Ongoing Discussions: Pakistan and China Still Working on Gwadar Project Details

In anticipation of the upcoming Joint Cooperation Committee (JCC) meeting for the China-Pakistan Economic Corridor (CPEC) next month, Pakistan and China are poised to solidify Gwadar projects. These initiatives include the establishment of an international airport, projected to receive a grant of approximately $223 million, alongside several other social sector projects.

Furthermore, during the forthcoming JCC meeting, both parties will explore the possibility of executing small socio-economic development projects, with a total budget of up to $1 billion, as per Islamabad's request, spanning all four provinces.

In a significant development, Balochistan's provincial cabinet has granted approval for granting China a 40-year lease on land for the construction of a 300 Megawatt Coal-fired power project in Gwadar. This agreement is on the brink of fruition, and implementation is set to commence in the coming months.

The JCC meeting under CPEC is tentatively scheduled for December 18 and 19 in Beijing, primarily focusing on finalizing Gwadar development projects with substantial grant funding. The socio-economic working group, in collaboration with the provinces, is in the process of finalizing projects up to $1 billion, intended for execution over the next few years. Additionally, they will request technology transfer for specific areas within the agriculture sector. The groundbreaking ceremony for the New Gwadar International Airport (NGIA) is slated for next month.

Moreover, discussions during the upcoming JCC will encompass the establishment of Special Economic Zones (SEZs) for industrial cooperation. The Rashakai SEZ has reached its final stages, and the KP government and Chinese partners are set to seal the deal, facilitating the relocation of industrial units into these SEZs. Subsequently, SEZs in Faisalabad (Punjab) and Dhabeji (Sindh) will be made operational.

Pakistan and China will explore collaboration in the realm of poverty reduction, with Islamabad seeking to replicate China's successful experiences. The International Poverty Reduction Center in China (IPRCC) will become a partner in this endeavor to address poverty issues in Pakistan.

Regarding the ML-1 project of Pakistan Railways, discussions will ensue, though no deal is expected due to unresolved financing arrangements. Pakistan has proposed a phased execution approach, possibly funding a portion of the project itself, depending on project scope.

Lastly, the sources have noted that despite previous attempts to alter the Gwadar coal-fired project, it is set to move forward as originally planned, with Planning Commission officials emphasizing the importance of honoring finalized agreements between sovereign states.

Secretary Ministry of Planning, Zafar Hassan, envisions an expanded scope for CPEC, incorporating socio-economic development, technology transfer in agriculture, and poverty reduction, fostering increased bilateral cooperation in the months and years to come.