Mohsin Siddiqui (Chief Reporter)
Prime Minister Shahbaz Sharif has mandated the Ministry of Foreign Affairs (MoFA) to finalize the modalities for third-party projects under the China Pakistan Economic Corridor (CPEC) within one week. This directive aims to enable investment from other countries into CPEC projects, broadening the initiative’s scope and impact.
Prime Minister Shahbaz Sharif is scheduled to visit China in the first week of June 2024, prior to the presentation of the federal budget for 2024-25 in Parliament. During this visit, the Prime Minister plans to engage in discussions with senior Chinese leadership on a wide array of topics, including CPEC, the development of Gwadar, trade and investment, financial relationships, mineral cooperation, ICT, agriculture, science and technology, and the security of Chinese nationals in Pakistan.
The Prime Minister has instructed the Secretary of Foreign Affairs to complete the necessary paperwork for third-party projects in CPEC before his official visit to China. The goal is to solidify the framework that will allow other countries to invest in CPEC, thereby enhancing the project’s regional connectivity and economic impact.
Prime Minister Shahbaz Sharif is expected to propose the inclusion of the Diamer Bhasha Dam into the CPEC framework during his discussions with Chinese officials. The expansion of CPEC aims to improve connectivity between neighboring countries and regions with Pakistan’s seaports, facilitating broader regional integration through enhanced land route transportation.
The second phase of CPEC will emphasize business-to-business (B2B) cooperation, excluding the Main Line (ML) and hydropower projects. The Board of Investment and the Ministry of Planning, Development, and Special Initiatives are tasked with creating mechanisms to foster B2B partnerships.
The draft shared by the Chinese side for the CPEC Joint Working Group (JWG) on International Cooperation and Coordination, several principles and objectives for third-party participation in CPEC have been outlined:
The Ministry of Finance has been directed to review financial options for releasing delayed payments to Chinese Independent Power Producers (IPPs), which have now accumulated to Rs 500 billion. The Secretary of Finance is tasked with organizing a meeting to address this issue.
The security of Chinese nationals working in Pakistan has also been prioritized. The Ministry of Interior, along with relevant stakeholders, has been instructed to thoroughly review and enhance existing security measures, ensuring the safety of Chinese personnel.
The Ministry of Foreign Affairs and other relevant ministries are finalizing draft Memoranda of Understanding (MoUs) and framework agreements to be signed during the Prime Minister’s visit to China. An inter-ministerial meeting has been convened to finalize talking points, briefing materials, and the list of agreements to be signed.
Prime Minister Shahbaz Sharif plans to engage with various Chinese entities and visit key facilities, including an exemplary Special Economic Zone (SEZ), a one-window operation facility, Power China, the China-Pakistan Friendship Forum, an agricultural research center, and an IT center.
The Prime Minister has instructed the Secretary of Commerce, the Secretary of Industries, and the Secretary of Maritime Affairs to ensure that Gwadar Port is utilized for imports by public sector entities. This directive aims to enhance the operational use of Gwadar Port, promoting its development and strategic importance.
The Board of Investment has been tasked with devising a policy framework to encourage the relocation of Chinese textile and other labor-intensive industries to Pakistan. This move is intended to boost Pakistan’s exports and create employment opportunities, leveraging the economic synergies between the two nations.
