ISLAMABAD: Prime Minister Shehbaz Sharif has instructed the Ministry of Foreign Affairs (MoFA) to finalize the details for third-party projects under the China Pakistan Economic Corridor (CPEC) within a week. This move aims to open CPEC to investments from other countries.
PM Sharif plans to visit China in early June 2024, before the federal budget 2024-25 presentation. He wants all paperwork for third-party CPEC projects completed before this trip. The Secretary of Foreign Affairs has been given a strict deadline to meet this target.
During his China visit, PM Sharif will discuss various topics with Chinese leaders. These include CPEC, Gwadar development, trade, investment, financial ties, mineral cooperation, ICT, agriculture, science, technology, and the security of Chinese nationals in Pakistan.
Sources indicate that PM Sharif will request China to include the Diamer Bhasha Dam in the CPEC framework. The regional scope of CPEC will be expanded to improve connectivity with neighboring countries and regions, enhancing Pakistan’s sea port access.
CPEC’s second phase will focus on business-to-business (B2B) projects, excluding ML and hydropower initiatives. The Board of Investment and the Ministry of Planning will develop mechanisms to boost B2B cooperation.
According to a draft by the Chinese side for the CPEC Joint Working Group on International Cooperation, the following principles apply: CPEC is an open, inclusive platform based on extensive consultation and shared benefits. Both Pakistan and China welcome third-party participation on a project basis, aiming to attract high-quality capital, technology, and expertise. Third-party involvement will not change the leading roles of Pakistan and China or lead to the trilateralization of CPEC mechanisms. Public announcements about third-party participation will require approval from both governments, and confidentiality must be maintained until projects are agreed upon.
The Ministry of Finance has been directed to review financial space for releasing delayed payments to Chinese Independent Power Producers (IPPs), now totaling Rs 500 billion. The Secretary of Finance is tasked with holding a meeting on this issue.
Coordination with Chinese companies on easing visa processes for Pakistani businessmen visiting China will be handled by the Secretary of Foreign Affairs and Pakistan’s ambassador to China.
The Prime Minister has also ordered a review of security mechanisms for Chinese nationals working in Pakistan. The Secretary of the Interior has been asked to ensure their security is foolproof.
MoFA and relevant ministries must finalize draft MoUs and agreements planned for the Prime Minister’s visit to China. These documents require approval from competent forums.
MoFA has scheduled an inter-ministerial meeting on May 27, 2024, to finalize talking points, briefing materials, and the list of agreements to be signed during the visit.
The Prime Minister has requested the Chinese side arrange visits for him to a model Special Economic Zone (SEZ), a one-window operation facility, Power China, the China/Pak Friendship Forum, an Agricultural Research Center, and an IT Center.
Additionally, the Prime Minister directed relevant secretaries to ensure public sector entities use Gwadar Port for imports. These instructions have been implemented.
The Board of Investment is tasked with creating a policy framework to relocate Chinese textile and other labor-intensive industries to Pakistan to boost exports.