Muhammad Omar
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Islamabad: 11 January 2016
A group of Chinese investors met Prime Minister Muhammad Nawaz Sharif at PM House Islamabad today and expressed keen interest in developing Hydropower projects in the country.
While appreciating the economic policies of the government they expressed confidence that the transparent investment regime in the country will attract more Foreign Direct Investment (FDI).
The Prime Minister, while welcoming the interest shown by the Chairman for investment in Pakistan’s hydel energy sector, said that hydro-electric sector was priority of the Government. Pakistan was resolving its energy crisis by investing in different sources of energy including solar, thermal and hydro energy projects and the Government had already secured billions of dollars from International Financial Institutions for the construction of Dasu dam in KPK. The Prime Minister said that future investment by China Three Gorges International in the hydel energy sector would enable the Government to overcome the energy shortfall.
The Prime Minister said that CPEC was a game changer and all the provinces of the country would reap benefits under the CPEC. CPEC is a window of opportunity that would bring socio-economic development in the country particularly in two least developed provinces i.e Balochistan and Khyber Pukhtunkhwa, the Prime Minister added. The meeting was informed that the priority energy projects under CPEC include Port Qasim Electric Company Coal Fired Plant (1320 MW); Sahiwal Coal-fired Power Plant (1320 MW); Engro Thar Coal-fired Power Plant (1320 MW); Surface Mine in Block II of Thar Coal field 6.5 mtpa; Gwadar Coal Power Project (300 MW); HUBCO Coal Power Plant (660 MW); Rahimyar Khan Coal Power Project (1320 MW); SSRL Thar Coal Block 6.5mpta & CPIH Mine Mouth Power Plant, Thar, Sindh; Coal Fired Power Project Thar block-I (1320 MW); Quaid-e-Azam Solar Park, Bahawalpur (1000 MW); Dawood Wind Farm, Bhambore, Sindh (50MW); UEP 100MW Wind Farm, Jhimpir, Sindh; Sachal 50MW Wind Farm, Jhimpir, Sindh; Sunnec 50MW Wind Farm, Nooriabad,Thatta, Sindh.
Prime Minister Muhammad Nawaz Sharif said that Gwadar was being uplifted as an international free port and Government was undertaking several projects for its development. Eastbay Expressway-II; Gwadar Port Authority (GPA) Expansion of Multipurpose Terminal including breakwater & dredging; Infrastructure for Free Zone & EPZs port related industries; Necessary Facilities of Fresh Water Treatment and Supply; Hospital; Technical and Vocational Institute; The only aviation project (New Gwadar International Airport); Energy projects including Gaddani, Hubco and Gwadar Power Plants (2940 MW), Free Zone of CPEC in Gwadar , Development of Smart City at Gwadar are part of the Gwadar uplift projects.
The Prime Minister stated that CPEC is a fusion of multiple development projects, aiming at the prosperity and well-being of the citizens of the country and the region at large. It was also informed that Joint Working Group was being formulated under CPEC framework under which all provinces were being consulted to give technically sound and financially viable recommendations of industrial/economic zone cooperation for scrutiny by Joint Working Group and experts.
The meeting was informed that preliminary workings on the proposed sites for construction of economic zones have been identified by BOI in KPK and Balochistan. The spotted places in KPK for construction of economic zones are Mansehra, Noshehra, Hattar, Ghazi, D.I Khan, Kohat, Karak and Bannu while in Baluchistan Turbat, Khuzdar, Dasht, Bostan, Qila Saifullah and Zhob. The Prime Minister will announce the finalized sites for construction of economic zones in KPK and Baluchistan after consultation with the provincial governments and the political leaderships. The meeting was further briefed that the existing roads are being upgraded to interconnect different areas of the country that include; 650 KM Gwadar-Surab road is being completed on priority to link the all important Gawadar Port with rest of the country. The up gradation of Quetta-DI Khan road is also imperative keeping in view its importance.
