NEWS COVERAGE PERIOD FROM MAY 25TH TO MAY 31st
CPEC PROJECTS REAL GROWTH DRIVERS
By SARDAR AMEER JEHANZEB Published: May 11, 2020
ISLAMABAD: China is likely to take more aggressive steps to support growth, after its economy shrank 6.8% in the first quarter of 2020, and to counter the impact of the coronavirus pandemic.
This is its first contraction since quarterly records began in 1992. Many economists believe that real job losses are in the pipeline.
China has prioritised domestic demand, encouraging consumers and increasing its public spending. It is also planning to issue special government bonds. It has urged the central bank to use tools, including interest rate cuts, to support growth.
Although economists are divided on how deep the contraction will be, retail sales, a key part of consumer spending, have not recovered as much as expected.
Battered by the shutdown, with real fears over long-term unemployment and income, people are not spending money. And once the disposable income has collapsed, a V-shaped recovery is expected to face a huge problem.
However, experts are looking at a U-shaped recovery where a prolonged period of stagnation, after the downturn, is followed by eventual return to growth as global demand resumes.
Can China provide “helicopter money”? It all means that consumer confidence will take more time to heal.
The decline in individual income, rise in unemployment, closure of many companies and self-employed businesses will all weigh on the aggregate demand over a longer period of time. The economy can be quick to pause, but is slow in getting back to normal.
Beijing is likely to abandon its economic growth targets and focus on people to help them keep their jobs. There are external challenges as well about which Beijing can do little due to a temporary pause in the current trade requirements.
With large parts of the world now in coronavirus containment, exporters have been frozen out of their marketplaces. Experts now expect Chinese exports will drop even in the second quarter. This severe recession is also likely to be experienced in the eurozone and American economies.
Although stability is the foremost priority for China, it must ensure that there is no re-emergence of the epidemic. Precautionary measures will be long-lasting and include mandatory coronavirus testing for the vulnerable people and voluntary tests.
The collapse in external demand and the weak services sector recovery means Beijing must embark on a broad infrastructure and property stimulus. Labour-intensive construction is the only means to absorb the sharp spike in unemployed workers.
Beijing’s effective handling of the Covid-19 crisis will create stability not only in China but it will also give strength to the global economy in the midst of economic disruptions.
However, international economists expect global economy is unlikely to recover in the short term.
China has the world’s most complete manufacturing support and ecological system, huge financing capability, large number of high-grade workers and growing scientific and technical capability.
China has provided a large number of anti-epidemic materials to international organisations and more than 100 countries. This shows the importance of China to the international community in times of crisis.
China has already extended regional cooperation to Northeast Asia and Southeast Asia, and is making further efforts to build cordial relations with Europe and the US.
The Belt and Road Initiative (BRI) is a true living example that is providing support internationally, including Pakistan where Beijing is helping build China-Pakistan Economic Corridor (CPEC).
In recent months, the Chinese government has provided multiple batches of material assistance, sent medical experts and held video conferences with Pakistan to share its experience in preventing, controlling and treating the Covid-19.
The Pakistani side is willing to continue to cooperate closely with China and deepen the strategic partnership during the fight against the pandemic.
Time has proved both sides’ commitment to the timely execution of CPEC projects. These projects are making progress even after the Covid-19 outbreak.
No doubt, CPEC is a game-changer for Pakistan. Multiple projects in the energy sector, infrastructure, Special Economic Zones (SEZs), etc are moving towards timely completion.
According to latest research studies and publications of the World Bank and the International Monetary Fund, CPEC projects could be the growth drivers, even in the days of recession.
The second meeting of Pakistan-China Joint Working Group was held to discuss ways and means of enhancing bilateral cooperation in the agriculture sector.
During an online meeting, both sides agreed to implement multiple memoranda of understanding (MoUs). Pakistan government has also allowed transit trade of bulk Afghan cargo which includes wheat, sugar and fertiliser through Gwadar Port, which has operationalised the western corridor of CPEC.
Initiation of these projects will give a fresh impetus to Pakistan’s economy and stabilise its financial condition in the midst of Covid-19.
The writer is a mechanical engineer and a senior member of the Islamabad Chamber of Commerce
Published in The Express Tribune, May 11th, 2020.
https://tribune.com.pk/story/2218471/2-cpec-projects-real-growth-drivers/
CHINESE COMPANY TO CARRY OUT CIRCULAR RAILWAY FEASIBILITY STUDY
Aamir YasinMay 15, 2020
RAWALPINDI: The federal and provincial governments signed a memorandum of understanding (MoU) with the China Civil Engineering Construction Company (CCECC) on Thursday to begin the feasibility study of the Rawalpindi-Islamabad Circular Railway and Leh Nullah Expressway projects.
The MoU was signed by Capital Development Authority (CDA) Member Planning Dr Shahid Mehmood on behalf of the federal government, Rawalpindi Development Authority (RDA) Chief Engineer Amir Rasheed on behalf of the Punjab government and Jia Huiqin on behalf of the CCECC.
The signing was attended by Commissioner retired Capt Mohammad Mehmood, PTI MNA Sheikh Rashid Shafique and CCECC representatives.
The company will conduct a study on the operation of a train service between Rawalpindi and Islamabad along the Leh Nullah, from the Soan River near the Lahore High Court Rawalpindi bench to Kashmir Highway in Islamabad.
There was a similar plan during the regime of Gen Pervez Musharraf to run a train service between the twin cities, which was halted by the PML-N government.
As part of the metro bus service, the PML-N Punjab government built an elevated track with future requirements to run a train over it. However, the PTI government wants to run a separate track for a circular rail service along the Nullah Leh Expressway.
The CCECC is a state-owned Chinese company that is willing to work with the CDA and RDA on the feasibility study and technical and financial proposal and enter into a contract with both authorities to execute, operate and maintain such a project.
The company will undertake the preliminary study on the project’s feasibility, which will include assessing technical, legal, financial and commercial viability and cost estimates, taking into consideration the requirements of related government bodies.
It will also explore options for resources and funding to execute the project if it is technically and financially viable.
A senior official from the Pakistan Railways told Dawn the CCECC would conduct the study using its own resources and the RDA and CDA will provide details about the Leh Expressway project.
After the study is complete, he said, the parties will hold a consultation on its findings and make a PC-I on the basis of a public-private partnership. The study will be completed in three months, and the company will also identify areas along the route for commercial ventures.
The official said it was expected that foreign investors would be brought to begin work on the project so residents of the twin cities have a better alternate transport service and traffic is reduced on city roads.
Published in Dawn, May 15th, 2020
https://www.dawn.com/news/1557176/chinese-company-to-carry-out-circular-railway-feasibility-study
SEZS: CPEC BODY ASKS BOI, SBP, FBR TO RESOLVE ISSUES
By ZAHEER ABBASI on May 15, 2020
The Parliamentary Committee on China-Pakistan Economic Corridor
(CPEC) has asked the Board of Investment (BoI), the State Bank of Pakistan (SBP) and the Federal Board of Revenue (FBR) to resolve all the issues pertaining to special economic zones (SEZs) on a top priority basis, so that these early harvest projects could be ready for economic activity.
