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China with Pakistan

ISLAMABAD: China will help Pakistan turn Thar coal into diesel and to this effect, the Pakistan authorities managed to contact Chinese Shenhua Ningxia Coal Industry Group, which is known for turning coal into liquid.

The Shenhua Ningxia Coal Industry Group, a subsidiary of China’s biggest coal producer, the Shenhua Group, has already successfully installed the project to convert coal into oil in the northwestern Chinese region of Ningxia, the biggest plant of its kind in the world.

The coal-to-liquid (CTL) project, which has an annual production capacity of 4 million tons of oil, was built by the Shenhua Ningxia Coal Industry Group, a subsidiary of China’s biggest coal producer, the Shenhua Group.

“We have held preliminary meeting with the management of the said company and more talks will also be held for reaching a win-win agreement and this very important development took place when Prime Minister Imran Khan visited China on October 8 and being a member in his delegation managed to have meeting with top management of the said Chinese company Shenua-Ningxia, which has the expertise to turn coal into liquid (synthetic diesel). And if the said company comes and installs the Coal-to-Liquid (CoT) plant in Thar and starts turning the coal into diesel, it will prove not less than a game changer as there are huge coal deposits in Thar,” Adviser to Prime Minister on Petroleum Nadeem Babar who was part of entourage of Prime Minister during the recent visit of China, told The News.

It is the same Chinese Shenua Group, Mr Babar said that had earlier quit the Thar power project because the government of former prime minister Shaukat Aziz during Musharraf regime had backed out of already decided tariff rates of 5.67 cent per unit with the group and demanded a rate of 5.39 cent per unit. Shenua Group was interested in setting up two power plants of 350MW each in Thar coalfield.

“This Chinese company has developed the expertise to turn the coal into synthetic diesel and if it is happened in Pakistan, the country will have sustainable diesel supply in the country at affordable prices, which will play pivotal role in stimulating the economic activities in the country,” he said.

According to oil and gas sector sources, Pakistan’s monthly diesel requirement stands at average 600,000 tones according to which annual need stands at 7.2 million tons and the project to make Thar coal liquid (diesel) will also help reduce the import bill of diesel.

Thar coalfield in Sindh province is bestowed with 185 billion tons of lignite coal, which can fuel power generation of over 100,000 megawatts for more than two centuries. Pakistan needs to increase share of coal in country’s energy mix to at least 19 percent by 2030 and 50 percent by 2050. And if the diesel production from Thar coal has started then sky is the limit. In 1992, Geological Survey of Pakistan (GSP) discovered coal deposits worth 175-185 billion tons of lignite in Thar.

However, the total reserves of block II alone are sufficient to support 5000 MW of energy for 50 years; enough to pull the country out of the energy crisis. At present, system is getting 602 MW electricity from Thar coal based power plants.
 
July 15, 2020

The PM had visited the site of the dam along with Chief of Army Staff Gen Qamar Javed Bajwa and Federal Minister for Water Resources Faisal Vawda, where they were briefed on the mega project.

In a tweet earlier today, Special Assistant to the PM on Information retired Lt Gen Asim Saleem Bajwa said that the project will generate 4,500MW of hydel power and provide at least 16,000 jobs.

The premier, during his address, vowed that with this project, the government was going towards building the "biggest dam in Pakistan's history".

"This will be our third big dam. China has made around 5,000 big dams, but have a total of about 80,000 dams. From this you can gauge the massive mistakes we have made in the past.

"The decision to build this dam was taken 50 years ago. There can be no better site for constructing a dam, it is a natural dam. Forty, 50 years ago this was decided, and work on the project has begun today. This is one of the biggest reasons why we haven't progressed."

The premier maintained that the government will now move towards building more dams on rivers, which will lessen pressure on foreign exchange and allow Pakistan to generate its own fuel.

He added that generating electricity from water instead of furnace oil or coal will also prevent negative impacts of global warming and climate change. "The benefits are dual. We won't have to import fuel and it won't affect our climate negatively."

Imran said that the project would also generate job opportunities for people living in the region. "I am familiar with GB and have visited Chilas on multiple occasions in the past 30 years. I am well aware how much the area depends on tourism and how much they need tourism during the summer months."
 
Khunjerab Pass is temporarily open for facilitating the flow of goods between China and Pakistan amid #COVID-19. On August 3rd, 4 vehicles of agricultural products and 1 vehicle of anti-epidemic materials were handled through it after getting over difficulties..


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APP
August 7, 2020

CPEC’s Power Project in Thar Block-1 to get boost with return of 500 Chinese workers


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KARACHI: Work on Shanghai Electric’s Thar Coal Block-1 Project, a priority implementation project of the China-Pakistan Economic Corridor (CPEC), is expected to speed up following the arrival of a batch of 500 Chinese engineers and managers.