The meeting discussed in detail the CPEC projects in KPK. It was briefed that KPK will be Trade and Logistic passage zone under CPEC. The CPEC in KP includes multiple areas including Rail and Road Networks, including Swat Motorway Project (81 km) worth US $365 Million; Oil and Gas Sector; development of Industrial/Economic Zones; Mineral Processing and Development Zones; telecommunication Sector; Agriculture Sector Development and Human Resource Development among others. It was also informed that CPEC-Energy Actively Promoted Project include Gaddani Power Park Project, HUBCO coal power plant, Hub Balochistan (660 MW), Salt Range Mine Mouth Power Project, Kohala Hydel Project, AJK (1100 MW), Pakistan Wind Farm, Jhampir, Thatta, Sindh (100 MW), Thar Mine Mouth Oracle, Thar Sindh, Muzaffargarh Coal Power Project (1320 MW), Salt Range Mine Mouth Power Project including mining with the cooperation of China Machinery Engineering Company, Kohala Hydel Project, AJK and Pakistan Wind Farm II, Jhampir, Thatta, Sindh.
Railway Network official map of CPEC
CPEC-triggered investment
ALMOST nine months after President Xi Jinping’s visit to Islamabad, the China-Pakistan Economic Corridor is proving to be a major attraction for domestic investors who see it as catalyst for Pakistan to grow its economy at a pace achieved by leading regional peers.
Some major business groups have started investing in expanding their production capacity of such materials as cement, steel, electric cables and glass that they expect will be ‘in huge demand as work on the CPEC projects moves ahead at a faster pace in the months to come’.
For example, the Nishat Group is setting up a cement plant in Balochistan and the Lucky Cement in Punjab. The Younus Brothers, owner of Lucky Cement, is also establishing a coal power plant in Karachi.
CPEC is not only attracting domestic investors but also foreign capital. — Abdul Basit, chairman of the Punjab Board of Investment and Trade
A steel mill in Karachi, which is said to be the major supplier of steel for the Lahore Orange Line Metro Train project, is said to be planning to expand its capacity. A Lahore-based electric cable manufacturer — Fast Cables — has expanded its manufacturing facility to meet the future demand of CPEC-linked projects and is planning to boost it further and a Peshawar-based investor is said to have shown interest in setting up a steel plant near Lahore.
“All these investments are centred round the CPEC as the corridor acts as a magnet to pull the investors,” said Abdul Basit, chairman of the Punjab Board of Investment and Trade (PBIT). He claimed that CPEC is not only attracting domestic investors but also foreign capital. “Several foreign companies are keen on partnering with local investors and provincial government (of Punjab) to launch projects in different sectors of the economy,” he added.
Businessmen like Mian Mohammad Mansha argue that the CPEC implementation will turn Pakistan into the centre of global economic activities. Others agree.
“The CPEC is the last opportunity for Pakistan to get out of vicious cycle of low growth and improve the lives of its people,” says Ijaz A Mumtaz, former president of the Lahore Chamber of Commerce and Industry (LCCI).
Pakistan remains one of the slowest growing South Asian economies for the last several years despite being the second most populated country after India. Pakistan’s economy is estimated by the World Bank to expand by just 5.5pc during the calendar year 2016. On the other hand, growth in India is expected to speed up to 7.7pc, Bhutan to 7.2pc, Bangladesh to 6.8pc and Sri Lanka to 5.6pc. Only Maldives and Nepal are estimated to grow more slowly than Pakistan, according to a new World Bank report.
By 2018, the report estimates India to escalate its growth rate to 7.9pc and Sri Lanka to 6pc. Bangladesh and Pakistan will maintain their GDP (gross domestic product) growth rate at 6.8pc and 5.4pc respectively.
The World Bank report lists rising investments from China under the CPEC agreement to link China’s Xinjiang region with Gwadar port, low global oil prices and anticipated return of Iran into international economic community as three tailwinds to help Pakistan achieve the 5.4pc growth rate over the medium term.
Estimated at $46bn of investment until 2030, the CPEC initiative will finance a series of transport infrastructure projects ($11bn, mostly public investment) and energy projects ($33bn, mostly private).