An in-camera meeting of the Parliamentary Committee on CPEC under the Chairmanship of Sher Ali Arbab on Thursday began its proceedings with the confirmation of minutes of the previous meetings followed by a presentation by the secretary communications on the infrastructure development projects – both completed and ongoing – under the CPEC.
The meeting was also given a briefing by the FBR on income tax, sales tax and custom duties pertaining to Gwadar and SEZ Rashakai, Dhabeji, Faisalabad.
On the agenda of the meeting there was also a briefing on modalities for local and foreign companies in terms of banking facilities and exemptions.
The chairman National Highways Authority (NHA) briefed the committee on complete and ongoing infrastructure development projects under the CPEC.
The members of the committee wanted the projects to be expedited.
The committee recommended to the NHA that the projects may be completed as per the given timelines.
The meeting decided that the issue of taxes and other duties pertaining to special economic zones Rashakai Dhabeji and Faisalabad was taken up with the FBR and the State Bank of Pakistan.
The committee advised the BoI, the State Bank of Pakistan and the FBR to resolve all the issues of these SEZs on a priority basis, so that these early harvest projects could be ready for economic activity.
The chairman stated that every provision and concession, which enables industrial growth and import substitution and leads to export-based industry, may be made available.
Those who attended the meeting were Noor Alam Khan, Sadaqat Ali Abbasi, Umer Aslam Khan, Khan Muhammad Jamali, Zille Huma, Ahsan Iqbal Chaudhary, Sardar Ayaz Sadiq, Mehnaz Akbar Aziz, and Muhammad Aslam Bhootani.
Copyright Business Recorder, 2020
https://www.brecorder.com/2020/05/15/597163/sezs-cpec-body-asks-boi-sbp-fbr-to-resolve-issues/
CPEC: WELLS REITERATES CRITICISM OF CHINA
By ALI HUSSAIN on May 21, 2020
Alice Wells, the Principal Deputy Assistant Secretary of State for South and Central Asia at the US Department of State, Wednesday reiterated her country’s position on the China Pakistan Economic Corridor (CPEC) and hoped that China would renegotiate the “predatory, unsustainable and unfair” lending and create a “fair and transparent” deal for the people of Pakistan.
Ambassador Wells, who is retiring later this month, addressed the regional media including Pakistan, India and Afghanistan via a video link through which she outlined the policies of the US government towards the region.
On the CPEC, she said: “As is the case with the CPEC or any other development project, we, the United States support investment within international standards and that upholds environmental and labour standards…that are sustainable and benefit people of the region.”
Wells added that she enumerated the US government’s concerns “over the lack of transparency involved in the projects, over the unfair rates of profits guaranteed to the Chinese organizations to the distortion that is caused to Pakistan’s economy, including the massive imbalance in trade between Pakistan and China.”
She added that in the prevailing crisis situation when the world economy is facing serious challenges due to the situation created by Covid-19 pandemic it was incumbent upon China to take steps to alleviate the burden of the “predatory, unsustainable and unfair” lending, which was going to cost Pakistan.
However, both Pakistan and China, had rejected the US concerns when Ambassador Wells first publicly voiced the “concerns” of the US government in November last year.
Wells talked about the Trump administration’s South Asia Strategy, saying that the policy would be guided by conditions on the ground that “Pakistan must take decisive actions against militant groups and that India is an important partner in Afghanistan’s development”.
She stated that the strategy was clear that Pakistan should take action against terrorist groups, particularly those that were involved in violence in Afghanistan and also Hafiz Saeed and his group.
She pointed out that after over a year of direct talks, the US and the Taliban signed the peace agreement on February 29, 2020 in Qatar in which the Taliban committed that Afghanistan would never be a base for international terrorism.
Wells stated that the US was upholding its end by bringing its troops back to home and continues to closely watch the Taliban’s actions.
“A response will be necessary to defend the Afghan security forces,” she said, adding that the level of increase in violence was “unacceptable” and it was the responsibility of the Taliban to significantly reduce violence.
The top US diplomat stated the US also welcomed the agreement between Afghan President Ashraf Ghani and Abdullah Abdullah, adding, “We look forward to the rapid implementation of the agreement and immediate steps to enter the intra-Afghan negotiations”. She said that peace and stability in Afghanistan, as many Pakistani leaders had been saying, was in Pakistan’s interest, adding that recently US Special Representative for Afghanistan Reconciliation Zalmay Khalilzad held productive meetings with Pakistani leadership on Pakistan’s continued support to the Afghan peace process.
Wells said that the US was pushing hard all the sides in Afghanistan to create an environment for reduction of violence, release of the prisoners and start of the intra-Afghan negotiations.
She expressed the hope that women should be heard in the peace process, adding that women had a very critical role to play.
Responding to a question about India’s role in the Afghan peace process Wells said that India was “very critical” player in Afghanistan with a huge investment in development of the country.
However, she added that it was up to India how to engage itself in the peace process as to whether it wanted to talk directly with the Taliban.
At a time when the US is in talks with the Taliban to be part of governing structure, she added that it would be good for the future relationship between India and Afghanistan.
To another query about Nepal-China dispute, Wells said that Nepal is a sovereign country and “won’t take dictation from China”. She hoped that the leaders of Nepal stand up for the people of Nepal.
Copyright Business Recorder, 2020
https://www.brecorder.com/2020/05/21/599362/cpec-wells-reiterates-criticism-of-china/
US URGES CHINA TO WAIVE OFF PAKISTAN’S DEBT AMID COVID-19 CRISIS
By Kamran Yousaf Published: May 20, 2020
ISLAMABAD: The United States on Wednesday urged China either to wave off or renegotiate what it called “unsustainable and unfair” debt of Pakistan as it once again raised serious questions about the lack of transparency in the multibillion-dollar China-Pakistan Economic Corridor (CPEC).
“At a time of crisis like Covid-19, it is really incumbent on China to take steps to alleviate the burden that this predatory, unsustainable and unfair lending is going to cause to Pakistan,” said Alice Wells, the outgoing US Assistant Secretary of State for South and Central Asia.
“We hope China will join in either waving off debt or renegotiating these loans and creating a fair and transparent deal for Pakistani people,” Ambassador Wells said while addressing a farewell news briefing through a video link attended by journalists from South and Central Asia.
This was not the first time the US and Wells in particular publically questioned the viability of CPEC. Wells in the past also expressed similar views, declaring CPEC detrimental to Pakistan’s economy.
China always dismissed the US claims and instead challenged Washington to match its economic assistance to Pakistan.
Ambassador Wells, who is retiring this week, said the US supports CPEC and other development projects as long as they meet international standards, uphold environmental and labour standards.
“I enumerated my concerns and the United States government’s concerns over CPEC, over the lack of transparency involved in the project, over the unfair rates of profits that are guaranteed to Chinese state organisations to the distortions it caused in the Pakistani economy including by the massive imbalance in the trade Pakistan now has with China,” she argued.
Pakistan has been seeking debt relief from G20 countries to offset the negative fallout of coronavirus on its economy.
China is part of the G20 and is likely to defer payment of around $300 million debt Pakistan was supposed to repay this year.
