Pakistan Paves the Way for Enhanced Collaboration with China on Economic Development

Federal Minister for Planning Development and Special Initiatives, Prof Ahsan Iqbal Chaudhary , held a meeting today, April 30, 2024, of the First cabinet committee focusing on Chinese investment projects. The meeting, held at Islamabd, was attended by Minister of Science and Technology Mr. Khalid Maqbool Siddiqui, Secretary Planning Mr. Awais Manzoor Sumra, and senior officials from various Federal Ministries.

The meeting deliberated on the overdue issues concerning the China-Pakistan Economic Corridor (CPEC) Independent Power Producers (IPPs), which pose a significant impediment to the financial closure of key projects. Planning Minister Ahsan Iqbal instructed the IPPs to submit the amounts due to them in the context of CPEC energy projects as soon as possible.

Minister Ahsan Iqbal emphasized the importance of providing electricity to SEZs at an incentivized cost while ensuring the government does not incur losses. He directed the involvement of the Board of Directors to expedite the resolution of SEZ-related issues.

A directive was issued to conduct a comparative study on the incentives offered to SEZs in regional countries to ascertain how Pakistan's SEZs and Export Processing Groups can be made more attractive. The Planning Minister instructed the Board of Investment (BOI) and Ministry of Commerce to explore the creation of export processing zones to attract industries from China to Pakistan, identifying potential products for relocation.

The Ministry of Industry, Ministry of Commerce, Ministry of IT, Ministry of Petroleum and Ministry of Manpower were tasked with preparing a Request for Proposal (RFP) outlining measures to boost Pakistan's exports from 30 Billion Dollars to 100 Billion Dollars within the next seven years. The focus was on developing a strategy to achieve an export surplus to meet both local and international demands.

Strategies to ensure the security of Chinese nationals in Pakistan were also discussed, emphasizing the need for community awareness regarding their contributions to Pakistan's development. The Planning Minister emphasized that security measures should instill confidence rather than fear. He underscored the importance of employing modern technology, akin to developed nations, to monitor the activities of non-state actors and anti-national elements.

Furthermore, the Minister highlighted the adverse effects of imposing undue hardships on citizens, as it creates a negative perception among foreign visitors. It was also noted that efforts are imperative to dispel the negative image of being a high-security risk nation globally.

Highlighting the recent visit of China's Deputy Prime Minister at the 10th Anniversary of CPEC, the Planning Minister outlined five corridors for future collaboration as announced by the Deputy Prime Minister of China for CPEC Phase 2. The Five corridors include

• Corridor of Economic Development,
• Corridor of Job Creation,
• Corridor of Innovation,
• Corridor of Green Energy, and
• Corridor of Inclusive Regional Development.

The meeting also discussed preparatory measures including potential discussions at the Joint Cooperation Committee (JCC) to finalize outcomes prior to the Prime Minister's forthcoming visit to China.

Planning Minister Ahsan Iqbal directed line ministries to expedite the meetings of Joint Working Groups (JWGs) and finalize projects for presentation at the upcoming JCC meeting. Minister Ahsan Iqbal concluded the meeting by emphasizing the need for a national agenda to identify Pakistan's priorities in collaboration with China, ensuring fruitful discussions at the upcoming 13th JCC.