Budget Fiscal Year 2016: Energy projects under CPEC require Rs 250 billion allocation

The energy projects under the envisaged China-Pakistan Economic Corridor (CPEC) will require a Rs 215 billion to Rs 250 billion allocation in the 2015-16 budget while the size Public Sector Development Programme (PSDP) has been projected at around Rs 600 billion for the next fiscal year. This was stated by Minister for Planning, Development and Reforms Ahsan Iqbal during a talk with a select group of journalists here on Thursday.
The Minister on a query from Business Recorder, stated that around 74 percent of the 2014-15 budgeted PSDP has been disbursed. He averred that there would not be 100 percent disbursement of the budgeted PSDP in the current year because several ministries had been unable to complete the projects envisaged in the beginning of the fiscal year. He added that unspend money would have to be surrendered by the ministries which would be re-appropriated to projects on a fast track.
Answering a question, the LNG projects would not be made part of the PSDP and these would be started on commercial basis. "We do not want to delay these projects by putting them in PSDP because around six to eight months are required to start such projects due to PPRA rules and tendering procedure. We want to run these projects on fast track to complete them at the end of 2018 and fulfill the commitment made by the PML-N government to end load shedding. These projects are commercially viable and simultaneously we will try to buyout someone," he remarked.
He said that "we would required Rs 250 billion for the CPEC and on-going energy projects including Lowari Tunnel project, Kachi Kanal, Diamir Basha Dam and Neelum Jhelum project". Answering a question, the Minister said that federal government is not giving even a single penny to Punjab government for Orange Line project. He said that federal government is only funding Metro Bus project in Islamabad.
However, he said that federal government would provide Rs 16 billion to Sindh for Green Metro project. For this purpose, an environmental and technical study is under way and work on the project would start in August. He said that federal government would provide 50% funds for water projects in Karachi on a priority basis under the direction of Prime Minister Nawaz Sharif. "Our first priority is projects relating to energy, water and transportation. We hope new Islamabad Airport project would be completed in 2016," he said.
On China-Pakistan Economic Corridor project, the Minister said that four joint working groups have been established; these are "(i) Planning Joint Working Group, (ii) Energy Joint Working Group, (iii) Transport Infrastructure Joint Working Group and ( iv) Gwadar Joint Working Group. He said that Industrial Parks/Economic Zones Joint Working Group has not been established so far and it would be constituted in the next two months. He said it is a misperception that industrial zones are being established only in Punjab.
"We will establish Industrial Zones after consultations and taking all provinces on board. The whole country will benefit from them. Only one economic zone has been established so far, which is in Gwadar," he said. Answering another question, Ahsan Iqbal said that the Chinese will set up joint ventures with Pakistan in textile sector. He said that China wants to take benefit from GST plus status of Pakistan. He said that textile sector would be established either in Faisalabad or Karachi.
While briefing about the route of China-Pakistan Economic Corridor, the Minister said that the route consists of Western, Central and Eastern Corridors. He said that western route is Gwadar - Turbat - Panjgur - Naak - Basima - Sohrab - Kalat - Quetta - Qila Saifullah - Dera Ismail Khan - Islamabad or Peshawar while central route is Gwadar - Basima - Khuzdar - Sukkur - Rajanpur - Layyah - Muzaffargarh - Dera Ismail Khan - Islamabad. He said that eastern route comprises Basima - Khuzdar - Sukkur - Rahimyar Khan - Bahawalpur - Lahore - Islamabad.