But the statement by Ambassador Wells appears to suggest that the US is seeking wider review of CPEC by China.
It is almost certain that both Islamabad and Beijing would dismiss Washington’s latest concerns over CPEC.
Some observers believe that the US opposition to CPEC stemmed from the larger trade tussle between Washington and Beijing.
Wells not only targeted the CPEC but at the same news conference sided with India over the recent border tensions with China. “The provocations and disturbing behaviour by China that poses questions about how China seeks to use its growing power.”
The top US diplomat also spoke about President Trump’s South Asia strategy, which according to Wells, brought fundamental change in approach towards Pakistan.
She said that Trump’s strategy had made it clear that Pakistan had to take decisive action against terrorist and militant groups that supported conflict in Afghanistan.
The suspension of security assistance by President Trump in January 2018 was a demonstration of that resolve to hold Pakistan accountable for the alleged presence of terrorist groups on its soil, she added.
According to Wells, since then Pakistan had taken “constructive steps” to advance Afghan peace process. She said Ambassador Zalmay Khalilzad had developed “solid cooperation” with Pakistan civil and military leadership.
The US senior diplomat also praised Pakistan’s steps to eradicate threat posed by terrorist groups to regional stability.
“Pakistan is also taking initial steps towards curtailing other terrorist groups that threatened the region such as arresting and prosecuting Laskhar-e-Tayaba leader Hafza Saeed and beginning to dismantle terrorist financing structures.
“And as Pakistan’s commitment to the regional peace grown, we see initial growth in our relationship with Pakistan as well particularly in trade,” she further said.
She welcomed the recent power sharing deal between President Ashraf Ghani and his rival Abdullah Abdullah in Afghanistan and hoped that this would lead to intra-Afghan dialogue.
Wells was hopeful that the process would succeed despite many difficulties while urging the Afghan government and Taliban to join hands against Covid-19 and groups such as Islamic State Khorasan.
To a question, she said it was up to India whether it wanted to reach out to Taliban
But Wells indicated that India needs to have good relations with all sections of the government that is in the process of being created in Afghanistan.
https://tribune.com.pk/story/2225775/1-us-urges-china-waive-off-pakistans-debt-amid-covid-19-crisis/
CPEC: FO REJECTS US CRITICISM OF CHINA
BR Web Desk May 23, 2020
Pakistan on Friday termed the Untied States’ criticism over the China-Pakistan Economic Corridor (CPEC) and the Chinese “predatory, unsustainable and unfair” lending as contrary to facts and insisted that the multi-billion dollars “transformational project is contributing positively and transparently to country’s national development”.
Responding apparently to the US Principal Deputy Assistant Secretary of State for South Asia Alice Wells’ recent presser in which she reiterated the US’s criticism of China and the alleged lack of transparency in CPEC projects, Foreign Office spokesperson Aisha Farooqui said that economic development and long-term prosperity of the people was the government’s top priority.
She said that that the CPEC, a flagship project of the BRI, was a transformational project contributing positively and transparently to Pakistan’s national development.
“Pakistan and China are ‘all-weather strategic co-operative partners’. We are engaged in prompting peace, development and stability in the region based on the principles of mutual respect, mutual benefit, win-win cooperation and shared development. Our ties are based on deep mutual trust and understanding,” Farooqui said.
“Pakistan believes that regional economic connectivity will provide a critical stimulus for creating broad-based growth across the region,” she further stated.
About the Chinese loans, Farooqui said that the Government of Pakistan had reiterated many times that our total public debt relating to the CPEC projects was less than even 10 percent of the total debt.
Moreover, the public debt obtained from China has a maturity period of 20 years while the interest is 2.34 percent, Farooqui highlighted.
“If grants are included, the interest value slides down to about two percent. The claims made by some of the commentators and public officials on Pakistan’s debt obligations relating to CPEC are contrary to facts,” the spokesperson further clarified.
She reiterated that the CPEC, a long-term project, had helped address development gaps in energy, infrastructure, industrialization, and job creation.
“Pakistan and China have several mechanisms to discuss matters of mutual interest. Both countries are regularly in touch [with each other] to address those issues bilaterally,” she added.
Earlier on Thursday, the Chinese Embassy in Islamabad also responded to the “irresponsible” remarks by Alice Wells on the China-Pakistan relations and the CPEC, saying “this is yet another doomed attempt to defame Sino-Pak relations and the CPEC. We are firmly opposed to it”. “We take Pakistan as an equal partner and never asked Pakistan to “do more”. We support Pakistan’s own model of development and never intervene in its domestic affairs. We [regularly] highlight Pakistan’s responsible role in regional affairs and never exert pressure,” the Embassy said.
It stated that the Chinese companies under the CPEC were all leading companies in their respective sectors and operated in full compliance with local laws and regulations.
Since its implementation, it added that the CPEC has brought $25 billion in direct investment and created more than 75,000 jobs for Pakistan.
China has been the major source of the FDI for Pakistan in the past five consecutive years.
While according to the BoI, the FDI from the US to Pakistan was a bit over $1 billion between 2012 and 2019, it added.
“We have no intention to comment on the Pakistan-US relations, but we hope the US can show basic respect to the choice by China and Pakistan. Irresponsible speech and unscrupulous blames won’t help. We also hope the USA will abandon its cold war and zero-sum mentality, fulfill its responsibilities, extend due respect and give concrete assistance to Pakistan. We need no teachers, especially a teacher like the USA,” the Embassy stated in a statement.
Copyright Business Recorder, 2020
CHINA PROMOTES PAKISTAN’S HYBRID RICE
By APP Published: May 31, 2020
BEIJING: China has continued to assist Pakistan in various fields including agriculture in a bid to enhance its capacity to feed entire population of the country.
“Agriculture in Pakistan still relies heavily on manpower and my goal is to promote advanced agricultural technologies and hybrid rice to improve rice production and alleviate the burden of farmers,” a young Chinese agronomist, Dai Yingnan, said.
Dai has been promoting the plantation of hybrid rice in Pakistan for three years.
Born in a village of Liaoning province in northeast China, Dai grew corn and rice with his parents when he was young and possesses a deep understanding of the hardship of farmers.
“Following the advice of my teacher, I chose to learn agronomy at Hunan Agriculture University,” Dai told the China Economic Net on Saturday. “Since few students would opt for this major, which had strong links to farming, it became a safer choice for me to go to this university.”
Dai regretted his choice for a long time because he was of the view that he would become a farmer after receiving four-year education in college.
The turning point appeared when Dai, as a representative of his university, had an opportunity to talk to Yuan Longping, who is known as the father of hybrid rice.
“When I was confused about the prospect of agronomy, the esteemed man told me that agriculture was the foundation of a country,” he said. “At the same time, it is a slow growing industry that demands a lot of time and people devoted to it.”
Following his graduation in 2017, Dai accepted an offer at Yuan Longping High-Tech Agriculture Company and was later sent to Pakistan to promote hybrid rice.
Earlier in his career, Dai never thought he would love the work until he got stranded at home for almost half a year due to the Covid-19 pandemic.
“I really miss the farmlands in Pakistan,” Dai said. According to him, carrying out research and promoting the plantation of hybrid rice in Pakistan was not an easy task.
