ISLAMABAD: The government has reportedly decided to conduct a feasibility study of transmission lines for exporting electricity to China by involving Chinese firm M/s Three Gorges, well-informed sources told Business Recorder.
This decision was taken at a meeting held under the convenorship of the Minister for Planning, Development and Special Initiatives, Ahsan Iqbal, arranged to discuss strategy to finalise the “wish list “ to be presented to Russia during the forthcoming high-level visit to Moscow.
The Minister for Planning recently undertook a visit, wherein, he discussed different bilateral issues with the Chinese authorities. Another delegation, also comprising, finance minister and power minister was also in Beijing to discuss different energy sector and financial issues of the country.
Islamabad seeks Chinese assistance for completion of two hydropower projects
The SAPM on Foreign Affairs, Syed Tariq Fatemi, briefed that the purpose of the meeting is to come up with concrete and viable strategies/ roadmap delineating the existing and future plans for high power delegation expected to visit to Russia soon. He emphasised to explore how to improve current facility of connectivity and provision of security to convoy through road routes and viewed that Ministry of Interior should take necessary measures.
The Secretary Railway highlighted three important rail routes to connect with Russia and Central Asian countries. First, upgradation of Quetta-Taftan Rail network, MoU signed on June 7, 2024 and bilateral meeting is expected end July to operationalise the MoU and identify areas of cooperation.
Second, Kohat-Kharlachi rail network to connect Central Asian countries through Afghanistan with completed feasibility. The third is MinLink Express (MLE) to connect Riqo Dik to Gwadar to access market of Azerbaijan and Russia. This is direct and reliable route to the Arabian Sea significantly cutting cost of transporting minerals.
The Minister for MNFS&R/I&P endorsed the proposal of SAPM on Foreign Affairs to provide existing and future plans for bilateral negotiations with Russian side. He further enquired State Bank of Pakistan (SBP) regarding possible ways for conducting trade and business.
The representative of SBP highlighted that there is no issue for banking and other transactions if they do not fall under sanction regime. The issue arises when any sanctioned entity involved in the transactions. The banks are cautious to do business with Russian banks sanction regime and FATF related compliance issues.
Minister for Planning indicated that there exist a number of opportunities to enhance exports to the Russia. He enquired about the modus operandi being followed by Turkiye, BRICS and other countries while trading with Russia.
SBP informed that regional banks of those countries traded in their own currencies. He further suggested that barter trade mechanism may be explored to enhance bilateral trade.
Additional Secretary (Europe) MoFA briefed the forum that a report on the mechanism of conducting trade by different countries with Russia has been formulated and will be shared with Ministry of PD&SI, shortly. He added that tailored made solutions are being followed by various countries for trade with Russia. Minister for PD&SI emphasised that three sets of documents should be prepared, (i) G2G Framework/ projects, (ii) B2B cooperation for trade promotion and investment and (iii) a mechanism of safe trade/ business.
The Minister for Petroleum shared with the forum that the visit in December, 2022 transformed the bilateral relations primarily building on energy cooperation.
However, Minister for Petroleum raised concerns that the cheaper oil facility available from Russia could not be utilised for the benefits of general public and only private sector is earning huge profits. Therefore, government refineries need to be urged to use Russian oil for benefits of public.
The Minister for PD&SI while responding to securing funding for mega hydel water projects showed serious concerns on professional working of WAPDA to explore funding for such mega projects. He viewed that WADPA should have developed a consortium of different financiers to meet the funding gap.
The Minister for PD&SI endorsed energy as a lucrative avenue for enhancing bilateral cooperation with Russia.
The Ministry of Foreign Affairs opined that the proposed delegation to Russia may be dovetailed with the upcoming Inter-Governmental Commission (IGC) likely to be held in September, 2024.
Minister for MNFS&R/I&P briefed the forum regarding Pakistan Steel Mills (PSM). The Secretary M/o I&P informed that SIFC during Caretaker setup decided to establish an export processing zone (EPZ) on a portion of Steel Mills land.
However, he stated that the matter will be again brought up before SIFC for the decision. Minister for MNFS&R/I&P informed that Sindh government intends to build new steel mill on 700 acres and suggested that Sindh government may be connected with Russian side.
The DG, PPIB, Power Division suggested that Russian experience to work in high altitude and cold weather can be utilized to lay power evacuation lines from under construction hydel power projects.
The Minister for PD&SI directed Power Division may conduct a feasibility study for economics of transmission lines for exporting electricity to China by involving Three Gorges.
After threadbare discussions, the Committee took following decisions with consensus: (i) The respective Ministries/ Divisions should prepare three sets of document; i.e., G2G Framework/ projects, B2B cooperation for trade promotion and investment and, Mechanism of safe trade/ business; (ii) Petroleum Division to develop comprehensive plan for energy cooperation with Russia; (iii) Ministry of Railways and Ministry of Communication/ NHA to develop integrated multi-modal framework for road and rail connectivity, clearly highlighting existing routes and gaps with China, Russia and Central Asia; (iv) relevant Ministries/ Divisions may conduct warming up sessions with Russian counterparts to fully prepare for the fruitful outcome during the upcoming IGC in September, 2024; (v) Power Division may conduct a feasibility study of transmission lines for exporting electricity to China by involving Three Gorges; and (vi) Ministry of Water Resources/ WAPDA to explore ways to plug the funding gap of mega ongoing hydel projects through forming consortium and fetching Russian investment in the sector.
Copyright Business Recorder, 2024