Businessmen like Ijaz Mumtaz are worried that the ongoing spat over corridor route and federal investment plans around the CPEC initiative could derail the project. “The chances are the CPEC project will get embroiled into a controversy at the expense of our people unless our politicians and policymakers learnt from the past. Its implementation is largely predicated on political consensus on the initiative,” he warns.
A senior banker from Lahore told Dawn that his bank has recently been approached by several businessmen from Lahore and Karachi to ‘explore the possibility’ of long-term financing for medium to large projects they plan to set up along the CPEC.
“At present most businessmen are interested in setting up projects for producing materials required in construction. It is natural because we do not have enough capacity to meet the demand for such materials once the implementation of the initiative catches pace over the next few months,” he said.
He, however, is of view that private investment — barring from some large business groups — will be dependent on government policies and its ability to handle the energy shortages in the country. “I see the business confidence rising because of the anticipated opportunities that the CPEC initiative is expected to unlock for the investors. But private investors appear to be waiting for government to remove bureaucratic and energy impediments.”
Energy projects worth $25b to be completed under CPEC: Ahsan Iqbal
A view of the All Parties Conference held in Islamabad on January 10, 2016. PHOTO: ONLINE
Energy projects worth over $25 billion are set to be completed under the China-Pakistan Economic Corridor (CPEC), Federal Minister for Planning, Development and Reforms Ahsan Iqbal announced on Sunday.
“Energy projects worth $7.1 billion, $6.9 billion and $11.5 billion will be completed in Balochistan, Punjab and Sindh respectively under the CPEC,” Radio Pakistan quoted Ahsan as saying, during an All Parties Conference (APC) in Islamabad convened; by the Balochistan National Party-Mengal (BNP-M).
Fighting for western corridor: K-P parties reaffirm stance on CPEC
The APC was called to discuss the on-going dispute over the alleged changes in the route of the multi-million dollar project. Pakistan and China had signed an agreement on April 20 last year to commence work on CPEC development projects worth over $46 billion, which comes to roughly 20 per cent of Pakistan’s annual GDP.
The corridor aims to connect Gwadar port in Balochistan to China’s Xinjiang region via a network of highways, railways and pipelines spread over 3,000km. Work on several sections has already commenced but the entire project is expected to take several years to complete.
Federal ministers Ahsan Iqbal, Khwaja Saad Rafiq, Leader of the House in Senate Raja Zafar ul Haq, Sardar Akhtar Mangal, Maulana Fazalur Rehman, Aftab Ahmad Khan Sherpao, Mahmood Khan Achakzai, Afrasiyab Khattak, Farhatullah Babar, Liaqat Baloch, Khyber-Pakhtunkhwa Chief Minister Pervez Khattak, and former chief minister Balochistan Dr Abdul Malik Baloch attended the conference.
K-P and the CPEC
Earlier on Saturday, the Chinese Embassy in Islamabad had urged the government, its allies and the opposition parties to resolve their difference to strengthen communication and coordination on the CPEC to create favourable conditions for the project.
On Friday, a two-member delegation of the Pakistan Tehreek-e-Insaf comprising former foreign minister Shah Mehmood Qureshi and MNA Dr Shireen Mazari had met the Chinese ambassador. Sharing details of his meeting, Qureshi told The Express Tribune that “we gave an assurance to the ambassador that we don’t have any issue with China and we are in favour of the CPEC”.
Qureshi said it was pledged in an all parties’ conference (APC) that the western route would be completed first. He accused the government of retreating from this pledge. “Building just the road is not enough. Our demand for work on the western route includes development of infrastructure, rail tracks, fiber optics, LNG and uninterrupted supply of electricity,” he added.
Opposition parties are demanding the government take them into confidence while addressing their concerns on the government’s plan to execute the CPEC. During the recent session of parliament, not a single day passed without opposition parties’ protesting against the government’s approach on the CPEC.
CPEC: Aftab Sherpao doubts govt’s plans for western route
Meanwhile, Leader of Opposition in the National Assembly Khursheed Shah also wrote a letter to Prime Minister Nawaz Sharif expressing reservations on projects related to the CPEC and called the initiatives taken on the project ‘Punjab-centric’. He asked the premier to adhere to the decisions reached at the APC held over the project in May last year
Islamabad: 11 January 2016
A group of Chinese investors met Prime Minister Muhammad Nawaz Sharif at PM House Islamabad today and expressed keen interest in developing Hydropower projects in the country.
