Excellency Mr. Li Chunlin, Vice-Chairman National Development and Reforms Commission
Dignitaries, Ladies and Gentlemen
Asalam-o-Alaikum and Ni Hao!
I am very pleased to welcome you all in the 13th session of Joint Cooperation Committee (JCC) on China Pakistan Economic Corridor (CPEC). It is matter of great pleasure for me to co-chair this 13th JCC meeting which gives me the honor of co-chairing 10th JCC meeting out of 13 held so far. I extend my heartfelt gratitude to the National Development and Reform Commission (NDRC) of China and all Ministers & financial institutions whose collaboration and continuous support has been instrumental in making the China-Pakistan Economic Corridor (CPEC) a great success.
Today, we have gathered here to reflect upon the achievements that we have made so far under this strategic initiative, challenges that require endeavors for improvements and navigate the future prospects so as to steer this economic corridor towards new heights of successes. The projects that were once conceptualized and documented are now progressing and becoming a reality, symbolizing the enduring bond of our iron brotherhood and the advancement of our All-Weather Strategic Cooperative Partnership.
CPEC has emerged as a transformative force in the region as a flagship project of BRI, particularly for Pakistan. Over the past decade, the China-Pakistan Economic Corridor has experienced multiple ups and downs, proving to be a testament to our enduring partnership and its potential for transformative development. It has taught us the importance of flexibility and the ability to address concerns proactively. Through these experiences, we have gained valuable insights into the art of forging resilient partnerships that stand the test of time.
Last year, Pakistan and China celebrated a decade of successful high quality development and ever closer collaboration under CPEC. During these celebrations, Vice Premier, His Excellency He Lifeng unveiled five new corridors proposed by President Xi Jinping:
- Growth Corridor,
- Livelihood Enhancing Corridor,
- Innovation Corridor,
- Green Corridor, and
- Opening Up/Regional Connectivity Corridor.
Pakistan side appreciate vision of Chinese leadership to upgrade the second phase of CPEC with inclusion these new corridors which are in harmony with Pakistan’s 5Es framework. We are ready to work with NDRC to finalize the scope and implementation plan on these corridors. Both sides are highly committed to this shared vision, and together, China and Pakistan have embarked on a journey of shared dreams, working hand in hand to build high-quality development projects.
It is heartening to note the steady progress CPEC has made since its inception in 2013. In the energy sector, we have successfully completed 16 projects, with generation capacity of 8,020 MW, along with two coal mines and a + 660 kV HVDC transmission line. The total investment in these projects is around USD 16 Billion. Currently, one hydropower project 884 MW Suki Kinari worth of USD 1.707 Billion is under construction expected to be commissioned by November 2024. Three power projects, including two hydel (Azad Pattan 700 MW and Kohala 1124 MW) and one coal based (Gwadar) are with generation capacity of 2124.7 MW worth USD 4.157 Billion are at the advance stage to achieve financial closing and we urge Chinese side for their support in achieving groundbreaking of these projects as soon as possible.
A major breakthrough in energy sector has been the consensus between Pakistan and China to further evaluate and in-depth study for shift up of power plants from imported coal to local coal. This strategic move will not only reduce Pakistan’s import bill but also facilitate payments to Chinese companies. I am pleased to share the development of coal mining in Thar and this has enabled us to utilize this tremendous indigenous coal resource, which had remained untapped for decades, significantly contributing to our energy security and economic growth. We look forward to transform huge coal deposits into green energy through coal gasification.
In the transport infrastructure sector, eight (08) projects have been completed thus far at a cost of US$ 6.7 billion and several projects including roads, Airport (Gwadar) and Digital Media projects are well underway. We hope to see Gwadar Airport in service soon. CPEC has contributed in construction of around 888 km of motorways and highways with both Chinese and local financing. Additionally, another 853 km are currently under construction through local financing. The KKH (Havelian-Thakot) project has won the ENR award. The Project one of the flagship endeavors in this sector, has received international recognition for its excellence.
Excellency, I would like to provide an update on some pressing infrastructure issues that require urgent attention. I am pleased to inform you that Pakistan has made significant progress on the Pakistan Railways Mainline-1 project. The re-modified PC-1 has been approved with cost of USD 6.76 billion in two phases. The project is now ready for the bidding process among eligible Chinese companies, we request bidding process should start immediately in view of poor deterioration of railway track. Signing the Commercial Contract will pave the way for finalizing the Financing Agreement and ultimately, for the project’s physical implementation. Therefore, I urge the NDRC and NRA to authorize the immediate commencement of the bidding process and establish timelines leading up to the groundbreaking of the project.
Another priority project is the Karachi Circular Railway (KCR), which will benefit a large segment of Karachi’s population. The Provincial Government of Sindh has revised the project documents, and its internal processing by the Government of Pakistan is nearing completion. This project is proposed to be implemented under a G2G arrangement, similar to the Lahore Orange Line Metro Train Project (OLMTP).
The Pakistani side has presented two new infrastructure projects for consideration under CPEC financing: the construction of the Sukkur-Hyderabad Motorway (M-6) and the Wangu Hill Tunnel Project on the M-8. Both projects have been discussed in the Joint Working Group (JWG) meeting.
