu and Kashmir (AJK) are given priority in development funds, but highlighted problems with it.

Senator Abdul Qadir asked why a development budget of Rs1,000 billion is allocated when there is no money.

Express Tribune

 

[MenInG]

Chinese envoy and Pakistani leaders on Thursday warned of growing threats to China-Pakistan Economic Corridor from fake news and disinformation about the mega-development project and emphasised the need for cooperation in countering it.

The issue was highlighted at the 7th CPEC Media Forum, which was jointly hosted by the Chinese Embassy in Islamabad, Pakistan-China Institute, and China Economic Net, where the speakers talked about the potential of propaganda, misinformation and fake news to polarise public opinion, promote violent extremism and undermine the development project.

CPEC has been widely projected in Pakistan as a game changer that would influence the region’s geo-strategic, geo-economic and geo-political dynamics; and as an answer to its infrastructure shortcomings. But, at the same time media reports spread scepticism about it by pointing to the possibility of Pakistan falling in China’s debt trap, alleged absence of transparency in the projects, and environmental impact of the projects, especially coal-based power plants.

Speaker National Assembly Raja Pervaiz Ashraf, in his keynote speech, underscored the importance of CPEC, saying it was the country’s best bet for becoming the region’s geo-economic hub, but regretted that it had been “a victim of the malicious disinformation campaign” carried out by the “detractors” of CPEC and China.

In an apparent reference to growing attacks against Chinese personnel and projects in Pakistan by the Baloch separatists, Mr Ashraf suggested that extremist and ethnic elements could be exploited to sabotage the project.

He, therefore, called for reaching out to the local communities to address their grievances as they could fall for the vicious anti-CPEC propaganda.

Chinese chargé d’affaires Pang Chunxue also spoke of the seriousness of this challenge.

“False propaganda and disinformation on CPEC are on the rise. Hostile forces are trying to undermine the development of CPEC, as well as the unity and mutual trust between the two countries,” she maintained.

She was more specific about who was behind the fake news and propaganda campaigns against CPEC.

Mentioning the strategic alliances formed by the US to contain China — Quad, which is a group of US, Australia, India and Japan; Aukus, which is a trilateral security pact between Australia, UK, and US; and Indo-Pacific Economic Framework — she said they were targeting China and undermining its efforts for promoting peace and development in the world.

“CPEC cannot progress well in the world full of cold war mentality,” the Chinese diplomat added while reminding about the impact of the global environment on it.

Chairman Senate Defence Committee Mushahid Hussain, who also heads Pakistan-China Institute, described fake news and disinformation as the biggest challenge for CPEC.

He urged the two countries to jointly counter it.

“The journalists not only of the two countries, but from other countries too should promote truth about CPEC and BRI so that people realise which is the way forward,” he said, adding that the path ahead lay in being part of BRI, promoting cooperation and connectivity and bringing countries together in win-win cooperation.

CPEC, he emphasised, was not directed against any other country and said the mindset of cold war and containment of China is rejected.

Published in Dawn, June 3rd, 2022

 

[finalfantasy7]

so why isnt this port being used? - why is china main port being used more than cpec? knowing it takes so much longer to use that port?

 

[MenInG]

The International Monetary Fund (IMF) has asked Pakistan’s government to renegotiate the China-Pakistan Economic Corridor (CPEC) energy deals before making payments of around Rs300 billion to the Chinese power plants, putting Islamabad in a tight spot.

The global lender has asked the government to treat the Chinese CPEC power plants at par with the power plants established under the 1994 and 2002 power policies, highly placed sources told The Express Tribune.

These plants had been set up under the CPEC framework agreement.

The IMF’s demand came after China’s refusal in the past to renegotiate the terms of agreements with the independent power producers (IPPs).

Sources said the IMF suspected that the Chinese IPPs might have been overcharging Pakistan and there was a need to reopen these deals. The Mohammad Ali report on the IPPs had identified overpayment of about Rs41 billion to the Chinese IPPs.

Top officials in the Ministry of Finance confirmed to The Express Tribune that the IMF had raised the issue of payments to the Chinese IPPs with their willingness to renegotiate the deals.

When contacted, Esther Perez, IMF’s Resident Representative, emphasised the need for equitable treatment of all power sector stakeholders due to the limited fiscal space.

“An important principle underpinning these (power sector) reforms is that all stakeholders contribute in an equitable manner to reduce the circular debt, between the government, IPPs and consumers, while protecting the most vulnerable consumers,” said Perez.

She said that Pakistani authorities should be cognizant of the limited fiscal space available to clear any outstanding arrears of the sector stakeholders, and thus there should be a trade-off between this and other government priorities, and the potential to unlock lower capacity payments for electricity as part of the aforementioned burden sharing across stakeholders.

Perez added that in order to contain circular debt in the power sector, the government of Pakistan had engaged efforts to reduce the cost of power generation as part of a broad power sector reform strategy, including in concluding renegotiations of the capacity payment terms with over 30 IPPs last year.

She added that a number of partners of Pakistan were supporting those reforms, including the World Bank and the IMF.

Finance ministry sources said that the global lender had also objected to giving Rs50 billion to the Chinese IPPs in February this year without first renegotiating the agreements.

Due to the IMF’s objections, the government did not directly make payment of Rs50 billion to the Chinese IPPs last week. Prime Minister Shehbaz Sharif had announced that the Chinese IPPs would be given Rs50 billion to ensure fuel supplies.

Instead, the government released Rs50 billion for the Power Division under the general subsidy claims for July. In return, the Power Division made the payment to the Chinese IPPs and some others to address their “liquidity crunch”, said sources. Sources added that after knowing about the indirect payment to the Chinese IPPs, the IMF asked Pakistan to provide the list of power plants that received the Rs50 billion injection.

The IMF’s objections to clearing the outstanding dues of the Chinese IPPs may jolt Pakistan’s efforts to address the Chinese concerns over the slowdown of CPEC during the past four years and its desire to put the multibillion-dollar initiative back on track.

So far, 11 Chinese IPPs, set up with an investment of $10.2 billion, are operational, having total generation capacity of 5,320 megawatts. Out of these, nearly 2,000MW of power plants had been shut last month due to the depletion of imported coal inventories.

Information Minister Marriyum Aurangzeb said that the 600MW units each of Sahiwal and Port Qasim power plants would be back to the national grid from June 16 to 30.

As of May 13, Pakistan owed Rs340 billion to these power plants, out of which the government has now indirectly cleared some of the dues, leaving behind around Rs300 billion. The Chinese IPPs had threatened to stop their plants if the payments were not immediately cleared, prompting the prime minister to convene a meeting to address their concerns.

Six more Chinese IPPs, being set up with an investment of $6.8 billion, are at various stages of implementation and will add 3,584MW to the generation capacity of Pakistan.

The previous government had renegotiated the power purchase and implementation agreements with the 46 IPPs established under the 1994 and 2002 power policies. The renegotiation is expected to save Rs770 billion over a period of 20 years.

The government had won concessions on account of reduction in the return on equity and other cost saving benefits from the power plants of 1994 and 2002 policies. In return, the government agreed to pay Rs403 billion to them in two installments.

The payments were made in the shape of one-third in cash, one-third in five-year Sukuk and one-third in 10-year PIBs at the floating treasury bill rate plus 70 basis points.

Sources said that the IMF wanted the same treatment with the Chinese IPPs and after renegotiating the deals, payments should be made in cash and treasury papers.

Published in The Express Tribune, June 9th, 2022.

 

[MenInG]

 

[daytrader]

Key CPEC projects back on track as confidence restored

ISLAMABAD: Pakistan and China’s ties are back on track after Pakistani security forces successfully smashed the terrorist cell and nabbed the mastermind involved in an attack that killed three Chinese teachers at Karachi University, a source told Dawn on Thursday.

The Main Line 1 (ML-1) upgradation project, the largest in China’s Belt and Road Initiative in Pakistan, has been revived after the temporary halt caused by the April 26 suicide attack, the source further said. The project had previously been delayed due to financing related issues.

Pakistan’s railways ministry and China’s National Development and Reform Commission (NDRC) recently held a meeting on the project and the two sides are currently working on the financial modalities.

The ML-1 project, the source said, would be the centre-piece of China-Pakistan Economic Corridor’s (CPEC) second phase.

After the Karachi University attack, Beijing had not only linked progress on CPEC to security for their personnel working in Pakistan and the arrest and prosecution of the attackers, but the entire relationship had virtually come to a standstill over this one sticking point.

This view was strengthened by Senate Defence Committee Chairman Mushahid Hussain Syed, who told Dawn that success in tracing and capturing the culprits behind the Confucius Institute bombing had “reassured and restored China’s faith” in the Pakistani security apparatus’s ability to protect Chinese personnel and projects in Pakistan.

“Our eastern neighbour, irked by Pakistan-China camaraderie centered now on CPEC, has been working overtime to undermine and sabotage this bond, using both information warfare as well as kinetic warfare through local proxies, Senator Mushahid added.

The Chinese frustration over the slow pace of investigations into the attack is said to be the major reason behind Prime Minister Shehbaz Sharif avoiding a trip to Beijing, even though China has been one of the first foreign destinations that new Pakistani prime ministers head to, owing to the close strategic ties between the two countries.

Progress in the case was made public this week when Pakistani authorities on Tuesday claimed that alleged facilitator and planner of the Karachi attack, which was jointly executed by terrorist groups BLA and BLF, had been arrested. The accused identified as Dad Bux has been presented before an anti-terrorism court in Karachi.

Though law enforcement agencies claimed that the arrest was made a day earlier (on Monday), the source said that he had been in custody for weeks.

Security forces in Balochistan had eliminated six suspected terrorists in the Central Mekran Range around June 19, while two others are said to be on the run.

Chinese counterterrorism officials also worked closely with Pakistani agencies on this case.

“A Chinese team was in Pakistan closely coordinating with their local counterparts on the investigation,” the source said.

Welcoming the progress in the case, Chinese foreign ministry spokesman Lijian Zhao, in Beijing, said: “We appreciate the strong efforts made by the Pakistani side. At the same time, further investigation is still underway.”

“We hope the Pakistani side will… ensure the safety of Chinese projects, personnel and institutions in Pakistan,” he added.

The source said that visit of high ranking Chinese politician Yang Jiechi, seen as personal envoy of President Xi Jinping, was made possible after this breakthrough.

Gen Bajwa had weeks earlier visited Beijing and offered “iron clad security guarantees” on security for Chinese and vowed to track down the perpetrators of Karachi attack.

The source said that Mr Yang had privately reassured Pakistan government that both CPEC and bilateral ties were now back on track.

No to ‘new cold war’

Separately, speaking at a conference on Thursday, Senator Mushahid Hussain Sayed stressed the need to balance ties with the US and China, saying that a new cold war was not acceptable to Islamabad.

“Washington itself needs to balance its role and relations with India and Pakistan,” he told participants of ‘Significance of BRI in Regional Connectivity’, held at the Punjab University in Lahore.

He also rejected Nato’s planned expansion into Asia as ‘unnatural’ as it was beyond its stated mandate.

The senator said the US tilt towards India had led to a credibility gap in American regional policies, as the US condemned Russian annexation of Crimea while it condoned Indian annexation of Kashmir.

Dawn news

 

[MenInG]

Prime Minister Shehbaz Sharif on Wednesday approved, in principle, to abolish the China-Pakistan Economic Corridor (CPEC) Authority subject to consent by China – a decision that the government says will help fast-track the implementation of the multi-billion-dollar project.

The decision was made on the basis of a summary that the planning and development ministry had moved two months ago to wrap up the body that had remained controversial since its inception.

“This is in the interest of CPEC that the authority should be dissolved to ensure fast implementation of its projects,” Planning and Development Minister Ahsan Iqbal said while confirming the development.

