Gwadar Master Plan and Smart City gets approval in 9th JCC meeting, also joint project financing group to be established for ML-I project

ISLAMABAD: Giving assurances to China for safeguarding CPEC projects from external threat by fencing Pak-Afghan and Pak-Iran borders in next three years, Pakistan and China agreed to establish joint committee for exploring financing modalities to upgrade ML-1 with cost of $9.2 billion.

During the 9th Joint Cooperation Committee (JCC) under China Pakistan Economic Corridor (CPEC), both sides decided to establish group of experts to explore option of using Chinese currency RMB for future projects. China’s over 100 delegates under Vice Chairman NDRC participated into JCC meeting.

“The group of experts will take decision on use of RMB as it is already part of IMF accepted currencies basket. In order to avoid piling up obligations in US dollars, the group of experts may take decision to use RMB for ML-1 and some other projects where it suits”, the Chinese Ambassador in Pakistan Yao Jing told journalists after holding joint press briefing by Minister for Planning Makhdoom Khusro Bakhtyar at the end of JCC meeting here on Tuesday night.

Both sides only signed four memorandum of understanding (MoUS) including Screening of Cervical patients would be carried out, exchange of agreement under which 45 Pakistanis would be visiting China, acceptance of Gwadar Master Plan of Smart City and fourth signing of mutually agreed minutes. Both sides agreed that Special Economic Zone (SEZ) act 2011-12 would be further amended in order to plug loopholes. However, the incentive package could not be yet finalised.

Federal Minister for Planning Khusro Bakhtyar said in the concluding session that fencing of Pak-Afghan border would be done next year 2020 while Pak-Iran border fencing would be completed within three years period. “As we achieved our target on border fencing, it will wipe out any external threat and he is hopeful that Pakistan will move forward by achieving more prosperity”, he added.

After the JCC, in a joint press briefing, Minister for Planning Khusro Bakhtyar said that both China and Pakistan decided to expand the CPEC for starting its second phase under which they would explore cooperation in oil and gas fields, establishing refineries and petrochemicals by fetching investment in the range of $8 to $10 billion. He said that Pakistan and China also explored possibilities to expand cooperation in steel sector by expanding steel production up to 3 million tons. When asked about offering Pakistan Steel Mills (PSM) to China, he said that the PSM revival also came under discussion because Islamabad used to import $4 billion steels and with ground breaking of ML-1 after six months the demand of steel would further go up. He said that China was offered to explore minerals especially copper and gold as Beijing used to import copper to meet its requirements. He said that both sides made progress on ML-1 project of $9 billion as joint group would finalize financing modalities. “We are going to ensuring ML-1 groundbreaking within six months”, he added.

Answering a query, the minister said that the federal government would take loan to execute ML-1 projects but its exact financing details would be worked out by the joint group of experts. When asked about use of RMB, the minister said that the both sides established group of experts to use Chinese currency” he added.

On western route, he said that China agreed to finance projects in order to complete the western routes. He said that more energy projects of 6390 MW would be executed under CPEC up to 2030. He said that both sides agreed to expand cooperation in agriculture sector where transfer of technology would be ensured.

He said that China would provide $1 billion grant for uplifting of social sector. The roadmap, he said, devised for CPEC which would help Pakistan to enter into middle income group within next five to eight years.

The Chinese ambassador said that the JCC lasted for six hours as China was happy and satisfied on deliberations of JCC. He said the 9th JCC would set new direction of CPEC as new stage would ensure transfer of technology, cooperation in blue economy, mineral development and affordable housing sector. He said that Karachi Circular Railways (KCR) also came under discussion.