Tag: CPEC

  • CPEC energy debt reprofiling: Economic relief at a billion-dollar price tag

    Pakistanis look on with weary eyes as lawmakers in Islamabad plan to celebrate a possible extension of a $15.4 billion loan. The debt reprofiling for energy-based projects attached to the China–Pakistan Economic Corridor (CPEC) will increase the debt amount by approximately eight per cent, which is huge given that it amounts to $1.22 billion.

    What exactly is debt reprofiling in this context?

    Simply put, Pakistan will get five more years to pay back the loan – all the while, interest will keep racking up on the principal loan amount.

    The repayments of this additional sum exceeding one billion dollars will come from taxpayer funds at the end of the day as Pakistan seeks to climb out of the quagmire of the circular debt problem it finds itself in.

    Since the government has planned not to pay this amount by incurring further debt, this reprofiling will translate into higher tariffs on electric bills – an ugly sight Pakistanis are all too familiar with.

    The hike in tariffs is bound to accelerate the existing trend of installing solar panels on residential properties in urban centres. According to a survey by Gallup Pakistan, over 15 per cent of households have some sort of solar panel system installed. This makes sense as it’s a great return on investment, at just PKR 1.5 million for a decent sized plant.

    With prices for a single solar panel listed under PKR 16 thousand, it is possible that the business community linked with solar panels will see astronomical profits once the tariffs are increased.

    However, this can prove disastrous for the FBR and the Chinese power companies operating in Pakistan under the CPEC project. This will be because revenues may decline when people resort to using grid electricity for their electricity.

    Rumours are circulating that in the wake of the extension of the loan, lawmakers might introduce taxes on green meters linked to home-based solar systems. This will be done in an attempt to expand the energy sector tax net once again – as many have found respite in solar power.

    The rumour, however, maybe just that: A rumour.

    This is because Chief Minister Punjab Maryam Nawaz favours a transition towards sustainability, as proven by her scheme to equip 50,000 households with solar power systems.

    Introducing taxes on solar panels will set her sustainability goals back.

    The arrival of the Prime Minister of China Li Qiang, ahead of the high profile SCO (Shanghai Cooperation Organization) meetings will indeed provide relief to the economy. But can the same be said for citizens when the debt burden gets passed off to the taxpayers? Time will tell.

  • Pakistan steps up security for Chinese workers after bombing

    Pakistan steps up security for Chinese workers after bombing

    Pakistan ramped up security guarding Chinese engineers building Beijing-linked projects in the nation’s northwest, an official said Wednesday, a day after five workers were killed in a suicide bombing.

    Beijing is Islamabad’s closest regional ally and Pakistan has benefitted from billions of dollars of investment in recent years, but has struggled to guarantee the safety of Chinese migrant workers.

    The five Chinese engineers — plus their Pakistani driver — were killed while travelling between Islamabad and a hydroelectric dam construction site in Dasu, in northwestern Khyber Pakhtunkhwa province.

    A high-ranking official from the provincial interior ministry told AFP on Wednesday that at the more than two-dozen sites hosting Chinese engineers in Khyber Pakhtunkhwa security was stepped up.

    “Directives have been issued to all law enforcement agencies to enhance security for Chinese nationals and all other foreigners,” he said on condition of anonymity.

    “Instructions have also been given to foreign nationals to restrict their movements.”

    Information minister Attaullah Tarar told a press conference in Islamabad that security procedures would be reviewed “with a focus on identifying and addressing any gaps”.

    Meanwhile, further details emerged about the attack, which has yet to be claimed by any militant group.

    Local police officer Bakht Zahir said the five engineers killed near the city of Besham included four men and a woman, and that the bomber targeted the middle vehicle in a convoy of 12.

    “The suicide bomber rammed his vehicle into the convoy in the middle, detonating himself, causing the Chinese engineers’ vehicle to fall into a 180-foot-deep (55-metre) ravine and catch fire,” he said.

    Pakistan’s domestic chapter of the Taliban is the most active militant threat in the region, but the group’s spokesman denied involvement in a statement late Tuesday.

    China has inked more than two trillion dollars in contracts around the world under its Belt and Road investment scheme, with billions pouring into neighbouring Pakistan and aiding its crumbling economy.

    Since 2015, power plants, ports and transport projects have been under construction by joint Pakistani-Chinese teams in remote parts of the South Asian nation.

    But Chinese workers have frequently been targeted by militants hostile to outside influence, with some complaining Pakistanis are not getting a fair share of wealth from the huge projects.

