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Pakistan has no debt fears arising out of CPEC: PM Abbasi

DAVOS: Prime Minister Shahid Khaqan Abbasi said Pakistan didn’t have any debt fears arising out of the China-Pakistan Economic Corridor (CPEC).

In an interview to the Nikkei Asian Review on sidelines of World Economic Forum (WEF) in Davos, Abbasi stated regarding loans linked to CPEC projects, an independent body would shoulder the loan majorly and it wouldn’t necessary contribute to a rise in national debt.

Also, Abbasi stressed fears of a Chinese “debt trap” were compounded and misled. He added the CPEC had two core components, one financial sustainability and second environmental conservation and all projects were being established on these two fundamental principles.

PM Abbasi noted infrastructure development under CPEC alongside improved public security would improve global trust in Pakistan and allow foreign entities not only Chinese ones to invest with confidence.

He said economic benefits would also be reaped from improvement in power generation, lower-cost transportation and added development of Gwadar Port in Balochistan would also benefit other neighbouring countries in Central Asia.

Regarding Pakistan’s economic growth during current financial year 2017-18, Abbasi stated the rate of economic growth would be higher than FY 2016-17 when it grew by 5.3 percent, the quickest in almost a decade.

Furthermore, Abbasi said exports had shown reasonable growth in last six months and despite rupee devaluation and rise in oil prices, inflation remained under control. He predicted economic growth could possibly reach around 6 percent.

Source: https://profit.pakistantoday.com.pk/2018/01/26/pakistan-has-no-debt-fears-arising-out-of-cpec-pm-abbasi/

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All CPEC projects including ML-I are progressing smoothly: PD

ISLAMABAD: Progress on all projects under China Pakistan Economic Corridor (CPEC) including up-gradation of Main Line-1 (ML) railway track is going smoothly and without any delay, Project Director (PD) of CPEC, Hassan Daud Butt Thursday said.

Talking to APP, he said progress of all the projects that were agreed by the both China and Pakistan during 7th Joint Coordination Committee (JCC) on CPEC held here on November 21, 2017 was on track as both sides were committed to complete the projects as early as possible.

Responding to a question regarding possible delay in the $8.2 billion ML-1 project, the project director said earlier due to huge implications in the project, the revised PC-1 of first phase got delayed, however he said ministry of railways had assured to submit the PC-1 of phase-1 by February 20, therefore groundbreaking of the project was likely to be launched in few months as per announcement made by Minister for Planning Ahsan Iqbal last month.

He said the ministry of planning had also sought time from cabinet committee on CPEC to discuss details of the project in next meeting and discussion would help further boosting the progress of project.

Giving details about preliminary design review of the project, Butt said work scope of phase-1 sub projects had already been completed. Similarly, he said work of standards and specifications, BOQs, and cost estimates both local and foreign had also been finalized.

He said now approval of PC-1 and award of Engineering, Procurement and Construction (EPC) would be given on fast track to ensure ground breaking of the project as early as possible.

The phase-1 of ML-1 project consists of seven priority sub-projects with three contract packages including Lahore-Multan (334 km), Khanewal-Pindora (52 km), Nawabshah-Rohri (183 km), and Peshawar-Rawalpindi (159 km), Taxila-Havelian (55 km) while establishment of a dry port near Havelian is also part of the project.

Under the project the entire track from Karachi to Peshawar would be made doubled and speed of passenger trains would be raised from existing 80 km per hour to 160 km per hour while freight trains would run at speed of 120 km per hour.

Moreover, signaling and control system of railways would be computerized whereas safety of train operations would be ensured by grade separation.

After completion of the project, freight traffic would be increased from five to 25 million tons per annum by 2025, and passenger traffic is likely to be increased from 55 to 80 million passengers per annum, official documents available with APP suggested.

Keeping in view the importance of Railway sector, the government decided to include the ML-1 project in CPEC and in the 6th JCC meeting held in Beijing in 2016, this project was declared ‘Strategic’. Framework Agreement on ML-1 was signed on May 15, 2017 while commercial contract for preliminary design was singed on May 2017, the documents added.

Replying to a question regarding progress on construction of Special Economic Zones (SEZs) under CPEC, Hassan Daud Butt said the governments of Pakistan and China were actively engaged for early completion of all nine SEZs in one each in federal capital, all provinces and special areas of Azad Jammu and Kashmir, Gilgit Baltistan, and Federally Administered Tribal Areas (FATA).

