$ 25 billion Chinese investment in Pakistan brought prosperity: CPEC preparatory meeting

Gwadar Pro

Islamabad: Pakistan has acknowledged that an influx of approximately US $ 25 billion of Chinese investment under the China-Pakistan Economic Corridor (CPEC) between 2013 and 2018 put several Pakistani sectors on the highway of prosperity.

The observation was made during a high-level meeting here chaired by Planning Minister Ahsan Iqbal. The event served as the preparatory meeting for the CPEC, preceding the 13th Joint Cooperation Committee (JCC) summit and an imminent high-level delegation visit to China.

Minister Ahsan Iqbal underscored the substantial success witnessed by Pakistan between 2013 and 2018, marked by an influx of approximately US $ 25 billion of Chinese investment within the framework of CPEC.

He mentioned that this investment traversed critical sectors such as energy, infrastructure, Gwadar, and telecommunications, significantly augmenting Pakistan’s developmental landscape across various sectors.

He maintained that concerted efforts have been undertaken to restore China’s confidence, yielding significant progress under the present government’s stewardship over the past 16 months.

In his assessment of ongoing projects, Planning Minister Ahsan Iqbal accentuated the imperative of preparing for the second phase of CPEC.

Making reference to the recent visit of China’s Deputy Prime Minister commemorating the 10th anniversary of CPEC, Minister Ahsan Iqbal outlined the incorporation of five corridors for future collaboration, with a focal emphasis on economic corridors geared towards job creation, innovation, green energy, and inclusive regional development.

The meeting deliberated on pragmatic strategies within each corridor, aligning them with national development objectives and priorities. Preparatory measures for an anticipated high-profile visit to Pakistan encompassed potential discussions at the Joint Cooperation Committee (JCC) to finalize outcomes prior to the Prime Minister’s forthcoming visit to China.

The primary objective remains to optimize mutual benefits for both nations by harmonizing projects with a broader developmental vision. Projects under scrutiny included ML-1, the Thakot-Raikot Section of KKH, Gwadar Airport, Orange Line, and the KCR Project, among other novel initiatives.

Recommendations for new projects and initiatives were encouraged for submission to the Joint Working Group or JCC for consideration. Minister Ahsan Iqbal underscored the importance of cultivating a proficient team to ensure readiness for negotiations in China. Each project within the portfolio will be evaluated based on its contribution to the overarching vision and its potential for yielding mutually advantageous outcomes.

The meeting convened key stakeholders, including the Special Assistant to the Prime Minister for Foreign Affairs, representatives from the Pakistan Embassy in China, Secretaries, and Senior Officials from various line ministries.

As communicated by the Ministry of Foreign Affairs, the recent Joint Working Group meeting held on January 21, 2024, reaffirmed the commitment to international cooperation and coordination. Co-chaired by the Chinese Vice Minister of Foreign Affairs and the former Foreign Secretary of Pakistan, both countries concurred on third-party cooperation earlier this year.

Minister Ahsan Iqbal was apprised by the Foreign Office that modalities for third-party cooperation would be finalized during the Prime Minister’s upcoming visit to China. While reviewing the progress of key CPEC projects, Minister Ahsan Iqbal discussed the imperative of upgrading the Karakoram Highway (KKH) to mitigate the risk of submergence following the construction of the Bhasha dam.

Officials from the National Highways Authority disclosed that the Cabinet had sanctioned an MoU for the cost-free feasibility studies of four projects, namely the Mirpur-Muzaffarabad-Mansehra road; the Babusar tunnel on N-15 highway; the Dera Ismail Khan-Zhob section on N-50 highway, and the New Karachi-Hyderabad motorway.

These projects are poised to substantially reduce transportation costs. The Secretary Railways briefed the Minister on the upgrading of the 1727-kilometer-long ML1 Railway line from Karachi to Peshawar. This multi-billion-dollar railway line constitutes a historic milestone in Pakistan’s infrastructure development.

Joint financing arrangements will be pursued with Chinese authorities during the Prime Minister’s visit to China. Minister Ahsan Iqbal reiterated that the timely completion of the ML1 Railway Line remains the government’s paramount priority. Highlighting the unique advantages of this mega railway line, he emphasized its role in supporting industries by reducing the cost of doing business, besides curtailing the oil import bill and transportation costs. Furthermore, it is poised to diversify supply chains for businesses operating along the route.

The minister emphasized that the relevant departments of both countries are now fully poised to take requisite measures to materialize all agreements with unwavering momentum.

While reviewing the progress of infrastructural projects in Gwadar, it was ascertained that Phase I of the Gwadar Expressway is completed and operational, while work on Phase II, valued at Pakistani Rs 94 million, will commence shortly. The preparatory meeting concluded with the Minister’s directive to all pertinent ministries and their departments to formulate thoroughly researched, output-based progress reports and proposals in anticipation of the Prime Minister’s visit to China.