    Tuesday’s attack came just days after militants attempted to storm offices of the Gwadar deepwater port in the southwest, considered a cornerstone of Chinese investment in Pakistan.

    It sparked a flurry of diplomatic activity at the Chinese embassy in Islamabad, with Prime Minister Shehbaz Sharif and the foreign and interior ministers offering condolences in quick succession.

    China’s foreign ministry declared the countries “iron-clad friends” but asked Pakistan to “take effective measures to ensure the safety and security of Chinese nationals, projects, and institutions”.

  • Seven BLA militants killed storming Gwadar port: officials

    Seven BLA militants killed storming Gwadar port: officials

    Security forces killed at least seven militants on Wednesday as they tried to storm the offices of a Pakistan port considered a cornerstone of China’s investment in the nation, officials said.

    Pakistan has for decades battled a simmering insurgency in southwestern Balochistan province, where separatists hostile to Islamabad have often targeted foreign investment projects.

    Local official Saeed Ahmed Umrani told AFP seven militants had been killed in an attempt to “infiltrate” the compound of Balochistan’s Gwadar Port Authority.

    Gwadar Port, which sits on the Arabian Sea, is managed by a Chinese firm and considered the crown jewel of Beijing’s investment in Pakistan under its gargantuan Belt and Road infrastructure project.

    An army source who asked to remain anonymous also said seven militants had been killed, alongside four soldiers defending law-enforcement posts inside the compound.

    “The terrorists attacked with grenades, rocket launchers and Kalashnikovs,” he said. “The area is cleared now.”

    Chief minister of Balochistan province Sarfraz Bugti said on social media platform X that eight militants had been killed.

    The attack was claimed by separatist group the Baloch Liberation Army (BLA) in an email statement, and spokesman Jeeyand Baloch said military intelligence offices had been targeted.

    “The operation was launched at 3:30 pm (1030 GMT) and is still underway”, he said in a message sent early Wednesday evening.

    Last August, the BLA also claimed an attack on a convoy carrying Chinese engineers to the port.

    Ethnic Baloch separatists have long claimed their communities are not getting a fair share of wealth from the region, which sits atop huge reserves of natural resources.

    They have frequently targeted Pakistani security forces protecting foreign investment projects.

    China has inked over two trillion dollars in contracts around the world under its Belt and Road scheme, but projects in Pakistan have been plagued by security concerns.

    In 2022, a BLA suicide bomber killed four people, including three Chinese language teachers, in Karachi city.

    A year earlier, a bus carrying engineers to a construction site near a dam in northwestern Pakistan was hit by a bomb, killing 13 people including nine Chinese workers.

    Islamabad has been accused of committing abductions and extrajudicial murder of Baloch citizens in retaliation for their campaign of separatism.

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    © Agence France-Presse

  • Khunjerab Pass reopens to boost bilateral trade between Pakistan and China

    Khunjerab Pass reopens to boost bilateral trade between Pakistan and China

    In a press release issued by the PM Office Media Wing, Prime Minister Muhammad Shehbaz Sharif expressed his pleasure over the reopening of the Khunjerab Pass on Sunday. He stated that this development would help to increase bilateral trade between Pakistan and China, and described it as a welcome occasion for boosting trade with “Iron brother China.”

    The prime minister emphasised that the reopening of the Pass had removed a hurdle that would further expedite the pace of work on the China Pakistan Economic Corridor (CPEC). He added that the restoration of the trade route between the two countries, after a span of three years, was a matter of great rejoicing.

    Furthermore, the prime minister noted that the journey towards CPEC had started way back in November 2019 and recommenced in the year 2023. He expressed his resolve to move ahead on CPEC with dual speed in comparison to 2018.

    He said that CPEC is a gift of progress and prosperity given by Muhammad Nawaz Sharif and the Chinese leadership for the region and the people. The prime minister also mentioned the affection and cooperation from the Chinese leadership for the people of Pakistan, which he described as unforgettable.

    The prime minister expressed his disappointment over a “foreign funded person” who had created controversy over CPEC. However, he appreciated the relevant authorities of the two countries and the team members over the restoration of trade and travel facilities.

  • ‘Imran Khan nay Pakistan ki izzat ko khaak mein mila diya’:PM Shehbaz

    ‘Imran Khan nay Pakistan ki izzat ko khaak mein mila diya’:PM Shehbaz

    Prime Minister Shehbaz Sharif on Monday said that Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan destroyed the respect that Pakistan had.

    Talking about the economic situation of Pakistan, PM Shehbaz said that when he took over as the premier of Pakistan, the country was on the brink of default.

    He said that the ruling coalition saved Pakistan from default with the help of friendly countries.