He informed that a Chinese special business delegation was visiting Pakistan next month to review progress of CPEC projects. He said the delegation would interact with government officials, local trade bodies besides it would also visit all the provinces to ensure expedited work on SEZs.

Regarding progress on Karachi Circular Railway, he said government of Sindh and Chinese government were directly and actively engaged on the project to ensure early launch of groundbreaking of the project.

Source: https://profit.pakistantoday.com.pk/2018/02/09/all-cpec-projects-including-ml-i-are-progressing-smoothly-pd/

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Rs 10bn worth benefits given to Chinese firm through tax exemption

ISLAMABAD: Senate’ Standing Committee on Finance, Revenue, Economic Affairs and Narcotics Control informed that around Rs 10 billion worth benefits were given to a Chinese company working on the Multan-Sukkur Motorway in the form of tax exemptions.

Considering the Calling Attention Notice moved by Senators Muhammad Daud Khan Achakzai, Muhammad Mohsin Khan Leghari, Barrister Murtaza Wahab, Sitar Ayaz, Sassui Palijo, Nauman Wazir Khattak, Mukthiar Ahmed Dhamrah Aajiz, Kamil Ali Agha, Saleem Mandviwalla, Ahmed Hassan, Farhatullah Babar and Ilyas Ahmed Bilour regarding the issuance of SRO 47(1)12018, dated January 23, 2018, the committee asked the Federal Board of Revenue (FBR) that how the Chinese firm was given exemption depriving the local firms.

Pakistan Peoples Party (PPP) Senator Murtaza Wahab stated that the FBR granted this exemption at a time when the construction work was only 37 per cent complete without seeking approval of the federal cabinet. He said as per the constitution FBR has no right to issue SRO especially benefiting a foreign firm.

FBR Inland Revenues (IR) Policy Member Dr Iqbal replied that the Economic Coordination Committee (ECC) approved the exemption for this Chinese construction company which was later on ratified by the federal cabinet.

On the question of granting exemption after completion of 37 per cent work of the project, the FBR replied that this summary was moved by the Ministry of Communication so only they can give a reply to this question in more detail. The committee decided to summon the high-ups of the Ministry of Communication for seeking further details about this project in the next meeting.

Senator Nauman Wazir Khattak informed the committee that the Supreme Court (SC) judgment clearly defines that the federal cabinet is the competent authority to issue SRO and recommended the finance committee to declare the said SRO illegal.

According to him, former finance minister Ishaq Dar had categorically stated on the Senate floor that all imports of China-Pakistan Economic Corridor (CPEC) would be non-discriminatory and no specific exemptions for CPEC projects for import of material would be given to Chinese companies.

At least 30 per cent work on Multan-Sukkur M5 Motorway has been completed and now the Chinese company is being given exemption from government duties whereas, in the original tender documents and the tender awarded to the company, the said duty was included in the project cost. In the original bid documents, all government duties were included. Exempting these duties at this point in time is unfair and unjust with other bidders who took part in the bid.

According to Khatak in the initial PC-1, the Bill of Quantities (BoQ) and specifications were different and in the final award, the BoQs have been reduced without informing other bidders and getting their rates as per the changed BoQs.

“The tender was floated and the bid was received a number of times, wherein there is a dramatic variation in the prices. Finally, the price was negotiated and BoQs were changed for this specific company. This is a violation of PPRA rules,” he said and recommended NAB to investigate all such matters.

Source: https://profit.pakistantoday.com.pk/2018/02/01/rs-10bn-worth-benefits-given-to-chinese-firm-through-tax-exemption/

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CPEC’s HEC building education city in Gwadar

QUETTA: The Higher Education Commission (HEC) unit of China-Pakistan Economic Corridor (CPEC) held a special consultative meeting to review the ongoing government university and educational city projects in Gwadar.

“Establishment of Government University Gwadar in due time and duration is an important target for all of us,” said HEC head Lt Gen (retd) Mohammad Asghar at the Balochistan University of Information Technology Engineering and Management Sciences (BUITEM).

Members of Technical Review Committee, BUITEMS Vice Chancellor Dr Ahmed Farooq Bazai, University of Turbat Vice Chancellor Professor Dr Abdul Razaq Sabir, Quaid-e-Azam University Professor Dr Zafar Nawaz, Balochistan Higher Education Secretary Abdula Jan, senior professors of universities and other government officials were also present on the occasion.

“Best teachers and faculty will be appointed on merit only,” the HEC head said.

The committee discussed employment opportunities which would be provided after completion of the CPEC projects. Special focus was made on provision of technical training to the youth of Gwadar.