Out of thousands of seeds, Dai had to select the one which was most suitable for the local environment. This task itself demanded years of experience.
One of the best ways to find the right seed was to plant hybrid rice in test fields, observe it carefully and record details of the growing process from sowing and blooming to final harvest.
“One missing or false record would lead to failure of the experiment and that usually wastes at least half a year,” he said. Pakistan’s torrid weather was another big challenge for the young boy as temperature could reach nearly 50 degrees in summer.
During harvest every year, the yield of hybrid rice is apparently higher than the locally grown rice and sometimes even twice by comparison, Dai said.
Published in The Express Tribune, May 31st, 2020.
https://tribune.com.pk/story/2232035/2-china-promotes-pakistans-hybrid-rice/
NEWS COVERAGE PERIOD FROM MAY 18TH TO MAY 24TH
CPEC PROJECTS REAL GROWTH DRIVERS
By SARDAR AMEER JEHANZEB Published: May 11, 2020
ISLAMABAD: China is likely to take more aggressive steps to support growth, after its economy shrank 6.8% in the first quarter of 2020, and to counter the impact of the coronavirus pandemic.
This is its first contraction since quarterly records began in 1992. Many economists believe that real job losses are in the pipeline.
China has prioritised domestic demand, encouraging consumers and increasing its public spending. It is also planning to issue special government bonds. It has urged the central bank to use tools, including interest rate cuts, to support growth.
Although economists are divided on how deep the contraction will be, retail sales, a key part of consumer spending, have not recovered as much as expected.
Battered by the shutdown, with real fears over long-term unemployment and income, people are not spending money. And once the disposable income has collapsed, a V-shaped recovery is expected to face a huge problem.
However, experts are looking at a U-shaped recovery where a prolonged period of stagnation, after the downturn, is followed by eventual return to growth as global demand resumes.
Can China provide “helicopter money”? It all means that consumer confidence will take more time to heal.
The decline in individual income, rise in unemployment, closure of many companies and self-employed businesses will all weigh on the aggregate demand over a longer period of time. The economy can be quick to pause, but is slow in getting back to normal.
Beijing is likely to abandon its economic growth targets and focus on people to help them keep their jobs. There are external challenges as well about which Beijing can do little due to a temporary pause in the current trade requirements.
With large parts of the world now in coronavirus containment, exporters have been frozen out of their marketplaces. Experts now expect Chinese exports will drop even in the second quarter. This severe recession is also likely to be experienced in the eurozone and American economies.
Although stability is the foremost priority for China, it must ensure that there is no re-emergence of the epidemic. Precautionary measures will be long-lasting and include mandatory coronavirus testing for the vulnerable people and voluntary tests.
The collapse in external demand and the weak services sector recovery means Beijing must embark on a broad infrastructure and property stimulus. Labour-intensive construction is the only means to absorb the sharp spike in unemployed workers.
Beijing’s effective handling of the Covid-19 crisis will create stability not only in China but it will also give strength to the global economy in the midst of economic disruptions.
However, international economists expect global economy is unlikely to recover in the short term.
China has the world’s most complete manufacturing support and ecological system, huge financing capability, large number of high-grade workers and growing scientific and technical capability.
China has provided a large number of anti-epidemic materials to international organisations and more than 100 countries. This shows the importance of China to the international community in times of crisis.
China has already extended regional cooperation to Northeast Asia and Southeast Asia, and is making further efforts to build cordial relations with Europe and the US.
The Belt and Road Initiative (BRI) is a true living example that is providing support internationally, including Pakistan where Beijing is helping build China-Pakistan Economic Corridor (CPEC).
In recent months, the Chinese government has provided multiple batches of material assistance, sent medical experts and held video conferences with Pakistan to share its experience in preventing, controlling and treating the Covid-19.
The Pakistani side is willing to continue to cooperate closely with China and deepen the strategic partnership during the fight against the pandemic.
Time has proved both sides’ commitment to the timely execution of CPEC projects. These projects are making progress even after the Covid-19 outbreak.
No doubt, CPEC is a game-changer for Pakistan. Multiple projects in the energy sector, infrastructure, Special Economic Zones (SEZs), etc are moving towards timely completion.
According to latest research studies and publications of the World Bank and the International Monetary Fund, CPEC projects could be the growth drivers, even in the days of recession.
The second meeting of Pakistan-China Joint Working Group was held to discuss ways and means of enhancing bilateral cooperation in the agriculture sector.
During an online meeting, both sides agreed to implement multiple memoranda of understanding (MoUs). Pakistan government has also allowed transit trade of bulk Afghan cargo which includes wheat, sugar and fertiliser through Gwadar Port, which has operationalised the western corridor of CPEC.
Initiation of these projects will give a fresh impetus to Pakistan’s economy and stabilise its financial condition in the midst of Covid-19.
The writer is a mechanical engineer and a senior member of the Islamabad Chamber of Commerce
Published in The Express Tribune, May 11th, 2020.
https://tribune.com.pk/story/2218471/2-cpec-projects-real-growth-drivers/
CHINESE COMPANY TO CARRY OUT CIRCULAR RAILWAY FEASIBILITY STUDY
Aamir YasinMay 15, 2020
RAWALPINDI: The federal and provincial governments signed a memorandum of understanding (MoU) with the China Civil Engineering Construction Company (CCECC) on Thursday to begin the feasibility study of the Rawalpindi-Islamabad Circular Railway and Leh Nullah Expressway projects.
The MoU was signed by Capital Development Authority (CDA) Member Planning Dr Shahid Mehmood on behalf of the federal government, Rawalpindi Development Authority (RDA) Chief Engineer Amir Rasheed on behalf of the Punjab government and Jia Huiqin on behalf of the CCECC.
The signing was attended by Commissioner retired Capt Mohammad Mehmood, PTI MNA Sheikh Rashid Shafique and CCECC representatives.
The company will conduct a study on the operation of a train service between Rawalpindi and Islamabad along the Leh Nullah, from the Soan River near the Lahore High Court Rawalpindi bench to Kashmir Highway in Islamabad.
There was a similar plan during the regime of Gen Pervez Musharraf to run a train service between the twin cities, which was halted by the PML-N government.
As part of the metro bus service, the PML-N Punjab government built an elevated track with future requirements to run a train over it. However, the PTI government wants to run a separate track for a circular rail service along the Nullah Leh Expressway.
The CCECC is a state-owned Chinese company that is willing to work with the CDA and RDA on the feasibility study and technical and financial proposal and enter into a contract with both authorities to execute, operate and maintain such a project.
The company will undertake the preliminary study on the project’s feasibility, which will include assessing technical, legal, financial and commercial viability and cost estimates, taking into consideration the requirements of related government bodies.
It will also explore options for resources and funding to execute the project if it is technically and financially viable.
A senior official from the Pakistan Railways told Dawn the CCECC would conduct the study using its own resources and the RDA and CDA will provide details about the Leh Expressway project.
After the study is complete, he said, the parties will hold a consultation on its findings and make a PC-I on the basis of a public-private partnership. The study will be completed in three months, and the company will also identify areas along the route for commercial ventures.
