ISLAMABAD: Pakistan and China on Thursday agreed to implement the Main Line-1 (ML-1) railway project at an estimated cost of $10 billion.
The Joint Coordination Committee (JCC) also decided to conduct business-to-business deals under the China Pakistan Economic Corridor (CPEC). Pakistan will also request restructuring of its $27 billion debt and rollover of deposits.
During the meeting, Pakistan assured China that several measures will be taken for the security of the Chinese working under the CPEC projects. Both sides have agreed to increase cooperation in information technology and it was decided that Chinese companies will set up research centers in Pakistan to explore new avenues in this sector.
Pakistan and China practically held the meeting of the 11th JCC but both sides could not sign the minutes of the meeting. It was expected that the minutes of the meeting would be signed during the upcoming visit of Prime Minister Shehbaz Sharif, who will visit China with a high-powered delegation from November 1, 2022.
The CPEC meeting was held in Islamabad in which both the parties expressed satisfaction over the ongoing projects under CPEC while several other projects were also proposed. The meeting was jointly chaired by Planning Minister Ahsan Iqbal and Vice Chairman National Development and Reform Commission (NDRC) China, Lin Ningshiu.
In his welcome address, the Prime Minister said that CPEC under the leadership of Prime Minister Shehbaz is at the top of the national priorities. The meeting was also informed that another 3,100 MW, which achieved 90% milestone for FC (700 MW Azad Patan HPP, 1,124 MW Kohala Hydel Project and 1,320 MW Thar Coal Block-I) taken, will be finalized as soon as possible. Close to the projected target of 1,7000 MW.
It was also highlighted that about 888 km of motorways and highways projects were constructed with both Chinese and local financing (another 853 km under construction through local financing). KKH-Thakot-Havelian, one of the flagship projects in the sector, has received international acclaim.
Similarly, another priority project, the Karachi Circular Railway (KCR), was discussed at length, which would benefit a large section of Karachi’s population. The two sides have also agreed to take up the ML1 project to build the Karachi to Peshawar rail link, which was considered the backbone of CPEC and was neglected in the past. It was agreed to include the new sector of “Water Resource Management and Climate Change” which will be of great importance, especially after the recent floods that badly affected Pakistan.
Similarly, both sides agreed to explore new avenues in the mining sector and it was decided to form a new working group to explore the sector. The Government of Pakistan has also initiated an initiative to add 10,000 MW of solar power to the system. Pakistan requested China to create a financing window or credit line for Chinese companies participating in the project.
Cooperation in agriculture sector was also discussed in the meeting. The Government of Pakistan has presented several new proposals, which are expected to be signed soon, including post-disaster reconstruction, global development initiatives, strengthening digital investment in the economy, 1+5 arrangements for SEZs, geological A contract is included between the systems. Cooperation to develop the surveying institutions of both countries and Pakistan’s export potential.
Similarly, a framework agreement for single window cooperation in domestic trade was also proposed. Pakistan also proposed a mechanism for a new sector of water resources management and climate change in the framework of CPEC, considering Pakistan’s increasing vulnerability to climate events.
Iqbal highlighted three main objectives in the meeting which were revival of CPEC, inclusion of new projects to expand CPEC portfolio and thirdly business-to-business cooperation, which was earlier government-to-government.
