Ten years after launching the China-Pakistan Economic Corridor (CPEC) and holding 78 progress review meetings, it again emerged on Tuesday that the jewel of the multibillion-dollar initiative, Gwadar, could not shine because it neither has sufficient clean water nor indigenous electricity.
The 78th CPEC progress review meeting was not different from dozens of such meetings held in the past where aggressiveness was shown over the lack of progress and new deadlines were set to fulfil obligations under President Xi Jinping's Belt and Road Initiative (BRI).
Federal Minister for Planning Ahsan Iqbal chaired the review meeting on CPEC. He expressed dissatisfaction over delay in ensuring national grid connectivity for Gwadar and directed the Quetta Electric Supply Company (Qesco) and the Power Division to submit an updated progress report within five working days, according to a statement issued by the Ministry of Planning after the meeting.
In the last review meeting held about two months ago in January, Ahsan Iqbal had sought a compliance report within one week to connect Gwadar and its free zone with the national electricity grid.
The city, having strategic importance in the CPEC framework, is energised by importing electricity from Iran.
Pakistan has surplus electricity and pays over Rs2.1 trillion in idle capacity charges to power producers by collecting Rs18 per unit from consumers. But it does not have the right set of policies for electricity supply through laying transmission lines.
In the last meeting, Iqbal had also instructed Qesco and the Power Division to coordinate with the Gwadar Port Authority and Pakistan Navy for immediate provision of electricity and the energisation of Gwadar Port and South Free Zone. The minister directed in January that the outstanding issues should be addressed and resolved subsequently. He also sought an updated progress report within five working days on the status of power supply to Gwadar from the national grid, according to the ministry.
The Power Division apprised the meeting that the Cabinet Committee on Energy, in its recent huddle, had approved a new policy for the provision of bulk electricity to the Special Economic Zones (SEZs) at a single point through an operation and maintenance contract between the respective developer of SEZs and power distribution companies (DISCOs).
The planning minister emphasised that the new policy should incorporate all zones including the SEZs, Export Processing Zones (EPZs) and Gwadar Free Zones. But his instructions were ignored.
The planning ministry stated on Tuesday that Ahsan Iqbal voiced deep concern over the non-operationalisation of a desalination plant in Gwadar and emphasised the urgent need for supply of clean drinking water.
He directed that immediate action should be taken within the week to resolve the issue, said the ministry.
China had provided equipment and demonstration stations from May to December last year for the provision of electricity and clean drinking water. The meeting was told that 10,000 solar panels were delivered in May 2024, followed by another 5,000 in September, under a grant-in-aid programme.
Furthermore, drinking water supply equipment, including 150 water filtration plants and 10 tube well solarisation units, arrived in August 2024. However, their distribution and installation were yet to be carried out, the meeting was told.
Expressing serious concern, Ahsan Iqbal directed the Ministry of Food to formulate a comprehensive plan within three days for efficient distribution of the equipment provided by China. He told the ministry to convene a meeting with all provinces and submit a formal plan within two days on how those machines would be used.
Pakistan had earlier proposed the utilisation of Gwadar Port as a transshipment facility but it was not able to provide basic facilities.
CPEC progressed smoothly till the seventh Joint Cooperation Committee (JCC) meeting and after that six more meetings have been held since 2017 but no breakthrough could be made.
The planning ministry stated on Tuesday that the meeting reviewed preparations for the upcoming 14th JCC meeting, with China confirming its support for holding the session in July 2025. All working group meetings have been scheduled for March and April to ensure comprehensive preparations.
Ahsan Iqbal directed that meetings of all working groups, particularly the working groups on safety & security and science & technology, should be scheduled at least one month prior to the JCC meeting. Furthermore, he stressed that the Pakistani mission in Beijing should actively follow up with the Chinese side to ensure that the meetings were arranged in accordance with the agreed calendar.
The minister told Pakistan's diplomatic mission in Beijing and the Economic Affairs Division to engage with the Chinese authorities to finalise a date for the visit of technical and financial experts to Pakistan.
A representative of the Ministry of Railways said that the Joint Technical and Financial Working Group meeting was held on January 16, 2025, during which both sides discussed the technical and financial aspects of the Karachi-Hyderabad section of Main Line-1 (ML-I) project.
Moreover, the Chinese side conveyed that they were in the process of finalising the composition of the Technical and Financial Working Group, which would visit Pakistan soon to resolve all pending issues related to the Karachi-Hyderabad section.
Iqbal directed the mission in Beijing and the Economic Affairs Division to follow up with the Chinese side to ensure the early visit of the working group on the second phase of CPEC, which focuses on green corridor developments.
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