He added that PM Shehbaz had instructed that China should first be taken into confidence before going ahead with the move to ensure that the strategic ally should not be left with the impression that Pakistan was rolling back CPEC.

The minister further said the CPEC Authority Act would be repealed once the Chinese authorities give their consent.

Sources said China did not interfere in Pakistan’s internal decision making about the CPEC implementation mechanism.

They added that its name in the past was misused to neutralise people, who were not in favour of having a military-dominated authority.

The decision to wind up the CPEC Authority is in line with the PML-N’s old policy that was never in favour of establishing a parallel set-up.

Express Tribune

 

[daytrader]

Pakistan mulls taking upfront cost
Under a proposal, upfront cost of CPEC projects will be acquired to boost reserves

ISLAMABAD:
Pakistan is reviewing a proposal to receive upfront 20% of the total cost of five China-Pakistan Economic Corridor (CPEC) projects as deposits in the central bank in a bid to get breathing space amid declining foreign exchange reserves.

The proposal has been discussed at the highest level as the prime minister has given instruction to further fine-tune it, a cabinet minister told The Express Tribune.

He said that at least five CPEC projects were discussed during a meeting, having total estimated value of $7 billion.

As per the proposal, Pakistan can receive at least $1.4 billion in its central bank out of the total cost of $7 billion. In return, these five projects that are facing years of delay will be put on the fast track for implementation.

Pakistan’s gross official foreign exchange reserves have dipped below $8 billion and will get a $1.2 billion boost by the end of this month once the International Monetary Fund (IMF) approves its loan tranche on August 29.

Sources said that Finance Minister Miftah Ismail had some concerns, including over the preferential treatment that those schemes could get in the process, which might also antagonise the IMF.

According to the proposal, the sponsoring Chinese firm will bring 20% of the total cost in US currency and will keep the money in a special account. The Chinese firm can draw the money in Pak rupee for the expenses that it will incur in Pakistan, including paying salaries to the staff.

The proposal had initially been discussed between Pakistani and Chinese authorities before it was discussed with the prime minister this week.

Chinese companies will not be allowed to take back these funds in any shape including for opening Letters of Credit, according to the proposal.

Pakistan is required to borrow $40 billion in the current fiscal year for meeting its external financing needs. The placement of 20% of CPEC projects’ cost can provide some breathing space.

In return, Pakistan will remove hurdles in the way of these five projects, according to the sources.

The projects that were discussed under the scheme were 1,124-megawatt Kohala hydropower project having estimated cost of $2.4 billion, 700.7MW Azad Pattan hydropower project costing $1.6 billion and second phase of 600MW Quaid-e-Azam Solar Park (Bahawalpur) with a price tag of $500 million.

The $2.6 billion Karachi Comprehensive Coastal Development Zone (KCCDZ), which has been included as a project for industrial cooperation under the CPEC umbrella, was also considered as part of the proposal.

The Pipri freight train project was the fifth scheme but it was at the feasibility study stage.

Sources said Pakistan also discussed the possibility of including the $7 billion Mainline-I project but no final decision was made due to serious issues hampering its execution for a long time.

After reviewing the proposal, the prime minister directed the Board of Investment, planning ministry and finance ministry to jointly devise a comprehensive plan to implement the scheme. Prime Minister Shehbaz Sharif has also constituted a committee to deliberate the proposal.

A handout, issued by the PM Office after the meeting, stated that the prime minister was apprised of the investment of $10 billion by companies in the areas of energy, infrastructure, railways and other projects.

“It was told that in the first phase, an investment of $1-2 billion was expected in the projects, which will lead to the creation of 45,000 employment opportunities besides improving the ‘Ease of Doing Business Index’ of the country,” according to the PM Office.

Chinese authorities are irritated because of Pakistan’s decision to put CPEC on the backburner over the past four years. They were particularly irked by Islamabad’s failure to honour its contractual obligations under the CPEC framework.

The establishment of a revolving account has been pending since the signing of the CPEC Energy Projects Framework Agreement in 2014.

In February, a day before departure to China to seek a major bailout, the then government had announced that it would open the account. But when a summary was presented to the Economic Coordination Committee (ECC) for approval on April 1, 2022, then finance minister Shaukat Tarin deferred the final approval.

This week, the government decided to abolish the CPEC Authority, subject to the Chinese consent. PM Shehbaz has instructed that China should first be taken into confidence before going ahead with the move to ensure that the strategic ally does not get the impression that Pakistan is rolling back CPEC.

The CPEC Authority Act will be repealed once the Chinese authorities give their consent. The old institutional arrangement that helped the implementation of CPEC projects from 2014 to 2018 will be revived.

Express Tribune

 

[daytrader]

IMF again raises alarm over CPEC investment
The IMF again raised a red flag in the context of the CPEC and stated that in early 2022, new investment could raise growth prospects but contingent liabilities also pose a risk to debt sustainability

ISLAMABAD: The International Monetary Fund (IMF) has again raised a red flag in the context of China Pakistan Economic Corridor (CPEC) and stated that in early 2022, new investment could raise growth prospects but contingent liabilities also pose a risk to debt sustainability.

“In early 2022, new investments through the China-Pakistan Economic Corridor (CPEC), originally established in 2013, were announced. Although infrastructure in these second-phase investments could raise growth prospects, attendant contingent liabilities also pose a risk to debt sustainability,” the IMF stated in its Public and External Debt Sustainability Analysis done alone with the Fund staff report released after the approval of EFF program for Pakistan.

The report states that Pakistan’s public debt continues to be judged as sustainable with strong policies and robust growth, but with greater uncertainty, in part because the fiscal relaxation in FY22H2 prevented the debt ratio reduction projected at the time of the sixth review. The debt-to-GDP ratio is now projected to rise from 77.9 percent at end-FY21 to 78.9 percent at end-FY22 before falling to around 60 percent by end-FY27, assuming the adjustment efforts in the context of the EFF program are fully carried out.

While gross financing needs (GFN) remain elevated over the near term amid sizeable fiscal deficits and limited progress in lengthening maturities, GFNs are projected to decline over the medium term — reflecting programmed fiscal consolidation and efforts to enhance cash and debt management —reaching 17.2 percent of GDP by FY27.

“Higher interest rates, a larger-than-expected growth slowdown due to policy tightening, pressures on the exchange rate, renewed policy reversals, slower medium-term growth and contingent liabilities related to SOEs pose significant risks to debt sustainability,” the IMF warned.

Sustained fiscal adjustment in line with program commitment and a favourable interest rate-growth differential are projected to put debt ratios back on a clear downward path. The rebasing of GDP, which raised nominal GDP by 16 percent, would itself lower the end-FY21 debt-to-GDP ratio to 75.8 percent (from 88.6 percent at the time of the sixth review).

In the updated debt sustainability assessment, this is partially offset by the inclusion of certain reserve-related liabilities (central bank swaps and deposits by foreign central banks) into the debt perimeter, raising the end-FY21 debt ratio by 2.1 percentage points.

On account of fiscal slippages in FY22H2 and the weaker end-FY22 exchange rate, the debt-to-GDP ratio is set to increase by 1 percentage point during FY22, reaching 78.9 percent, notwithstanding stronger growth due to stimulus-fuelled domestic demand.

News Desk adds: About 30% of Pakistan’s foreign debt is owed to China, including state-owned commercial banks, compared with 27% in February, according to a report released by the International Monetary Fund, Bloomberg reported.

Chinese debt to Pakistan has been revised upwards by $4.6 billion to about $30 billion, the IMF report said, from $25.1 billion in February. Chinese support is triple the amount of IMF debt and more than the amount given by either the World Bank or the Asian Development Bank.

The debt shows that China is now playing a similar role to the IMF by providing financing during balance of payments crises, rather than World Bank-style concessionary-project financing. Debt for balance of payments support from China has continued with loans to Pakistan being rolled over on a regular basis.

The News PK

 

[daytrader]

Pakistan to pay Rs50b to CPEC IPPs
Decision made to send positive signal to Beijing ahead of PM Shehbaz’s visit

ISLAMABAD:
Pakistan has promised to make payments of Rs50 billion to four China-Pakistan Economic Corridor (CPEC) power plants early next week to save them from default and send a positive signal across the border ahead of a visit by Prime Minister Shehbaz Sharif.

The decision was made on Friday in a meeting attended by Pakistani and Chinese stakeholders. Finance Minister Miftah Ismail presided over the meeting, which was also attended by the heads of Chinese power producers.

The meeting discussed the outstanding payments to the Chinese IPPs in Pakistan and other hurdles faced by them, according to a statement issued by the Ministry of Finance.

An official said that it was decided during the meeting that the Power Division would pay Rs50 billion to four Chinese power plants in local currency instead of US dollar.

Power producers will buy US currency from the market and stagger their overseas payments aimed at putting minimum pressure on the rupee. The government may conclude the Rs50 billion transactions as early as Tuesday, said the official.

Despite making nearly 90% payments against the billed amount, Pakistan still owes Rs74 billion to Sahiwal power plant, owned by Huaneng Shandong Ruyi group.

Similarly, the government will have to make a total payment of Rs70 billion to Port Qasim power plant and another Rs32 billion to Engro Powergen plant. The outstanding amount in favour of Hub power plant stands at Rs65 billion.

The payment of Rs50 billion to the four plants will partially address their financial woes, as Pakistan has not yet been able to fulfill its promise of opening a bank account for saving the Chinese power plants from circular debt.

The financial condition of the Chinese power plants has deteriorated significantly due to delay in clearance of their dues, largely on account of idle capacity payments and partially on account of power purchase cost.

The government of Pakistan owes at least Rs269 billion to 12 Chinese power plants as of this week, according to officials.

The finance minister also gave instructions to give a clear roadmap to the Chinese producers for clearing all outstanding amounts by June next year.

However, the government of Pakistan has made similar promises in the past too. Just before his visit to Beijing in February this year, former prime minister Imran Khan authorised payments of Rs50 billion to the CPEC power plants.

He also promised to open a dedicated bank account to save the Chinese IPPs from circular debt. But it did not happen.

Sources said Prime Minister Shehbaz Sharif may also soon go to Beijing and the government was keen to send a positive message before his visit.

The finance minister expressed the resolve of the government to provide all kinds of facilities to Chinese investors, according to the official statement. He assured the Chinese IPPs that their concerns would be addressed and resolved immediately.

The minister also formed a technical committee comprising representatives of Finance and Power Divisions to address concerns of Chinese investors.

The IMF has asked Pakistan to first negotiate with the Chinese producers and seek a reduction in the return on equity, and extend the debt repayment period from the current 10 years before clearing their dues.

As a result, Pakistan has already given a written assurance to the IMF that it will “strive to reduce capacity payments, as we pay the arrears, either by renegotiating the PPAs [Power Purchase Agreements] or by lengthening the duration of bank loans”.

Pakistan also told the IMF that reimbursing high fuel prices resulted in the country falling behind in payment of capacity charges owed to the Chinese power producers.

However, a Chinese energy expert argues that the financial impact of negotiations and debt restructuring of CPEC power plants could be Rs10 billion – Rs50 billion annually.

He added that even to achieve this all involved international parties would have to change their guarantee or investment body, with limited effect in rupee terms.

According to the Chinese authorities, the IMF has neglected the loss sustained by power distribution companies whose financial impact was Rs500 billion annually.**

Express Tribune

 

[daytrader]

Ahsan directs expediting CPEC projects
Ahsan Iqbal directed the authorities concerned to arrange a virtual meeting with Chinese authorities on expediting the CPEC projects

ISLAMABAD: Planning, Development and Special Initiatives Minister Ahsan Iqbal on Tuesday directed the authorities concerned to arrange a virtual meeting with Chinese authorities on expediting the CPEC projects.

