Key ministers interact with authorities in China: Bond, loans and coal high on the critical agenda

ISLAMABAD: Pakistan’s finance minister and power minister have reached Beijing for talks with Chinese high-ups to discuss major financial cooperation issues including issuance of Panda Bonds, re-profiling of loans and conversion of imported coal power plants on Thar coal, well-informed sources in the Finance Ministry told Business Recorder.

The prime minister has directed Pakistan’s ambassador to China to ensure meetings of Ministers for Finance and Power with relevant Chinese authorities to discuss their proposed plans. Both, the Finance Minister, Muhammad Aurangzeb, and Power Minister Awais Leghari, have already shared proposals with the Chinese authorities through diplomatic channels.

On July, 20, 2024, the prime minister presided over a meeting to follow up his visit to China on June 4-8, 2024 and discussed different issues related to Chinese investment and security of Chinese nationals, the sources added.

Pakistan keen to access Chinese capital markets: Aurangzeb

The prime minister has directed Ministry of Foreign Affairs and Board of Investment (BoI) to immediately share the presentation/plan for relocation of Chinese industry to Pakistan with the Chinese government, both through the Chinese ambassador in Islamabad as well as through Pakistan’s ambassador to China. The Chinese government must be taken fully on board with regards to the proposed B2B JV arrangement plan.

On CPEC projects, Minister for Planning to ensure timely follow up meetings with line ministries, particularly on the following; (i) convening of Joint Financing Committee meeting for ML-1; (ii) visit of team of Chinese experts to Pakistan;(iii) Sukkur–Hyderabad Motorway on PPP basis; and (iii) timely and regular convening of JCC and JWG meetings.

The prime minister has also directed the concerned ministries led by Ministry of Planning, Development and Special Initiatives that for the team of Chinese experts arriving on July 30, 2024 for five days, all logistic and substantive program be prepared and executed. Security arrangements will be ensured by Interior Ministry. The prime minister shall chair a preliminary meeting on July 28, 2024.

Minister for Economic Affairs Ahad Cheema has been directed to examine the issue between the Ministry of Commerce and Port Qasim Authority (PQA) regarding allocation of plot of land for establishing Textile EPZ. SIFC is also be involved in discussions as the land was recently earmarked for use by DP World.

The sources said the Water and Power Development Authority (WAPDA) is to seek exemptions through SIFC mechanism from advertising of procurement consultancies for establishing safe cities in Dasu and Chilas (Diamer Bhasha). In case multilateral donors are involved, the Ministry of Finance may assist WAPDA and cite the example of exemptions granted in case of the FBR. The Ministry of Interior will give a detailed briefing on security of Chinese nationals on July 28, 2024.

The Ministry of National Food Security and Research to follow up on the discussions held so far with the Chinese side, both through Chinese outlining the priority subjects, specific timelines, qualification criteria, merit and provincial quota to be observed for selection of 1,000 agriculture students to Chinese agriculture universities.

The committee chaired by the deputy chairman Planning Commission will recommend that it must be made mandatory for all upcountry goods to be shipped through Gwadar Port in order to maximise its functionality.

On the proposed inauguration of Gwadar International Airport when the Chinese premier visits Pakistan, the planning minister has already shared the idea with Chinese Ministry of Foreign Affairs, and it may be followed up.

It was also decided that approval of the proposal to hire local BoI staff at Pakistan Mission in China, sent by Ministry of Commerce, to be expedited.

Copyright Business Recorder, 2024