ISLAMABAD: Finance Minister Muhammad Aurangzeb said Sunday that the country’s economy is moving towards positive direction and foreign exchange reserves will touch US$11 billion in the next two weeks.
Addressing an event organised by China Chamber of Commerce in Pakistan here on Sunday, Finance Minister said that as we are moving towards macroeconomic stability, exchange rate remained stable during the last 12 to 14 months.
The foreign exchange reserves in the next two weeks will reach US$11 billion. This means that we are going to have roughly two and a half months of import cover. The global good standard is three months of import cover. Thus, we are moving in right directions that the delay seen in issues like dividend remittances to Chinese companies will not reoccur.
Pakistan, China discuss energy sector reforms
He said that the first phase of China-Pakistan Economic Corridor (CPEC) was creating the infrastructure and second phone is monetising that infrastructure to create exportable surplus for Pakistan.
Under Prime Minister’s Shehbaz Sharif’s leadership and with the help of President and Chief of Army Staff, we are very committed to move to CPEC phase-II. The phase-II will prove to be a game changer for the entire region, he maintained.
He stated that the China has made huge investment of over US$20 billion in planned electricity projects, transforming the energy landscape of Pakistan. The CPEC power projects have generated 9000 mega watts of electricity supplies, development of two-third coal mines and first 4000 mega watts Matiari-Lahore high voltage direct current (HVDC) transmission line project.
He stated that the investment in IPPs by the Chinese companies is the largest investment in the history of Pakistan, both in terms of debt and equity. These IPPs also opened new doors for different classes for investors.
China has made investment in projects of hydel, solar, wind and other sources of producing electricity. While we are seeking support from these Chinese companies and lenders to provide some relief in financing terms, we remained absolutely committed to service all our obligations to the projects and lenders, he said.
Responding to report “Business Climate Index of Chinese Companies in Pakistan”, he agreed to the lack of policy continuity. He stressed that the government has to provide policy framework and policy continuity and should not be involved in business. The government must provide this level of continuity.
Finance Ministers said that the government will honour the commitment made with the Chinese Independent Power Producers (IPPs) as the Chinese companies have made huge investment in power sector.
About the security concerns of the Chinese companies, Muhammad Aurangzeb added that the President/ Prime Minister, Chief of Army Staff and Interior Minister are fully committed to provide security to Chinese and regretted incidences happened in the past.
However, delivering his speech at event Federal Minister for Information, Broadcasting, National Heritage and Culture Attaullah Tarar extended deep gratitude to China for helping Pakistan to overcome worst energy crisis faced by the country in the early years of previous decade.
He said that China-Pakistan Economic Corridor (CPEC) was the manifestation of closeness and ideal friendship between the two countries. “CPEC is not only a project for the prosperity of Pakistan and China, but also for the entire region,” the minister opined. Energy projects including Sahiwal Coal power project, Thar Coal Project, Karachi Port Energy project were launched by China under CPEC. He said in 2013, when Pakistan was facing worst energy crisis and 8 to 19 hours load shedding was a matter of routine, several energy projects were launched under CPEC and these projects helped Pakistan overcome energy shortage.
He maintained that journey of success from 2013 to 2018 was mainly because China helped Pakistan restructure its energy sector while bringing in good energy projects including nuclear, coal, hydro, solar energy projects as China believed that Pakistan’s energy crisis could be over by technological innovations, through diversification and restructuring of energy sector.
He said in 2018 GDP growth rate stood at 5.8 per cent and inflation was only percent. The country’s economy now was on the way to improvement and China had played an important role in this regard.
The minister remarked that the strategic partnership between Pakistan and China was commendable as both the countries were going to start the next phase of CPEC. He said in the second phase of CPEC, useful discussions were held during Prime Minister Shehbaz Sharif’s visit to China.
He expressed heartfelt gratitude to Chinese Ambassador to Pakistan Jiang Zaidong, Chinese leadership and Chinese companies who enabled Pakistan to not only overcome energy crisis but also propel economic growth and provide job opportunities to the people of the country.
He said it was a matter of pride for him that he was speaking on the eve of Chinese Prime Minister’s historic visit to Pakistan and it was a matter of joy and jubilation for people of Pakistan. He said under CPEC Phase-II, Pakistan and China were promoting business to business cooperation and this phase will really probe a game changer for the entire region. He said Pakistan, with the support of China had proved that it could overcome any crisis under most difficult circumstances.
The minister maintained that journey of success from 2013 to 2018 was mainly because China helped Pakistan restructure its energy sector while bringing in good energy projects including nuclear, coal, hydro, solar energy projects as China believed that Pakistan’s energy crisis could be over by technological innovations, through diversification and restructuring of energy sector.
He said in 2018 GDP growth rate stood at 5.8 per cent and inflation was only 4 per cent. The country’s economy now was on the way to improvement and China had played an important role in this regard.
Chairman Senate, Syed Yousaf Raza Gilani, said that the fast-paced geo-economics and geostrategic shifts at regional and global levels underscore the growing importance of economic integration.
“It is high time to harness our collective strengths and forge a path towards sustainable growth and prosperity by promoting regional connectivity and cooperation,” he said while addressing participants at the launching ceremony of reports by the China Chamber of Commerce in Pakistan (CCCPK).
The Chairman lauded the reports titled “The Glorious 11 Years – How Chinese Companies Reshaped the Power Sector in Pakistan” and “Business Climate Index of Chinese Companies in Pakistan” as success stories.
“Pakistan seeks to strengthen regional cooperation by fostering economic ties with our partner nations, and China stands at the very top,” Gilani said.
He highlighted Pakistan’s strategic location, abundant natural resources, and a sizeable workforce as factors that make it an attractive destination for foreign investment.
He stressed the importance of business-to-business linkages, noting that sustainable partnerships can attract foreign direct investment, promote technology sharing, and facilitate knowledge exchange between the two nations.
Commending the China Chamber of Commerce in Pakistan for organizing the event.
Vice General Manager of Three Gorges South Asia Investment Company in Pakistan Liu Yanggang highlighted the performance and achievements of Chinese companies in the energy sector in Pakistan.
He also shared key features of the work report of the “Glorious 11 Years – How Chinese Companies Reshaped the Power Sector in Pakistan” and “Business Climate Index of Chinese Companies in Pakistan” as success stories.
Copyright Business Recorder, 2024