Talking to The News on Tuesday night, he said Pakistan and China had held a meeting for moving towards the bidding process of phase-1 of ML-1, which seeks upgradation of rail line from Karachi to Peshawar, which will be executed at an estimated cost of $3.1 billion. The total cost of ML-1 had been estimated at $9.8 billion. “We are trying to come up with a 300 MW power project for Gwadar to replace the existing one based on coal,” he said.

According to an official statement, Ahsan on Tuesday reviewed the progress of CPEC projects after the 11th Joint Cooperation Committee (JCC) meeting held last month and Prime Minister Shehbaz Sharif’s recent visit to China. He directed officials to expedite the implementation of ML-1 and KCR projects, which were agreed in the 11th JCC meeting and remove all bottlenecks in this regard. He directed the Embassy of Pakistan in China to hold a meeting with the Chinese side to follow up decisions taken during the JCC meeting and the PM’s visit to China. He asked the embassy to arrange an online meeting with the NDRC vice chairman to review the progress on CPEC projects. He directed the ministries concerned to speed up work on Special Economic Zones for attracting share from relocation of Chinese industry to Pakistan with low-cost production.

He directed officials to coordinate with Chinese authorities for the early completion of the International Gwadar Airport. “The Gwadar International Airport should be functional before June 2023,” he said while directing stakeholders to engage their counterparts in China.

The News PK

 

[FearlessRoar]

Caretaker Minister for Planning Development and Special Initiatives, Muhammad Sami Saeed has said the second phase of China-Pakistan Economic Corridor (CPEC) is in full swing.

Speaking at a seminar on Belt and Road Initiative in Islamabad today, he said the caretaker government is committed to implement development projects in letter and spirit.

The Minister for Planning said both China and Pakistan remain committed in the implementation of CPEC, which has evolved from a connectivity project to a symbol of enduring regional cooperation with far-reaching implications for development and stability.

Speaking on the occasion, Chinese Ambassador to Pakistan, Jiang Zaidong, said China will continue to support Pakistan in implementing CPEC projects.

The Chinese envoy also appreciated Pakistan for taking extraordinary security measures for the Chinese workers.

Source: Dunya News

 

[Saanji]

Since the launch of CPEC, where has pakistani economy headed? Returns are usually delayed for such large infrastructure projects but given the less than positive results of BRI in other parts of the world, it doesn't seem good.

 

[Theanonymousone]

Since the launch of CPEC, where has pakistani economy headed? Returns are usually delayed for such large infrastructure projects but given the less than positive results of BRI in other parts of the world, it doesn't seem good.

It will be difficult to get a direct positive ROI as the delays and global economic slowdown will further strain the thin margins.

What pakistan can hope is the Infrastructure development can spur other industries such as logistics / Manufacturing etc but these completely depends on government policies which is not looking good for pakistan

 

[Bhaijaan]

Like it or not, CPEC is a game changer.

It will change the game.

 

[The Bald Eagle]

Media urged to counter propaganda against CPEC

Speakers at the training workshop here on Sunday called upon the Pakistani media to engage in objective and factual reporting on the China-Pakistan Economic Corridor (CPEC) and counter the negative propaganda against the game-changer project. The journalists are the source of information for the public and their impartial reporting can convey authentic information about CPEC to the people of Pakistan, they said.

The speakers expressed these remarks during a three-day training workshop organized by the Center for Democracy and Climate Studies (CDCS) for the journalists of Baluchistan and Khyber Pakhtunkhwa.

Bao Zhong, Counsellor of the Political and Media Section, Embassy of China to Pakistan while speaking to the participants said that the Pakistani media was playing a vital role in promoting CPEC and creating a positive image of the China-Pakistan bilateral relations and cooperation in various fields beneficial for both the nations.

She however said the fake news and negative propaganda against the CPEC still exist in some sections of the media which should be countered by the journalists.

She said that the Chinese embassy was always open to answer queries about CPEC or information related to any project initiated by the Chinese embassy.
She urged the journalists to do factual reporting on CPEC and play their role against malicious media campaigns and disinformation against the projects. Expressing deep affection for Pakistani friends, Ms. Zhong, with over six years of service in the country, emphasized the robust foundation of the China-Pakistan relationship, attributing it to the profound political trust, particularly exemplified by the China-Pakistan Economic Corridor (CPEC).

She expressed the confidence in ongoing collaboration with the Pakistani government and encouraged media and citizens to contribute valuable insights for the continued success of China-Pakistan relations. She highlighted the warm reception of Pakistani visitors in China, underscoring the reciprocal treatment she and her family receive in Pakistan.

Motivated by these strong ties, she called for joint efforts to further deepen and strengthen cooperation, urging the passing on of this relationship from generation to generation.
Ms. Zhong emphasized collaborative endeavors at both government and private sector levels, encouraging increased business-to-business (B2B) cooperation. She stressed the significance of encouraging Pakistani youth to study in China and return to contribute to their homeland, focusing on highlighting commonalities. She urged a collective focus on these areas, seeking advice and active promotion from Pakistani media to maximize joint benefits.

Source : Daily Times

 

[The Bald Eagle]

CPEC helps advance goals of economic development, regional connectivity, say Pakistani experts

Sohail Mahmood, former foreign secretary of Pakistan and director general of the ISSI, said that CPEC has produced win-win outcomes, achieving remarkable progress over the last 10 years while taking Pakistan-China friendly relations to new heights.

The China-Pakistan Economic Corridor (CPEC) has proved to be a corridor of opportunities for Pakistan, advancing the goals of economic development, regional connectivity, and shared prosperity, said Pakistani experts during a seminar.

CPEC has served to promote bilateral relations between China and Pakistan, regional integration, and overall development, said the experts and academics at the recently held seminar organized by the Institute of Strategic Studies Islamabad (ISSI), an Islamabad-based think tank.

Launched in 2013, CPEC, a flagship project of the China-proposed Belt and Road Initiative (BRI), is a corridor linking Pakistan's southwestern Gwadar port with Kashgar in northwest China's Xinjiang Uygur Autonomous Region, highlighting energy, transport, and industrial cooperation.

Speaking on the occasion, Sohail Mahmood, former foreign secretary of Pakistan and director general of the ISSI, noted that CPEC has produced win-win outcomes, achieving remarkable progress over the last 10 years while taking Pakistan-China friendly relations to new heights.

"The abiding friendship between Pakistan and China and its key attributes of mutual respect, strategic mutual trust, and mutual support on issues of each other's core interest are commendable," Mahmood said.

Source : Xinhua News

 

[Champ_Pal]

Pakistan is firmly under the clutches of China.
China very well knows that Pakistan cannot pay the debt back anytime soon. In return, Pakistan has to dance to the tunes of China and engage with India in border skirmishes.

 

[The Bald Eagle]

Ambassador Jiang for building ‘even closer China-Pakistan community with shared future’​

China and Pakistan, which have been all-weather strategic cooperative partners, are also the backbone of the international community in safeguarding fairness and justice and promoting development and prosperity, says Beijing’s top diplomat in Islamabad about the trajectory of the two countries vital relationship.

Vital trade road to be constructed under CPEC

“We stand ready to continuously work with friends from all walks of life in Pakistan by implementing the important consensus reached by President Xi Jinping and Pakistani leaders as the guiding principle, building a closer China-Pakistan community with a shared future in the new era as the main line, and promoting high-quality development of CPEC as the major platform, to continuously consolidate, deepen and expand China-Pakistan all-weather strategic cooperation, to safeguard our common interests in the changes unseen in a century, to better benefit the two peoples, and to jointly usher in a bright future of peace, security, prosperity and progress for our world,” Ambassador Jiang Zaidong wrote in an article.

At the recently held Central Conference on Work Relating to Foreign Affairs, President Xi Jinping presented a systematic review of the historic achievements and valuable experience of major-country diplomacy with Chinese characteristics in the new era, gave a profound exposition on the international environment and historical mission of China’s external work on the new journey, and made comprehensive plans for China’s external work for the present and coming periods, Ambassador Jiang wrote. It provides the fundamental guideline and guidance for action for advancing major-country diplomacy with Chinese characteristics.

“Currently, we are thoroughly studying, understanding and implementing the spirit of President Xi Jinping’s important address and the spirit of the Conference. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for the New Era and Xi Jinping Thought on Diplomacy in particular, we will forge ahead and try the best to make new achievements, to create a more favourable international environment and provide more solid strategic support for building China into a great modern socialist country in all respects and advancing the great rejuvenation of the Chinese nation on all fronts through the Chinese path to modernisation,” the Chinese envoy states.

“In this significant process, we stand ready to strengthen mutual learning, deepen mutually beneficial cooperation and strengthen multilateral coordination with Pakistan, to build an even closer China-Pakistan community with a shared future in the new era, and make new and greater contribution to building a community with a shared future for mankind,” he further writes.

Ambassador Jiang said that his country stands ready to share with Pakistani side the major theoretical innovations of Xi Jinping Thought on Diplomacy.

“The goal is to build an open, inclusive, clean and beautiful world of lasting peace, universal security and shared prosperity, the pathway is promoting global governance that features extensive consultation and joint contribution for shared benefit, the guiding principle is to apply the common values of humanity, the basic underpinning lies in building a new type of international relations, the strategic guidance comes from the implementation of the Global Development Initiative, the Global Security Initiative and the Global Civilisation Initiative, and the platform for action is high-quality Belt and Road cooperation,” he add

Ambassador Jiang wrote that building a community with a shared future for mankind has developed from a Chinese initiative to an international consensus, from a promising vision to substantive actions, and from a conceptual proposition to a scientific system. China has built different forms of communities with a shared future with dozens of countries and regions, and has signed Belt and Road cooperation documents with more than three-quarters of countries in the world and over 30 international organisations. And the concept of building a community with a shared future for mankind has been written into United Nations documents many times, he added.

“We stand ready to work with Pakistan to enrich the vivid practice of building a community with a shared future for mankind. CPEC as a pioneering project of the Belt and Road Initiative has made important contributions to Pakistan’s economic development and people’s livelihood enhancement over the past 10 years,” the Chinese envoy stated.

“At the critical moment when CPEC construction was to be improved and upgraded, President Xi Jinping met with [Caretaker] Prime Minister Anwaarul Haq Kakar, who was in China to attend the Third Belt and Road Forum for International Cooperation. And the two leaders reached important consensuses on deepening China-Pakistan all-weather strategic cooperation and promoting CPEC construction. Under the strong guidance and promotion of high-level consensuses, building CPEC into a growth, livelihood-enhancing, innovative, green and open corridor has been fully launched, the railway upgradation and highway realignment projects are accelerating, concrete plans for Pakistan’s agricultural cooperation with Xinjiang have been formed, the first batch of Pakistani dried chilli has been smoothly shipped to China, the Khunjerab Pass’s functioning all year round is being intensively prepared, the Rashakai SEZ Phase-I has been completed. The CPEC construction has entered into a new stage of high-quality development, which injects new impetus into the building of an even closer China-Pakistan community with a shared future.”

Source: The Express Tribune

 

[hassan918]

CPEC remains foremost in all-weather Pak-China relationship, says Chinese minister​

ISLAMABAD (APP) – Chinese Vice Foreign Minister Sun Weidong stated on Saturday that Pakistan and China are united in safeguarding their common interests and will continue to support each other on significant issues.

He made these remarks during the inauguration of a photo exhibition and the CPEC Library at the Ministry of Foreign Affairs.

Weidong assured that China would persist in supporting Pakistan against any terrorism threats.

Expressing gratitude, Weidong thanked Pakistan for its steadfast support for the One-China principle, emphasising that the friendship between the two nations was time-tested and enjoyed broad-based support among their people.

Weidong mentioned bringing books from China for the CPEC Library, including works by President Xi Jinping on governance and ancient Chinese culture.

Reflecting on his past decade as ambassador to Pakistan, he highlighted the library as a symbol of the strength of their strategic partnership, as evidenced by the various CPEC projects.