The official said it was expected that foreign investors would be brought to begin work on the project so residents of the twin cities have a better alternate transport service and traffic is reduced on city roads.
Published in Dawn, May 15th, 2020
https://www.dawn.com/news/1557176/chinese-company-to-carry-out-circular-railway-feasibility-study
SEZS: CPEC BODY ASKS BOI, SBP, FBR TO RESOLVE ISSUES
By ZAHEER ABBASI on May 15, 2020
The Parliamentary Committee on China-Pakistan Economic Corridor
(CPEC) has asked the Board of Investment (BoI), the State Bank of Pakistan (SBP) and the Federal Board of Revenue (FBR) to resolve all the issues pertaining to special economic zones (SEZs) on a top priority basis, so that these early harvest projects could be ready for economic activity.
An in-camera meeting of the Parliamentary Committee on CPEC under the Chairmanship of Sher Ali Arbab on Thursday began its proceedings with the confirmation of minutes of the previous meetings followed by a presentation by the secretary communications on the infrastructure development projects – both completed and ongoing – under the CPEC.
The meeting was also given a briefing by the FBR on income tax, sales tax and custom duties pertaining to Gwadar and SEZ Rashakai, Dhabeji, Faisalabad.
On the agenda of the meeting there was also a briefing on modalities for local and foreign companies in terms of banking facilities and exemptions.
The chairman National Highways Authority (NHA) briefed the committee on complete and ongoing infrastructure development projects under the CPEC.
The members of the committee wanted the projects to be expedited.
The committee recommended to the NHA that the projects may be completed as per the given timelines.
The meeting decided that the issue of taxes and other duties pertaining to special economic zones Rashakai Dhabeji and Faisalabad was taken up with the FBR and the State Bank of Pakistan.
The committee advised the BoI, the State Bank of Pakistan and the FBR to resolve all the issues of these SEZs on a priority basis, so that these early harvest projects could be ready for economic activity.
The chairman stated that every provision and concession, which enables industrial growth and import substitution and leads to export-based industry, may be made available.
Those who attended the meeting were Noor Alam Khan, Sadaqat Ali Abbasi, Umer Aslam Khan, Khan Muhammad Jamali, Zille Huma, Ahsan Iqbal Chaudhary, Sardar Ayaz Sadiq, Mehnaz Akbar Aziz, and Muhammad Aslam Bhootani.
Copyright Business Recorder, 2020
https://www.brecorder.com/2020/05/15/597163/sezs-cpec-body-asks-boi-sbp-fbr-to-resolve-issues/
CPEC: WELLS REITERATES CRITICISM OF CHINA
By ALI HUSSAIN on May 21, 2020
Alice Wells, the Principal Deputy Assistant Secretary of State for South and Central Asia at the US Department of State, Wednesday reiterated her country’s position on the China Pakistan Economic Corridor (CPEC) and hoped that China would renegotiate the “predatory, unsustainable and unfair” lending and create a “fair and transparent” deal for the people of Pakistan.
Ambassador Wells, who is retiring later this month, addressed the regional media including Pakistan, India and Afghanistan via a video link through which she outlined the policies of the US government towards the region.
On the CPEC, she said: “As is the case with the CPEC or any other development project, we, the United States support investment within international standards and that upholds environmental and labour standards…that are sustainable and benefit people of the region.”
Wells added that she enumerated the US government’s concerns “over the lack of transparency involved in the projects, over the unfair rates of profits guaranteed to the Chinese organizations to the distortion that is caused to Pakistan’s economy, including the massive imbalance in trade between Pakistan and China.”
She added that in the prevailing crisis situation when the world economy is facing serious challenges due to the situation created by Covid-19 pandemic it was incumbent upon China to take steps to alleviate the burden of the “predatory, unsustainable and unfair” lending, which was going to cost Pakistan.
However, both Pakistan and China, had rejected the US concerns when Ambassador Wells first publicly voiced the “concerns” of the US government in November last year.
Wells talked about the Trump administration’s South Asia Strategy, saying that the policy would be guided by conditions on the ground that “Pakistan must take decisive actions against militant groups and that India is an important partner in Afghanistan’s development”.
She stated that the strategy was clear that Pakistan should take action against terrorist groups, particularly those that were involved in violence in Afghanistan and also Hafiz Saeed and his group.
She pointed out that after over a year of direct talks, the US and the Taliban signed the peace agreement on February 29, 2020 in Qatar in which the Taliban committed that Afghanistan would never be a base for international terrorism.
Wells stated that the US was upholding its end by bringing its troops back to home and continues to closely watch the Taliban’s actions.
“A response will be necessary to defend the Afghan security forces,” she said, adding that the level of increase in violence was “unacceptable” and it was the responsibility of the Taliban to significantly reduce violence.
The top US diplomat stated the US also welcomed the agreement between Afghan President Ashraf Ghani and Abdullah Abdullah, adding, “We look forward to the rapid implementation of the agreement and immediate steps to enter the intra-Afghan negotiations”. She said that peace and stability in Afghanistan, as many Pakistani leaders had been saying, was in Pakistan’s interest, adding that recently US Special Representative for Afghanistan Reconciliation Zalmay Khalilzad held productive meetings with Pakistani leadership on Pakistan’s continued support to the Afghan peace process.
Wells said that the US was pushing hard all the sides in Afghanistan to create an environment for reduction of violence, release of the prisoners and start of the intra-Afghan negotiations.
She expressed the hope that women should be heard in the peace process, adding that women had a very critical role to play.
Responding to a question about India’s role in the Afghan peace process Wells said that India was “very critical” player in Afghanistan with a huge investment in development of the country.
However, she added that it was up to India how to engage itself in the peace process as to whether it wanted to talk directly with the Taliban.
At a time when the US is in talks with the Taliban to be part of governing structure, she added that it would be good for the future relationship between India and Afghanistan.
To another query about Nepal-China dispute, Wells said that Nepal is a sovereign country and “won’t take dictation from China”. She hoped that the leaders of Nepal stand up for the people of Nepal.
Copyright Business Recorder, 2020
https://www.brecorder.com/2020/05/21/599362/cpec-wells-reiterates-criticism-of-china/
US URGES CHINA TO WAIVE OFF PAKISTAN’S DEBT AMID COVID-19 CRISIS
By Kamran Yousaf Published: May 20, 2020
ISLAMABAD: The United States on Wednesday urged China either to wave off or renegotiate what it called “unsustainable and unfair” debt of Pakistan as it once again raised serious questions about the lack of transparency in the multibillion-dollar China-Pakistan Economic Corridor (CPEC).
“At a time of crisis like Covid-19, it is really incumbent on China to take steps to alleviate the burden that this predatory, unsustainable and unfair lending is going to cause to Pakistan,” said Alice Wells, the outgoing US Assistant Secretary of State for South and Central Asia.
“We hope China will join in either waving off debt or renegotiating these loans and creating a fair and transparent deal for Pakistani people,” Ambassador Wells said while addressing a farewell news briefing through a video link attended by journalists from South and Central Asia.
This was not the first time the US and Wells in particular publically questioned the viability of CPEC. Wells in the past also expressed similar views, declaring CPEC detrimental to Pakistan’s economy.
