China with Pakistan

[Wikki019]

Chinese cos to setup smartphone manufacturing plant in Pakistan

Under the agreement, Chinese companies will jointly set up the first smartphone manufacturing plant at #M3 Industrial Estate, Faisalabad.

An agreement has been reached between two Chinese companies at the FIEDMC office to establish a smartphone manufacturing plant in Faislabad, Pakistan.

As per details, the agreement was signed in the presence of Provincial Minister for Industry and Commerce Mian Aslam Iqbal, between Vice President VIVO Duam Tai Ping and Director Manufacturing Zhang Bin at the FIEDMC office.

Under the agreement, Chinese companies will jointly set up the first smartphone manufacturing plant at M3 Industrial Estate, Faisalabad. Initially, Chinese companies will invest $10 million in the project. With the setup of the manufacturing plant, smartphones will be manufactured locally.


The Provincial minister welcomed the development saying that local investors are turning towards Punjab due to the beneficial policies of the Punjab government. The provincial minister said that the investors will be provided facilities and complete protection on a priority basis, he said

This is what we actually need

 

[ghazi52]

ISLAMABAD: The Central Development Working Party (CDWP) on Wednesday cleared Rs37.91bn Optic Fibre Cable (OFC) Project along the China-Pakistan Economic Corridor Route (Khunjrab-Gwadar-Karachi).

The objective of the project is to provide alternate path for international connectivity through Northern border of Pakistan with China and ensure continuous uninterrupted connectivity between Northern and Southern borders of the country by establishing multiple rings for secure and uninterrupted communication network etc.

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[ghazi52]

50 modem state of art Fire tenders ready to leave China for Karachi.

 

[ghazi52]

China again bails out Pakistan to pay Saudi debt

Beijing to provide $1.5 billion to repay $2b debt


Shahbaz Rana
December 13, 2020

ISLAMABAD: China has again bailed out Pakistan as it agrees to immediately provide $1.5 billion financing line to repay the $2 billion Saudi Arabia debt, sources told The Express Tribune.

Out of $2 billion, Pakistan is now set to return the $1 billion on coming Monday, said the sources in the finance ministry and the State Bank of Pakistan (SBP). The remaining $1 billion is due in January, they added.

However, this time around, China has not given the loan from its State Administration of Foreign Exchange, commonly known as SAFE deposits, nor has it extended a commercial loan, said the sources.

Instead, both the countries have agreed to augment the size of a 2011 bilateral Currency-Swap Agreement (CSA) by an additional 10 billion Chinse Yuan or around $1.5 billion, the sources said. This has increased the size of the overall trade facility to 20 billion Chinese Yuan or $4.5 billion.
The CSA is a Chinese trade finance facility that Pakistan has been using since 2011 to repay foreign debt and keep its gross foreign currency reserves at comfortable levels instead for trade related purposes.

The benefit of this arrangement will be that the additional $1.5 billion Chinese loan will not reflect on the book of the federal government and it will not be treated as part of Pakistan’s external public debt.

Spokespersons for both the SBP and the finance ministry neither denied nor confirmed the development. The spokesperson for the central bank ducked the questions while the ministry of finance said that it was a “bilateral confidential matter”.

The Express Tribune had sent questions to the SBP about the CSA and a delay in uploading data on currency circulation, M2, on its website. “The M2 data will be updated soon on the website” was the terse response of the central bank, while maintaining silence on the question of currency deal.


What is CSA?

The bilateral Currency Swap Agreement was reached between the SBP and the Peoples Bank of China (PBOC) in December 2011 “in order to promote bilateral trade, finance direct investment and provide short-term liquidity support”, according to the central bank.

The original agreement had been renewed in December 2014 for a period of three years with overall limit of 10 billion yuan or $1.5 billion. It was further extended in May 2018 for a period of three years, with the amount being increased to 20 billion Yuan or $3 billion.

This agreement will expire in May next year, which the central bank has decided to request China to further extend it for three more years.

The central bank’s financial statement for the year 2019-20 showed that the SBP utilised 20 billion yuan or Rs475 billion.

Pakistan paid Rs20.5 billion in interest to China on using the $3 billion trade finance facility in the last fiscal year alone, showed the central bank’s financial statement.

China has become Pakistan’s largest creditor for the past few years. The trade facility, originally meant to promote bilateral trade in respective local currencies, has been used for paying foreign debt.

The $3 billion money is part of the current $13.4 billion in foreign currency reserves held by the central bank, the SBP had confirmed to The Express Tribune last month.