Recalling the inauguration of the CPEC project by the Chinese president and Pakistani leadership in 2015, Weidong noted the launch of over 50 agreements across Pakistan.

He expressed happiness over the completion of various CPEC projects, attributing the success to the strategic guidance of the leadership.

Weidong explained that China's Belt and Road Initiative (BRI) aimed to bring shared prosperity to humanity, envisioning it as a means to unite countries in facing economic challenges and turning them into opportunities.

Arriving in Islamabad to attend a CPEC Joint Working Group meeting on Sunday, Weidong stressed that CPEC remained foremost in the all-weather strategic cooperative relationship between Pakistan and China.

Foreign Secretary Syrus Sajjad Qazi highlighted that the China-Pakistan relationship was characterised by common interests, inviting other countries to invest in industry, agriculture, science, and technology projects under CPEC.

He noted that CPEC was a tribute to the wisdom of leaders from different generations who contributed to strengthening bilateral ties.

Later, the Chinese minister and Pakistan’s foreign secretary jointly inaugurated the CPEC Library and exhibition, showcasing photos of various CPEC projects, including the Friendship Hospital, Vocational School, International Airport in Gwadar, and the East Bay Expressway, a crucial infrastructure project connecting the Gwadar port and free-industrial zone with the national highway network.

Source: Dunya News

 

[FearlessRoar]

Pakistan and China held on Monday the fourth meeting of the CPEC Joint Working Group International Cooperation and Coordination (JWG-ICC).

The two countries agreed to enhance focus on high-quality advancements in industry, agriculture, information technology, and science and technology, ensuring tangible socio-economic benefits for the people.

The meeting, which was co-chaired by Foreign Secretary Muhammad Syrus Sajjad Qazi and Vice Minister for Foreign Affairs of China Sun Weidong, also underscored CPEC's pioneering role in strengthening international and regional connectivity while appreciating the open and inclusive nature of this flagship project.

Noting that the two countries were all-weather strategic partners, the foreign secretary reaffirmed the importance of CPEC in promoting cooperation and sustainable development.

He further emphasised welcoming interested third parties to explore mutually beneficial avenues of cooperation

Recognizing the evolution of CPEC, the two sides rejected the disinformation campaigns and distorted reporting on CPEC and stressed the need to counter fallacious narratives and misinformation.

Islamabad and Beijing also agreed on sharing best practices and generating an intellectual knowledge pool of CPEC and BRI development through enhanced international communication and cooperation.

Source: Express Tribune

https://tribune.com.pk/story/2454056/1

 

[hassan918]

China expresses satisfaction on CPEC security​

RAWALPINDI (Dunya News) – Vice Foreign Minister of China Sun Weidong called on Chief of Army Staff (COAS) General Asim Munir at GHQ on Monday, said Inter Services Public Relations (ISPR) in a statement.

During the meeting matters of mutual interest and measures to further enhance bilateral defence cooperation were discussed.

Chinese vice foreign minister said that Pakistan and China are all weather strategic partners. He acknowledged Pakistan's efforts towards regional peace and stability. He also conveyed China’s satisfaction on security arrangements for CPEC projects.

COAS thanked the visiting dignitary for his warm remarks and said that relations between Pakistan and China are founded on a common understanding of regional peace, stability and prosperity for the people of both countries.

Source: Dunya News

 

[hassan918]

CPEC is very important for Pakistan and China. It is good to see that everyone involved is serious about its security.

 

[Cricket Warrior]

Pakistan benefiting from first CPEC phase; engaged with China for next one: PM

Caretaker Prime Minister (PM) Anwaarul Haq Kakar on Wednesday said that having achieved the first phase of China-Pakistan Economic Corridor (CPEC), Islamabad was benefiting from its early harvest projects while remaining engaged with Beijing to execute the next phase.

“We have already achieved the CPEC’s first phase and we are benefiting from its early harvest projects. We are entering the second phase. We do need more deliberations when it comes to the second phase,” he said in an interview with Chinese news broadcaster during his visit to Davos to attend the World Economic Forum (WEF) moot.

PM Kakar said the CPEC’s second phase required road and air connectivity around the industrialisation projects.

“Both sides are engaged and we have developed a lot of connectivity – road, air and rest of connectivity corridor. We are benefiting from the ecosystem of doing trade with one another,” he remarked.

Asked how he articulated the Chinese economy, the interim premier said, “I am always sanguine about it. There are 1.5 billion consumers and 1.5 billion producers… How can you divorce 1.5 billion people from 8 billion people? It has to remain connected.”

PM Kakar said being a huge marketplace, both China and the world were interested in each other.

Questioned about his government’s priorities, the prime minister highlighted the economic revival, technology transformation, and taxation reforms.

He said Pakistan was on the middle ground amidst the discourse between Global North and South and other regional conflicts.

Domestically, he said the government needed to earn more and spend less.

Pakistan benefiting from first CPEC phase; engaged with China for next one: PM

ISLAMABAD: Caretaker Prime Minister (PM) Anwaarul Haq Kakar on Wednesday said that having achieved the first phase of China-Pakistan Economic Corridor

arynews.tv

 

[FearlessRoar]

Pakistan’s export of goods and services to China witnessed an increase of 46 percent during the seven months (July to January), ARY News reported citing sources.

According to sources, the overall exports to China were recorded at US $1.7214 billion during July-January (2023-24) against exports of US $1.18 billion during July-January (2022-23).

On the other hand, the imports from China into the country during July-January were recorded at US $7.71 billion against US $7.66 billion last year, sources added.

On January, Pakistan’s export of goods and services to China witnessed an increase of 39.44 per cent during the first five months of the current fiscal year (2023-24) as compared to the exports of the corresponding period of last year, State Bank of Pakistan (SBP) reported.

The overall exports to China were recorded at US $1223.532 million during July-November (2023-24) against exports of US $877.444 million during July-November (2022-23), SBP data revealed. On a year-to-year basis, the exports to China also surged by 36.29 per cent from $199.058 million in November 2022, against the exports of $271.316 million in November 2023.

It is pertinent to mention here that China earlier “agreed” on a rollover of $2 billion debt to Pakistan.

According to sources with the finance ministry, the $2 billion debt will be rolled over before the maturity date on the existing conditions.

Sources said that less than 2 percent interest will be applied on the deposit of $2 billion debt from China.

Source: ARY

Pakistan’s exports to China up by 46pc in 7 months

ISLAMABAD: Pakistan’s export of goods and services to China witnessed an increase of 46 percent during the seven months (July to January), ARY News

arynews.tv

 

[Cricket Warrior]

PM Shehbaz renews 'solemn commitments' for closer Pak-China ties, CPEC second phase

After featuring the China-Pakistan Economic Corridor (CPEC) in his first parliamentary speech after reelection, Prime Minister Shehbaz Sharif renewed call for further strengthening bilateral ties between “iron brothers” by working together through “thick and thin”, and moving towards “second phase” of the multibillion-dollar project.

Premier Shehbaz thanked Chinese President Xi Jinping for extending congratulatory message on his reelection on March 3 and said: "I deeply value his sentiments not only for the people of Pakistan, for our friendship, but our mutual cooperation."

The premier delivered the remarks while being interviewed with the Chinese state news agency — Xinhua — at the Prime Minister’s Office (PMO) in Islamabad. It was PM Shehbaz’s first-ever interview to any foreign media outlet after assuming the office.

On completion of 73 years of diplomatic relations between both countries, Premier Shehbaz said that the leaders of Pakistan and China have continuously cultivated and promoted bilateral friendship. The two countries have developed into all-weather strategic cooperative partners with a unique friendship like "iron brothers" that has stood the test of time.

He stressed that the friendship now must achieve "higher heights."

Shehbaz, who also served as Punjab chief minister for three terms, said Pakistan should emulate the model citing modernisation steps adopted by China which lifted hundreds of millions of people out of poverty and providing vast rural populations with access to education, healthcare and employment.

"It is a great success model and success story. Despite challenges in recent years, China's growth has still gone steadily compared to other countries, which is a remarkable achievement," he added.

He was of the view that Pakistan could learn from the model to alleviate poverty, boost youth employment, and encourage small and medium entrepreneurship in agricultural, industrial, and information technology sectors across urban and rural areas.

The premier said that Pakistan is now ready to move towards the second phase of CPEC, aiming to promote technological development and agriculture through the corridor.

Pakistan has established the Special Investment Facilitation Council (SIFC), which will cut red tape and remove delays and inefficiencies for CPEC projects, he added.

PM Shehbaz said he looks forward to revisiting China, calling it a tradition for Pakistan's new leadership after inauguration. "China is our second home," he said.

"We made solemn commitments that we would work together, and we would be together through thick and thin," he vowed.


Geo News

 

[hassan918]

China commends PM Shehbaz's 'positive remarks' on CPEC​

China on Tuesday commended Prime Minister Shehbaz Sharif’s positive remarks on the China-Pakistan Economic Corridor (CPEC), wherein the premier reiterated that Pakistan is now ready to move toward the second phase of the multi-billion project.

"China commends Prime Minister Shehbaz Sharif’s positive remarks and stands ready to work with Pakistan to build an upgraded version of CPEC," Chinese Foreign Ministry Spokesperson Lin Jian said during his regular briefing.

The spokesperson said that Beijing was ready to work with Islamabad to build a growth corridor, a livelihood-enhancing corridor, an innovation corridor, a green corridor, and an open corridor to create an upgraded version of the flagship project of the Belt and Road Initiative (BRI) to deliver greater benefits to the two people.

The prime minister, talking to Chinese Ambassador Jiang Zaidon in Islamabad last week, stressed that Pakistan was keen to move to the next phase of CPEC, including operationalisation of the Special Economic Zones (SEZs) to facilitate Chinese investment in Pakistan.

In an interview with Xinhua, China’s state-run news agency, the prime minister said, Pakistan was now ready to move toward the second phase of CPEC to promote technological development and agriculture through the corridor.

While commending PM Shehbaz Sharif’s positive remarks, the spokesperson said that the CPEC is an important flagship project of the Belt and Road Initiative.

“A batch of early harvests of cooperation have been achieved in areas of transportation, infrastructure, energy and industry,” the spokesperson said in today's press briefing.

Lin Jian pointed out that last year, the two sides held a grand celebration event to mark the 10th anniversary of the launch of CPEC and added that leaders of the two countries reached a new important common understanding on high-quality developments of CPEC.

Launched in 2013, the CPEC, a flagship project of the China-sponsored Belt and Road Initiative, is a corridor linking the Gwadar Port in southwestern Pakistan with Kashgar in northwest China’s Xinjiang Uygur Autonomous region, which highlights energy, transport and industrial cooperation.

The CPEC has brought Pakistan direct investment totalling over 25 billion US dollars over the past decade. The corridor also created many job opportunities in Pakistan.

Source: GEO

 

[FearlessRoar]

Pakistan, China to form WG on 5 new economic corridors under CPEC​

Pakistan and China agreed to establish a Working Group (WG) on five new economic corridors under the second phase of Chine-Pakistan Economic Corridor (CPEC), aligning with the 5Es framework prepared by the Planning Ministry.

This agreement came during a meeting between Federal Minister of Planning, Development and Special Initiatives Professor Ahsan Iqbal and Chinese Ambassador to Pakistan Jiang Zaidong at the Planning Ministry, lasting over an hour.

Chinese envoy Jiang Zaidong congratulated Ahsan Iqbal on assuming the role of Planning Minister for the fourth time. Both sides agreed to expedite phase two of the CPEC and decided to establish a working group on five new economic corridors, including the Corridor of Job Creation, Corridor of Innovation, Corridor of Green Energy, and Inclusive Regional Development.