China always dismissed the US claims and instead challenged Washington to match its economic assistance to Pakistan.
Ambassador Wells, who is retiring this week, said the US supports CPEC and other development projects as long as they meet international standards, uphold environmental and labour standards.
“I enumerated my concerns and the United States government’s concerns over CPEC, over the lack of transparency involved in the project, over the unfair rates of profits that are guaranteed to Chinese state organisations to the distortions it caused in the Pakistani economy including by the massive imbalance in the trade Pakistan now has with China,” she argued.
Pakistan has been seeking debt relief from G20 countries to offset the negative fallout of coronavirus on its economy.
China is part of the G20 and is likely to defer payment of around $300 million debt Pakistan was supposed to repay this year.
But the statement by Ambassador Wells appears to suggest that the US is seeking wider review of CPEC by China.
It is almost certain that both Islamabad and Beijing would dismiss Washington’s latest concerns over CPEC.
Some observers believe that the US opposition to CPEC stemmed from the larger trade tussle between Washington and Beijing.
Wells not only targeted the CPEC but at the same news conference sided with India over the recent border tensions with China. “The provocations and disturbing behaviour by China that poses questions about how China seeks to use its growing power.”
The top US diplomat also spoke about President Trump’s South Asia strategy, which according to Wells, brought fundamental change in approach towards Pakistan.
She said that Trump’s strategy had made it clear that Pakistan had to take decisive action against terrorist and militant groups that supported conflict in Afghanistan.
The suspension of security assistance by President Trump in January 2018 was a demonstration of that resolve to hold Pakistan accountable for the alleged presence of terrorist groups on its soil, she added.
According to Wells, since then Pakistan had taken “constructive steps” to advance Afghan peace process. She said Ambassador Zalmay Khalilzad had developed “solid cooperation” with Pakistan civil and military leadership.
The US senior diplomat also praised Pakistan’s steps to eradicate threat posed by terrorist groups to regional stability.
“Pakistan is also taking initial steps towards curtailing other terrorist groups that threatened the region such as arresting and prosecuting Laskhar-e-Tayaba leader Hafza Saeed and beginning to dismantle terrorist financing structures.
“And as Pakistan’s commitment to the regional peace grown, we see initial growth in our relationship with Pakistan as well particularly in trade,” she further said.
She welcomed the recent power sharing deal between President Ashraf Ghani and his rival Abdullah Abdullah in Afghanistan and hoped that this would lead to intra-Afghan dialogue.
Wells was hopeful that the process would succeed despite many difficulties while urging the Afghan government and Taliban to join hands against Covid-19 and groups such as Islamic State Khorasan.
To a question, she said it was up to India whether it wanted to reach out to Taliban
But Wells indicated that India needs to have good relations with all sections of the government that is in the process of being created in Afghanistan.
https://tribune.com.pk/story/2225775/1-us-urges-china-waive-off-pakistans-debt-amid-covid-19-crisis/
CPEC: FO REJECTS US CRITICISM OF CHINA
BR Web Desk May 23, 2020
Pakistan on Friday termed the Untied States’ criticism over the China-Pakistan Economic Corridor (CPEC) and the Chinese “predatory, unsustainable and unfair” lending as contrary to facts and insisted that the multi-billion dollars “transformational project is contributing positively and transparently to country’s national development”.
Responding apparently to the US Principal Deputy Assistant Secretary of State for South Asia Alice Wells’ recent presser in which she reiterated the US’s criticism of China and the alleged lack of transparency in CPEC projects, Foreign Office spokesperson Aisha Farooqui said that economic development and long-term prosperity of the people was the government’s top priority.
She said that that the CPEC, a flagship project of the BRI, was a transformational project contributing positively and transparently to Pakistan’s national development.
“Pakistan and China are ‘all-weather strategic co-operative partners’. We are engaged in prompting peace, development and stability in the region based on the principles of mutual respect, mutual benefit, win-win cooperation and shared development. Our ties are based on deep mutual trust and understanding,” Farooqui said.
“Pakistan believes that regional economic connectivity will provide a critical stimulus for creating broad-based growth across the region,” she further stated.
About the Chinese loans, Farooqui said that the Government of Pakistan had reiterated many times that our total public debt relating to the CPEC projects was less than even 10 percent of the total debt.
Moreover, the public debt obtained from China has a maturity period of 20 years while the interest is 2.34 percent, Farooqui highlighted.
“If grants are included, the interest value slides down to about two percent. The claims made by some of the commentators and public officials on Pakistan’s debt obligations relating to CPEC are contrary to facts,” the spokesperson further clarified.
She reiterated that the CPEC, a long-term project, had helped address development gaps in energy, infrastructure, industrialization, and job creation.
“Pakistan and China have several mechanisms to discuss matters of mutual interest. Both countries are regularly in touch [with each other] to address those issues bilaterally,” she added.
Earlier on Thursday, the Chinese Embassy in Islamabad also responded to the “irresponsible” remarks by Alice Wells on the China-Pakistan relations and the CPEC, saying “this is yet another doomed attempt to defame Sino-Pak relations and the CPEC. We are firmly opposed to it”. “We take Pakistan as an equal partner and never asked Pakistan to “do more”. We support Pakistan’s own model of development and never intervene in its domestic affairs. We [regularly] highlight Pakistan’s responsible role in regional affairs and never exert pressure,” the Embassy said.
It stated that the Chinese companies under the CPEC were all leading companies in their respective sectors and operated in full compliance with local laws and regulations.
Since its implementation, it added that the CPEC has brought $25 billion in direct investment and created more than 75,000 jobs for Pakistan.
China has been the major source of the FDI for Pakistan in the past five consecutive years.
While according to the BoI, the FDI from the US to Pakistan was a bit over $1 billion between 2012 and 2019, it added.
“We have no intention to comment on the Pakistan-US relations, but we hope the US can show basic respect to the choice by China and Pakistan. Irresponsible speech and unscrupulous blames won’t help. We also hope the USA will abandon its cold war and zero-sum mentality, fulfill its responsibilities, extend due respect and give concrete assistance to Pakistan. We need no teachers, especially a teacher like the USA,” the Embassy stated in a statement.
Copyright Business Recorder, 2020
NEWS COVERAGE PERIOD FROM MAY 11TH TO MAY 17TH
CPEC PROJECTS REAL GROWTH DRIVERS
By SARDAR AMEER JEHANZEB Published: May 11, 2020
ISLAMABAD: China is likely to take more aggressive steps to support growth, after its economy shrank 6.8% in the first quarter of 2020, and to counter the impact of the coronavirus pandemic.
This is its first contraction since quarterly records began in 1992. Many economists believe that real job losses are in the pipeline.
China has prioritised domestic demand, encouraging consumers and increasing its public spending. It is also planning to issue special government bonds. It has urged the central bank to use tools, including interest rate cuts, to support growth.
Although economists are divided on how deep the contraction will be, retail sales, a key part of consumer spending, have not recovered as much as expected.
Battered by the shutdown, with real fears over long-term unemployment and income, people are not spending money. And once the disposable income has collapsed, a V-shaped recovery is expected to face a huge problem.
