Islamabad: The government of Pakistan on Tuesday requested China to finance the USD 9 billion Main Railway Line (ML-1) project, along with several other road and infrastructure development initiatives, to further their cooperation under the China-Pakistan-Economic-Corridor (CPEC) programme, according to news sources. The publication further revealed that Pakistan had also reaffirmed its commitment to complete the 2,400-kilometres-long fencing work along the Afghan and Iran borders on a priority basis.
These developments surfaced during the 9th Joint Cooperation Committee (JCC) meeting of CPEC. During this session, the two countries approved of the Gwadar Smart City Master Plan. They also signed two memorandums-of-understanding (MoUs) to join forces in developing the trade and healthcare sectors. Additionally, the meeting inaugurated the 392-kilometre-long Multan-Sukkur Motorway that has been completed through Chinese funding estimated to be around PKR 294 billion. The minutes of the meeting were also signed on the occasion.
The JCC meeting was presided over by the co-chairs, Planning Minister Makhdum Khusro Bakhtyar, and China’s National Development and Reform Commission Vice Chairman Ning Jizhe.
The meeting formed a joint project financing body to begin the arrangements to procure the funds for the ML-1. Minister Bakhtyar revealed that the groundbreaking ceremony of the project is planned to be held within the next six months.
He stated that owing to the limitations of the Pakistan Railways, the government had decided to take a loan to complete the project. He added that this loan would not impact the national debt-to-GDP situation, as the project would be completed in the next five to six-years.
The issues regarding the use of Chinese currency (RMB) was also taken up for further discussion, as it is one of the six major currencies in the International Monetary Fund Basket. An expert group at the Central Bank will examine how to move forward in this regard after consulting other experts.
Minister Bakhtyar said that the JCC reviewed energy projects worth USD 12 billion and were satisfied at the pace of development for each, as they are all set to be completed within the next five to ten years.
While talking about the M-6 (eastern corridor from Sukkar to Hyderabad), he revealed that it would be finished under the ‘build-operate-transfer’ and ‘public-private-partnership’ models, and he further urged Chinese firms to participate in the bidding for this project.
Please note that this year’s Chinese delegation that attended JCC was the largest yet, and this enthusiastic participation is associated with China’s resolve to contribute to the socio-economic and industrial success of CPEC’s second phase.
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