The Planning Ministry and the National Development and Reform Commission (NDRC) of China would prepare separate concept papers on the new economic corridors, providing a clear road map for each sector.

“These concept papers will be consolidated before presentation at the upcoming Joint Coordination Committee (JCC) meeting expected in 2024,” stated the Planning Ministry.

The Planning Ministry has already initiated the implementation of the 5Es framework, which includes Export, Energy, Equity, E-Pakistan and Environment.

“This framework will be aligned with the five new economic corridors to advance Pakistan’s prosperity in each sector under the vision of Prime Minister Shehbaz Sharif,” emphasised the minister, highlighting the importance of accelerating Pakistan’s export capabilities through enterprise development and job creation.

The planning minister outlined a strategic approach to maximise the success of Special Economic Zones (SEZs) within Pakistan. He proposed a “one plus four” model, where each SEZ in Pakistan would be partnered with one province from China, one industry group to develop specialised clusters within the SEZs, one SEZ from China to provide technical expertise, and a state-owned enterprise to spearhead SEZ development.

Iqbal stressed that this collaborative framework would expedite the establishment and growth of SEZs in Pakistan, enhancing their competitiveness and attractiveness to investors. The Chinese envoy appreciated Pakistan’s efforts to implement the CPEC, particularly the initiation of phase two.

Addressing Pakistan’s need to boost the efficiency of SEZs to increase foreign exchange, the Chinese envoy suggested that officers in charge of SEZs must visit Chinese industrial parks to observe firsthand the efficiency measures practiced by Chinese authorities. The ambassador further highlighted Pakistan’s commendable transition from an agricultural to an industrial economy.

Iqbal stressed that the success of SEZs depends on their ability to become clusters of specific industries, fostering economies of scale and creating a vibrant ecosystem conducive to innovation and growth.

The discussions also focused on enhancing regional connectivity, with a special emphasis on critical infrastructure projects like the Gwadar Port and the M-8 motorway, which would strengthen trade links and facilitate regional integration.

The planning minister emphasised China’s industrial progress as exemplary and a motivational force for Pakistan to follow suit. He appreciated Chinese assistance in helping Pakistan develop its exports and stated that Pakistan’s current challenge was to determine how quickly it could build its exports through earned foreign exchange, not borrowed money.

The minister assured the ambassador that security was a prerequisite for development, and Pakistan acknowledged the full recognition of CPEC construction and security risks.

“However, these risks will not disrupt work on CPEC projects. Pakistan has made significant efforts to safeguard the security of Chinese workers and will further implement top-level security measures for Chinese personnel,” he added.

CPEC: Pakistan, China to form WG on 5 new economic corridors | The Express Tribune

Both sides agree to expedite CPEC phase two and decide to establish a working group on five new economic corridors

tribune.com.pk

 

[FearlessRoar]

Thank God, there is some movement in CPEC as well. Otherwise, I was afraid such a big project might go to waste.

 

[JaDed]

Tribune has gone down the drain, doesn’t even spell check it’s articles anymore - “CHINE” ??

 

[Cricket Warrior]

Thank God, there is some movement in CPEC as well. Otherwise, I was afraid such a big project might go to waste.

started just on a paper nothing is actually happening till now.

 

[BouncerGuy]

Finance minister meets Chinese counterpart, assures progress on CPEC

Finance Minister Muhammad Aurangzeb met with his Chinese counterpart Lan Foan and assured him that work on the second phase of the China-Pakistan Economic Corridor (CPEC) would be expedited.

The two met in Washington where Aurangzeb shared with Foan that the second phase would include monetising assets through the transfer of Chinese privately owned companies (POCs).

Aurangzeb also expressed condolences on behalf of the Pakistani leadership and people for the terrorist attack on Chinese citizens in Pakistan and reiterated his determination to ensure all arrangements for their protection.

The finance minister appreciated China's invaluable contribution to Pakistan's development as an "all-weather friend" through initiatives such as CPEC and cooperation with international financial institutions.

The minister also thanked Foan for meeting the gap in deposits and assistance with Islamabad's external financing needs stating that Pakistan was entering into a comprehensive and expanded program with the International Monetary Fund (IMF).

Looking forward to China's support, the Chinese finance minister was also briefed on the government's priorities, including broadening the tax base, reforming the energy sector and overhauling of state-owned enterprises (SOEs).

Aurangzeb added that Pakistan wants to launch the Chinese Panda Bond during the fiscal year 2025-26. At the end of the meeting, it was agreed on the need for both countries to continue cooperation in international institutions.

Speaking to the media, the minister said that the country is on an agenda of reform for economic stability, focusing on increasing the tax net while taking steps to reduce taxes.

The talks with other international financial institutions including the IMF were positive, the finance czar added stating that Pakistan has been greatly affected by climate change, and is working on several projects in collaboration with various international institutions.

Besides, the FM also met with the World Bank's Regional Vice President for South Asia Martin Riser, in which Aurangzeb expressed satisfaction over the finalization of the new Country Partnership Framework.

He said that the government is achieving short and long-term goals in the fields of energy, tax reforms and SOEs, adding that WB’s focus on climate change, digitization and human development aligns with government priorities.

FM Aurangzeb also briefed on the role of the Special Investment Facilitation Council (SIFC) as a one-window facility for investment and facilitation.

SOURCE: DAWN

 

[FearlessRoar]

Pak-China economic, cultural ties rapidly growing due to CPEC: PM Shehbaz​

Prime Minister Muhammad Shehbaz Sharif on Saturday said that the economic and cultural relationships between Pakistan and China were rapidly growing due to the China-Pakistan Economic Corridor (CPEC).

In a message on global observance of the Chinese language as one of the largest dialects for communication, he said that a “sufficient number of Pakistanis” were learning the Chinese language, cementing ties between the people of the two countries.

The United Nations (UN) observes the UN Chinese Language Day every year on April 20 to highlight the contribution of Chinese literature, poetry and language to world culture.

The Prime Minister said that steps were being taken at the official and public sector levels to promote the Chinese language and literature so that the people-to-people contacts between the two countries could be further strengthened, the premier’s office media wing said in a press release.

“Today was the observance of the Chinese language as the global language,” he said, adding that the dialect had been an exponent of centuries-old Chinese culture.

In the last few decades, China had been proving its mettle in economic prosperity besides, adding that the Chinese language and culture had been becoming popular across the globe, he said.

He said there was “no doubt” that the Chinese language had become the “largest tool of communication in the world” and the UN had included it in the list of its official communication language.

Pak-China economic, cultural ties rapidly growing due to CPEC: PM Shehbaz

Says Chinese language education further fostering relationship, condemns attack on customs officials in DI Khan.

www.dawn.com

 

[FearlessRoar]

I don't see any cultural ties between Pakistan and China.

 

[BouncerGuy]

CPEC-II phase promotes joint ventures, PM

Prime Minister Shehbaz Sharif on Tuesday said the second phase of China Pakistan Economic Corridor (CPEC-II) offered an opportunity to the private sectors of both countries to form joint ventures.

He underscored that CPEC had contributed to Pakistan’s socio-economic development as well as the progress and prosperity of the peoples of two countries.

He hoped that the Phase-II of CPEC would result in more industrial, scientific and green development in the country.

Talking to a high level delegation of the Chinese International Development Cooperation Agency (CIDCA), led by its Chairman Luo Zhaohui which called on him, the prime minister said China was Pakistan’s most trusted friend and appreciated its steadfast support to Pakistan.

Acknowledging CIDCA’s pivotal role in bolstering Pakistan’s economic development, the prime minister specifically commended CIDCA for its vital support during the 2022 floods and for its relief, rehabilitation, and reconstruction efforts in Pakistan.

Earlier, he also witnessed the signing ceremony of four Memorandums of Understanding focusing on flood rehabilitation, information and communication technologies, Juncao Technology, China-Pakistan Development Cooperation Planning (2024-2028) alongside a Letter of Exchange on the establishment of a First Aid Centre in Balochistan, and Protocol on Cooperation in Human Resources Development under the Global Development Initiative.

The agreements signify the deepening cooperation between Pakistan and China across various sectors, a PM Office news release said.

Chinese Ambassador in Pakistan Jiang Zaidong, federal ministers for Foreign Affairs, Economic Affairs, Finance, Interior and Planning & Development, SAPM Tariq Fatemi and senior officials attended the meeting.

Separately, the premier invited the Australian companies and experts to share their expertise and best practices with Pakistani counterparts.

He was talking to High Commissioner of Australia Neil Hawkins who paid a courtesy call on him at the PM House.

The prime minister said both Pakistan and Australia enjoyed friendly and cordial ties. He expressed satisfaction over the current state of bilateral relations, saying Pakistan was keen to enhance cooperation in agriculture, livestock, mining etc.

The prime minister also acknowledged the contribution of Pakistani diaspora in Australia, including a significant number of students.

The high commissioner reaffirmed the desire of the Australian side to strengthen its ties with Pakistan and assured the prime minister of his cooperation.

He also praised the valiant efforts of Pakistani security guards whose bravery saved many lives during the recent stabbing attacks in Sydney. One Pakistani security guard lost his life while another was injured during the attack in which five women were killed.

He also briefed the prime minister on some of the upcoming bilateral engagements, including visits of senior Australian defence officials to Pakistan.

While noting the priority areas indicated by the prime minister, the high commissioner also expressed interest in strengthening sports and cultural cooperation, particularly in cricket and hockey.

SOURCE: EXPRESS TRIBUNE

 

[BouncerGuy]

Pakistan eager for CPEC-II: Iqbal

Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal on Thursday reiterated Pakistan’s strong commitment and eagerness to enter the second phase of the China-Pakistan Economic Corridor (CPEC) at the earliest.

Chairing a progress-review meeting on preparations ahead of the 13th Joint Cooperation Committee (CPEC-JCC) meeting and the expected visit of Prime Minister Shehbaz Sharif to China, Ahsan Iqbal emphasized that CPEC had proven to be a milestone in further strengthening the unbreakable bond of friendship between the two countries.

The meeting discussed various sectors including infrastructure, energy, artificial intelligence, special economic zones, science and technology and security of Chinese officials.

The minister highlighted that the projects included in Phase-II would have a positive impact on public and social lives, and underscored the importance of benefiting from China’s experiences in modern technology and industry, which was the government’s top priority.

SOURCE: EXPRESS TRIBUNE

 

[BouncerGuy]

Pakistan, China deepen cooperation on CPEC Phase-2

Minister for Planning, Development and Special Initiatives, Ahsan Iqbal on Tuesday expressed the firm commitment of the government to expedite the implementation of China-Pakistan Economic Corridor Project (CPEC) for further strengthening the bilateral relations between both the countries.

The minister co-chaired a meeting with the Ambassador of China to Pakistan Jiang Zaidong. Secretary Planning, Awais Manzoor Sumra and other senior officials from the ministry also attended the meeting, a statement issued by the Ministry of Planning said.

The discussions focused on further strengthening collaboration on projects related to energy, infrastructure, industry, food security, agriculture, and transportation within the framework of the China-Pakistan Economic Corridor (CPEC).

Ahsan Iqbal emphasized the importance of deepening the longstanding friendship between the leadership of China and Pakistan and expressed the government’s firm commitment to expediting the implementation of CPEC and stated that the upcoming visit of the prime minister to CPEC projects would usher in a new era of cooperation in all sectors.

The minister elaborated on the core objective of CPEC: promoting cooperation in all sectors, including industry, energy, infrastructure, social development, agriculture and regional connectivity within Pakistan. He expressed a desire to enhance cooperation with China through the transfer of modern technology in various sectors, including transportation and agriculture.

He emphasized Pakistan’s aim to establish industrial zones for the manufacturing of electric cars in collaboration with China, leveraging Pakistan’s competitive advantage to reduce overall production costs and create employment opportunities for Pakistani workers.

