In a significant move to bolster economic cooperation, Pakistan’s Finance Minister Muhammad Aurangzeb and Power Minister Awais Leghari have embarked on a crucial visit to Beijing. Their mission is to engage with Chinese authorities on several pivotal issues, including issuing Panda Bonds, the re-profiling of loans, and converting imported coal power plants to Thar coal. According to sources within the Finance Ministry, these discussions continue the collaborative efforts initiated during Prime Minister Shehbaz Sharif’s recent visit to China.
Strategic Directives from Prime Minister Shehbaz Sharif
Prime Minister Shehbaz Sharif has underscored the importance of this diplomatic endeavor by instructing Pakistan’s ambassador to China to facilitate the meetings between the visiting ministers and relevant Chinese authorities. This directive follows a high-level meeting held on July 20, 2024, where the Prime Minister reviewed the outcomes of his visit to China from June 4-8, 2024. During this follow-up meeting, various topics related to Chinese investment and the security of Chinese nationals in Pakistan were discussed.
The Prime Minister has mandated the Ministry of Foreign Affairs and the Board of Investment (BoI) to swiftly present the plans for relocating Chinese industry to Pakistan. This plan aims to strengthen the B2B joint venture arrangements and is to be communicated through both the Chinese ambassador in Islamabad and Pakistan’s ambassador to China.
Focus on CPEC Projects and Joint Ventures
The Prime Minister has placed particular emphasis on the ‘China Pakistan Economic Corridor (CPEC)’ projects. He has directed the ‘Minister for Planning’ to ensure timely follow-ups with relevant line ministries. The focus areas include:
1. Convening of the Joint Financing Committee Meeting for ML-1:
Ensuring that the financing aspects of the Main Line-1 railway project are addressed promptly.
2. Visit of Chinese Experts to Pakistan:
Arrangements for the visit of Chinese experts to Pakistan, scheduled to commence on July 30, 2024, for five days, are to be meticulously prepared and executed.
3. Sukkur–Hyderabad Motorway on PPP Basis:
Advancing the discussions on the Public-Private Partnership (PPP) model for this critical infrastructure project.
4. Regular Convening of JCC and JWG Meetings:
Ensuring that the Joint Coordination Committee (JCC) and Joint Working Group (JWG) meetings are held regularly to maintain momentum on various projects.
Preparations for the Chinese Experts’ Visit
In anticipation of the Chinese experts’ visit, the Prime Minister has directed the Ministry of Planning, Development, and Special Initiatives to ensure that all logistical and substantive arrangements are in place. Security for the visiting delegation will be managed by the Ministry of Interior, which will provide a detailed briefing on July 28, 2024.
Economic and Industrial Collaborations
The Minister for Economic Affairs, Ahad Cheema, has been tasked with resolving an issue between the Ministry of Commerce and the Port Qasim Authority (PQA) regarding the allocation of land for establishing a Textile Export Processing Zone (EPZ). The Special Investment Facilitation Council (SIFC) will also be involved in these discussions, given that the land in question was recently earmarked for use by DP World.
The Water and Power Development Authority (WAPDA) is seeking exemptions through the SIFC mechanism for advertising procurement consultancies to establish safe cities in Dasu and Chilas (Diamer Bhasha). In cases involving multilateral donors, the Ministry of Finance will assist WAPDA, drawing on precedents like the exemptions granted to the Federal Board of Revenue (FBR).
Enhancing Agricultural Education and Gwadar Port Utilization
The Ministry of National Food Security and Research is following up on discussions with the Chinese side regarding the selection of 1,000 agriculture students for Chinese agriculture universities. These discussions include outlining priority subjects, specific timelines, qualification criteria, merit, and provincial quotas.
A committee chaired by the Deputy Chairman of the Planning Commission has recommended mandating that all upcountry goods be shipped through Gwadar Port to maximize its functionality.
Inauguration of Gwadar International Airport
The proposed inauguration of Gwadar International Airport is on the agenda for the Chinese premier’s upcoming visit to Pakistan. The Planning Minister has already shared this proposal with the Chinese Ministry of Foreign Affairs, and it is expected to be followed up on diligently.
Expedited Approval for Hiring BoI Staff
The Prime Minister has prioritized the swift approval of a proposal aimed at hiring local staff for the Board of Investment (BoI) at Pakistan’s Mission in China. This initiative, originally proposed by the Ministry of Commerce, seeks to enhance the efficiency and effectiveness of investment facilitation between the two countries. By appointing dedicated BoI personnel on the ground in China, the aim is to streamline processes, foster closer bilateral investment ties, and ensure more direct and responsive engagement with Chinese investors and authorities. This move underscores the importance placed on strengthening economic and commercial relations with China, facilitating smoother coordination and execution of joint ventures and investment projects.
Conclusion
The visit of Pakistan’s Finance and Power Ministers to Beijing marks a pivotal moment in the strengthening of Sino-Pak economic and industrial relations. With a comprehensive agenda focused on financial cooperation, infrastructure development, and educational collaboration, the outcomes of these high-level meetings are poised to significantly impact Pakistan’s economic trajectory and its strategic partnership with China. The directives from Prime Minister Shehbaz Sharif reflect a clear and determined approach to ensuring the success of these initiatives, which are critical to the future growth and development of both nations.
