Federal government has refused to grant waiver to the KPK-financed projects from approval of Central Development Working Party (CDWP) and Executive Committee of National Economic Council (ECNEC), saying that this condition is applicable to all development projects.
Briefing the Senate Standing Committee on Planning, Development and Reforms headed by Senator Colonel Syed Tahir Hussain Mashhadi (Retd), Secretary Ministry of Planning, Development and Reforms, Yousaf Naseem Khokhar said that all provincial governments and special areas are members of the CDWP and ECNEC, adding waiver of approval from CDWP/ ECNEC cannot be granted as it is uniformly applicable to all provinces. He further stated that no delays have been reported by any provincial government including KPK government.
This was one of the demand items made by the government of KPK during a protest outside the Parliament House.
Minister for Planning, Development and Reforms Ahsan Iqbal while giving a detailed briefing on the China-Pakistan Economic Corridor (CPEC) said that an impression has been created that China is providing $46 billion assistance to Pakistan thus raising expectations that the centre will distribute this money among the provinces under the NFC Award.
Earlier, replying to different questions raised by the committee members on different projects to be established under CPEC, Ahsan Iqbal said the country is run by borrowing as 90 per cent of the country's revenue is spent on debt servicing, defence and security.
He clarified that out of $46 billion $38-40 billion will be spent by Chinese companies' on energy sector projects which will be private investment and have nothing to do with the government. He said "super critical technology" will be used to minimise the level of pollution from coal-fired projects.
Under global trends, private investment is gaining ground. The CPEC has created the right perception that Pakistan is a good place to invest and has strengthened Pakistan's credibility in the international community by changing the profile of Pakistan, he added.
Under the Energy Policy, any investor either from abroad or Pakistan can present a plan and invest. He said that Pakistani investors were not confident in investing in Pakistan but massive Chinese investment has provided confidence to investors. Economy cannot be improved unless there is a solution to the energy problem, he added.
He added that funds for Metro Bus and Orange Bus are being provided by the Punjab government from its PSDP. Iqbal said that the Sindh government has been given surety from the Federal government for the Metro bus project and that the KPK government sent a reference and took approval for Peshawar Metro Bus through Asian Development Bank.
In first phase, Ahsan said all energy projects would be completed and for complete restoration of communication, Masang Link, is being restored gradually. He said that for Western route of Gwadar, a 600 kilometer link road was not available. He said first a 2- to 4-lane Motorway will be built. Ahsan further revealed that work on a two-lane road from Quetta to D.I Khan is under way and an advertisement has been given in newspapers for a road from D.I. Khan to Burhan and added that a two-lane road will be constructed from Khunjerab to Kashgar.
Senator Siraj ul Haq emphasised the establishment of hydel generation units which, according to him, are cheaper than imported coal and furnace oil. He said KPK government has saved one billion rupees by producing 83MW hydel electricity. Senator Barrister Muhammad Ali Saif said that Pakistan is signatory to international agreements, adding that pollution from coal fired projects can create problems.
Senator Hasil Bazenjo said the government should also focus on fine quality coal of Balochistan for power generation instead of using imported coal. He maintained that 30,000 tons of coal is being extracted in Balochistan per day which is being used by kilns in Punjab. Senator Karim Khawaja disclosed that the Sindh government had paid Rs 6 billion to Dr Samarmand Mubarak to generate electricity through coal gasification in Thar but so far the outcome had been zero.
Secretary Planning Division revealed to the committee that Planning Commission's role is of a post-office and suggested that all the concerned Ministries should be invited to get a complete briefing on projects of the CPEC. He said there is a need to improve country's energy mix. In reply to a question, he said that Pakistan will not give any target of green gas emissions at the Paris Summit but would demand funds for this purpose.
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