While appreciating the economic policies of the government they expressed confidence that the transparent investment regime in the country will attract more Foreign Direct Investment (FDI).
The Prime Minister, while welcoming the interest shown by the Chairman for investment in Pakistan’s hydel energy sector, said that hydro-electric sector was priority of the Government. Pakistan was resolving its energy crisis by investing in different sources of energy including solar, thermal and hydro energy projects and the Government had already secured billions of dollars from International Financial Institutions for the construction of Dasu dam in KPK. The Prime Minister said that future investment by China Three Gorges International in the hydel energy sector would enable the Government to overcome the energy shortfall.
The Prime Minister said that CPEC was a game changer and all the provinces of the country would reap benefits under the CPEC. CPEC is a window of opportunity that would bring socio-economic development in the country particularly in two least developed provinces i.e Balochistan and Khyber Pukhtunkhwa, the Prime Minister added. The meeting was informed that the priority energy projects under CPEC include Port Qasim Electric Company Coal Fired Plant (1320 MW); Sahiwal Coal-fired Power Plant (1320 MW); Engro Thar Coal-fired Power Plant (1320 MW); Surface Mine in Block II of Thar Coal field 6.5 mtpa; Gwadar Coal Power Project (300 MW); HUBCO Coal Power Plant (660 MW); Rahimyar Khan Coal Power Project (1320 MW); SSRL Thar Coal Block 6.5mpta & CPIH Mine Mouth Power Plant, Thar, Sindh; Coal Fired Power Project Thar block-I (1320 MW); Quaid-e-Azam Solar Park, Bahawalpur (1000 MW); Dawood Wind Farm, Bhambore, Sindh (50MW); UEP 100MW Wind Farm, Jhimpir, Sindh; Sachal 50MW Wind Farm, Jhimpir, Sindh; Sunnec 50MW Wind Farm, Nooriabad,Thatta, Sindh.
Prime Minister Muhammad Nawaz Sharif said that Gwadar was being uplifted as an international free port and Government was undertaking several projects for its development. Eastbay Expressway-II; Gwadar Port Authority (GPA) Expansion of Multipurpose Terminal including breakwater & dredging; Infrastructure for Free Zone & EPZs port related industries; Necessary Facilities of Fresh Water Treatment and Supply; Hospital; Technical and Vocational Institute; The only aviation project (New Gwadar International Airport); Energy projects including Gaddani, Hubco and Gwadar Power Plants (2940 MW), Free Zone of CPEC in Gwadar , Development of Smart City at Gwadar are part of the Gwadar uplift projects.
The Prime Minister stated that CPEC is a fusion of multiple development projects, aiming at the prosperity and well-being of the citizens of the country and the region at large. It was also informed that Joint Working Group was being formulated under CPEC framework under which all provinces were being consulted to give technically sound and financially viable recommendations of industrial/economic zone cooperation for scrutiny by Joint Working Group and experts.
The meeting was informed that preliminary workings on the proposed sites for construction of economic zones have been identified by BOI in KPK and Balochistan. The spotted places in KPK for construction of economic zones are Mansehra, Noshehra, Hattar, Ghazi, D.I Khan, Kohat, Karak and Bannu while in Baluchistan Turbat, Khuzdar, Dasht, Bostan, Qila Saifullah and Zhob. The Prime Minister will announce the finalized sites for construction of economic zones in KPK and Baluchistan after consultation with the provincial governments and the political leaderships. The meeting was further briefed that the existing roads are being upgraded to interconnect different areas of the country that include; 650 KM Gwadar-Surab road is being completed on priority to link the all important Gawadar Port with rest of the country. The up gradation of Quetta-DI Khan road is also imperative keeping in view its importance.