After coming into power, Prime Minister Imran Khan had twice flown to Saudi Arabia to secure the package, which provided space to the first-timer PTI government to negotiate a deal with the International Monetary Fund (IMF).

Saudi Arabia had agreed to provide $6.2 billion worth of financial package to Pakistan for three years. This included $3 billion in cash assistance and $3.2 billion worth of annual oil and gas supply on deferred payments.

As per the agreement, the Saudi cash and oil facility was for one year with an option to roll over the amount at the end of the year for a period of three years.

The Kingdom has claimed back its money ahead of the schedule. Pakistan was paying 3.2% interest on the $3-billion facility, according to the information that the Ministry of Finance shared with the National Assembly.

The Saudi oil facility has already been suspended, while Pakistan has also paid back Saudi Arabia $1 billion out of the $3 billion in May this year. Pakistan returned $1 billion to Saudi Arabia after taking equal amount of loan from China.

The government has also not been able to get the suspended $6 billion IMF programme restored, which is making it difficult for it to continue uninterrupted foreign inflows. The sources said if the IMF programme is not restored in the near future, the World Bank inflows may start drying up.

The IMF is not bending on two conditions of introducing a mini-budget and increasing electricity tariffs, which has complicated matters for Prime Minister Imran Khan whose government is already facing criticism for a constant high inflation.

The programme loans from the other two multilateral creditors were also critical to return $10.6 billion in maturing loans in the current fiscal year, excluding the Saudi Arabian and the UAE debt.

 

[ghazi52]

Powering dream of EV revolution

Pakistan should consider collaborating with Chinese, Korean giants in research


Faraz Ahmed

December 13, 2020

Automakers have invested substantial sums in electric vehicles. PHOTO: REUTERS



KARACHI: The atmosphere was electrified in the headquarters of Tesla on the battery day held on September 22 as expectations were high that perhaps their charismatic CEO Elon Musk had found a secret recipe to make cheaper, reliable and safest batteries.


So far, the company’s stock has surged 10 times in a span of just one year and is now trading at $600 after split with price-to-earnings ratio of 1,280. (Yes, there is no typo).

However, what we learnt in the event broadcast live were lots of futuristic plans ranging from making a million-mile battery to even mining the very raw material but nothing substantial enough to justify the eye-popping valuation of the Tesla stock.

But there is nothing particularly surprising about this single event as the whole history of electric vehicles (EVs) is about various futuristic plans so far mostly fuelled by government subsidies and tax rebates.

The EV space is definitely expanding but it is very important to carefully evaluate what worked and what didn’t before joining the bandwagon.


Recently, Minister for Industries and Production Hammad Azhar presented a draft EV policy to the National Assembly Standing Committee on Industries and Production. The plan includes waiving 50% of taxes applicable to the production of 1,800cc electric and hybrid cars and around 25% tax reduction for cars having engine capacity of more than 1,800cc besides waiving the registration and annual renewal fee.

That sounds ambitious but is it enough to create a market for EVs in the country where there is no urgency to do something about the rising carbon footprint or bringing green revolution?

Also, the minister was not in favour of giving a subsidy, which is a general no-no as we may have to negotiate for resetting the International Monetary Fund (IMF) loan programme soon.

If we look at the EV space globally, then the only country where EV sales have stood their ground firmly (of course with heavy subsidies) against the conventional combustible engine vehicles is Norway. The carefully crafted carrot-and-stick approach of heavily subsidising EV purchase and increasing carbon taxes has helped in creating a very thriving space for both the manufacturer and end-user.

Across the Atlantic in the US, the state of California is appearing as a bright spot where the federal government subsidy on the sale of initial 200,000 cars, backed by additional subsidies by the state of California, has made it a frontrunner among other states in terms of EV growth.

Both General Motors and Tesla have already crossed the 200,000 threshold and with falling demand during the pandemic, it is yet to see how the companies maintain the momentum with reduced subsidies.

The EV revolution is something which cannot be triggered with a single policy and it needs a paradigm shift in the existing labour and investment-intensive automobile industry with a complete supply chain involving many vendors and original equipment manufacturers (OEMs).

The EV policy should also address how we are planning to replace a complete ecosystem built around the conventional internal combustion engine with battery, motor and electrical systems.

As per the EV industry statistics, the key to success lies in innovating and optimising the battery pack, which comprises 50% of the cost, and hence the battery day organised by Tesla was the most talked about event in the EV space.

Fortunately, the battery manufacturing space is totally dominated by Asia, where China’s Contemporary Amperex Technology (CATL), Japan’s Panasonic Corp and South Korea’s LG Chem are leading the pack. Three Korean companies (LG, Samsung and SK) together are controlling half the share of global EV battery manufacturing market.

