The new government is likely to place details of China-Pakistan Economic Corridor (CPEC) projects before Parliament for transparency, sources in the Ministry of Planning, Development and Reforms told Business Recorder.
Khusro Bakhtiar, Minister of Planning, Development and Reforms has taken a number of briefings on CPEC projects after taking charge of the Ministry. However, any decision on placing the CPEC framework before the Parliament will be taken after a detailed briefing to Prime Minister Imran Khan.
Sources further stated that the establishment and civil government own CPEC, but there are issues of transparency especially with respect to the $35 billion power projects whose cost appears to be inflated compared to similar projects in other countries.
Former Finance Minister Dr Salman Shah told Business Recorder that expensive power projects raise questions of kickbacks and there is a need for proper investigation to determine whether any corruption was involved in the deals or not.
Shah stated that transparency is an issue in $35 billion power sector projects under the CPEC umbrella as these projects appear to be exorbitantly expensive, 60 percent more expensive compared to similar projects in other countries such as UAE.
He added that power produced from these projects would be expensive and its impact on the economy will be very negative. Shah said that Pakistan's export sectors are already suffering because of high energy cost.
Shah said that there are some issues in CPEC but overall it is very beneficial for Pakistan and provides an opportunity to expand trade relations with China.
Shaukat Hayat Khattak, Deputy Director Media (CPEC) when contacted was reluctant to share information on loans and investment so far disbursed to Pakistan under CPEC framework.
Another official of Planning Commission on condition of anonymity said that the import bill under CPEC framework is expected to decline as import of hardware/machinery for early harvest projects is almost complete.
The official further said that details about CPEC projects are kept secret, which has raised questions, however Planning Commission will soon give a briefing to the Prime Minister in this regard.
Chinese Deputy Head of Mission Lijian Zhao recently stated that China has given soft loan to Pakistan at around 2 percent interest rate for major infrastructure projects of $6 billion under CPEC.
About energy projects, he said that as many as six power plants including 2×660MW coal-fired power plants at Port Qasim Karachi, three wind power projects in Sindh, solar power project and Sahiwal coal-based power plants have been completed.
He said that 10 power plants including coal and hydropower projects are under construction. These power plants have a total generation capacity of 11,000MW of electricity.
Zhao further stated that 14 infrastructure projects are under construction, eight have been completed and 21 projects are in the pipeline while their groundbreaking has taken place. There are 43 early harvest projects under CPEC and most are scheduled for completion in 2019. He said that a few hydropower projects are long-term with scheduled completion in 2023.
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