In the meeting, comprehensive consultation was conducted for construction and establishment of world class government university in Gwadar and launch of certain educational and technical training programmes and courses.

The consultation process included heads of many government departments, universities, and other institutions of Balochistan so that the people of Balochistan could benefit from the completion of CPEC.

BUITEM vice chancellor said, “Youth and students of Balochistan are not lesser than any of us. We have to equip Baloch youth technically in order to promote economic rehabilitation of the local people.”

Earlier, Bazai had welcomed the meeting’s participants and gave a comprehensive briefing on the modern facilities available at BUITEM.

Source: https://www.cpecb.com/cpecnews/cpecs-hec-building-education-city-gwadar/

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PM inaugurates free trade zone, first international Gwadar expo

QUETTA: 

Prime Minister Shahid Khaqan Abbasi has told the Balochistan government to draw plans for the development of the coastal areas of the province and promised federal government’s full cooperation in this regard.

Addressing the opening ceremony of the two-day Gwadar Expo in Gwadar, the prime minister announced an ‘Equalisation Package’ for Balochistan under which the federal government would provide 50% funding for development works in every district of the province.

“[A] free zone is an integral part of the Gwadar port and with it, the Gwadar port project will pave the way for the speedy development of Balochistan and create ample jobs opportunities,” Prime Minister Abbasi told the ceremony.

“The Equalisation Package will ensure the provision of equal facilities in all districts of the province to achieve the goal of sustainable development,” he said.

The PM said it was incumbent upon the Balochistan government to find solutions to its problems and meet the challenges. As far as federal government was concern, he added, it would provide all help and facilities to the province.

He described the China-Pakistan Economic Corridor (CPEC) as “the most important initiative of our generation and the most visible part of the Belt and Road Initiative”. He added the project was the realisation of the vision of Chinese President Xi Jinping and former prime minister Nawaz Sharif.

CPEC to promote connectivity, shared prosperity in region: China

“The CPEC is a reality now,” Abbasi said, adding that under the project, motorways and highways were linking Gwadar and Khanjrab and Peshawar and Karachi. He added that railway lines were being modernised, power projects were being established and special economic zones would generate employment.

The Gwadar Expo is being jointly organised by the Gwadar Development Authority and the China Overseas Ports Holding Company (COPHC). It aimed at providing a platform for interaction between local, foreign private sector and government officials for exploring investment opportunities.

On the occasion, Chinese Ambassador to Pakistan Yao Jing reaffirmed his country’s support for Pakistan for its progress and prosperity. “Chinese businessmen will continue to invest in the developmental projects of Gwadar,” he said.

COPHC Chairman Zhang said the development of Gwadar would not only help improve the local economy but also the overall economic conditions of the country.

CPEC will transform Pakistan into commercial trading centre, Chief of Naval Staff

Ports and Shipping Minister Mir Hasil Khan Bizenjo, Chairman Joint Chiefs of staff Committee General Zubair Hayat, Commander Southern Command Lt Gen Asim Saleem Bajwa, provincial ministers Sarfraz Bugti and Asim Kurd were also present at the ceremony.

Source: https://tribune.com.pk/story/1621031/1-pm-inaugurates-free-trade-zone-first-international-gwadar-expo/

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Pakistan demands relaxed tariffs from China under ASEAN

ISLAMABAD: As Pakistan and China are going to hold another round of talks on revising Free Trade Agreement (FTA) next month, Pakistan has demanded relaxed tariffs from China under Association of Southeast Asian Nations (ASEAN) to relatively balance bilateral trade.

“China will extend every support to Pakistan treating it as a friendly and neighbouring country. We can give maximum relaxation on trade but to the extent of what the market allows,” Chinese ambassador to Pakistan Yao Jing said while addressing a news conference along with Minister for Commerce and Textile Industry Pervaiz Malik here on Tuesday. The envoy said Pakistan as a neighbour, definitely occupies a special position in China’s policy, adding that China will do whatever is required to promote Pakistan’s exports.

“The difficulty we face is to identify items to be imported from Pakistan. This is why I suggest Pakistani exporters to visit China for exploring its commodity markets. Similarly, China will like to send purchasing delegations to identify more items for the bilateral trade,” he further added.

“China will love to buy Pakistani products and will endorse whatever competitive products Pakistan introduces in the Chinese markets,” he said.

