Federal Minister for planning, development and reforms Ahsan Iqbal and National Development and Reforms Commission vice chairman Zhang Xiaoqiang inaugurate the 'Pak-China Economic Secretariat' at the Planning Commission in Islamabad. PHOTO: PID
Pakistan has asked China to raise investment ceiling of Export Import Bank of China to $10 billion from existing $3 billion in an effort to create more financial space for funding mega development projects.
The request came in the inaugural meeting of the Joint Cooperation Committee of the China-Pakistan Economic Corridor.
Representing Pakistan, Federal Minister for Planning, Development and Reforms Ahsan Iqbal asked Zhang Xiaoqiang, Vice Chairman of the National Development and Reforms Commission, to increase the ceiling and make available more funds for development projects.
Xiaoqiang promised to take up the issue with the Exim Bank of China, according to the Ministry of Planning. Iqbal praised China for waiving the condition of sovereign guarantee before providing loans.
Pakistan urged China to take steps and deepen economic relations like the way political and strategic ties had strengthened. According to Iqbal, bilateral economic ties did not reflect the deep-rooted political relations between the two sides.
Now, the two countries have kicked off work on achieving a medium to long-term goal of setting up an economic corridor. Pakistan has offered China to use its territory to connect with South Asia, Central Asia, the Middle East and Far East Asia.
The economic corridor is said to be not only a transport link but can also serve as an energy and telecommunications corridor.
Pakistan also reiterated its support for the One-China policy. Iqbal said US withdrawal from the region would leave a vacuum that could only be filled by fostering economic opportunities in the region such as job creation and providing economic alternatives.
In this regard, the economic corridor can be beneficial to the people of Afghanistan. The corridor would create links with India, Afghanistan and Iran and bolster development in South Asia and the Middle East, Iqbal said.
He stressed that Gwadar offered strategic opportunities not only to Pakistan and China but also to the rest of the world.
Pakistan is keen to see Chinese investment in energy and infrastructure. It is already working with Chinese companies to establish the Gadani coastal energy park as well as develop solar energy projects.
The main challenge is to make economic relations as stronger as political ties are.
In his opening remarks, Xiaoqiang said Pakistan and China had great potential for economic cooperation which would further deepen relations between the two countries.
“This will not only promote trade but will also bring stability to the region by creating jobs,” he said.
Xiaoqiang said the economic corridor would also create a link with the region. China would invest in energy, transport, infrastructure and export industries.
He expressed the hope that this landmark project would serve as a backbone for Pakistan’s economy and said China would encourage its investors to play a positive role in Pakistan’s development.
Published in The Express Tribune, August 28th, 2013.
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@Sindhi: At least they are not pocketing money like PPP did in every project.
Pakistan for sale..........
Long live Pak China friendship.
At least they (PMLN) have the creditibility that investors are discussing the possibilities of economic projects and requesting to raise the bar. We just hope and pray that all goes well with the planning of Govt.
@Alami Musafir: Dear bother do you know how much electricity does US produce using coal?
Good going by the government.....atleast you hear good news almost every next day Alhamdulillah.
China Pakistan buy buy.
@Sindhi: I don't think working with neighbouring countries and encouraging investment is begging. All nations encourage investment in infrastructure projects but in this case, the Chinese are also keen to see their own economic windfall from the trade corridor. It is a win - win situation for both countries and I think the government is doing a great job of working for the nation's economic future.
Respect!
Apart from the huge energy output, the coal-fired Gadani complex would also produce massive amounts of carbon dioxide. On site is abundant seawater, and substantial magnesite deposits in nearby Bela. Using these feedstocks, it should be possible to create a modified Solvay process soda ash production plant, which would produce soda ash and magnesium chloride as end products. The soda could then be fused with the abundant sand in Gandani to produce glass, and the magnesium chloride could be electrolysed into the metal, for use on its own (eg for nuclear fuel rod cladding) or alloyed with aluminium for aircraft fuselage construction. Even the chlorine byproduct from the electrolysis could be utilised, eg to produce PVC monomer.
The energy complex would make possible, associated primary industries, which in turn could produce feedstock for a host of secondary industries (eg glassware, plastic consumer goods etc). Very exciting possibilities indeed !
In the name of strategic depth, sell more of the country part by part to the chinese, who literally control everything in pak today and dictates terms..
The government of Pakistan is to be congratulated for its efforts in respect of the development of Baluchistan, and in particular, the Gadani coastal energy park. These efforts would be even more fruitful if, instead of relying on outsiders, the government starts relying on its own self. Pakistan government lacks an in-house cadre of industrial & urban planners, project financiers, industrial and development economists, transportation specialists etc - in short, the wherewithal to undertake the planning AS WELL AS FINANCING, of such mega-projects. Passing the buck onto China does ourselves a disservice. How will our own budding specialists learn, if all we do is import expertise ? Its high time we get out of the colonised coolie mind-set and start doing our own work ourselves. And where is the Balochi participation in all of this ? What proportion of the rewards of these projects, which after all, are based on Baloch resources, go back into Baloch pockets ?
Beg Beg..........This is only what this govt knows...........IMF now China.......