Poor security hurts five-year $50 billion Chinese investment plans: National Security Policy approved by Cabinet

Federal Cabinet has approved National Security Policy put up by the Interior Ministry to create a mechanism to respond to the challenge of terrorism which has caused enormous human and financial loss to the economy and continues to pose a serious threat to foreign direct investment.
Sources said a cabinet meeting presided over by Prime Minister Nawaz Sharif expressed serious concern that the planned Chinese investment of $50 billion over the next five year may be compromised if something was not done to improve the overall security situation in the country. The meeting was informed that the Chinese had conveyed to government officials the interest of their investors in different sectors of the Pakistan economy with a proviso that security be provided to them. Sources further added that the security situation in Pakistan was considered a major impediment to the inflow of Chinese investment and they reportedly conveyed this concern to President Mamnoon Hussain during his recent visit to China.
Minister for Planning and Reforms Ahsan Iqbal reportedly informed the meeting that the Chinese were willing to invest $35 billion in the energy sector and $7 billion on the motorway. The meeting was also informed that the President's visit to China was very fruitful and was a step forward in implementing the various Memoranda of Understanding (MoUs) signed by the Prime Minister during his visit to China.
Minister for Interior Chaudahry Nisar Ali Khan reportedly briefed the meeting about the overall security situation in the country and on National Security policy. Ministers of government ally, Jumiat-Ulema-e-Islam (JUI), opted not to attend the Cabinet meeting because of their opposition to the ongoing targeted operation launched by the forces against Taliban in the wake of tragic massacre of 23 personnel of frontier constabulary.
The policy reportedly estimated that around 49,000 people have lost their lives in the last ten years in around 4000 incidents of terrorism with total loss of around $78 billion to the economy from 2001 to 2013. According to reports, the National Counter Terrorism Authority (Nacta) would be the focal department and would prepare a comprehensive response plan, as well as establish a rapid reaction force and an integrated air wing.
In his opening remarks, Nawaz Sharif underlined the importance of enhancing national security to safeguard the lives and property of the people and further build the trust of foreign investors in Pakistani markets. He further stated that despite the fact that Pakistan was faced with numerous challenges, the government was determined to overcome them and steer the country out of crises.
Speaking about economy, Sharif was quoted as stating that the economic situation was improving and there were visible signs of a higher Gross Domestic Product (GDP) growth rate. The Prime Minister categorically stated that all required steps would be taken to restore peace and put Pakistan on the track of progress and prosperity. Sharif stated that the government's improved planning and management in terms of energy policy had brought good results. The electricity and gas supply was now better as compared to the previous year, and this had been the result of better planning and management of power supply and "we are hopeful that the conditions will get better in future," he added.
The Prime Minister stated that foreign investors, especially China, was taking a keen interest in investing in Pakistan and had pledged about $50 billion in different projects over the next five years. Chinese investment of US $35 billion would be in power sector including solar, wind and hydel projects, Prime Minister informed the participants of the meeting. He further said that projects of national importance including Karachi-Lahore Motorway, 10 coal-based power projects in Gaddani Power Park and up-gradation of Raikot- Haripur section of KKH would be executed with the assistance of Chinese Government.
Finance Minister Ishaq Dar also briefed the Cabinet meeting on overall economic situation, prospects of GDP growth and foreign exchange reserves position in days to come. In reply to a question, sources said the Minister refrained from declaring that the projected GDP growth target for the current fiscal year would be achieved as a result of a healthy growth in manufacturing and other sectors during the first six month of the current fiscal year. He said the country's foreign exchange reserves would improve with the planned auction for 3G and 4G licenses by next month.