    The Premier said that the government will not tolerate rise in terrorist attacks and vowed to crush it by developing liaison between government and law enforcement agencies (LEAs).

    He assured the people of Pakistan that the coalition government will rescue them from economic quagmire.

    PM Shehbaz also accused Imran Khan’s government of neglecting the western route of the China Pakistan Economic Corridor (CPEC).

  • PM Shehbaz invites Turkey to be a part of CPEC

    PM Shehbaz invites Turkey to be a part of CPEC

    Prime Minister (PM) Shehbaz Sharif has invited Turkey to be a part of China-Pakistan Economic Corridor (CPEC), suggesting that it would be a “wonderful joint cooperation”.

    Shehbaz Sharif reached Istanbul, Turkey on Friday for his two-day visit where at the airport he was received by the city’s deputy governor and other senior officials of the Turkish government.

    Inauguration ceremony for the third of four Milgem Corvette ships

    Following this, the Premier spoke at an inauguration ceremony for the third of four Milgem Corvette ships for the Pakistan Navy at the Istanbul Shipyard.

    The premier said the two countries under Erdogan’s leadership have a “great chance” to move forward in this field.

    Regarding the ship’s launch, PM Shehbaz said Turkey and Pakistan are “deeply engaged” in promoting their defense capabilities for peace to ward off aggression. He said the ship’s launch is for defense purposes instead of aggression.

    The prime minister called on Turkey to further collaborate on their defense production capacities to ensure that peace was restored in the world, adding that the globe was facing “great tensions”.

    Invite Turkey to join Pakistan, China in CPEC

    PM Shehbaz also addressed a joint press stakeout along with Turkish President Recep Tayyip Erdogan and invited Turkey to join the China-Pakistan Economic Corridor (CPEC) to bring about regional prosperity, alleviate poverty and empower people through better education and health facilities.

    “I would suggest that let this be a cooperation between China, Pakistan and Turkey. This would be a wonderful joint cooperation. This is how we can meet the challenges of today,” the prime minister remarked.

    He said that he would be “happy” to discuss the matter with the Chinese leadership if Turkey moved ahead with the idea of joining CPEC.

    Pitch to Turkish entrepreneurs

    Addressing a meeting of the Pakistan-Turkey business council in Istanbul on Saturday, he told the investors that his government was resolved to cut down “very expensive” imports of oil and petroleum products, on which $27 billion was spent last year. “We simply can’t afford this.”

    “It’s not just a paper, or a talk, or a feasibility,” he said about the project today. “I, along with my colleagues, I am committed to this philosophy that we shall implement this scheme with in letter and spirit with our own resources, with investment from Turkey, from China, from Saudia Arabia, from Qatar, from the UAE (United Arab Emirates), from the United States of America, from wherever.”

    He assured the investors that the Pakistan government would create a conducive, enabling and friendly environment for them to invest in the project.

    He also asked the Pakistan ambassador in Istanbul to facilitate the Turkish investors in coming to Pakistan.

    ‘Being in Turkey feels like being home’: PM Shehbaz

    Before reaching Turkey, the premier said that he is leaving at the invitation of my brother Erdogan and that being in Turkey feels like being home.

    He tweeted: “Our bilateral ties have entered a new era of strategic partnership under the leadership of President Erdogan. We are on course to unpack the full untapped potential of relationship.”

  • CPEC created 190,000 jobs in less than 10 years: Chinese official

    CPEC created 190,000 jobs in less than 10 years: Chinese official

    A Chinese official said on Sunday that the China-Pakistan Economic Corridor (CPEC), a pilot project of the Belt and Road Initiatives, had generated 190,000 jobs in the previous nine years.

    According to Meng Wei, a representative of China’s National Development and Reform Commission, China and Pakistan created the Joint Cooperation Committee (JCC) on the CPEC in 2013 with an emphasis on collaboration in the Gwadar Port, energy, infrastructure, and industries.

    The two parties have recently increased their areas of collaboration to include agriculture, society, people’s livelihoods, and the information technology industries.

    The Gwadar East Bay Expressway project, the Gwadar Seawater Desalination Project, the Carlot Hydropower Station, China’s assistance to Pakistan’s flood-affected areas, and more may be seen as examples of the cooperation’s success, according to the China News Service.

    The spokesman said, “The two sides will next work together to put the leaders’ agreement into action, speed up their cooperation in areas including agriculture, mining, information technology, society, and people’s livelihood, and support the CPEC’s high-quality building.”

    CPEC is kicking off a new age of collaboration and exchanges between the two nations in a variety of fields, including energy, industry, culture, and trade and business.