However, experts are looking at a U-shaped recovery where a prolonged period of stagnation, after the downturn, is followed by eventual return to growth as global demand resumes.
Can China provide “helicopter money”? It all means that consumer confidence will take more time to heal.
The decline in individual income, rise in unemployment, closure of many companies and self-employed businesses will all weigh on the aggregate demand over a longer period of time. The economy can be quick to pause, but is slow in getting back to normal.
Beijing is likely to abandon its economic growth targets and focus on people to help them keep their jobs. There are external challenges as well about which Beijing can do little due to a temporary pause in the current trade requirements.
With large parts of the world now in coronavirus containment, exporters have been frozen out of their marketplaces. Experts now expect Chinese exports will drop even in the second quarter. This severe recession is also likely to be experienced in the eurozone and American economies.
Although stability is the foremost priority for China, it must ensure that there is no re-emergence of the epidemic. Precautionary measures will be long-lasting and include mandatory coronavirus testing for the vulnerable people and voluntary tests.
The collapse in external demand and the weak services sector recovery means Beijing must embark on a broad infrastructure and property stimulus. Labour-intensive construction is the only means to absorb the sharp spike in unemployed workers.
Beijing’s effective handling of the Covid-19 crisis will create stability not only in China but it will also give strength to the global economy in the midst of economic disruptions.
However, international economists expect global economy is unlikely to recover in the short term.
China has the world’s most complete manufacturing support and ecological system, huge financing capability, large number of high-grade workers and growing scientific and technical capability.
China has provided a large number of anti-epidemic materials to international organisations and more than 100 countries. This shows the importance of China to the international community in times of crisis.
China has already extended regional cooperation to Northeast Asia and Southeast Asia, and is making further efforts to build cordial relations with Europe and the US.
The Belt and Road Initiative (BRI) is a true living example that is providing support internationally, including Pakistan where Beijing is helping build China-Pakistan Economic Corridor (CPEC).
In recent months, the Chinese government has provided multiple batches of material assistance, sent medical experts and held video conferences with Pakistan to share its experience in preventing, controlling and treating the Covid-19.
The Pakistani side is willing to continue to cooperate closely with China and deepen the strategic partnership during the fight against the pandemic.
Time has proved both sides’ commitment to the timely execution of CPEC projects. These projects are making progress even after the Covid-19 outbreak.
No doubt, CPEC is a game-changer for Pakistan. Multiple projects in the energy sector, infrastructure, Special Economic Zones (SEZs), etc are moving towards timely completion.
According to latest research studies and publications of the World Bank and the International Monetary Fund, CPEC projects could be the growth drivers, even in the days of recession.
The second meeting of Pakistan-China Joint Working Group was held to discuss ways and means of enhancing bilateral cooperation in the agriculture sector.
During an online meeting, both sides agreed to implement multiple memoranda of understanding (MoUs). Pakistan government has also allowed transit trade of bulk Afghan cargo which includes wheat, sugar and fertiliser through Gwadar Port, which has operationalised the western corridor of CPEC.
Initiation of these projects will give a fresh impetus to Pakistan’s economy and stabilise its financial condition in the midst of Covid-19.
The writer is a mechanical engineer and a senior member of the Islamabad Chamber of Commerce
Published in The Express Tribune, May 11th, 2020.
https://tribune.com.pk/story/2218471/2-cpec-projects-real-growth-drivers/
CHINESE COMPANY TO CARRY OUT CIRCULAR RAILWAY FEASIBILITY STUDY
Aamir YasinMay 15, 2020
RAWALPINDI: The federal and provincial governments signed a memorandum of understanding (MoU) with the China Civil Engineering Construction Company (CCECC) on Thursday to begin the feasibility study of the Rawalpindi-Islamabad Circular Railway and Leh Nullah Expressway projects.
The MoU was signed by Capital Development Authority (CDA) Member Planning Dr Shahid Mehmood on behalf of the federal government, Rawalpindi Development Authority (RDA) Chief Engineer Amir Rasheed on behalf of the Punjab government and Jia Huiqin on behalf of the CCECC.
The signing was attended by Commissioner retired Capt Mohammad Mehmood, PTI MNA Sheikh Rashid Shafique and CCECC representatives.
The company will conduct a study on the operation of a train service between Rawalpindi and Islamabad along the Leh Nullah, from the Soan River near the Lahore High Court Rawalpindi bench to Kashmir Highway in Islamabad.
There was a similar plan during the regime of Gen Pervez Musharraf to run a train service between the twin cities, which was halted by the PML-N government.
As part of the metro bus service, the PML-N Punjab government built an elevated track with future requirements to run a train over it. However, the PTI government wants to run a separate track for a circular rail service along the Nullah Leh Expressway.
The CCECC is a state-owned Chinese company that is willing to work with the CDA and RDA on the feasibility study and technical and financial proposal and enter into a contract with both authorities to execute, operate and maintain such a project.
The company will undertake the preliminary study on the project’s feasibility, which will include assessing technical, legal, financial and commercial viability and cost estimates, taking into consideration the requirements of related government bodies.
It will also explore options for resources and funding to execute the project if it is technically and financially viable.
A senior official from the Pakistan Railways told Dawn the CCECC would conduct the study using its own resources and the RDA and CDA will provide details about the Leh Expressway project.
After the study is complete, he said, the parties will hold a consultation on its findings and make a PC-I on the basis of a public-private partnership. The study will be completed in three months, and the company will also identify areas along the route for commercial ventures.
The official said it was expected that foreign investors would be brought to begin work on the project so residents of the twin cities have a better alternate transport service and traffic is reduced on city roads.
Published in Dawn, May 15th, 2020
https://www.dawn.com/news/1557176/chinese-company-to-carry-out-circular-railway-feasibility-study
SEZS: CPEC BODY ASKS BOI, SBP, FBR TO RESOLVE ISSUES
By ZAHEER ABBASI on May 15, 2020
The Parliamentary Committee on China-Pakistan Economic Corridor
(CPEC) has asked the Board of Investment (BoI), the State Bank of Pakistan (SBP) and the Federal Board of Revenue (FBR) to resolve all the issues pertaining to special economic zones (SEZs) on a top priority basis, so that these early harvest projects could be ready for economic activity.
An in-camera meeting of the Parliamentary Committee on CPEC under the Chairmanship of Sher Ali Arbab on Thursday began its proceedings with the confirmation of minutes of the previous meetings followed by a presentation by the secretary communications on the infrastructure development projects – both completed and ongoing – under the CPEC.
The meeting was also given a briefing by the FBR on income tax, sales tax and custom duties pertaining to Gwadar and SEZ Rashakai, Dhabeji, Faisalabad.
On the agenda of the meeting there was also a briefing on modalities for local and foreign companies in terms of banking facilities and exemptions.
The chairman National Highways Authority (NHA) briefed the committee on complete and ongoing infrastructure development projects under the CPEC.
The members of the committee wanted the projects to be expedited.
The committee recommended to the NHA that the projects may be completed as per the given timelines.
The meeting decided that the issue of taxes and other duties pertaining to special economic zones Rashakai Dhabeji and Faisalabad was taken up with the FBR and the State Bank of Pakistan.