The meeting discussed in detail the CPEC projects in KPK. It was briefed that KPK will be Trade and Logistic passage zone under CPEC. The CPEC in KP includes multiple areas including Rail and Road Networks, including Swat Motorway Project (81 km) worth US $365 Million; Oil and Gas Sector; development of Industrial/Economic Zones; Mineral Processing and Development Zones; telecommunication Sector; Agriculture Sector Development and Human Resource Development among others. It was also informed that CPEC-Energy Actively Promoted Project include Gaddani Power Park Project, HUBCO coal power plant, Hub Balochistan (660 MW), Salt Range Mine Mouth Power Project, Kohala Hydel Project, AJK (1100 MW), Pakistan Wind Farm, Jhampir, Thatta, Sindh (100 MW), Thar Mine Mouth Oracle, Thar Sindh, Muzaffargarh Coal Power Project (1320 MW), Salt Range Mine Mouth Power Project including mining with the cooperation of China Machinery Engineering Company, Kohala Hydel Project, AJK and Pakistan Wind Farm II, Jhampir, Thatta, Sindh.
Railway Network official map of CPEC
CPEC-triggered investment
ALMOST nine months after President Xi Jinping’s visit to Islamabad, the China-Pakistan Economic Corridor is proving to be a major attraction for domestic investors who see it as catalyst for Pakistan to grow its economy at a pace achieved by leading regional peers.
Some major business groups have started investing in expanding their production capacity of such materials as cement, steel, electric cables and glass that they expect will be ‘in huge demand as work on the CPEC projects moves ahead at a faster pace in the months to come’.
For example, the Nishat Group is setting up a cement plant in Balochistan and the Lucky Cement in Punjab. The Younus Brothers, owner of Lucky Cement, is also establishing a coal power plant in Karachi.
CPEC is not only attracting domestic investors but also foreign capital. — Abdul Basit, chairman of the Punjab Board of Investment and Trade
A steel mill in Karachi, which is said to be the major supplier of steel for the Lahore Orange Line Metro Train project, is said to be planning to expand its capacity. A Lahore-based electric cable manufacturer — Fast Cables — has expanded its manufacturing facility to meet the future demand of CPEC-linked projects and is planning to boost it further and a Peshawar-based investor is said to have shown interest in setting up a steel plant near Lahore.
“All these investments are centred round the CPEC as the corridor acts as a magnet to pull the investors,” said Abdul Basit, chairman of the Punjab Board of Investment and Trade (PBIT). He claimed that CPEC is not only attracting domestic investors but also foreign capital. “Several foreign companies are keen on partnering with local investors and provincial government (of Punjab) to launch projects in different sectors of the economy,” he added.
Businessmen like Mian Mohammad Mansha argue that the CPEC implementation will turn Pakistan into the centre of global economic activities. Others agree.
“The CPEC is the last opportunity for Pakistan to get out of vicious cycle of low growth and improve the lives of its people,” says Ijaz A Mumtaz, former president of the Lahore Chamber of Commerce and Industry (LCCI).
Pakistan remains one of the slowest growing South Asian economies for the last several years despite being the second most populated country after India. Pakistan’s economy is estimated by the World Bank to expand by just 5.5pc during the calendar year 2016. On the other hand, growth in India is expected to speed up to 7.7pc, Bhutan to 7.2pc, Bangladesh to 6.8pc and Sri Lanka to 5.6pc. Only Maldives and Nepal are estimated to grow more slowly than Pakistan, according to a new World Bank report.
By 2018, the report estimates India to escalate its growth rate to 7.9pc and Sri Lanka to 6pc. Bangladesh and Pakistan will maintain their GDP (gross domestic product) growth rate at 6.8pc and 5.4pc respectively.
The World Bank report lists rising investments from China under the CPEC agreement to link China’s Xinjiang region with Gwadar port, low global oil prices and anticipated return of Iran into international economic community as three tailwinds to help Pakistan achieve the 5.4pc growth rate over the medium term.
Estimated at $46bn of investment until 2030, the CPEC initiative will finance a series of transport infrastructure projects ($11bn, mostly public investment) and energy projects ($33bn, mostly private).
