$10bn may be sought from China during PM’s visit

ISLAMABAD: Pakistan is likely to seek $ 10 billion financial support from China as additional Balance of Payment (BoP) support, draw China’s unutilized IMF SDRs and refinancing/rollover of commercial loans, well-informed sources told Business Recorder.

Ministry of Planning, Development and Special Initiatives (PD&SI) has constituted a 21-member high level Working Group to coordinate and oversee preparation for Prime Minister’s upcoming visit to China during which nearly three dozen projects/MoUs would be discussed/signed, the sources added.

The constitution of Working Group is as follows: (i) Advisor to Prime Minister on Establishment, Ahad Cheema (Convener); (ii) SAPM on Government Effectiveness, Dr. Jehanzeb Khan(Co-Convener); (iii) Tariq Fatemi-SAPM (Member); (iv) Zafaruddin Mahmood-SAPM (Member); (v) Secretary, Foreign Affairs (Member); (vi) Secretary Finance (Member); (vii) Secretary Interior (Member); (viii) Secretary Commerce (Member); (ix) Secretary Communications; (x) Secretary, PD&SI (Member); (xi) Secretary Power Division (Member); (xii) Secretary Petroleum Division); (xiii) Secretary Railways; (xiv) Secretary Industries and Production (Member); (xv) Secretary Economic Affairs (Member); (xvi) Secretary National Food Security and Research(Member); (xvii) Secretary Board of Investment (BoI) (Member); (xviii) Chairman Federal Board of Revenue (FBR)(Member); (xix), Chairman NDMA (Member); (xx) Deputy Governor, State Bank of Pakistan (SBP); and (xxi) Director General (China), Ministry of Foreign Affairs (MoFA)(Member).

PM to visit China in first week of Nov, says minister

The Terms and Reference (ToRs) of the Working Group shall be as follows: (i) coordinate and seek inputs/updates from various ministries/Division and relevant government entities on various CEPC initiatives including infrastructure projects, trade and investment related initiatives, financial support proposals, security measures to ensure protection of Chinese personnel and projects and other relevant bilateral issues; (ii) finalize each of the projects/trade/investment/financial proposals and firm up recommendations; and (iii) include/ consider any other relevant agenda item not included in the outcomes.

The Working Group shall hold meetings and submit a comprehensive report for consideration of the Prime Minister by October 15, 2022.

The Working Group shall finalize recommendations on the following 28 major infrastructure including CPEC projects/agreement to be considered/signed during the forthcoming visit of Prime Minister: (i) agreement on financing of ML-1 and commencement of tendering ;(ii) payment to the CPEC IPPs and establishment of revolving account; (iii) Chinese investment to upgrade Pakistan’s power transmission and distribution system; (iv) financial closure of Azad Pattan, Kohala, Thar Block power projects; (v) Karachi Circular Railway (KCR); (vi) realignment of KKH Thakot-Railkot; (vii) construction of Babusar Tunnel; (viii) convening of 11th JCC meeting; (ix) attracting investment in solar power parks and solar panel manufacturing; (x) expediting development of CPEC SEZs to mobilize investment in targeted sectors; (xi) improved incentives for industrial relocation from China to Pakistan; (xii) expansion of bilateral trade through increased market access for Pakistani exports including cement, clinker, agri goods, etc; (xiii) establishing a green channel/setting up FMD-free zone in Pakistan (including Gwadar); (xiv) establishment of border trade and transit facility between Xinjiang and Gilgit-Baltistan at Khunjerab border; (xv) business and investment conference; (xvi) corporate meeting of the Prime Minister with leading Chinese enterprises and financial institutions; (xvii) development of mining/petrochemical industry in Gwadar; (xviii) additional Balance of Payment (BoP) support; (xix) draw China’s unutilized IMF SDRs; (xx) refinancing/rollover of commercial loans (approximately $ 10 billion); (xxi) enhanced measures for security of Chinese personnel projects and instructions in Pakistan; (xxii) prosecute/punish perpetrators of terrorist attacks targeting Chinese at Dasu, Gwadar Eastbay Expressway, Karachi University; (xxiii) package for post-flood rehab and reconstruction; (xxiv) desalination/water treatment system for Karachi; (xxv) establishing TVET centres for skills development; (xxvi) preparations to celebrate 2023 as “decade of CEPC” (xxvii) Chinese support for climate change mitigation, capacity building, and improving infrastructure resilience; and (xxviii) signing of agreements/MoUs.

Copyright Business Recorder, 2022