CPEC 2.0 CPEC in Full Gear

TEXT: Nong Rong Chinese Ambassador to Pakistan

In April 2015, Chinese President Xi Jinping paid a historic visit to Pakistan, and unveiled a new chapter for the China-Pakistan Economic Corridor (CPEC) with a "1+4" structure focusing on Gwadar Port, energy, transport infrastructure, and industrial cooperation. Ever since, the CPEC has embarked on a road of steady development. With our joint efforts, the CPEC, has achieved remarkable accomplishments in all four areas, which have brought tangible benefits to the two people and laid a solid foundation for Pakistan's economic and social development. At present, CPEC has 46 projects completed or under-construction, with a total investment of US$25.4 billion. The scope of cooperation under CPEC is continuously expanding, and a series of achievements have been made. The Gwadar Port operation is reviving with newly added equipment. The port's cargo throughput of the last fiscal year is almost the sum of past three years. The first phase of the Free Zone is completed and has attracted 40 companies with a total direct investment above 3 billion RMB. The second phase which is 36 times larger in size was unveiled by Prime Minister Imran Khan in July, and has been a good destination for investment with a promising future. The China-aided Vocational and Technical Training Center was handed over to Pakistan on October 1 offering local students free accommodation and scholarships. The East Bay Expressway is about to be completed by the end of the year. The construction of the New Gwadar International Airport is accelerating, and would expect its first flight by early 2023. Gwadar is on its way to become the regional trade and business hub.

Moreover, the ±660kV Matiari-Lahore (HVDC) transmission project has started commercial operation in Sept., which will help to cut line losses from 17 to 4 % and bring down the price for end-users. Up till now, CPEC has helped Pakistan add 5200 MW of power, 886 km of national core transmission line and 510 km of highways, which played an important role in the country's overall development.

SEZs have been launched, with steady progress made in infrastructure and investment promotion. In the field of social livelihood, 17 fast-track projects have been launched. Agricultural cooperation enjoys good momentum of development. The recently concluded 10th Joint Cooperation Committee (JCC) meeting added another JWG on ICT into the CPEC framework, and more focus will be given to the fields of industry, agriculture, digital economy and social livelihood. The bonus offered by Phase-II of the Free Trade Agreement has gradually shown its huge potential and influence against the economic headwinds. Prime Minister Imran Khan personally attached great importance to CPEC, saying that "CPEC projects are running at full swing, and it is quickly moving towards industrial cooperation which will help the country in wealth creation."To this end, a new mechanism focusing on better coordination of CPEC projects has been established, named Pak-China Relations Steering Committee. New visa policy on CPEC was released which will facilitate potential investors and partners for access. Special Assistant on CPEC to Prime Minister was named and the bill of CPEC Authority has been passed. Prime Minister himself communicated with Chinese entrepreneurs for advice, convened high-level meetings to study the development of SEZs, and instructed all departments to enhance support. The Office of the CM Punjab has taken the lead in setting up one-stop window service for facilitation. All political parties are in support of CPEC. These all contribute to more confidence on the future development of the CPEC. As President Xi Jinping stated in a phone call with Prime Minister Imran Khan on October 26, the world is undergoing profound changes unseen in a century. Under the new circumstances, the two countries should stand together even more firmly and push forward the all-weather strategic cooperacooperation, and build a closer China-Pakistan community with a shared future in the new era.

Copyright Business Recorder, 2021