The Chinese ambassador said that “This year Pakistan and China will hold another round of FTA. I understand that there are concerns from private sector and manufacturers on Pakistan’s side on the FTA. China considers Pakistan a special partner and it will never like to damage its industry through this kind of bilateral agreement. Our intention is to have a more convenient and facilitating mechanism of bilateral trade. We want to encourage and facilitate trade cooperation on principles of following Pakistan’s convenience, concerns and satisfying its requirements.”

Yao Jing informed that he had discussed with the Commerce Minister some ideas to ‘ease and relax’ visa mechanism for Pakistani businessmen especially exporters so that they can have a better understanding about trade opportunities in China.

He further informed that the Chinese embassy and counsellor generals would have regular meetings with the Ministry of Commerce to encourage all exporters and businessmen to further strengthen the bilateral trade.

Answering a question, the envoy assured that the Chinese government would accommodate and extend maximum concessions possible to Pakistani products under the FTA.

The envoy said that in the long term, China will support Pakistan establish special economic zones which would help increase Pakistan’s capacity to manufacture quality products for export to international markets.

He also sought specific suggestions from Pakistan to attract Chinese manufactures to invest in Pakistan’s industrial sector.

Replying to a question, the Commerce Secretary Muhammad Younus Dhaga said that the last round of the FTA held in Beijing was very positive as the issues highlighted by Pakistan were taken well by the Chinese side. He said Pakistan has demanded the relaxation of tariff on a number of items as per the treatment given to ASEAN members by China.

Meanwhile, Chinese ambassador invited Pakistan to attend a six-day international ‘Import Expo’ scheduled to be held at its National Exhibition and Convention Centre, Shanghai from November 5 to 10 this year.

Source: Pakistan Today, 23rd January 2018.

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Gwadar Development Authority suspends 100 housing schemes

GWADAR: Though the mushrooming real estate companies are advertising plots at Gwadar, the Gwadar Development Authority (GDA) has suspended around 100 housing schemes for changes in master plan.

According to details, China will revise the master plan of Gwadar city, for which a joint committee of Gwadar Development Authority (GDA) is reviewing the development of master plan after every six months. The decision of suspending the housing schemes was taken by the authority to avoid the haphazard construction in the area.

Talking to Pakistan Today, Gwadar Development Authority (GDA) Director General (DG) Dr Sajjad said that the private real estate firms will remain suspended till formulation of the master plan. The plan is expected to be ready by August 14, 2018.

He said that the master plan of the city is being developed at 290,000 acres of land, out of which private housing societies own almost 16,000 acres. Out of the 290,000 acres, 160,000 acres will be allocated for the residential area.

According to the DG, an ‘oil city’ is also being developed in Gwadar at 80,000 acres of land for which PC-I have been prepared. Replying to a question, he said that apart from the private housing societies, Pakistan Navy holds 1,400 acres for constructing a naval academy in Gwadar.

According to a source, 70 per cent of Gwadar’s land is now in private hands.

Earlier, the Planning Commission had initiated the process to launch a project for developing Gwadar as an integrated ‘smart port city’. The plan was aimed to leverage information technology-based solutions to boost economic productivity and quality of life of citizens of Gwadar, whilst minimising resource consumption and pollution.

With the inclusion of the port in the China-Pakistan Economic Corridor (CPEC) project, there is an urgent need to update the existing plan to reflect the new strategic direction.

As per documents, the current master plan of Gwadar city, last updated in 2005, has two interdependent elements: the port and the city of Gwadar. The strategic focus on simultaneous development is primarily due to the natural and symbolic relationship that exists between a port and the city that surrounds it; one cannot be developed without the other.

A shortage of resources, non-fulfilment of concession agreements by the Pakistan government and the original concessionaire – the Port of Singapore Authority – and the limited commercial activity in Gwadar city have together retarded the development of the port over the last few years.

As of 2013, the concession for the port has been awarded to a Chinese operator who is in the process of updating the port master plan. Under the new plan initiated by the Planning Commission, the port will be considered as a separate entity from the city.

The new plan is also designed to update the existing master plan of Gwadar city, and develop strategies for the establishment of Gwadar as a preferred economic and lifestyle destination.

The plan will be based on inclusive and sustainable strategic development to ensure the socio-economic uplift of the Makran coast in general and the Gwadar region in particular. The plan will recommend regulatory interventions and ways and means to develop Gwadar as a special economic zone (SEZ), and ensure short-term economic growth, including trickle-down effects.

It would also suggest strategies to facilitate trade, tourism, community participation, public-private partnerships and industrial and economic development on a national and regional level.

Source: Pakistan Today, 20th January 2018.

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