Pakistan, China agree to start multi-billion ML-1 project

Pakistan and China have agreed to start the multi-billion main line (ML-1) project, considered to be the backbone of the China-Pakistan Economic Corridor (CPEC).

The agreement was reached in during the meeting of the 11th Joint Cooperation Committee (JCC) of China Pakistan Economic Corridor (CPEC) held in Islamabad on Thursday through video conference.

The meeting was co-chaired by Federal Minister for Planning Development Ahsan Iqbal and Vice Chairman of China’s National Development & Reform Commission (NDRC) Lin Nianxiu. The JCC was organized keeping in view the upcoming visit of Prime Minister Shehbaz Sharif to China in which all important MoUs will be signed formally.

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The Karachi Circular Railway (KCR) was also discussed in length which will benefit a large segment of the population of Karachi. The project is proposed to be implemented under the G2G arrangement on the lines of the Lahore Orange Line Metro Train Project (OLMTP).

Similarly, both sides agreed to explore new avenues in the mining sector and it was decided to set up a new working group to explore the sector.

The government has also launched an initiative to include 10,000 MW of solar energy in the system. Pakistan requested China to create a financing window or a credit line for Chinese companies participating in this project.

Cooperation in the agriculture sector was also discussed, which is one of the essential elements of the second phase of CPEC. Pakistan has finalized some agreements to promote the export of Pakistani agricultural items to China which needs to substantially enhance the scope and scale of these products. The Ministry of National Food Security has proposed a MoU on cooperation in plant & animal quarantine and phytosanitary measures, which will help pave the way for exports of meat, vegetables, and fruits to China.

New proposals

Pakistan has made a number of new proposals, on which agreements are expected to be completed shortly which include Post Disaster Reconstruction, Global Development Initiatives, Strengthening of Digital Investment in the Economy, 1+5 arrangements for SEZs, Agreement between Geological Survey Intuitions of the two countries and Cooperation to develop export potential of Pakistan

Similarly, the framework Agreement on Single Window Cooperation in inland trade was also proposed. Pakistan also proposed a mechanism for a new area of Water Resources Management and Climate Change in the CPEC framework, considering the enhanced vulnerability of Pakistan to climate events.

Security of Chinese workers

Pakistan also assured Chinese counterparts to continue to beef up the security of Chinese working under CPCE projects. Both sides agreed to expand their cooperation in information technology and it was decided that Chinese companies will establish research centers in Pakistan to explore new avenues in this sector.

Operational projects

The JCC highlighted the significance of the key projects for energy and infrastructure development; which are now operational and providing a myriad of opportunities for socio-economic development in Pakistan.

These projects include 2×660 MW Port Qasim Power Plants, 2×660 MW Sahiwal Power Plant, 2×330 MW Engro Thar Power Plants; 50 MW Hydro China Dawood Wind Farm Thatta; 1000 MW Quaid e Azam Solar Park, Bahawalpur.

Similarly, in infrastructure projects, KKH Phase II (Havelian – Thakot Section), Peshawar-Karachi Motorway (Multan-Sukkur Section), Hakla – D.I Khan Motorway and Orange Line Metro Train – Lahore have been completed.

The meeting was informed by the Ministry of Energy, 11 projects of over 6370 MW have been completed, along with an HVDC Transmission Line of 880 km. Three more projects of around 1200 MW are expected to be completed within 2023-24.

It was also informed that another 3100 MW has achieved 90 percent milestones for FC (700 MW Azad Pattan HPP, 1124MW Kohala Hydel Project, and 1320 MW Thar Coal Block-I), which will be finalized at the earliest to get closer to the target of 17000 MW.

The project in Motorways & Highways of around 888 km were also highlighted which have been constructed with both Chinese and local financing (another 853 under construction through local financing). The KKH-Thakot-Havelian, one of the flagship projects of this sector, has received international recognition.

The planning minister hoped that the deliberations in the JCC would give a new impetus to CPEC.

 

 

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