China - Pakistan Economic Corridor - CPEC

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Tarbela Dam Spillway - Khyber Pakhtunkhwa Pakistan.


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CPEC’s role in generating prosperity, cooperation and peace in Central Asia........Dr. Elenoire Laudieri

As Trump’s US is putting up barriers to international trade risking to plunge the world market into turmoil, Xi’s China perseveres in pursuing a world of free trade and an open global economy.

Speaking on the second and final day of the annual Shanghai Cooperation Organization (SCO) summit, held in Qingdao, China’s President Xi called on the members of the eight-nation Asian grouping to “boost harmony and unity by seeking common ground and setting aside differences”.

In stark contrast, a day earlier, US President Trump decided to abruptly withdraw his support for the Canada G7 summit final communiqué alienating US’s closest allies more than he had already done by imposing steel and aluminum tariffs on Canada, Mexico and the European Union on questionable “national security” grounds.

The mainstay of China’s international economic integration policy is the Belt & Road Initiative, the cornerstone of which is China-Pakistan Economic Corridor (CPEC), officially launched in May 2015 during President Xi’s visit to Pakistan.

China pledged an initial USD$46 billion for the implementation of the project, which included a two-way 3,000km road and rail corridor from Kashgar in China’s western Xinjiang province to Pakistan’s port of Gwadar on the Indian Ocean as well as the construction of hydro, wind, solar, gas and coal-fired power stations.

The deep-water Gwadar port will provide Pakistan and China with a new maritime access route to import and export markets in the Middle East, Europe and Africa. Its development includes a new international airport, hospital, technical school, a major power station and desalination plant, and a special industrial zone and tourist area.

When the entire complex will be completed, the annual freight is expected to grow from the current half a million tonnes to more than 400 million and the Gwadar population to increase from the present 80,000 residents to over two million. As far as Pakistan’s overall economy is concerned, it is estimated that in 2030 the CPEC will have generated a cumulative GDP growth of around 20% and created up to 700,000 new jobs. CPEC’s geo-strategic implications will be significant, not only for Pakistan and China, but also for the whole Central Asian region. Since obtaining their independence after the collapse of the Soviet Union in 1991, the five Central Asian Republics (CARs) – namely Kazakhstan, Uzbekistan, Kyrgyzstan, Tajikistan and Turkmenistan – have remained relatively isolated due to their landlocked geographical location.

Pakistan offered them sea access but road connectivity was poor and, in any case, the ports of Karachi and Ben Qasim were too busy and unable to fully service their international freight.

The port of Gwadar can now give them the opportunity to break their isolation and expand their trade. Hence it is not surprising that they are eager to be part of the CPEC and both China and Pakistan are keen to involve them in the project.

Pakistan has been very active in this regard and a recent seminar titled “China-Pakistan Economic Corridor: Opportunities for Central Asian Republics” organized by the Institute of Peace and Diplomatic Studies and Preston University of Islamabad, saw the attendance of all five CARs Ambassadors who conveyed the interest of their government to join the CPEC project.

Addressing the seminar, Pakistan’s then Minister for Planning and Development, Ahsan Iqbal, said that Pakistan and CARs would definitely benefit from the platform and infrastructure being constructed under CPEC and anticipated that two more corridors would be added to the project linking Peshawar with Kabul and Tajikistan, and Quetta with Herat and Turkmenistan. Furthermore, he announced the establishment of a Central Asian University in Pakistan to promote regional cooperation, understanding and security.

The seminar was also attended by Pakistan’s Foreign Secretary Tehmina Janjua, who described CPEC as a ray of hope to the regional countries to collaborate and set aside their differences for a prosperous and a peaceful future. She added that stability in Afghanistan is crucial to connectivity in Central Asia pointing out that Pakistan supports the reconciliation process as there is no military solution to the conflict. Finally, as to the longstanding Kashmir dispute, she indicated that its settlement is indispensable to achieve peace and stability in the region.

As an old saying goes, where there is the will there is a way and China, Pakistan and the five Central Asian Republics seem to be willing to work together for the well being of their peoples and help building a new world based on friendly relations, mutual respect, cooperation and trust.

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China wants to expand and promote its free trade agreement (FTA) with Pakistan, said Chinese Deputy Head of Mission Lijian Zhao

Speaking at a regional conference on “Connectivity and Geo-economics in South Asia”, Lijian pointed out that China was interested in exploring more trade opportunities with Pakistan.

The diplomat expressed confidence that the China Pakistan Economic Corridor (CPEC) would lead to regional connectivity for the benefit of not only Pakistan and China, but all neighbouring countries.

However, he stressed that there was a need for further improvement in matters related to CPEC for its effective implementation.

Lijian called for settling cross-border issues between the two countries and said Karakoram Highway was a significant project for linking the two sides.

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Delayed 300MW power plant at
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to enter implementation stage soon...

The main hurdle in the implementation of 300MW coal power project has been removed as the federal government has been told by
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government that the process of issuance of NOCs and land acquisition for project has been expedited and the project will soon enter into implementation stage.

Gwadar coal power plant was amongst the early harvest projects under
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and its frame work agreement had already been signed but it was facing delay because the Balochistan government was delaying the issuance of NOCs and land acquisition, official source told The Nation.

