Scope of CPEC projects expanding under CPEC Phase II

KARACHI: Federal Minister for Planning, Development and Special Initiatives Asad Umar has said scope of China-Pakistan Economic Corridor is expanding as various important projects enter an advanced stage.

Talking to media persons during a visit to the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Saturday, the minister said that in the second phase of the CPEC projects relating to agriculture, industry and employment were being planned.

In the first phase of CPEC basic infrastructure, energy sector particularly hydro-electrical power generation were given priority, he said, adding that a multi-billion-dollar railway project ML-I was in an advanced stage and remarkable progress had been achieved in lieu of financing of the project. The joint committee on CPEC would consider the project in its next meeting, he said.

On a question regarding Karachi Package, Mr Umar said that most of the projects would be completed in the current year as the federal government was actively pursuing projects under Rs1.1 trillion development package.

The buses would start plying on Green Line project in August, the minister said, adding that design of Karachi Circular Railway was complete as well and work could be started by the end of the year.

Initial work on Karachi Trade Corridor — another important project for laying a dedicated railway line from Karachi port to Pipri with an estimated cost of Rs130bn — started and it was expected that tenders of the project under BOT mode would be floated this year, the planning minister disclosed.

The federal government took responsibility of improving rain water drainage system of Karachi with a focus on Mehmoodabad, Korangi and Gujar Nullah and work was in full swing, he said, adding that encroachments has been removed, compensation amount had been paid to affected population of Mehmoodabad.

Additional power for Karachi

Mr Umar said the federal government had promised to add 900-megawatt to K-Electric system, but it was going to add over 1,000MW as KE’s 450MW project would be commissioned in May while the NTDC would be providing additional 650MW as well.

Rationalisation of electricity price for industrial sector by PTI government has accelerated industrial activities while the large-scale manufacturing sector has seen a record growth over 10 per cent, he claimed and added that besides increased production of car and cement manufacturing, first time in history of Pakistan quantum of monthly exports remained above $ 2bn for consecutive seven months.On a query about trade with India, the federal minister cleared that Prime Minister Imran Khan has taken a principled stand and directed to explore alternate avenues for expansion of regional trade instead of relying on bilateral trade with eastern neighbouring country as oppressive actions of India in illegally occupied Kashmir could not be overlooked.

Mr Umar said the value of dollar had fallen to Rs152 from Rs168 due to government’s prudential policies.

Market closures

On a query regarding Covid-19 measures, the minister supported the decision of the Sindh government for closing markets on weekends and said that such measures were necessary to reduce the risks and keep number of patients lower.

Economic sector vulnerable to coronavirus needed to be closed to save precious lives as without timely measures all the sectors of economy could suffer more, he said, adding that the government was cognisant of issues being faced by business and industry particularly the labour force due to lockdowns but every citizen has to play role in this situation.

Replying to another question Mr Umar was optimistic that Pakistan Steel Mills could be made fully operational and profitable entity and there was no reason to shut it down. Four international companies have shown keen interest in PSM, he added.