If, besides efforts of the Ministry of Industries and Production, the Ministry of Science and Technology focuses on research and development of batteries and storage technology in collaboration with these Chinese and Korean giants, then we may find a cost-effective solution, which may power up our dream of not just manufacturing EVs but also help us leap forward in other sectors such as mobile phone and laptop manufacturing.

The writer is a financial market enthusiast and attached to Pakistan’s stocks, commodities and emerging technology

 

[ghazi52]

Chinese govt, companies, ANGCC Consortium keen to invest $8bn in Ravi City project, PM told


Besides, he was informed, that ANGCC - a Global Investment Consortium, had also offered to invest $ 5 billion in the project on partnership basis.


Prime Minister Imran Khan was told that the Chinese government and companies were keen to invest $ 3 billion in the #Ravi City project in #Lahore and that the investment did not include any kind of loan.
Besides, he was informed, that ANGCC - a Global Investment Consortium, had also offered to invest $ 5 billion in the project on partnership basis.



The prime minister, who was presiding over a meeting of the working group of #RaviRiverfront Urban Development Authority (RUDA) and Pakistan Islands Development Authority (PIDA), was told that in order to further speed up the progress on the Ravi City project, a board had been constituted and work on the project would start in January

 

[ghazi52]

1000 Job Vacancies in Haier JW Special Economic Zone. Apply now.

#Haier #JWSEZ #JW #Lahore

 

[ghazi52]

'China fully agrees with President Alvi's assessment on CPEC'

CPEC cooperation has advanced despite the Covid-19 pandemic, says Chinese Foreign Ministry


APP
December 16, 2020

President Dr Arif Alvi.

BEIJING: President Dr Arif Alvi has made a positive assessment on the China-Pakistan Economic Corridor (CPEC) cooperation which has advanced despite the Covid-19 pandemic and the "Chinese side fully agrees with him".

“The Chinese side fully agrees with the positive assessment made by President Dr Arif Alvi on the CPEC cooperation,” Chinese Foreign Ministry’s spokesperson Wang Wenbin said on Wednesday during his regular briefing in response to a question about the president’s recent interview to the Chinese media.

He said that CPEC had been developing with a positive momentum since its inception in 2013, as a pioneer project of Belt and Road Initiative (BRI). “As we have talked about it before, China and Pakistan have been working together to fight the pandemic and despite the challenges posed by pandemic, all the CPEC projects have been effectively moved ahead."

He remarked that cooperation between the two countries had provided an important support to the Pakistan’s efforts to fight the pandemic and stabilise its economy.

The spokesperson said that functioning of power transmission line from Mitiari to Lahore will help enhance power supply network in Pakistan.
About Lahore Metro Orange Line, he said that with the launch of this mega transport project, Pakistan has entered in the era of subway.

While commenting on Gwadar port, an important component of CPEC, he said the port processed 26,000 tonnes of fertiliser for Afghanistan in two batches this month only in four days while 22,000 tonnes fertiliser was unloaded setting a record.

Wang Wenbin said the Chinese side would continue to work with Pakistan to implement the consensus reached by the two leaders and continue to advance CPEC. “We will ensure steady implementation of the current projects and focus on industrial and agricultural fields.”

He said that the Chinese side would ensure that high quality Belt and Road cooperation would deliver greater benefits for the two countries and people in the region.

During the interview with CCTV, President Alvi said that Pakistan’s ties with China had been strengthened as the two countries worked together to tackle the Covid-19 pandemic as well as deepen cooperation on CPEC.

He also hailed China’s assistance in tackling the pandemic in Pakistan.

China had shared its experience of regular epidemic prevention and sent seven batches of medical supplies as well as two medical teams to help Pakistan, he said.

Earlier this year, the Gwadar port officially started taking cargo under the Afghanistan-Pakistan Transit Trade Agreement.

It was proved as a huge potential of the Gwadar port, President Alvi said, adding that a number of developmental projects were currently in full swing to further boost trade between Pakistan and Central Asian states.

 

[ghazi52]

A memorable ceremony of official Handing/Taking of Multan - Sukkur Motorway (M-5) 392 KMs, a mega project of National Highway Authority (NHA) under China-Pakistan Economic Corridor (CPEC), constructed by China State Construction Engineering Corporation (CSCEC).

Mr Mansoor Ahmed Sirohyi, Member (Motorways-South) & General Manager (M-5), Mr Muhammad Naseem Arif graced the occasion.

The key management of CSCEC was also present. Member (Motorways-South) distributed certificates of appreciation to Chinese staff.