Businessmen like Ijaz Mumtaz are worried that the ongoing spat over corridor route and federal investment plans around the CPEC initiative could derail the project. “The chances are the CPEC project will get embroiled into a controversy at the expense of our people unless our politicians and policymakers learnt from the past. Its implementation is largely predicated on political consensus on the initiative,” he warns.
A senior banker from Lahore told Dawn that his bank has recently been approached by several businessmen from Lahore and Karachi to ‘explore the possibility’ of long-term financing for medium to large projects they plan to set up along the CPEC.
“At present most businessmen are interested in setting up projects for producing materials required in construction. It is natural because we do not have enough capacity to meet the demand for such materials once the implementation of the initiative catches pace over the next few months,” he said.
He, however, is of view that private investment — barring from some large business groups — will be dependent on government policies and its ability to handle the energy shortages in the country. “I see the business confidence rising because of the anticipated opportunities that the CPEC initiative is expected to unlock for the investors. But private investors appear to be waiting for government to remove bureaucratic and energy impediments.”
Energy projects worth $25b to be completed under CPEC: Ahsan Iqbal
A view of the All Parties Conference held in Islamabad on January 10, 2016. PHOTO: ONLINE
Energy projects worth over $25 billion are set to be completed under the China-Pakistan Economic Corridor (CPEC), Federal Minister for Planning, Development and Reforms Ahsan Iqbal announced on Sunday.
“Energy projects worth $7.1 billion, $6.9 billion and $11.5 billion will be completed in Balochistan, Punjab and Sindh respectively under the CPEC,” Radio Pakistan quoted Ahsan as saying, during an All Parties Conference (APC) in Islamabad convened; by the Balochistan National Party-Mengal (BNP-M).
Fighting for western corridor: K-P parties reaffirm stance on CPEC
The APC was called to discuss the on-going dispute over the alleged changes in the route of the multi-million dollar project. Pakistan and China had signed an agreement on April 20 last year to commence work on CPEC development projects worth over $46 billion, which comes to roughly 20 per cent of Pakistan’s annual GDP.
The corridor aims to connect Gwadar port in Balochistan to China’s Xinjiang region via a network of highways, railways and pipelines spread over 3,000km. Work on several sections has already commenced but the entire project is expected to take several years to complete.
Federal ministers Ahsan Iqbal, Khwaja Saad Rafiq, Leader of the House in Senate Raja Zafar ul Haq, Sardar Akhtar Mangal, Maulana Fazalur Rehman, Aftab Ahmad Khan Sherpao, Mahmood Khan Achakzai, Afrasiyab Khattak, Farhatullah Babar, Liaqat Baloch, Khyber-Pakhtunkhwa Chief Minister Pervez Khattak, and former chief minister Balochistan Dr Abdul Malik Baloch attended the conference.
K-P and the CPEC
Earlier on Saturday, the Chinese Embassy in Islamabad had urged the government, its allies and the opposition parties to resolve their difference to strengthen communication and coordination on the CPEC to create favourable conditions for the project.
On Friday, a two-member delegation of the Pakistan Tehreek-e-Insaf comprising former foreign minister Shah Mehmood Qureshi and MNA Dr Shireen Mazari had met the Chinese ambassador. Sharing details of his meeting, Qureshi told The Express Tribune that “we gave an assurance to the ambassador that we don’t have any issue with China and we are in favour of the CPEC”.
Qureshi said it was pledged in an all parties’ conference (APC) that the western route would be completed first. He accused the government of retreating from this pledge. “Building just the road is not enough. Our demand for work on the western route includes development of infrastructure, rail tracks, fiber optics, LNG and uninterrupted supply of electricity,” he added.
Opposition parties are demanding the government take them into confidence while addressing their concerns on the government’s plan to execute the CPEC. During the recent session of parliament, not a single day passed without opposition parties’ protesting against the government’s approach on the CPEC.
CPEC: Aftab Sherpao doubts govt’s plans for western route
Meanwhile, Leader of Opposition in the National Assembly Khursheed Shah also wrote a letter to Prime Minister Nawaz Sharif expressing reservations on projects related to the CPEC and called the initiatives taken on the project ‘Punjab-centric’. He asked the premier to adhere to the decisions reached at the APC held over the project in May last year