Pakistan to propose 39 Special Economic Zones, diverting funding for Diamer-Bhasha Dam

[Kabira]

China is all set to kick-off discussions with Pakistan over industrial cooperation as crucial talks at a preparatory meeting being held in Beijing tomorrow to review the progress in China-Pakistan Economic Corridor (CPEC) projects.

The 6th Joint Cooperation Committee (JCC) meeting would be held on December 29, where Minister for Planning Commission Ahsan Iqbal and China’s vice chairman of National Development and Reform (NDRC) would lead their respective delegations.

The PD&R minister, minister for Railways; SAPM for Foreign Affairs; secretary to the prime minister, PD&R secretary; EAD secretary; Railways secretary; secretary for Water and Power; Secretary for Industries and Production; chief secretary of Balochistan; chairman Board of Investment; chairman NHA and chairman Gwadar Port Authority would also attend the meeting.

An official at the Planning Commission told Pakistan Today that Islamabad would also propose the transfer of funds of dropped projects to finance Diamer-Bhasha Dam Project. Moreover, the official said, apart from discussing the CPEC progress, the meeting would also approve new demands from Pakistan’s federal and provincial governments.

According to conservative estimates, China has already injected around $30 billion into the CPEC related projects out of the total agreed investment of $46 billion. However, official sources claim that with some added projects, the projected cost of the CPEC has surpassed $53.5 billion.

It is significant to note that for the first time, since the launch of the CPEC, all the chief ministers are attending the JCC. Previously, only the chief minister of Punjab was invited to attend the CPEC related meetings which had triggered criticism.

An official source in the planning commission told that Islamabad is all set to propose the construction of 39 special economic zones (SEZs) across the country to accommodate smaller provinces’ demands.

“For the first time since the launch of the CPEC, industrial cooperation is being discussed between China and Pakistan. This is a major step for bringing in an industrial revolution in the country,” the source added.

“This is an effort to address the concerns of smaller provinces regarding the CPEC. Out of the 39 Special Economic Zones (SEZs), we have shortlisted seventeen zones in Khyber Pakhtunkhwa (KP), nine in Balochistan, four each in Sindh and Punjab, one each in Gilgit-Baltistan, Federally Administered Tribal Areas (FATA) and the federal capital and two in Azad Jammu & Kashmir (AJK),” the source revealed.

Talking about the proposed special economic zones, the official said that the smaller provinces have been given a major chunk out of the proposed zones.

The setting up of the special economic zones would usher an era of industrial revolution in the country and the move would also encourage more foreign investment, while China has already promised technology advancement in Pakistan.

The source added that by giving a lion’s share to KP and Balochistan, the federal government had made a serious effort to address the concerns of the smaller provinces.

PROPOSED AGENDA FOR 6TH JCC

The agenda of the JCC includes: Progress review of CPEC; Transport Infrastructure Projects; Gwadar Projects; Energy Cooperation; Industrial Cooperation; Long Term Plan; Deliverables for 6th JCC Meeting, and New Provincial demands.

Deliverables for CPEC include Transport Infrastructure; signing of framework agreement on expansion of existing multipurpose terminals including breakwater and capital dredging at Gwadar Port, signing of framework agreement on Eastbay Expressway-II, signing of framework agreement on ML-1, decisions on financing arrangements for three short-term projects i.e. KKH Thakot-Raikot, N-35 remaining portion (136 Km); Khuzdar-Basima Road, N-30 (110 Km); up-gradation of D.I. Khan – Zhob, N-50 Phase-I (225 Km); (PC-I of the three projects are being submitted for approval by CDWP on December 23, 2016. JCC will confirm inclusion of these projects for government concessional loan).

GWADAR PROJECTS

The agreements and MoUs to be signed for Gwadar include the signing of commercial contract of Quetta Mass Transit Project between CCCC and Pakistan side, signing agreement of intention of investment regarding Gwadar Steel Industrial Park between Bao-Wu Steel Group Corporation, CCCC, CNIC Corporation and Pakistan side and resuming bidding procedure of Gwadar Eastbay Express Way Project.

It also includes the launch of bidding procedure of Gwadar City Master Plan; signing of framework agreement for necessary facilities of fresh water treatment, water supply and distribution including 5.0 MGD desalination plant.



