- Planning minister invites AIIB to explore partnership opportunities in Dasu and Mohmand Dam projects
- AIIB vows to support hydel energy generation, transmission line projects in Pakistan
ISLAMABAD: Planning, Development and Reform Minister Makhdum Khusro Bakhtiar has invited Asian Infrastructure Investment Bank (AIIB) and Chinese corporate leaders to forge a sustainable long-term partnership with Pakistan aimed at financing the projects that contribute to the overall economic growth of the country.
He extended this invitation on Wednesday while meeting with AIIB President Jin Ligun and leadership of the Chinese companies, including China Railway Construction Corporation, Huawei, Norinco and others, on the sideline of China Pakistan Economic Corridor’s (CPEC) 8th Joint Cooperation Committee (JCC) meeting, scheduled to be held tomorrow (Thursday).
The minister would co-chair the JCC meeting with the vice chairman of National Reform Commission of China.
In a meeting at the AIIB Headquarters, Bakhtiar said that Pakistan had received a solid investment in the energy generation portfolio; however, now Pakistan is encouraging projects based on hydel or renewable resources.
“AIIB could explore opportunities of partnership in Dasu and Mohmand Dam projects which are currently in the planning stage,” the minister proposed. “We are introducing integrated energy policy while looking for investment in transmission line projects and upgradation of the distribution system.”
The minister further said that the government is also looking forward to the implementation of economically-viable projects in infrastructure, capacity enhancement of ports and shipping, sustainable mass transit system and development of small rural and urban centers.
AIIB President Jin Ligun said on the occasion that projects worth $1.68 billion are being financed by his bank in Pakistan. He vowed to support transmission line, hydel energy generation and other projects that could support Pakistan’s economic growth. He informed that a project to support SMEs was already approved and the investment in this regard would be enhanced with the passage of time.
Meanwhile, the minister, in a separate meeting, invited Chinese enterprises to heavily invest in Pakistan’s industrial, socio-economic, agriculture and transport infrastructure sectors.
Bakhtiar said that Pakistan and China had agreed on timely completion of ongoing CPEC projects, adding that both countries had also agreed to explore new areas of cooperation in socio-economic development, industrial and agriculture sectors.
The minister said that a framework of cooperation in the industrial sector would be agreed with China during the JCC. “This will help Pakistan boost its industrial capacity through joint ventures in priority areas, relocation of labor-intensive industry and SMEs collaboration.
The minister said that the Rashkai Economic Zone would be implemented in the first quarter of the year 2019 while rest of the eight SEZs would follow on the same lines.
Bakhtiar said that Pakistan and China are committed to uplifting the less developed areas through initiatives in the socio-economic development sector and poverty alleviation. “Projects in education, health, vocational training and agriculture would reduce regional disparities, social inequality and improve quality of life in less developed areas of Pakistan.
The minister, while highlighting potentials of Pakistan’s agriculture sector, said that the cooperation in this sector promoted through joint ventures, value addition, cold chain management for fruits and vegetables, marketing and branding will help the country overcome its weaknesses. He was of the view that Pakistan can fully utilize Chinese experiences in corporate agriculture.
The minister intimated that Pakistan wishes to launch projects in the transport sector with a special focus on the development of ports, rail and roads, through a feasible financial model that may put the least burden on Pakistan’s economy.
“Pakistan Railways Main Line One, an economically viable project, is being offered to investors for implementation under Built-Operate-Transfer (BoT) mode,” the minister said, adding that the economically feasible oil and gas projects would be a good opportunity for investors.
“These initiatives, being competitive with a high rate of return, would also help Pakistan to reduce its oil import bill,” he said.
The Chinese investors showed a keen interest in the development of transmission line, infrastructure projects including ML-1, mass transits system and road projects. Investors showed eagerness in exploring investment opportunities in the industrial sector particularly developing special economic zones including Information Technology Zone at Islamabad. The Chinese corporate sector also showed interest in launching projects in the socio-economic sector including water supply and sanitation, education, health, low-cost housing and skill development.
Moreover, senior officials of Pakistan, headed by Secretary Planning Zafar Hasan, met Chinese officials to finalize agenda for the JCC meeting. All the decisions with respect to new projects would be placed before the approval of JCC tomorrow (Thursday).
Worthy MINISTER planning, Mr Bukhtiar and his team has very skillfully identified potential areas of investment in all sectors of the economy, inviting investors from China and elsewhere to come up and expedite the implementation of such project which call for an investment, hypothetically speaking, even 100 billion dollars will be less.