The Chinese personnel arrived on a special chartered flight that took off from Shanghai’s Pudong International Airport on Tuesday noon and arrived in the night at Karachi’s Jinnah Terminal.

The engineers and managers were given a warm farewell by Executive management of Shanghai Electric, Mr. Chen Ganjin, and Mr. Liu Guoping before their departure for Karachi. On their arrival here they were received by company officials at the Jinnah Terminal.

The return of Chinese engineers and managers to Pakistan, which had been delayed because of the Covid-19 pandemic, is expected to provide a boost to the Thar Coal Block-1 Project.

Mr Li Jigen, CEO, Sino Sindh Resources (Private)Limited, an overseas subsidiary of Shanghai Electric, commented that it is a major development for the company and the return of technical and managerial staff will pave the path for construction and production work at the Thar Coal Block-1 Project.

“Because of the Covid-19 situation, international travel has become really difficult. But it is great that a special chartered flight was arranged successfully to bring 500 of our colleagues to Pakistan,” he said.

He thanked the authorities both in China and Pakistan for facilitating the chartered flight.

“The efficient transportation for moving Chinese workers to Pakistan could not have been possible without the kind support and assistance from Shanghai Municipal Government, the National Development and Reform Commission, the Chinese Embassy in Pakistan, the Consulate General in Karachi, the Civil Aviation Administration of China, Air China, the Prime Minister's Office of Pakistan, the Ministry of Foreign Affairs, and other government departments,” he said.

He said that the newly-arrived workers will adhere to all Covid-19 requirements before joining their duties at the integrated power project in Thar Block-1.

Li Jigen also added that with the acceleration in the Thar Block-1 project following the arrival of Chinese engineers and managerial staff, SSRL will start providing new job opportunities for local professionals in the near future.
 
China sends more PPEs to Pakistan to fight COVID-19

The Frontier Post
August 13, 2020


ISLAMABAD: Another flight carrying PPEs from China to help Pakistan in the fight against novel coronavirus landed at the Islamabad airport on Thursday.

Speaking on the occasion, Chairman National Disaster Management Authority (NDMA) Lieutenant General Muhammad Afzal thanked the Chinese government for the help on behalf of people and the government of Pakistan.

He said the pandemic has not been eradicated completely from Pakistan yet and urged the masses to continue exercising preventive measures against coronavirus.

The chairman NDMA said another flight with PPEs from China will reach Pakistan on August 31.

Expressing his views, the Chinese envoy to Pakistan said, Islamabad was first to extend its help to China after the coronavirus outbreak. He appreciated Prime Minister Imran Khan for the help in crunch time.

As many as 753 more people tested positive for the novel coronavirus during the past 24 hours across the country, taking the number of confirmed cases to 286,674.

According to the National Command and Operation Centre (NCOC), ten people died due to coronavirus-related complications during this period, pushing the death toll from the disease in the country to 753.

The number of active coronavirus cases has dropped to 16,475 as 264,060 patients have recuperated.
 
Pakistan needs products it can export to China, for the market there or for further value added work in China for further export.

China is facing an aging problem, where either they will need competitively priced labor or more robots. China is automating as much as it can, but there many processes that require human labor. If those industries can be shifted to allied nations like Pakistan and Iran, it would stabilize those countries and allow them to grow to the point they can be larger export markets for China.


Elon Musk and Jack Ma agree that this is a problem for China. IMHO, it is a problem friendly nations to China can help address, especially considering all the transport infrastructure being built, OBOR can only be successful if China builds up its partners, investments and grants and not as much loans.

Elon Musk goes on to say where will China get 700 million people to keep China going they way it is now, it is not reasonable to expect China to absorb tens of million of immigrants much less 100’s of millions of immigrants. The best option is off shoring to allied nations along corridors where raw materials would already be traveling to a China.

For Pakistan, it needs a sustainable way to lay off CPEC loans, so it can divert funding to paying off its other loans and fund human development over the next 20-30 years. If it fails to do so it will have squandered its demographic dividend and be neither a developed nation with influence and a decent standard of living, nor the most competitive labor market to get new investments (that will go to Africa which is expected to see it increase from 1 billion to 3 billion in 30-50 years)

if we look at the success of the EU, South Korea, and Japan economically after the Second World War, we will see a market for US goods that can sustain some US export-led industries like agriculture. Pakistan need a plan for this more than anything nowadays. If Pakistan has the economic clout, the diplomatic clout will follow. Just look at what Israel has accomplished today from where it was 30 years ago.

If China builds up these counties then it will be similar to why Europe is to the US, but if it doesn’t help build up these countries then they will be more like Latin America is now.
 
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Pakistan exports to China was US$2.04 Billion during 2019,
According to the United Nations COMTRADE database on international trade. Pakistan exports to China - data, historical chart and statistics - was last updated on August of 2020.