Multan - Sukkur Motorway (M-5) is one of the finest project of NHA Pakistan, which is a great example of Pak China Friendship.

 

[ghazi52]

The China-Pakistan border crossing at Khunjerab Pass opened on Tuesday for 10 days.

Stranded containers in China will be transported to Gilgit-Baltistan during this period, but tourists will not be allowed to visit the area.

As per the agreement signed between Pakistan and China, the border closes on December 1 every year and re-opens on April 1.


However, it remained closed this year due to coronavirus pandemic.

The border closes in the month of December due to heavy snowfall in winters and remains closed for four months every year.

At 5,000 metres above #sea level, the Khunjerab pass is the highest paved international border crossing in the world and is also the highest point on Karakoram Highway.

 

[ghazi52]

50 State of the Art Fire Tenders of 7000 liters of water & foam capacity + 2 Water Bowsers loaded on a ship & on their way to Karachi

 

[ghazi52]

CPEC an opportunity to boost manufacturing of electric vehicles

Both China and Pakistan are big stakeholders when it comes to automobile production and consumption and it would be a wise decision on the latter’s part to promote manufacturing of electric vehicles (EVs) in the country.

In an article published by Chinese media, visiting professor at Southwest University of Political Science and Law, Cheng Xizhong opined that Pakistan may boldly introduce China’s advanced production technology of EVs and gradually accelerate local production and sales of these cars. It would help inject new impetus into the rapid development of the national economy, the professor highlighted.

“With the continuous advancement of the construction of CPEC and special economic zones, China and Pakistan can carry out close cooperation,” he further added.

Referring to media reports, he said federal cabinet of Pakistan has granted massive tax exemptions to facilitate promotion of EVs in the country.

The summary forwarded by Pakistani Ministry of Industries was approved by the cabinet, allowing one per cent sales tax for locally-made EVs up to 50 kwh and light commercial vehicles (LCVs) up to 150 kwh.

The cabinet also capped the duty on import of charging equipment at 1pc.

At the same time, the EVs would be exempt from federal excise duty (FED), whereas import of machinery for manufacturing of these vehicles would be duty-free. Pakistani government has further removed additional customs duty (ACD).

As per policy, there would be only 1pc tax on import of EV parts for manufacturers. Apart from the tax facilities, Pakistani government has also waived registration and annual renewal fee for EVs.


In October this year, Chinese government issued New Energy Vehicle Industry Development Plan (2021-2035).

According to the plan, development of new energy vehicles was the only way for China to become a powerful automobile country from a big automobile country. It was also a strategic measure to deal with climate change and promote green development, he shared.

Cheng Xizhong, also a senior fellow of the Charhar Institute, said that since 2012, China’s new energy vehicle industry has made great achievements and become one of the important forces in the development and transformation of the world’s automobile industry.

Currently, a new round of global scientific and technological revolution and industrial transformation is developing vigorously. The integration of automobile and related technologies in energy, transportation, information and communication is accelerating.

 

[ghazi52]

China can help Pakistan in developing bee products sector.

Billion Tree Honey initiative launched by PM Imran Khan will be a workable project to alleviate poverty and develop the bee products sector, said China Bee Products Association (CBPA) Chairman Yang Rong.
“It will lead to broad prospects of Pak-China cooperation in this field,” he added.


Rich natural and human resources have equipped Pakistan with favourable conditions to develop the bee products industry. Most of Pakistan’s land is subtropical, which provides a warm climate for vegetating nectariferous plants.

 

[ghazi52]

China on Monday termed as baseless the reports that it has sought additional guarantees from Pakistan for sanctioning a whopping USD 6-billion loan for a railway line project and backing away from its initial financial commitments to the multi-billion dollars China-Pakistan Economic Corridor due to weakening financial position of its all-weather ally.

Chinese Foreign Ministry spokesman Zhao Lijian also rejected reports that China was backing away from its initial financial promises to Pakistan under the USD 60 billion CPEC amid rising corruption and militants' attacks.

These reports are baseless, Zhao told a media briefing here.

I would also like to stress that against the global economic recession, China's input in the Belt and Road Initiative (BRI) including the CPEC has not reduced but rather increased against the odds, he said.

 

[ghazi52]

China assures #Pakistan for over million COVID vaccine doses for emergency use/


After Pakistan approved Chinese Sinopharm vaccine against COVID-19, China on Thursday assured that they would work to ensure provision of over a million doses to the country for emergency use.
The matter was discussed in a telephonic conversation between Foreign Minister Shah Mahmood Qureshi and China’s State Councilor and Foreign Minister Wang Yi.