The committee advised the BoI, the State Bank of Pakistan and the FBR to resolve all the issues of these SEZs on a priority basis, so that these early harvest projects could be ready for economic activity.
The chairman stated that every provision and concession, which enables industrial growth and import substitution and leads to export-based industry, may be made available.
Those who attended the meeting were Noor Alam Khan, Sadaqat Ali Abbasi, Umer Aslam Khan, Khan Muhammad Jamali, Zille Huma, Ahsan Iqbal Chaudhary, Sardar Ayaz Sadiq, Mehnaz Akbar Aziz, and Muhammad Aslam Bhootani.
Copyright Business Recorder, 2020
https://www.brecorder.com/2020/05/15/597163/sezs-cpec-body-asks-boi-sbp-fbr-to-resolve-issues/
NEWS COVERAGE PERIOD FROM MAY 4TH TO MAY 10TH
COVID-19 IMPACT ON CPEC WITHIN CONTROLLABLE RANGE
Published: May 6, 2020
BEIJING: These days, Covid-19 is spreading rapidly in Pakistan. As of May 5, the number of confirmed cases had risen to 21,044, with 476 deaths.
The China-Pakistan Economic Corridor (CPEC) is a flagship project of the Belt and Road Initiative (BRI), which runs through the northern and southern parts of Pakistan, where the pandemic is getting worse.
Now everyone is very much concerned about the impact of Covid-19 on the construction of CPEC projects. Some people say that it has an impact, some say there is no impact, and others say the impact is very large. “In my point of view, we should seek truth from facts,” said Cheng Xizhong, visiting Professor at Southwest University of Political Science and Law. “Of course, the epidemic will affect the corridor construction to a certain extent but I believe the effect is within a controllable range.”
The official was of the view that the impact on CPEC will depend on the spread of the epidemic in the days to come and the effectiveness of Pakistan’s epidemic prevention and control measures.
“At the same time, we should be alert to the fact that there is a force in the world that does not wish to see the success of CPEC, so they arbitrarily exaggerate the impact of the pandemic on CPEC development,” he said. The Chinese and Pakistani governments and the people of two nations have firm determination to overcome difficulties caused by Covid-19 and promote CPEC construction.
Therefore, while fighting Covid-19 together, the two governments attach great importance to the continuous construction of CPEC projects. Both governments have maintained close communication and coordination on specific issues of CPEC projects now.
Normal flights between the two countries were temporarily interrupted due to the epidemic, but Chinese technicians returned to the site by chartered airplanes.
Chinese enterprises have implemented closed-off management and all CPEC projects have formulated prevention and control plans and implemented them very strictly, therefore effectively preventing the invasion of the novel coronavirus. “As far as I know, there is no Covid-19 spread at the project sites,” he said.
The Chinese government and headquarters of Chinese enterprises have provided sufficient prevention and medical material to workers onsite and sent medical teams to the construction sites, the official added.
In addition, the Chinese enterprises participating in the construction of CPEC projects are also actively making contributions to the prevention and control of the pandemic in various locations in Pakistan, donating material to local governments, schools and hospitals.
Published in The Express Tribune, May 6th, 2020.
https://tribune.com.pk/story/2214906/2-covid-19-impact-cpec-within-controllable-range/
NO COMPROMISE ON CPEC AS IT IS COUNTRY’S FUTURE: BAJWA
By Our Correspondent Published: May 7, 2020
ISLAMABAD : CPEC Authority Chairman and Special Assistant to Prime Minister on Information Lt-Gen (retd) Asim Saleem Bajwa has said that the China-Pakistan Economic Corridor (CPEC) is a non-political international project and work for its completion is in progress on a fast pace.
“There is no political hindrance in its way. The project is Pakistan’s future as well as a tangible reality and no compromise will be made on it,” the chairman said while talking to a delegation of senior journalists on Wednesday.
Bajwa said Pakistan takes decisions in its interest and there should be no doubt that the CPEC project “is in the best interest of the country”, adding that “no external pressure will be accepted”.
He said that the working plan of both the routes from Khunjrab to Gwadar has been completed and the remaining link routes will be added into the plan in the next few months.
“The second phase of this multibillion-dollar project is crucial for the development of the country and construction work will soon be started.”
Describing the projects in the second phase of CPEC, Bajwa said, “Special emphasis is on agriculture, industries, trade, and science and technology sectors.”
He said that the highest priority was to make functional the economic zones in the four provinces, adding that Gwadar’s development projects were included in the second phase of the CPEC.
He also said that Pak-China Cooperation Committee would soon conduct a conference.
On the locusts’ attack, which is damaging the crops on a large scale in the country, Bajwa said that China would establish a pest control centre in Pakistan.
“The quality of seeds is being improved to strengthen the crops against infestation,” Bajwa added.
On the scholarship programme, he said that the headway had been made in the programme. “Twenty thousand Pakistani students will go on scholarships to China.”
https://tribune.com.pk/story/2215762/1-no-compromise-cpec-countrys-future-bajwa/
CPEC PROJECTS MAY BE DELAYED FOR 3 MONTHS
By NAVEED BUTT on May 8, 2020
The multi-billion-dollar China-Pakistan Economic Corridor (CPEC) projects may be delayed for two to three months due to Covid-19 in the country.
CPEC Project Director Dr Liaqat Ali said while talking to this correspondent that CPEC projects in their completion could be delayed by up to two to three months due to pandemic situation in the country.
He said that the Chinese workers, who had been dealing with various CPEC projects, got stuck in various cities of their country, when Beijing suspended international flight operations in January due to the spread of the virus.
Ali said that if the pandemic situation got worse then it might further affect the CPEC projects in the country.
“The Chinese traveling to Pakistan spend 14 days in quarantine in China, and then they are also placed in quarantine for another 14 days in Pakistan,” Ali said, adding that “effective measures” were in place to stem the spread of the virus in Pakistan’s cities.
He said that the Chinese companies would place their workforce in quarantine at their respective project sites.
“We don’t allow them to mix with the local population,” Ali said.
The CPEC project director said the work on all projects, including the transmission lines, roads and hospitals, was now in full swing. Similarly, according to a report published by Gwadar Pro on Wednesday, “the Covid-19 spread will affect the construction of the China-Pakistan Economic Corridor to a certain extent, but the effect will be within a controllable range.”
The report added that now everyone is very much concerned about the Covid-19 impact on the construction of CPEC projects.
Some people say that it has an impact, some say there is no impact, and others say the impact is very large.
However, the impact on CPEC will depend on the spread of the epidemic in days to come and the effectiveness of Pakistan’s epidemic prevention and control measures.
The Chinese and Pakistani governments and peoples have firm determination to overcome difficulties caused by the Covid-19 and promote CPEC construction.
Both governments have maintained close communication and coordination on specific issues of CPEC projects now.
Normal flights between the two countries were temporarily interrupted due to the pandemic, but Chinese technicians had returned to the site by chartered airplanes.
Copyright Business Recorder, 2020
https://www.brecorder.com/2020/05/08/595347/cpec-projects-may-be-delayed-for-3-months/