ISLAMABAD: Rashakai Special Economic Zone Development & Operations Company (Private) Limited (RSEZDOC) has warned the government that industrial cooperation between China and Pakistan will be affected if issues of SEZ are not settled by the government.
This warning was conveyed by Chief Executive RSEZDOC, Lyu Ming, in a letter to Secretary Power Division, a copy of which has also been shared with Minister for Planning, Ahsan Iqbal.
The letter states that Rashakai SEZ is currently experiencing severe power issues that are critically hindering both operational activities and marketing efforts. These challenges include complaints from allottees regarding insufficient electricity and the withdrawal of investment by major Chinese companies, such as Alice, due to an inability to meet their power load demand.
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On August 21, a meeting convened by the Minister for Planning, Development and Special Initiatives addressed these power issues, involving key stakeholders including the Ministry of Energy (Power Division), National Electric Power Regulatory Authority, Central Power Purchasing Agency (CPPA), and Peshawar Electric Supply Company (PESCO).
CEO RSEZDOC maintains that the inadequacy and instability of the temporary power supply are severely impacting allottees’ production and diminishing the investment promotions of the Rashakai SEZ. Presently, all power infrastructure both internal and external, meets the technical requirements for energisation.
Concerned power authorities such as PESCO, which has successfully managed Rashakai power supply during the construction phase for over two years, is capable of supplying power to the internal network and temporarily handling Rashakai SEZ’s metering and billing process without interference from RSEZDOC.
In accordance with the previous decision, RSEZDOC has requested that Power Division expedite the energisation of the internal distribution network.
The letter further states that as recorded in the minutes, “The Minister PD&SI stated that this issue has been pending for long time and directed Power Division to finalize and report the policy decision in 5 days for permanent solution.”
However, RSEZDOC, as a key stakeholder, was not included in detailed discussions regarding both the temporary and permanent solutions.
SEZDOC has requested that the Ministry of Energy (Power Division) should consider the practical challenges and concerns of Rashakai SEZ during these deliberations and promptly communicate the proposed plan to RSEZDOC.
Rashakai SEZ, the only SEZ under CPEC operated by a Chinese entity, has received significant attention and support from both Chinese and Pakistani governments.
The power issue represents a critical bottleneck for Rashakai SEZ, and failure to resolve it promptly will further exacerbate investor withdrawal and negatively impact industrial cooperation between the two countries, the letter noted, and expressed the hope that Power Division will swiftly implement the decisions outlined in the meeting minutes.
Copyright Business Recorder, 2024