INDUSTRIAL COOPERATION

Deliverables under the Early Harvest of Industrial Cooperation between Tianjin and Pakistan, adoption of a Cooperation Outline on Vocational and Technical Training Collaboration to support successful implementation of CPEC, establishment of a sub-group under the Joint Working Group on Industry Cooperation on Chemicals and Pharmaceutical sectors, and convening of the first meeting of the sub-group on the sidelines of 6th JCC meeting; Concept Confirmation on the Establishment of CPEC Towers and establishment of sub-group under the Joint Working Group on Industry Cooperation to help implement the project as a part of new projects list to be adopted at the 6th JCC meeting.



ENERGY COOPERATION

The signing of following agreements for +660 Kv HVDC Transmission line (Matiari to Lahore); Land Lease Agreement for Transmission Services Agreement (TSA); Implementation Agreement (IA), O & M Agreement and signing of minutes of special meeting held with NEA on Dec 12, 2016, in Beijing.

http://www.pakistantoday.com.pk/blo...ones-diverting-funding-for-diamer-bhasha-dam/

 

[LA se Karachi]

Very good news. If Pakistan's special economic zones can be anything like China's, it will be quite a success for Pakistan.

 

[Zarvan]

Pakistan also need dams we are in desperate needs of dams.

 

[Kaniska]

Pakistan also need dams we are in desperate needs of dams.

I mean when you can generate revenue out of this projects, then you can definitely use it for your own infra projects.
Good initiative.

 

[Hyde]

I think China wouldn't want to commit for Diamer Bhasha. They could probabaly consider extension V of Tarbela dam or something similar... Even Bunji has higher chance of construction than Diamer Bhasha... I think Pakistan would ultimately build Diamer Bhasha from its own resources or seek loan from abroad (including China) to complete it...

 

[somebozo]

Pakistan also need dams we are in desperate needs of dams.

Revenue generated from Industrial projects can be used to fund dams..

 

[DJ_Viper]

Pakistan also need dams we are in desperate needs of dams.

Sir, per a WB report I recently read, Pakistan has started to work on electric related projects (blue prints) and dams that would be completed to generate electricity by 2030-2040. So for the first time in Pakistan's history, a study and growth forecast was created for future energy needs and a plan is being implemented. Starting 2018, your country should be 80-90% self sufficient in generating the power through various project which are getting close to come online. Various dams are also being built to support the power generation.

What is now needed, is to utilize the phase I of the CPEC by 2018 and create massive employment somehow so that industry can run and people can start to have proper jobs, and a better life all across Pakistan. For that, you now need industrial parks to actually start producing industry in them, vs. having empty land.

An estimate 1 million people will get employment initially through these special economic zones. That, associated with land prices in these regions going up, more cities starting to form up to support each of these industrial zone, will increase the GDP, Taxation, etc, allowing the government to then use internal tax money to build additional projects, which is the smart way to go, vs. continue to take out more loans.

So be patient, this is the largest project of its kind in the modern human history. Things like these, only happen once and it is being worked on through a proper plan. Nothing is random or out of the process. Thanks

 

[Ultimate Weapon]

I think China wouldn't want to commit for Diamer Bhasha. They could probabaly consider extension V of Tarbela dam or something similar... Even Bunji has higher chance of construction than Diamer Bhasha... I think Pakistan would ultimately build Diamer Bhasha from its own resources or seek loan from abroad (including China) to complete it...

Why?

 

[Hyde]

Why?

China has usually refrained from controversial projects and because of immense pressure from India, it is possible that China would not want to invest 14 billion dollars in a single project causing damage to Indo-Chinese relationship for no reason.

The only way possible is that either Pakistan ask loan from one of the friendly nation (World Bank has already refused citing pressure from India) or build dam from its own resources. Pakistan's budget is likely to be doubled after 5 years or so, it will be in much better position to spare 5-10% of funds per year from PSDP and complete the dam by 2030.

The only thing I can say for sure is that it will take a lot of time to complete Diamer Bhasha dam, its something for our next generation and the likes of Dasu, Bunji and Munda and Yulbo have higher chance of completion before Diamer Bhasha