He also discussed the upcoming South Asian Games 2025, underlining the importance of comprehensive training programs for Pakistani athletes. He expressed a desire to collaborate with China by inviting Chinese coaches and trainers to support Pakistani athletes in their preparations.

Both sides reaffirmed their commitment to the swift and successful implementation of CPEC Phase 2.

The ambassador of China also commended the Government’s efforts, especially those of the Federal Minister for Planning and Development, in continuing cooperation across all sectors.

He also extended congratulations to Pakistan on hosting the South Asian Games 2025.

SOURCE: EXPRESS TRIBUNE

 

[BouncerGuy]

CPEC phase-II to begin soon, says Chinese diplomat

Chinese Consul General Zhao Shiren announced that the second phase of the China-Pakistan Economic Corridor (CPEC) project will commence soon, promising prosperity for the region.

He made this statement while addressing the national conference on '73 Years of Pak-China Diplomatic Relations: Achievements and Way Forward,' organised by Punjab University's School of Communication Studies at Hameed Nizami Hall.

In his address, Zhao Shiren emphasized China's continued support for Pakistan on defense and national security issues, expressing hope that Pakistan will soon become a permanent member of the United Nations Security Council.

He mentioned that Federal Minister of Pakistan Prof Ahsan Iqbal is scheduled to visit China soon to meet with Chinese authorities and investors to attract investment in Pakistan.

Additionally, Prime Minister Muhammad Shehbaz Sharif is set to make a significant visit to China at the beginning of June.

Zhao Shiren highlighted the cooperation between China and Pakistan in sectors such as mining, IT, and energy.

He recalled that Pakistan was the first Muslim-majority country to recognise China's independent status in 1951, a historic milestone that the Chinese nation deeply appreciates.

Over the past 73 years, a relationship of trust has developed between the governments and peoples of both countries.

The consul general assured ongoing cooperation with the Punjab government to promote educational, economic, and cultural relations.

Dr Noshina Saleem praised China's significant role in Pakistan's socio-economic development, reflecting the deep, generational friendship between the two nations.

She noted China's consistent support for Pakistan on international issues, including the Kashmir conflict.

Kashif Anwar commended China's contribution to Pakistan's development at various levels, describing CPEC as a transformative project that will create numerous opportunities for trade, investment, and employment.

Dr Mahmoodul Hassan emphasized that CPEC and the One Belt One Road initiative will further strengthen bilateral relations and stabilize the economy, highlighting the increase in exports between the two countries over the past 27 years.

Dr Mian Hanan described the CPEC Corridor project as a gift to the region's people, marking the beginning of a new chapter of prosperity.

The event concluded with a cake-cutting ceremony to celebrate 73 years of diplomatic relations between Pakistan and China.

SOURCE: EXPRESS TRIBUNE

 

[BouncerGuy]

PM for dam’s inclusion in CPEC

Pakistan has once again decided to seek Chinese interest in the multi-billion-dollar Diamer Bhasha dam project, which is facing a $3.5 billion financing gap—a move that indicates Saudi Arabia has not selected the project for its investment.

Government sources told The Express Tribune that Prime Minister Shehbaz Sharif has instructed the Ministry of Planning to make the Diamer Basha dam project part of the China Pakistan Economic Corridor (CPEC). Under CPEC, China has already invested $28 billion in Pakistan in infrastructure and energy projects.

The instructions were issued days before a scheduled 13th meeting of the Joint Cooperation Committee—the highest decision-making body of CPEC—which is virtually taking place today (Friday).

The scheduled two-hour JCC meeting will be held via video link to review overall CPEC progress and discuss future projects. The Pakistani side will be led by Planning Minister Ahsan Iqbal, while China will be represented by Vice Chairman of the National Development and Reform Commission (NDRC) Li Chunlin.

The 11 joint working groups of CPEC will each have five minutes to discuss progress and future prospects. The four provincial chief ministers, prime minister of Azad Jammu and Kashmir (AJK), and chief minister of Gilgit Baltistan will each have three minutes for their speeches.

CPEC has been stalled due to Pakistan’s inability to meet sovereign commitments and its failure to devise marketable policies to attract private Chinese investment in the industrial sector.

Sources said the PM gave these instructions during a meeting a few days ago to finalise his visit to Beijing and address pending issues faced by Chinese companies working in Pakistan. The PM is visiting China from June 4th to 7th.

This is the second time in seven years that Pakistan has decided to include the Diamer Basha dam project in CPEC. In November 2017, Pakistan withdrew its request to include the project in the CPEC framework after Beijing imposed strict conditions, including ownership of the project, said Muzammil Hussain, the then-chairman Water and Power Development Authority (Wapda).

The former Wapda chairman had said that Chinese conditions were about taking ownership of the project, operation and maintenance cost and securitisation of the Diamer-Bhasha project by pledging another operational dam.

Last month, Pakistan offered the Diamer Basha dam project to Saudi Arabia for equity partnership, seeking $1.2 billion in equity investment and $2.3 billion in debt for 10 years.

The project is facing a $3.5 billion financing gap. Pakistani authorities were hopeful that Saudi Arabia would pick the project as part of its $5 billion investment in Pakistan. However, the government has not yet formally received a response from the Saudi authorities, said a senior government official.

The Diamer Basha dam project is being constructed with a 30% equity and 70% debt ratio. The dam will generate around 18 billion units annually, with a capacity of 4,500 megawatts of electricity and a storage capacity of 6.4 million acre-feet of water. Pakistan has already begun work on the dam part of the project.

The prime minister has also instructed the use of Gwadar port for imports by public sector companies. However, the port is not fully functional due to missing infrastructure links. Many efforts have been made to expand the port’s operations.

Despite the lapse of many years, Pakistan has not been able to get the Gwadar Free Zone land vacated from the Navy and Pakistan Coast Guard.

The PM also instructed the framing of a policy to relocate Chinese textile and other labour-intensive industries to Pakistan to increase exports. However, these instructions have remained unimplemented for nearly a decade.

In the meanwhile, China did not wait for Pakistan and has already started relocating the industries to other regional countries.

Due to Pakistan’s failure to develop Special Economic Zones (SEZs) for Chinese industries, surplus electricity generation capacity has become one reason for expensive power.

The planning ministry said on Thursday that industrial cooperation is crucial for the second phase of CPEC’s high-quality development. The CPEC Framework Agreement on Industrial Cooperation has been signed, and efforts are being made to populate the Rashakai SEZ, Phase-I, with Chinese and other enterprises, it added.

Pakistan has decided not to seek more Chinese investment in the public sector, except for the $6.7 billion Mainline-I project of CPEC and hydropower projects.

On Wednesday, Islamabad referred the ML-I project to a higher body for approval amid the Ministry of Finance’s concerns about conflicts with the next International Monetary Fund (IMF) programme.

The PM also instructed the planning and finance ministries to address lingering payments of around Rs530 billion to Chinese power producers. He asked the Ministry of Finance to review financial space for releasing some of the delayed payments to Chinese power producers. Chinese companies have begun demanding Pakistan place funds in offshore bank accounts for energy debt repayments due to its weak financial position.

SOURCE: EXPRESS TRIBUNE

 

[FearlessRoar]

CPEC’s vitality for Pakistan in a hostile neighbourhood

The China-Pakistan Economic Corridor (CPEC) provides many opportunities for Pakistan and confronts it with daunting challenges too, putting to a hard test its political will for good governance and diplomacy. While Pakistan’s leaders are bound to address the aspirations of its federating units for equitable distribution of projects under CPEC, they have to foil attempts of hostile countries to sabotage the project.

The importance of the CPEC is underscored by economic and trade connectivity with Central Asia and beyond. The Central Asian region is rich in hydrocarbon resources, minerals and agricultural products, particularly cotton. The sprawling region bordering China, Afghanistan, Iran and Russia is landlocked and dependent on the seaports of China, Russia, Iran and Turkey, and potentially Pakistan.

Chinese and the Russian seaports are too distant to be profitable for these states. The Russian deep seaport of Vladivostok is at a distance of 9,500 kilometers. Though relatively a short distance away, the route to the Black Sea ports of Turkey passes through the conflict-ridden Caucasian states. The Iranian seaport of Bandar Abbas is also located at a distance of almost 5,000 kilometers, while the Gwadar seaport is only 2,700 kilometers from Tajikistan.

This equally applies to the existing and potential oil and gas pipelines to connect with South and Southeast Asia and the world market. Apart from the Soviet-era pipelines carrying oil and gas from Central Asia to Europe, Russia has sponsored the International South-West Transport Corridor along with Iran and some 20 Eurasian countries and India with routes and railways from Iran to the Russian Caspian port of Astra Khan.

The second option with Central Asian Republics is to lay oil and gas pipelines from the Caspian Sea to the Black Seaports of Turkey. The first pipeline on this route was operationalized in 2006. The third option for the outflow of their oil and gas is to use the route to Afghanistan-Iran-Pakistan to connect with the world market.

The Asian Development Bank estimated in 2006 that after the operationalization of this economic connectivity within greater Asia, the trade between Central Asian states and Afghanistan would increase to $12 billion with the creation of some 750,000 jobs and the GDP of China’s Xinjiang Uygur Autonomous Region would increase by 3 percent. The Eurasian Bridge being constructed by China beyond its Xinjiang to open direct trade links with Europe by overland transportation via Central Asia would considerably reduce the transit and freight charges of containers.

The road transportation of containers from China transiting through the Xinjiang region and Central Asia to Rotterdam would reduce transit time to 11 days from the present 20-40 days taken by the seaborne consignments with a considerable decrease in freight charges. This will give a tremendous boost to trade between Asia and Europe.

Strategically, Pakistan, Iran and Afghanistan enjoy vitally important positions compared to the other contenders in the new economic great game being played out in the Central Asian region. Pakistan is well placed to benefit enormously from the economic and commercial connectivity with the Central Asian region and the overland trade with Europe due to its connectivity with Xinjiang through the CPEC and Gwadar deep seaport.

The short transit period, short distance and reduced freight are important factors in promoting trade and transportation of commercial goods. The Gwadar port will potentially attract the bulk of the cargo transiting through Xinjiang to Europe.

The economic great game in the Central Asian region contextualizes the vital importance of the CPEC as a game changer for both China and Pakistan. It would link Pakistan directly with China and the Central Asian states and Europe giving a fillip to its geo-economics.

China has been relentlessly following some well-defined foreign policy objectives in the Asian region through bilateral and multilateral diplomacy to help ensure political stability and security in the region and create an alternative transport corridor to Europe through Central Asia.

No doubt, the opportunities potentially coming our way for trade and economic connectivity are enormous but the foreign policy challenges are formidable. We have to review our bilateral relations with Iran and Afghanistan.

Peace and stability in Afghanistan are vitally important for Pakistan. We should fully support international and regional endeavours to create inclusive governing structures in that country.

We also have to neutralize the hostilities to the CPEC from within and without. The U.S. and India are opposing the project. The security of the routes would be the main factor for Gwadar to flourish.

The main challenges at hand are to rehabilitate our economy; to get out of the vicious quagmire of debts, corruption and economic mismanagement and to overcome ideological, parochial and ethnic divides within the society.

CPEC's vitality for Pakistan in a hostile neighbourhood

The China-Pakistan Economic Corridor (CPEC) provides many opportunities for Pakistan and confronts it with daunting challenges too, putting to a hard test

arynews.tv

 

[Cricket Warrior]

Pakistan, China set to reinvigorate economic corridor project connecting Xinjiang to Gwadar

Ahead of Prime Minister Shehbaz Sharif’s visit to China from June 4, hopes are high in Islamabad that the flagging multibillion-dollar China-Pakistan Economic Corridor (CPEC) will be revived.