A meeting on CPEC issues was held here at Ministry of Planning, Development & Reforms. The meeting, which was presided over by secretary planning Shoaib Siddique, was attended by Project Director CPEC Hassan Daud Butt, officials from Ministry of Energy (Power Division), government of Balochistan and government of Sindh.

The meeting also discussed the security issues related to Suki Kinari Hydropower project in Naran, Khyber Pukhtunkhwa. The Army has already been deployed there but there were issues pertaining to the deployment KP police which has been resolved.

The issue of 300 Gwadar coal power plant was also discussed in the meeting where the representative of Balochistan government intimated that the process of issuance of NOCs and land acquisition for 300MW coal power project has been expedited. “Completion of the process is expected shortly that would facilitate the power project to enter into implementation stage”, he informed. The issue of upfront tariff for the project was also discussed in the meeting, the official said.

It is pertinent to mention here that Private Power and Infrastructure Board (PPIB) has already issued letter of interest (LOI) to China Communications Construction Company Ltd (CCCC) for development of 300MW imported coal-fired power project at Gwadar. This project is a component of flagship China-Pakistan Economic Corridor (CPEC) initiative of the governments of China and Pakistan. The company will obtain tariff approval from NEPRA and start construction after achievement of financial closing. The said project has been approved by the Joint Cooperation Committee (JCC) of CPEC and the PPIB Board for further processing.

Meanwhile, a press statement issued here stated that the Secretary Planning, Development & Reforms (PD&R), Shoaib Ahmad Siddiqui told the meeting that China Pakistan Economic Corridor (CPEC), being a long-term national project, has to play a huge role in the development of remote regions of the country particularly Balochistan.

Siddiqui, while highlighting the importance of Gwadar development as a modern world-class port city, emphasized on creating a conducive environment for investment as the investors are keenly watching development at Gwadar. On this occasion, officials from Ministry of Energy apprised regarding the progress of power projects under CPEC. The chair instructed for expediting procedures to ensure smooth implementation of CPEC projects and win investors’ confidence.

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·
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is the Gateway to
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and
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with its strategic significance extending from Persian Gulf through the Indian Ocean to South East Asia and the Far East. Gwadar being located at cross roads of three sub regional systems, bridges the gap for transportation of vital source of energy. Therefore, it retains fundamental role in the economic prospects of about 20 countries of Central Asia, South Asia and China by providing economically viable, cost effective and shortest route for transit and supply.
Currently, the shortage of water being faced by Gwadar city is 3.5 Million GPD which is expected to increase to almost 9.0 Million GPD in future. Considering the increasing demand of water for Gwadar city it is pivotal that immediate solution be implemented to address this critical issue so that the potential of this piece of land be capitalized.
This ground breaking kick started the construction of membrane based Reverse Osmosis Technology Sea Water, Desalination Plant with capacity of up to 4.4 Million GPD which can be further enhanced.

During inaugural ceremony of
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held in Feb 2018; Chief of Army Staff expressed his commitment to provide water to locals during Month of
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.
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after concertic efforts besides weather hazards, logistic issues & civil setup hurdles, made the project possible / successful during May 2018. Due to dedicated efforts of FWO, now people of Gwadar are being given uninterrupted supply of water through state of an art plant.

The Project is planned to be completed in 2 Phases as under:-
a. 0.2 Mn Gallon / Day (Which is completed)
b. 4.4 Mn Gallon / Day (with Aqua Swiss Coy & Pvt Coy ex
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Considering welfare of locals, free of cost water was provided during Ramzan. However, it is worth mentioning that; as water is available now for supply but Political Govt has failed so far to develop any infrastructure and water is being provided on Tankers.
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(PHE) needs immediate measures for development of pipe lines infrastructure in the city.

It is an honour for FWO that our UAE and Swiss partners have shown full confidence in materializing this project. We foresee that
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will be a game changer for the region and such impregnable projects would help us in making our dreams fulfilled.

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Another landmark project by
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is going to accomplish very soon.

The construction of
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is part of
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Project. The impediment facing alignment of the Expressway is Malakand mountain range; however to overcome this impediment, a two tube uni-directional, 4 lane (2 lane each tube) tunnel at the proposed location of cross-over is being constructed.

A project by
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Govt.

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478.7 mn allocated for provision of 4G services along the
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Highway.

The Federal Information Technology Ministry will spend 486.726 million rupees on expansion and up gradation of 3g and 4g services and continuous coverage along the Karakoram Highway (in support of
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) in
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. A Technical Training Institute will also be established in Gilgit-Baltistan.

A total of 2658.713 million rupees have been earmarked for eight on-going schemes of Information Technology and Telecommunication Division in the Public Sector Development Programme. Ongoing scheme under CPEC include, construction of Cross Border OFC System Between China and Pakistan for International Connectivity of voice/Data Traffic and provision of seamless GSM coverage Along Karakuram highway for proposed Gawadar Kashighar Economic Corridor in Gilgit Baltistan.

The project aimed to increase quality of skills and capacity of organizations to consistently deliver high quality services and products and raising their standard.

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UD Trucks Corporation, together with VPL Limited – the authorised distributor of UD Trucks in Pakistan, launched its UD Quester heavy-duty truck range in Pakistan.


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Emerging Pakistan Exhibition & Mango Show which presented Pakistan's culture & cuisine to Serbian citizens concluded. The event was successful as it attracted many businessmen & importers from
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& Serbian people were introduced to
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's rich culture & business potential.

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