ISLAMABAD: A major signing is expected with regards to projects under the China Pakistan Economic Corridor (CPEC) when Prime Minister Anwar ul Haq Kakar visits China later this month.
The expected signing worth billions of dollars comes at a time when concerns have been raised regarding progress on CPEC projects and in particular hindrances faced by China in the course of its investments in Pakistan. It had been reported last month that Pakistan and China have encountered challenges in expanding their cooperation within CPEC particularly in the areas of energy, water management, and climate change, as highlighted by the 11th Joint Cooperation Committee (JCC) meeting.
The reports, which were strongly refuted by the Pakistan government, said that China showed reluctance to endorse numerous proposals put forth by Pakistan in areas such as energy, water management, climate change, and tourism in regions including Giglit-Baltistan, Khyber-Pakhtunkhwa, Azad Jammu and Kashmir (AJK), and coastal areas. This resulted in disparities between the initial draft presented to Beijing and the final signed minutes.
China notably excluded cross-border tourism cooperation in GB, KP, and AJK and collaboration to promote coastal tourism from the finalized minutes. It rejected Pakistan’s suggestion to incorporate Water Resources Management, Climate Change, and Urban Infrastructure Development within the CPEC framework and dismissed the proposal for a joint working group on water resources management and climate change.
It is in this environment that the caretaker prime minister is set to visit Beijing on the 16th of October in a high profile visit. According to sources, there is a possibility of signing 15 agreements and several memorandum of understanding (MoUs) during the next visit of interim premier Anwar ul Haq Kakar. The sources added that the caretaker PM was going to participate in the third Belt and Road Forum scheduled to be held on October 17 and 18. During this visit Main Line-1 (ML-1) railway project worth $6.67 billion will be signed as China has agreed to the amendment agreement for the ML-1 railway project while the speed of ML-1 rail has been reduced from 160 kmph to 120 kmph. They said a protocol agreement will be signed for the export of donkey skins under CPEC while a protocol agreement will also be signed to export dairy products and meat. Agreements will also be signed for Advanced Metering Infrastructure and Pakistan Space Center project while agreement will also be signed for urban development of Gwadar under CPEC, said sources.
Documents available with Profit disclose that the first Framework Agreement for ML-1 was signed in 2017. The 3rd addendum to the Agreement, following cost rationalisation, was now ready to be announced during the upcoming Belt and Road Forum (BRF). Similarly, an Inter-Ministerial meeting on deliverables for the Belt and Road Forum to be held on 17-18 October 2023 took place in the ministry on 5th October 2023 to discuss the deliverables that are ready to be announced during the upcoming VVIP visit.
According to documents, the last PC-1 was approved for USD 9.81 billion in October 2022. After rationalisation the cost went down to USD 6.67 billion. Its envisioned speed would remain at 160km/h but its operational speed has been reduced to 120-140 km/h.
The sources said that all documentation of ML-1 would be completed by 30th November 2023 following which, in December 2023, a final meeting with the Chinese side could take place. The Chinese side has shared the revised addendum and they appear keen on signing it if Pakistan’s Ministry of Railways agrees with revisions, said sources.
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