WEDNESDAY MAY 22: MoU on energy to be inked: Chinese Prime Minister due today

ISLAMABAD: Pakistan and China are expected to sign a number of Memoranda of Understanding (MoUs) in various fields including energy and science and technology during the two day (May 22-23) visit of Chinese Prime Minister Li Keqiang who is arriving in Islamabad on Wednesday (today), official sources told Business Recorder.
The sources said both countries will ink one MoU according to which Joint Marine Research Facility (JMRF) will be established with an integration observation centre in Karachi. "We are signing a MoU with National Development and Reforms Commission (NDRC) China which is laying special emphasis on establishment of Pak-China Economic Corridor which envisages Pakistan as a future hub for regional co-operation," the sources added.
The MoU would enable the planning authorities to comprehensively plan the long term development of the economic corridor between the two countries that would effectively catalyse economic growth and create employment opportunities for the region.
The issues like 969 MW Neelum Jhelum, solar energy projects, 425 MW Nandipur Hydropower Project, 425 MW Chichoki Malian Hydropower Project, establishment of more nuclear power plants, Gwadar Port, progress on currency swap and trade enhancement will also come under discussion between the top leadership of the two countries. The sources said Pakistani leadership is also expected to seek financial support from China for federal budget 2013-14.
The sources said Pakistan will request Chinese Prime Minister to allow its engineers to work on development projects in terrorism hit areas as most of the projects are in the doldrums due to evacuation of Chinese staff. Though Pakistan's exports to China have showed growth of 375 per cent from 2005-06 to 2011-12 against 148 per cent growth in imports in the same period together with uninterrupted unorganised trade between the two countries, the desired growth is yet to be achieved.
In July 2010, the government had indicated that the volume of bilateral trade between Pakistan and China would touch $15 billion mark by 2012; however, this target has not been achieved so far. Informed sources told Business Recorder that the officials of the two countries will also discuss implementation of second phase Free Trade Agreement (FTA) which is been criticised by those sectors that have shut down for being uncompetitive.
Both countries have committed that 90 percent products would be brought to zero-tariff by the end of Phase-II. Ministry of Industries (MoI) has also consulted industrial representatives ahead of talks between Pakistan and China as part of the process to review FTA. Both countries signed FTA on November 24, 2006 which according to business circles has hurt some local industries very badly.
Citing an example they said that HS Code 4810.9200 was added to the concession list of imports from China. As the negotiators had little or no idea of Pakistan's Paper & Board industry this folly resulted in allowing 92 percent of our domestic demand to be met through imports from China. Resultantly, billions of rupees of investment in the local industry remained un-utilised. Pakistan Auto manufactures Association (PAMA) argues that 28 percent increase in trade between the two countries in the last five years does not reflect any contribution made by the FTA. This could have been achieved regardless of the FTA.