CPEC Projects to Move Full Speed Ahead

In preparation for the 11th Joint Cooperation Committee (JCC) meeting at the end of this month, Federal Minister for Planning Development and Special Initiatives Professor Ahsan Iqbal has been focusing the attention of the federal government on the progress of CPEC projects. The minister directed the relevant ministries to expedite clearance of pending approvals for imports of equipment where no foreign exchange is involved, and to immediately resolve matters related to road infrastructure projects. “The CPEC projects are the top priority of the incumbent government and no delay will be accepted,” said the minister.

CPEC is a collection of infrastructure projects, launched under the PLM-N leadership in 2013 to strengthen the growth of Pakistan’s economy. CPEC includes construction of modern transportation networks, power plants and?special economic zones , worth estimated USD62 billion as of 2020.

Transportation infrastructure projects were set eliminate inefficiencies stemming from Pakistan's outdated transportation network, which were estimated by the government to cause a loss of 3.55% of the country's annual?GDP . CPEC envisioned a road network that will link seaports in?Gwadar and Karachi with northern Pakistan, as well as cities further north in western?China ?and?Central Asia .?A 1,100-kilometre-long?motorway ?was to be built between the cities of?Karachi ?and?Lahore ?as part of CPEC, as well as upgrades of the?Karakoram Highway ?from?Hasan Abdal ?to the?Chinese border .

CPEC's potential impact on Pakistan has been compared to that of the?Marshall Plan ?undertaken by the?United States ?in?post-war Europe . Pakistani officials predicted that CPEC would result in the creation of more than 2.3 million jobs between 2015 and 2030, and add some 2.5 percentage points to the country's annual economic growth.

Additionally, CPEC was to include more than construction of energy infrastructure to help alleviate Pakistan's chronic energy shortages, which cost an estimated 2–2.5% of Pakistan's annual gross domestic product.?Moreover, a network of pipelines was to be laid to transport liquefied natural gas and oil, including a $2.5?billion pipeline between Gwadar and?Nawabshah .?

Unfortunately, with the onset of the PTI government, CPEC projects were neglected, and many of the deadlines got missed.

After years of stand-still under the previous government, China-Pakistan Economic Corridor (CPEC) is being given a new lease of life and a strong push for speedy completion. All projects are being brought forward to undergo a rigorous review to eliminate obstacles and ensure rapid progress. As part of the push, Minister Ahsan Iqbal instructed to expedite the approval process of energy policy for Gilgit Baltistan (GB) and to design a tangible proposal for the mining sector, which is of interest to Chinese authorities. Likewise, development of a Production Facility for Solar Panels may be offered for JCC consideration, and a dedicated meeting will soon be held to resolve issues of the Gwadar projects.

The JCC meeting will also formally establish a Pak-China Technology Business Forum. “China and Pakistan are two brotherly countries, and we always resolve all the mutual matters in a friendly environment,” said Ahsan Iqbal.

Even with the delays created by the previous government, a large number of projects have been brought to completion since the launch of CPEC in 2013.

Nearly 6,000 MW energy capacity have been added to Pakistan’s power sector, including

·????????400 MW at Quaid e Azam Solar Park in Bahawalpur (completed in 2016)

·????????1,320 MW at 2 Coal Power Plants in Sahiwal (completed in 2017)

·????????50 MW at the Hydro China Dawood Wind Farm in Thatta (completed in 2017)

·????????100 MW at UEP Wind Farm in Jhimpir (completed in 2017)

·????????50 MW at Sachal Wind Farm in Jhimpir (completed in 2017)

·????????1,320 MW at 2 Power Plants in Port Qasim (completed in 2018)

·????????1,320 MW at 2 Coal Power Plants in China Hub (completed in 2019)

·????????660 MW at 2 Engro Power Plants in Thar (completed in 2019)

·????????720 MW at Karot Hydropower Station (completed in 2021)

Additionally, a 660 kV HVDC transmission line was constructed between Matiari in Lahore in 2021.

Construction of three more power plants is in progress: Gwadar Coal Power Project (currently in financial closing), Suki Kinari Hydropower Project (70% completed) and phase 2 of Quaid e Azam Solar Park is under construction in Bahawalpur. These projects will add 300 MW, 870 MW and 600 MW of power generation capacity, respectively, for a total of 1,770 MW.

Five major telecommunications and transport Infrastructure projects were completed between 2018 and 2022, including the 820 km-long Khunjerab-Rawalpindi Cross Border Optic Fiber Cable line; 392 km-long Multan-Sukkur Section of the Peshawar-Karachi Motorway; 120 km-long Havelian-Thakot Section of KKH Phase II; 27 km-long Orange Line Metro Train in Lahore; and 297 km-long Hakla-DI Khan Motorway.

To foster businesses, a 3,217 acres Allama Iqbal Industrial City is being constructed in Faisalabad, Punjab, and three Special Economic Zones (SEZs) are being developed in

·????????Rashakai in Nowshera District, Khyber Pakhtunkhwa (1,000 acres, under construction);

·????????Dhabeji in Thatta District, Sindh (1,530 acres, under bids); and

·????????Bostan in Pishin District, Balochistan (development of 200 acres completed; another 800 acres planned).

A series of development projects have been completed in Gwadar, including the state-of-the-art Pak-China Technical and Vocational Institute (completed in 2021), Gwadar Eastbay Expressway (completed in June 2022) and Gwadar Port cargo operations (launched in April 2021). Gwadar port free zone is being developed; it already has 46 enterprises registered for investment, and 3 companies have already started production. Additionally, Gwadar Smart Port City has its Master Plan developed and approved; designs for the micro-land use plan and the governance model are in process. And finally, construction of new Gwadar International Airport is under way and scheduled to be completed in March 2023.

While many projects have been completed or are in progress, there are many more to be launched in the future, and the current government is working to ensure that no further delays take place in the process. Prime Minister Shehbaz Sharif is expected visit to China next month to make a further pitch for CPEC expansion, among other issues.

“CPEC is the game changer for the region and the government is committed to implement all the projects through letter and spirit,” says Minister Ahsan Iqbal.