Staff Report
ISLAMABAD: Despite the deadly outbreak of Covid-19 virus world that has shaken the global economy, Pak-China economic cooperation is showing signs of revival as demonstrated with the arrival of the first bulk cargo ship ‘MV Manet’, carrying wheat and urea of Afghanistan Transit trade, at China-supervised Gwadar International Deep Seaport, says report published by Gwadar Pro on Tuesday.
Special Assistant to Pakistan’s Prime Minister for Information and Chairman, CPEC Authority, Lieutenant General (retired) Asim Saleem Bajwa says it is like a dream come true for the local economy as it will stimulate a host of business activity. This development can be aptly termed as a big accomplishment within the framework of Pak-China economic cooperation at a time when the development works are moving at a snail’s pace in other parts of the world. In this manner, China and Pakistan’s joint ventures are surpassing the pace and quantum of development activities in the rest of the world. The prompt initiation of ML-1 Railway project under CPEC is another good news. Last Saturday, Pakistan’s Minister for Railways, Sheikh Rashid Ahmed, declared publicly that ML-1 project has been given serious thought vis-à-vis its different implementation phases.
The Minister thanked the leadership of China for paving the way for new job opportunities for 100,000 (one hundred thousand) Pakistanis, during the initial phases, with the help of this state-of-the-art railway project that can be described as a priceless gift from China’s Iron Brothers for Pakistan.
According to Pakistan’s Minister for Railways, chances of accidents on the Pakistani rail track would reduce almost to a naught after the laying down of a double-track under the supervision of Chinese engineers, from Karachi seaport at one end of the country, to Peshawar, at the other end of Pakistan, bordering Afghanistan.
It is worth mentioning that the completion of ML-1 project will provide low-cost transportation for cargo and passengers, bringing benefits to 70 % of the population of Pakistan along ML-1. A very important aspect of CPEC is that its energy projects are foreign direct investment (FDI), based on commercial contracts, which are in accordance with the standard clauses provided by the Pakistani government.
The CPEC energy projects are executed in accordance with BO(O)T mode. The financing of the energy projects is mainly provided by the equity of Chinese companies and commercial loans borrowed from China Development Bank and other commercial banks in the rates below 5%. In other words, any debt arising from the CPEC energy project would be borne by the Chinese investors instead of the Pakistani government. The fact is that China-Pakistan Economic Corridor (CPEC) is a pilot project of the Belt and Road Initiative and a mutually beneficial platform for comprehensive and substantive cooperation between the two countries whose top leaders reached consensus to promote a “1+4” pattern of economic cooperation.
During Pakistani Prime Minister Imran Khan’s visit to China, the two sides showed complete commitment to put all the CPEC projects especially Special Economic Zones on a fast track with a shared focus on the future trajectory of CPEC and joint efforts for realization of its full potential aimed at enhanced socio-economic development and massive job creation.
It was also mutually agreed that apart from accelerating cooperation in industrial development, work would also start in full swing in the areas of industrial parks and agriculture.