I want to highlight the efforts and commitment of the Pakistani side in construction of remaining sections of the M-8 motorway, specifically Hoshab-Awaran and Awaran-Naal. Completion of these sections is crucial for the effectiveness and connectivity of Gwadar Port, and we are dedicated to advancing these projects using local resources.
Excellency, Gwadar Port has been made operational, and several infrastructure and social sector projects have been completed. These developments are pivotal in the transformation of Gwadar into a smart port city, promising to significantly improve the lives and livelihoods of the people of Gwadar and its adjoining coastal areas.
We deeply acknowledge the Chinese side’s support for socio-economic development projects in Pakistan. These projects have significantly uplifted the livelihoods of our people and hold great significance for the sustainable and long-term development of CPEC.
As we shift our focus from government-to-government (G2G) to business-to-business (B2B) cooperation in the next phase of CPEC, we emphasize high-quality development in industrialization, agriculture, and science and information technologies. Now is the time to attract investors and manufacturers to populate the Special Economic Zones, develop the Gwadar as business district, and create high-quality tourist resorts in Gwadar. To this end, we propose signing of an MoU to promote cooperation in these areas.
The second phase of CPEC has begun, but much work remains to ensure its success. We are progressing on developing four priority SEZs, including Rashakai SEZ, Allama Iqbal Industrial City, Dhabeji SEZ, and Bostan SEZ. However, we need to replicate the Chinese experience in this area. To set up our SEZs similarly to Chinese SEZs, we require support from your technical experts to advise our SEZ authorities regularly. This can be facilitated under the Industrial Cooperation Framework Agreement recently signed by both sides. We earnestly seek relocation of Chinese industries in these SEZs. Chinese companies can relocate their manufacturing units in these SEZs and take benefits from cheaper labor force, high return on investment and easy and cheaper access to world markets. We propose to convene Pakistan-China Business Forum in collaboration with NDRC for match making between Pakistani and Chinese enterprises.
Excellency, agriculture cooperation is a crucial element of the second phase of CPEC. I am pleased to inform you that both sides have signed multiple agreements and protocols to promote the export of Pakistan’s agricultural commodities to China. Recently, Pakistan has started exporting red chili, sesame, heated beef, animal skins, and other agricultural products to China, leading to a significant increase in exports. Chinese agricultural companies have established semen production facilities and have begun large-scale cattle and crop farming in Pakistan.
In view of climate change, Pakistan faces the challenges of adapting its agriculture to smart agriculture through Green Revolution 2.0. In this regard, we propose an MoU for Agricultural Research Cooperation and Capacity Building. This will help to modernize Pakistan’s agriculture and enhance its productivity to produce surplus agricultural commodities and pave the way for exporting meat, vegetables, and fruits to China. This important initiative needs to be finalized urgently to reap its benefits.
CPEC cooperation has expanded to include science and information technology. The role of technology in today’s world continues to grow in importance. The establishment of the Pakistan-China Business Forum for agriculture and information technology which will provide a platform for local companies to engage in business matchmaking and trade promotion activities on a preferential basis, is a welcome initiative. Both sides need to promote active cooperation between our countries’ technology companies to enhance mutual cooperation in these new areas.
Pakistan has experienced the unprecedented floods that have once again emphasized the importance of water management and climate change. Pakistan being a highly vulnerable country, needs to take urgent steps in this regard. We appreciate Chinese support in the rehabilitation and reconstruction in the aftermath of devastating floods. In order to leverage Chinese expertise and advancement, we propose inclusion of a new area of “Water Resource Management and Climate Change” in CPEC and establishment of a dedicated Joint Working Group (JWG) for it.
Another area of interest already included in CPEC is Mining. I hope that the establishment of a sub-group for Mining, agreed under the JWG on Industrial Cooperation will help us initiate cooperation in this area. Considering the scope and potential of cooperation in the mines and minerals sector, we propose establishment of a separate Joint Working Group to be led by Petroleum Division from Pakistan side.
Excellency, despite our efforts we could not hold the meetings of Joint Working Groups on Transport Infrastructure, Agriculture, Safety and Security, Socio-Economic Development and Planning & CPEC Long Term Plan. I would request that we hold pending meetings of JWGs before the upcoming high level visit to better prepare the outcomes/ deliverables. It is suggested to cover all agenda points of the upcoming JWG meetings in the minutes of today’s session of JCC in order to ratify potential deliverables for the high level visit.
Excellency, Government of Pakistan is aware of the security related challenges to CPEC. This great bilateral initiative has been a target of propaganda as well as physical attacks. The Government of Pakistan has taken a number of measures to ensure fool proof security to Chinese personnel working in Pakistan. We have been regularly updating the Embassy of China on the actions being taken in this regard. It is our commitment that the Chinese personnel will be given the best possible security while working in Pakistan.
Excellency, I hope that today’s deliberations would give a new impetus to CPEC and it will begin a new era of enhanced cooperation. The decisions we take today will go a long way in furthering the aims of high quality development under the China Pakistan Economic Corridor.
I wish to thank you and your team for the efforts made and the work done to make this meeting a success.
Thank You!
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