This is after a successful visit in mid-May by Deputy Prime Minister Ishaq Dar to Beijing, at which pledges were made by both sides to put the massive investment plan back on track after it has languished in recent years because of project delays, financial problems and a spate of deadly terrorist attacks on Chinese nationals working on the projects.

“We have achieved much of what we wished for from this visit,” Dar declared at a press conference on his return to Islamabad.

Earlier in Beijing, Chinese Foreign Minister Wang Yi at his joint press conference with Dar had said: “The two sides agreed to strengthen the docking of development strategies and build an upgraded version of CPEC.”

Muneeb Salman, a research associate at the Institute of Strategic Studies, said: “Dar has set the stage now and we expect to see meaningful developments in the CPEC during the upcoming visit of Prime Minister Shehbaz Sharif to Beijing.”

PM Shehbaz is expected to follow up on the recent progress made during Dar’s visit and seal further agreements when he travels to Beijing.

Apart from meeting Chinese President Xi Jinping, PM Shehbaz will be holding talks with Premier Li Qiang on topics such as upgrading the CPEC, advancing trade and investment and enhancing cooperation in security and defence, energy, space, science and technology, and education. He will also meet executives of Chinese companies in the fields of oil and gas, energy, information and communications technology, and emerging technologies, according to a statement from the Ministry of Foreign Affairs.

Pakistan, China set to reinvigorate economic corridor project connecting Xinjiang to Gwadar

Implementation has slowed down in recent years for various reasons that are a combination of economic and security factors.

www.dawn.com

 

[Cricket Warrior]

Pakistan, China agree to explore opportunities under CPEC

Prime Minister Shehbaz Sharif met with Communist Party Secretary of Shenzhen Municipal Committee and Deputy Party Secretary of Guangdong Provincial Committee Meng Fanli on Tuesday.

The PM noted that the deep-rooted ties between Pakistan and China were characterized by frequent engagement and dialogue at the leadership level, people-to-people contacts, cultural and educational exchanges.

He lauded the impressive economic growth and exemplary innovative spirit of Guangdong province. He also termed Shenzhen as a trade gateway for China's business linkages with Pakistan.

Reaffirming the time-honoured All-Weather Strategic Cooperative Partnership between Pakistan and China, the two sides agreed on the need to explore opportunities for increased cooperation between Pakistan and Guangdong province particularly under CPEC.

The PM and Party Secretary Meng Fanli underlined the importance of robust linkages and exchanges between scientists, innovators and businessmen to harness the true potential for enhanced partnership in science and technology, innovation and trade and economic cooperation.

They also agreed that Pakistan-China Business Conference to be held tomorrow can make an important contribution in this regard.


Dunya News

 

[FearlessRoar]

PM Shehbaz, President Xi agree to upgrade CPEC, advance development in second phase​

Prime Minister Shehbaz Sharif and Chinese President Xi Jinping held a productive meeting on Friday, reaffirming their commitment to the high-quality development of the China-Pakistan Economic Corridor (CPEC) and the timely completion of ongoing projects. They also agreed on upgrading CPEC and advancing its second phase.

The prime minister briefed President Xi on Pakistan’s policies for economic reform, industrial development, agricultural modernisation, and regional connectivity. He emphasised the critical role CPEC plays in Pakistan’s development, asserting Pakistan's commitment to fostering synergy between the development strategies of the two countries through close coordination.

The meeting took place at the historic Great Hall of the People, with both leaders accompanied by federal ministers and senior officials. This was PM Shehbaz's first meeting with President Xi since assuming office in 2024. The encounter was marked by traditional warmth, reflective of the strong friendship and close strategic ties between the two nations.

The prime minister thanked President Xi for the warm welcome extended to him and his delegation. He recalled President Xi's historic visit to Pakistan in 2015, which marked the formal operationalisation of CPEC, ushering in a new chapter in bilateral relations.

The leaders reaffirmed the "All-Weather Strategic Cooperative Partnership" and expressed their resolve to deepen cooperation across diverse domains, including political, security, economic, trade, and people-to-people exchanges. They also discussed regional and global developments, including the situations in Afghanistan, Palestine, and South Asia, particularly the human rights situation in Indian Illegally Occupied Jammu and Kashmir (IIOJK).

Both sides reiterated their longstanding support for each other’s core interests.

Commending President Xi’s Belt and Road Initiative (BRI) and Global Development Initiative (GDI), Prime Minister Shehbaz highlighted CPEC's significant contributions to Pakistan’s socio-economic development as the flagship project of BRI. He reiterated Pakistan's commitment to ensuring the safety and security of Chinese nationals, projects, and institutions in Pakistan.

The prime minister also noted that Pakistan's agenda for people-centric socio-economic development aligns with China’s concept of 'shared prosperity.'

President Xi Jinping hosted a banquet in honour of Prime Minister Shehbaz, during which another round of discussions on matters of mutual interest took place.

PM Shehbaz, President Xi agree to upgrade CPEC, advance development in second phase | The Express Tribune

Sharif also assures of Pakistan's support for security of Chinese nationals, projects, and institutions within the country

tribune.com.pk

 

[FearlessRoar]

Wet testing of CPEC's first hydropower unit kicks off​

The first unit of the China-built Suki Kinari Hydropower project in northwest Pakistan was started up and formally entered the wet testing phase on Sunday.

It marks that the project under the China-Pakistan Economic Corridor (CPEC) stepped into the final sprint stage and one big step closer to operation and power generation.

Cheng Dan, general manager of China Energy Construction Overseas Investment Company Ltd., which invests in and implements the project, told Xinhua that the first unit successfully passed a series of tests after starting up with a smoothly running state, and met the design requirements.

He said that the unit will pass through dozens of tests later, including a temperature stability test, to ensure that all technical indicators meet the design standards.

Located in the Mansehra district of the South Asian country's Khyber Pakhtunkhwa province, the hydropower project started construction in January 2017.

Once becoming functional this year, it will generate some 3.21 billion kilowatt-hours of clean electricity annually, replacing 1.28 million tons of coal and reducing 2.52 million tons of carbon dioxide emissions per year, according to the Chinese manager.

The project will effectively meet 20 percent of Pakistan's electricity deficit, he added.

Wet testing of CPEC's first hydropower unit kicks off | The Express Tribune

Located in the Mansehra district , the hydropower project started construction in January 2017

tribune.com.pk

 

[FearlessRoar]

Pakistan and China agree on five new corridors: Ahsan Iqbal​

Minister for Planning Development and Special Initiatives of Pakistan, Ahsan Iqbal, affirmed that Pakistan and China have reached an agreement on the establishment of five new corridors and the implementation of modern technology in the agricultural sector.

Speaking at the China-Pakistan Political Parties Forum, Iqbal stated “The new economic corridors being established under CPEC Phase II are part of the ES5 framework, which includes the Growth Corridor, Livelihood Enhancing Corridor, Innovation Corridor, Green Corridor, and Opening Up/Regional Connectivity Corridor. These align with Pakistan’s priorities for export-led growth, digital development, environmental sustainability, energy and infrastructure development, and equity and empowerment”

The planning minister emphasized the importance of CPEC for stability, regional connectivity, and economic development, noting the strategic significance of Gwadar Port for providing China with direct access to the Arabian Sea.

He highlighted the Pakistani government's commitment to ensuring the safety of Chinese officials, with measures in place for their protection.

The event, attended by high-ranking officials including Minister for International Department Central Committee of the Communist Party of China, Liu Jianchao, and Deputy Prime Minister and Minister for Foreign Affairs of Pakistan, Mohammad Ishaq Dar, underscored the strength of Pakistan-China relations and the pivotal role of CPEC.

During the 13th session of CPEC’s Joint Coordination Committee (JCC) on May 24, 2024, both countries agreed to modernize Pakistan’s agricultural sector with advanced technologies and to extend cooperation in B2B links, industrial cooperation, science and technology, artificial intelligence, and offshore oil and gas exploration.

Iqbal expressed profound gratitude to the Chinese leadership for their support in advancing CPEC and noted the launch of a Pakistani satellite via a Chinese rocket as a symbol of the deepening friendship. He reiterated that Pakistan-China relations transcend political changes and enjoy national consensus.

Pakistan and China agree on five new corridors: Ahsan Iqbal | The Express Tribune

New economic corridors to be established under CPEC Phase II as part of ES5 framework

tribune.com.pk

 

[Cricket Warrior]

Pakistan ready for new phase of CPEC: PM Shehbaz

Prime Minister (PM) Shehbaz Sharif on Friday reiterated that Pakistan was ready for the new phase of China-Pakistan Economic Corridor (CPEC) with a focus on industrial sectors and business-to-business collaboration.

The prime minister made these remarks while talking to a Chinese delegation headed by Minister of International Department of the Central Committee of the Communist Party of China Liu Jianchao in Islamabad tonight.

The Prime Minister said early completion and implementation of all ongoing and new projects of CPEC will play an important role in economic growth and overall development of Pakistan.

He expressed satisfaction that there is complete political consensus between the two countries on China Pakistan Economic Corridor.

PM Shehbaz Sharif said the Special Investment Facilitation Council (SIFC) is providing all possible facilities for Chinese investment in Pakistan.

He appreciated the vision of Chinese leadership to work together for continuous promotion of Pak-China strategic relations and the upgradation of CPEC.

Shehbaz Sharif said Pak-China friendship has stood the test of time and is indispensable not only for the two countries but for peace and development of the entire region and the world.

He congratulated the Chinese minister and his delegation and the political leaders of Pakistan on the successful organizing of Pak-China Political Parties Forum and the third round of the Joint Consultative Mechanism of Political Parties.

The Prime Minister emphasized the importance of regular exchange between the political parties of the two countries. He appreciated the support of Communist Party of China to further strengthen China’s iron-clad brotherhood with Pakistan.

Speaking on the occasion, Chinese Minister Liu Jianchao emphasized that Pakistan and China are iron brothers, strategic partners and most reliable friends.

He said China has accorded a special place to Pakistan in its foreign policy and will continue to support Pakistan’s economic development. He said China is ready to work jointly for upgraded version of CPEC.

He said Prime Minister Muhammad Shehbaz Sharif’s recent visit to China was very successful.

The meeting agreed to enhance government-to-government and business-to-business partnership between the two countries.

Deputy Prime Minister and Foreign Minister Ishaq Dar, federal ministers and Chief of Army Staff General Syed Asim Munir were also present in the meeting.

The Prime Minister also hosted a dinner in honour of the Chinese minister and his delegation.


ARY News

 

[FearlessRoar]

PM Shehbaz okays Pakistan-China JV project for industry relocation

Prime Minister (PM) Shehbaz Sharif on Wednesday gave the green light to the joint ventures between Chinese and Pakistani companies for relocating the Chinese industries to Pakistan.

Chairing a meeting to discuss the matters of the Board of Investment (BoI), he said that promoting both local and foreign investment in Pakistan was among the government’s priorities.

He said the government was taking all possible steps to create a business-friendly environment for traders and investors. The prime minister directed the concerned to submit a comprehensive report on the follow up of Memorandum of Understanding (MoUs) signed between Pakistani and Chinese companies in Shenzhen during his recent visit to China.

He also instructed a review of the draft law for the Special Economic Zones One Stop Shop in light of the developments following his China visit.

PM Shehbaz said there was significant potential for relocating China’s textile, leather, footwear, and other industries to Pakistan. Meanwhile, during the briefing, the BoI Secretary said that the steps were being taken to relocate Chinese industry to Pakistan.

It was told that the services of Chinese experts were being hired for establishing Business Facilitation Centre in the federal capital and the draft of “Easy Business Act” was being sent to Cabinet Committee for Legislative Cases.

The meeting was attended by Federal Minister for Privatization and Investment Abdul Aleem Khan, Federal Minister for Commerce Jam Kamal, Federal Minister for Finance and Revenue Muhammad Aurangzeb, Federal Minister for Petroleum Dr. Musadik Malik, Prime Minister’s Coordinator, Rana Ehsan Afzal and relevant senior government officials.

