Islamabad to propose – Amid growing security concerns and the accumulation of circular debt of Chinese independent power producers (IPPs) amounting to Rs 570 billion, Pakistan has decided to propose the next Joint Cooperation Committee (JCC) next month in Islamabad in the framework of the China-Pakistan Economic Corridor (CPEC).
The proposed JCC meeting is expected to be held in Islamabad on May 23-24, just before the visit of the high-level official delegation to China under the leadership of Prime Minister Shehbaz Sharif.
The government on Friday convened a high-powered meeting of relevant ministries/divisions and departments to prepare for the next meeting of the JCC in which it was decided that Pakistan would propose a next meeting on May 23-24 subject to the consent of the Chinese side. Planning Minister Ahsan Iqbal chaired the meeting.
Pakistan is ready to propose to the Chinese side to shift coal power plants from imported coal to local coal to reduce the cost from $1.5 billion to $500 million. The government wants to divert the billion dollars saved towards paying off the circular debt of the Chinese IPPs.
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Islamabad to propose:
Iqbal outlined the addition of five corridors for future collaboration, with emphasis on job creation, innovation, green energy & inclusive regional development. The projects under scrutiny included ML-1, the Thakot-Raikot section of KKH, Gwadar Airport, Orange Line & KCR. Recommendations for new projects and initiatives were encouraged to be submitted to the JCC for consideration. The minister suggested forming a competent team to ensure readiness for negotiations in China.
National Highway Authority officials revealed that the cabinet had sanctioned an MoU for free feasibility studies of four projects: Mirpur-Muzaffarabad-Mansehra highway; Babusar tunnel on the N-15 highway; DI Khan-Zhob section on the N-50 highway and New Karachi-Hyderabad Expressway. These projects are set to substantially reduce transportation costs. Islamabad to propose
Reviewing the progress of infrastructure projects in Gwadar, it was confirmed that Phase I of the Gwadar Expressway is complete and operational, while work on Phase II will begin shortly.
Shehbaz is expected to visit China in June, where Islamabad will strive for a breakthrough in the completion of the much-delayed Mainline-1 (ML-1) project for the construction of the rail link under which the revised project cost for the first phase has been estimated at $6.9 billion. The revised PC-1 of ML-1 is ready and is expected to get approval from relevant forums, including the Central Development Working Group (CDWP) and Ecnec, ahead of the prime minister’s upcoming visit to China. Islamabad to propose
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It has now been agreed that Islamabad will accept ML-1 financing in Chinese currency (RMB) instead of requiring 50 percent of the amount in US dollars.
Senior official sources said the Chinese side was expressing concern over the recent Dasu terror attack on Chinese engineers and raising concerns over the overall Standard Operating Procedures (SOPs). There are three categories of Chinese citizens staying in Pakistan: the first under CPEC projects, the second under non-CPEC projects & the third are independent Chinese citizens. The Chinese are asking to review and improve the SOPs of the three categories and ensure foolproof agreements for them.Islamabad to propose
Another issue that could be discussed is the growing outstanding amount of Chinese IPP circular debt, which now stands at Rs 570 billion and would exceed Rs 600 billion if the figures were reconciled. Islamabad to propose