Cotton.......................................................................... $817.84M
Copper......................................................................... $308.17M
Cereals........................................................................ $277.99M
Fish, crustaceans, molluscs, aquatics invertebrates .....$135.46M
Ores slag and ash......................................................... $86.15M
Sugars and sugar confectionery ....................................$83.61M
Salt, sulphur, earth, stone, plaster, lime and cement...... $43.73M
Articles of apparel, knit or crocheted.............................. $34.32M
Machinery, nuclear reactors, boilers............................... $29.75M
Raw hides and skins (other than furskins) and leather... $27.10M
 
Following are the top products that Pakistan can export.
  • Rice.
  • Mangoes.
  • Kinnow.
  • Cotton.
  • Surgical Instruments.
  • Leather Goods.
  • Furniture.
  • Footballs.
 
Pakistan exports to China was US$2.04 Billion during 2019,
According to the United Nations COMTRADE database on international trade. Pakistan exports to China - data, historical chart and statistics - was last updated on August of 2020.


Cotton.......................................................................... $817.84M
Copper......................................................................... $308.17M
Cereals........................................................................ $277.99M
Fish, crustaceans, molluscs, aquatics invertebrates .....$135.46M
Ores slag and ash......................................................... $86.15M
Sugars and sugar confectionery ....................................$83.61M
Salt, sulphur, earth, stone, plaster, lime and cement...... $43.73M
Articles of apparel, knit or crocheted.............................. $34.32M
Machinery, nuclear reactors, boilers............................... $29.75M
Raw hides and skins (other than furskins) and leather... $27.10M

Can Pakistan expect to grow this to more than $10 billion a year in a relatively short period of time (the next 5-10 years)? If not, why not?, what are the limitations? Also what other product or services can Pakistan export to China as they move to a more consumption based economy?

Also what industries would China be willing to move to Pakistan?
 
Pakistan all set to enter China’s $15bln meat market: food minister


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ISLAMABAD: Pakistan is all set to venture into the $12 to 15 billion China’s meat market under the two agreements recently signed with the neighbouring country, the food minister said on Wednesday.

The two countries signed two agreements on agricultural cooperation and foot and mouth disease (FMD) free zone during a three days visit (26 to 28 May) of Chinese president to Pakistan.

Minister for National Food Security and Research Mehboob Sultan said the country would move from stage two to stage three towards the control and eradication of FMD by developing FMD free zones in Pakistan.

“This would also open big markets of China and Indonesia for Pakistan meat,” Sultan told media.

China’s annual meat requirement is worth $12 to 15 billion. Currently, meat from Pakistan is exported to Gulf countries, Vietnam and Malaysia.

“The government is focusing on expanding the Pakistan’s meat market and this five years agreement with China will help us achieve the desired results not only in the meat market but in agriculture sector and will be mutually beneficial,” the food minister added.

The purpose of China-Pakistan’s agreement is the establishment of FMD free zone where vaccination would be practiced.

The FMD free zone will be constructed within the territory of Pakistan according to the agreed common requirements of the parties, and the Chinese side would provide technical assistance and support.

Currently, China is the 4th biggest export market of Pakistan. Agriculture is a vital industry in China, employing over 300 million farmers. Despite accounting for only 10 percent of arable land worldwide, it

produces food for 20 percent of the world’s population. Pakistani government is also expecting to get an opportunity to cooperate with China in the field of agriculture at the platform provided by Shanghai Cooperation Organisation.

China is further likely to lift three years long ban on import of Pakistani rapeseed meal into China once a protocol proposed by the Chinese government would be signed.

The framework agreement on agricultural cooperation between Pakistan and China would be executed and implemented through the ministry of national food security and research of Pakistan and ministry of agricultural and rural affairs of China.

The agreement holds an important position in the backdrop of China-Pakistan Economic Corridor framework and promotes cooperation in the areas of mutual interest in the field of agriculture.

The goals set in the agricultural framework agreement would be achieved in next five years and would cover extension services of agricultural technology and inputs, remote sensing and geographical information system and food processing and pre-and-post-harvest handling.

The agreement also covers storage of agricultural produce, genetic resources of crops, livestock and poultry, selection and breeding of new breeds of animals and new varieties of plants, feed fisheries and aquaculture, research and development of new high-yield varieties, precision agriculture and pest and disease control.
 
Ali Baba founder Jack Ma among four Chinese to be conferred Pakistan’s civil awards

Fri, Aug 14, 2020


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Jack Ma founder of Chinese e-commerce giant Ali Baba


Hilal-i-Quaid-i-Azam
  1. Jack Ma (China) Services to Pakistan
Sitara-i-Quaid-i-Azam
  1. Ying Yong (China) Services to Pakistan
  2. Li Fangron (China) Services to Pakistan
  3. Lei Mingshan (China) Services to Pakistan
 
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