Earlier, it was reported that a delegation of Chinese experts from various fields is scheduled to visit Pakistan at the end of June, aiming to foster innovation, technology transfer, and capacity building.

In preparation for this visit, Federal Minister for Planning, Development, and Special Initiatives Ahsan Iqbal chaired a high-level meeting, under the directive of the prime minister.

Ahsan Iqbal directed the ministries to develop a comprehensive roadmap to maximize the benefits of the experts’ visit.

He said that the focus will be on capacity building of Pakistani experts through training and knowledge sharing, learning from China’s experience in innovation and technological advancements, adapting innovative solutions to Pakistan’s specific needs, and skill development in key sectors.

PM Shehbaz okays Pakistan-China JV project for industry relocation

ISLAMABAD: Prime Minister (PM) Shehbaz Sharif on Wednesday gave the green light to the joint ventures between Chinese and Pakistani companies for

arynews.tv

 

[Cricket Warrior]

Abdul Aleem Khan proposes enhanced trade links via CPEC to Azerbaijan

Ambassador of Azerbaijan, Khizr Faradov, met with Federal Minister of Privatization, Investment Board, and Communications, Abdul Aleem Khan, and discussed bilateral relations and economic cooperation.

During the meeting, the minister Khan highlighted the potential for Central Asian countries to benefit from the China-Pakistan Economic Corridor (CPEC), emphasizing Pakistan's commitment to enhancing trade and business ties with all Central Asian nations.

Abdul Aleem Khan said that Pakistan wants to promote bilateral trade and business activities with all the countries of Central Asia for which practical efforts have already been initiated.

Pakistan-Azerbaijan Bilateral Relations: Abdul Aleem Khan Highlights CPEC Benefits

Federal Minister Abdul Aleem Khan discusses bilateral relations with Ambassador Khizr Faradov of Azerbaijan, emphasizing Pakistan's commitment to enhancing ties and promoting trade with Central Asian nations through the China-Pakistan Economic Corridor (CPEC).

www.samaa.tv

 

[FearlessRoar]

CPEC contributed to sustainable development in Pakistan: Ahsan

Federal Minister for Planning, Development and Special Initiatives, Ahsan Iqbal says CPEC has significantly contributed to sustainable development in Pakistan by enhancing infrastructure and boosting energy production.

He was speaking at a panel discussion during the Second High-Level Conference of the Forum on Global Action for Shared Development in Beijing today.

The Minister said development of new highways and railways under CPEC has improved connectivity, facilitating trade and economic growth.

He said Pakistan is benefited immensely from learning about agricultural techniques from China and other countries.

The Minister extended his heartfelt thanks to President Xi Jinping for leading the path of sharing and collaboration, inspiring all the countries to work towards a common goal of sustainable development.

CPEC contributed to sustainable development in Pakistan: Ahsan

CPEC contributed to sustainable development in Pakistan: Ahsan

www.radio.gov.pk

 

[FearlessRoar]

Ahsan Iqbal pushes for swift CPEC 2.0 implementation​

Federal Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal, chaired a meeting on Thursday to assess the implementation of decisions regarding China-Pakistan Economic Corridor (CPEC) projects.

These decisions were particularly those made during Prime Minister Shehbaz Sharif’s recent visit to China.

“There is complete agreement between the leaderships of China and Pakistan on the second phase of the China-Pakistan Economic Corridor, also known as CPEC 2.0,” said Iqbal.

The minister said his visit to China last week was a continuation of the PM’s discussions with the Chinese president and prime minister, which focused on the strategic implementation of these decisions to ensure the success of CPEC 2.0.

Mentioning the global interest in China’s economic development model, he said world leaders were keen to benefit from China’s innovative approach. “As of 2018, Pakistan was the biggest beneficiary of China’s economic model and open market due to CPEC,” he remarked.

However, he said, progress slowed down after 2018, leaving Pakistan behind while other regional corridors completed their projects.

Despite these setbacks, Ahsan Iqbal stressed the continued importance of CPEC due to Pakistan’s strategic geographical position. He urged the Ministry of Railways to expedite the documentation and preparatory steps for the ML1 project.

“During my recent visit to China, we agreed to convene an early meeting of the Joint Financing Committee for the ML1 project, which will take place within a month,” he announced.

He stressed the need for full preparation by the Ministry of Railways and other concerned departments for this critical meeting. “Given CPEC’s unique status, there are ample growth opportunities. To capitalise on these opportunities, we must be serious about completing the projects included in Phase 2.0,” he added.

The minister also called for a collaborative effort from all relevant ministries and institutions to ensure the timely completion of CPEC projects. “The governments of China and Pakistan have agreed to start work on the ML1 project soon. The duration and stages of completion will be determined in the upcoming meeting of the Joint Financing Committee.”

Additionally, he urged the Railway and National Highway Authority (NHA) to prepare a comprehensive master plan for road construction across the region. “The master plan should outline how CPEC and Pakistan can play a pivotal role in connecting the entire region and serve as an engine of global economic growth,” he stressed.

Ahsan Iqbal pushes for swift CPEC 2.0 implementation | The Express Tribune

Pakistan and China renew commitment to CPEC; planning minister calls for enhanced preparation and cooperation

tribune.com.pk

 

[Bhaijaan]

Now that the crooked Imran Khan has been ousted and the right proudness government is in power, I am
Expecting CPEC to pick pace. This project can not only pull Pakistan out of economic turmoil but can potentially help it make a top economy in the next decades to come. Good luck to citizens of Pakistan.

 

[JaDed]

What does the project do should be the question…

 

[BouncerGuy]

Pakistan commits to expanding CPEC at UN meeting

Pakistan has reaffirmed its dedication to accelerating and expanding the China-Pakistan Economic Corridor (CPEC), with plans to extend its benefits to Afghanistan for enhanced regional peace and security.

Speaking at the UN Security Council debate on cooperation between the UN and regional organizations in New York on Friday, Pakistan's Permanent Representative to the UN, Ambassador Munir Akram, emphasized the significant impact of connectivity projects through Afghanistan on regional stability.

Ambassador Akram expressed regret that the ambitions of one large state for regional dominance had undermined the potential of the South Asian Association for Regional Cooperation (SAARC).

He called for increased regional integration by adhering to UN principles and highlighted the importance of regional and inter-regional initiatives, in collaboration with the UN, for fostering cooperation and understanding in peace, security, and economic development.

On July 18, Federal Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal, chaired a meeting to assess the implementation of decisions regarding the China-Pakistan Economic Corridor (CPEC) projects.

These decisions were particularly those made during Prime Minister Shehbaz Sharif’s recent visit to China.

“There is complete agreement between the leaderships of China and Pakistan on the second phase of the China-Pakistan Economic Corridor, also known as CPEC 2.0,” said Iqbal.

The minister said his visit to China last week was a continuation of the PM’s discussions with the Chinese president and prime minister, which focused on the strategic implementation of these decisions to ensure the success of CPEC 2.0.

Mentioning the global interest in China’s economic development model, he said world leaders were keen to benefit from China’s innovative approach. “As of 2018, Pakistan was the biggest beneficiary of China’s economic model and open market due to CPEC,” he remarked.

EXPRESS TRIBUNE

 

[Aang_The_last_airbender]

CPEC is a funny topic to get the reality of it. West and Indian analysis will always be painting it in negative light. Chinese and Pak establishment will talk about friendship deeper than seas and higher than mountains. Infra projects are hard to judge within the first few years of development and we also had covid years that threw spanner worldwide.

But paradoxical I find are the views of die hard Imran Khan fans. If IK is pro-Pakistan and was trying to get better terms out the Chinese, the current CPEC deals should be against Pakistan's well being. How do you get around this conflict?

 

[BouncerGuy]

CPEC transformed Pakistan into attractive investment destination: minister

Minister for Planning, Development and Special Initiatives Ahsan Iqbal on Wednesday said Pakistan would have been on the brink of collapse had it not been for China Pakistan Economic Corridor (CPEC), which turned it into an attractive investment destination.

He was speaking at a seminar titled, ‘CPEC 2.0: Prospects and Challenges’ organised by the Institute of Regional Studies (IRS). The event focused on CPEC, its second phase as well as the emerging opportunities.

Senator Mushahid Hussain Syed, Minister Counsellor at the Chinese embassy Yang Nuo, economist Dr Ashfaque Hasan Khan, diplomats, academicians and researchers also attended the seminar.

Mr Iqbal said the strong bond of trust and shared vision that existed between China and Pakistan enabled them to overcome initial challenges.

“Now as we enter the second phase of CPEC, the focus will be on industrial collaboration, regional connectivity and socioeconomic development,” he said.

The minister went on to say that peace, political stability, continuity of policies and “unity as one nation and one team” were necessary for the success of CPEC.

“CPEC 2.0 aims to enhance technologies, create job opportunities and ensure food security through agricultural mechanisation,” he said, adding that “as we embark on this journey, it represents a critical opportunity for Pakistan to build a brighter future for generations to come”.

Speaking on the occasion, Senator Mushahid Hussain Syed said the centre of power was shifting from the West to the East.

China is becoming a scientific superpower, contributing 40pc of research in Artificial Intelligence (AI) and establishing top-ranking universities, he said.

Senator Syed said China’s diplomacy and role in the world had also broadened, adding that Beijing viewed its relationship with Islamabad as a strategic long-term partnership based on mutual trust and cooperation.

He also spoke about attempts made by hostile elements who wanted to sabotage CPEC.

Yang Nuo said the second phase of CPEC was poised to generate new momentum for Pakistan’s development, building on the project’s success over the past 11 years, which had attracted $25 billion in investments and transformed the country’s economic and social landscape.

“Chinese President Xi Jinping and Pakistani leaders have reached a consensus on advancing integration and enhancing Pakistan’s economic and social development through the second phase of CPEC,” Yang Nuo said.

“Joint efforts would focus on developing Special Economic Zones (SEZs), accelerating project implementation and increasing Pakistan’s agricultural exports to China,” he added. This, he said, would contribute to both China’s modernisation and Pakistan’s growth.

Principal and Dean of Social Sciences and Humanities at Nust Dr Ashfaque Hassan Khan said CPEC was a comprehensive project that aimed at promoting connectivity, regional cooperation and integration.

“Its success is reflected through the participation of over 150 countries and 40 international institutions, underscoring its potential as a regional initiative,” Dr Khan said.

An academician from Fudan University, Prof Zhang Jiadong, emphasised on the importance of dispelling propaganda regarding Chinese companies and focusing on frameworks to create more jobs and business opportunities.

Associate Professor at Bahria University Dr Hasan Daud Butt said urban-rural synergy was crucial for the success of CPEC Phase 2.0, citing the example of Hakla-D.I. Khan Road as an illustration of this synergy.

Executive Director of the Pakistan Research Centre for a Community with Shared Future Khalid Taimur Akram said Pakistan should explore other regional corridors and their integration with CPEC to promote regional connectivity and leverage its role as a regional hub for trade and connections, aligning with the 5Es framework of development.

Earlier, in his welcome remarks, IRS President Ambassador Jauhar Saleem said the all-weather strategic cooperative partnership between Pakistan and China had reached new heights with the launch of CPEC 2.0, which focused on high-quality development, technological innovation and sustainable growth.

“CPEC 2.0 offers great opportunities for job creation, youth empowerment and economic growth, provided security and institutional challenges were addressed to ensure productive investments,” he said.

DAWN

 

[Bhaijaan]

If there was ever a thing I was jealous of Pakistan it was CPEC because I would have wanted Bharat to be part of it but both nations conspired against us to keep us out of it.

While Pakistan and China are pointed to make trillions of dollars in the future from CPEC, Bharat won’t be able to join the party and would only be able to look at it from distance.