China has committed to initiate multi-billion-dollar projects in the second phase of the China-Pakistan Economic Corridor (CPEC) project, Special Assistant to the Prime Minister on CPEC Affairs, Khalid Mansoor revealed on Monday.
While addressing a news conference, the SAPM said that the leadership of Chinese companies committed high quality and expeditious projects during the visit of Prime Minister Imran Khan to Beijing.
Meetings with Chinese investors
Prime Minister held meetings with 19 Chinese companies inviting them to invest in Pakistan. The leadership of these companies appreciated the environment and facilities offered by the Pakistani government to the Chinese investors. Imran Khan met with investors from the following seven sectors:
- Textile
- Pharmaceutical
- Automotive
- Information Technology
- Footwears
- Furniture
- Agriculture
Details of projects
- Paper & Metal Recycling Park: A consortium of three Chinese companies will set up US$4.5 billion paper and metal low-carbon recycling park at Gwadar. It will create 40,000 jobs.
- Clothing: Chinese company Challenge Apparel will establish a US$250 million 100-acre ‘Textile Cluster’ near Lahore.
- Agriculture: Three Chinese companies expressed interest in investing in Agriculture sector projects, including FMD free zones and agricultural mechanization
- IT Sector: Five Chinese companies have expressed intention to invest around USD 2.4 billion.
- Energy and Water Sectors: Two large Chinese companies expressed interest for investment in Water sector projects.
- Housing sector: Three Chinese companies expressed interest in initiating various projects.
- Petroleum and Mining sectors: Three Chinese companies are interested in investing in various projects including Refineries.
The special assistant said it will now be government’s effort to give a practical shape to their interest in the shortest possible time.
“Chinese investors were told that the Economic Coordination Committee had approved Rs100 billion for CPEC projects, Independent Power Producers (IPPs), out of which, Rs50 billion has already been disbursed against outstanding payables to CPEC operational companies, while the remaining amount of Rs50 billion will be provided to them this month,” he said.
Investment Agreement on Industrial Cooperation was also signed between China and Pakistan during Imran Khan’s visit to Beijing.
Fiber optic project
Khalid Mansoor also told that telecom company Jazz has signed an agreement with a Chinese company to lay fiber optic at an area of one hundred thousand kilometers which will help connect major cities of Pakistan with the optical fiber.
Chinese investors exempted from project approvals
The SAPM also told the media that the government has also decided to exempt Chinese companies from about 37 approvals for investment projects. In phase-II of CPEC, the companies also do not need to complete prior actions like payments of dues to power producers and creating a revolving fund for future interest payments.
Progress on CPEC before and after 2018
Infrastructure:
Total 2 infrastructure based projects were completed till august 2018, however the number of complete projects by January 2022 were 7.
The total roads constructed till august 2018 were 415 while the number exceeded to 453 at the end of 2021.
Power:
Total power generation was recorded as 3340MW by mid 2018 which exceeded to 5864 at the start of year 2022.
Electricity Transmission Line:
An 880 KM long transmission line of electricity was installed as per the data issued at the start of January 2022 however there was no electricity transmission line in year 2018.
Industrial Cooperation/Special Economic Zones (SEZs):
No SEZs were started by mid 2018 while 2 special economic zones were initiated by the end of 2021.
There were zero Industrial Units Started in SEZs by August 2018 however the total number of Industrial Units in SEZs by January 2022 were 28.