  • China to continue supporting Pakistan’s financial situation

    China to continue supporting Pakistan’s financial situation

    President Xi Jinping has said on Wednesday that China will continue to support Pakistan in stabilising its financial situation, the country’s state media has reported.

    The report also said that China and Pakistan should move forward more effectively with the construction of their economic corridor, as well as accelerate the construction of infrastructure for the Gwadar Sea Port.

    The statement was also reported by Reuters after Prime Minister (PM) Shehbaz Sharif held a meeting with China’s President Xi Jinping which focused on increasing multilateral cooperation between both countries especially the China-Pakistan Economic Corridor (CPEC).

    The bilateral consensus between the two leaders was reached as PM Shehbaz called on Xi at the People’s Great Hall of China.

    During the meeting, the Chinese president and PM Shehbaz discussed “broad-based cooperation in economy and investment and exchanged views on regional and global developments”.

    Xi said that the countries should work together to create suitable conditions for the early implementation of the Mainline-1 railway upgrading project and the Karachi Circular Railway project.

    China welcomes Pakistan to expand high-quality agricultural exports to the country, and is willing to deepen cooperation in areas including the digital economy, e-commerce, photovoltaic and other new energy sources, Xi said.

    China will also export technology for a 160 km/h high-speed railway train to Pakistan, state broadcaster CCTV said.

    Separately, the People’s Bank of China (PBOC) said it has signed a memorandum of cooperation with the National Bank of Pakistan recently for the establishment of RMB clearing arrangement in Pakistan, in a bid to facilitate the use of RMB for cross-border transactions by enterprises and financial institutions in both countries.

    The prime minister also met Chinese Premier Li Keqiang wherein the two sides agreed to expand CPEC besides ensuring the early completion of its already initiated projects.

    PM Shehbaz is on a two-day official visit with a high-level delegation at the invitation of Premier Li Keqiang. The meeting was primarily aimed at revitalising the CPEC project.

  • Pak-China relations to restrengthen pledges Chinese delegation leader

    Pak-China relations to restrengthen pledges Chinese delegation leader

    Pak-China relations to re-strengthen, pledges Chinese delegation leader
    Chinese politician and Director of China’s Central Foreign Affairs Commission Yang Jiechi pledged to help re-strengthen Pakistan-China relations as he kickstarted his two-day trip to Islamabad with a meeting with Army Chief General Qamar Javed Bajwa on Wednesday.

    “He assured to play his role for further improvement in diplomatic cooperation with Pakistan at all levels,” said the Inter-services Public Relations (ISPR) Director-General (DG) Major-General Babar Iftikhar after the meeting with the army chief at the General Headquarters.

    Yang had a meeting with Prime Minister (PM) Shehbaz Sharif on Wednesday as well. The PM highlighted the significance of Director Yang’s visit in furthering the bilateral relations between the two countries across all domains. In particular, the China-Pakistan Economic Corridor (CPEC) has strengthened the ties between China and Pakistan. The relationship between the two countries would continue to grow and prosper, bringing peace and stability to the region, noted Sharif.

    Yang also met Foreign Minister Bilawal Bhutto-Zardari.

    “The two sides discussed the entire spectrum of bilateral relations and exchanged views on regional and global issues of mutual interest,” the Foreign Office said in a statement.

    The meetings come at a sensitive time as the Pakistan-China relationship seems to be under strain after the April 26 attacks on three Chinese language teachers in Karachi.

  • Foreigners’ security cell to be established in Islamabad

    Foreigners’ security cell to be established in Islamabad

    Islamabad police is establishing a foreigners’ security cell in the Central Police Office (CPO), with the required personnel and logistics.

    Under the supervision of DIG Operations, the District Foreign Security Cell (DFSC) will be led by Additional Superintendent Operations.

    It was decided at a meeting in the Central Police Office presided over by Inspector General of Police Dr Akbar Nasir Khan. Senior police officers from Islamabad were in attendance. On the pattern of CPEC Security, it was decided to apply all standard operating procedures for non-China Pakistan Economic Corridor (CPEC) security projects.

    Correspondingly, the Special Branch, Counter-Terrorism Department, and Security Division will conduct regular audits of the security measures. Islamabad police will employ Chinese-speaking early age Pakistani men and women to aid Chinese residents working on non-CPEC projects and for other private companies.

    The session was notified that efforts are being made to protect foreign nationals in compliance with Ministry of Interior directives. The Foreign Office and other law enforcement agencies will be consulted as needed. While the National Database Registration Authority will assist DFSC in data integration.