President's visit: China to announce $500 million support
ARIF RANA
ISLAMABAD (April 07 2008): China has once again come up to Pakistan's expectations to prove itself as Islamabad's time-tested friend by agreeing to place $500 million to support balance of payments. Formal announcement is expected to be made during President Pervez Musharraf's visit scheduled for April 10-15 to China.
This is a second time that China has responded to help Pakistan. Earlier, after the imposition of sanctions in the wake of nuclear test in 1998, China had placed a similar amount. The placement was rolled over. And, the first tranche of around $100 million is expected to be returned to China in September this year.
Forex placement from China will definitely ease pressure on Pakistan's economy and help the government plug its widening current account deficit, which is severally under pressure due to the ever-increasing oil import, as well as food imports.
FY 2008 being an election year and the transition to a new government, coupled with turmoil in the international banking scene, it has resulted in delaying Pakistan's foray into the bond market as well delaying raising of money through global depository receipt (GDR) for its public sector entities.
China is the second friendly country which has responded to Pakistan's call for BOP support. Earlier, Saudi Arabia had announced $300 million grant for Pakistan last month. With $500 million placement from Beijing, Pakistan's total BOP support will reach to $800 million.
Pakistan is facing serious financial crisis for multiple reasons and, after exhausting the normal resources for revenue generation, it is now desperately looking for help from friendly countries.
Some one-and-a-half months back, it had approached half a dozen close and trusted friendly countries, including China, to get financial support. Other countries, which were approached, included United Arab Emirates (UAE), Qatar, Kuwait and Saudi Arabia.
Sources said that Pakistan is expecting positive response for its call for help from the remaining selected countries soon. Pakistan's ambassadors in these countries are already pursuing the case.
Since Pakistan's major economic indicators are not showing healthy trend, it would need $4 to 5 billion for plugging in the current account deficit.
Sources in Finance Ministry told Business Recorder on Saturday that Pakistan's embassies in the remaining listed countries were keeping the officials in Islamabad informed on the progress, and hopefully more budgetary support will come in next couple of weeks.
It is ironical that Pakistan today stands at a crossroads as far as its financial health is concerned. In total contrast to economic wizards like former Prime Minister Shaukat Aziz and former Finance Minister Dr Salman Shah's claim of making Pakistan strong economically to absorb major shocks it is begging for help from close friends just to tide over the current account deficit. Its economic situation is so bad that the new government is facing it difficult to handle even day-to-day affairs.
Pakistan's correct financial strength could be gauged easily from its weakening currency. Pak rupee is depreciating against an ever weakening dollar. Critics of Shaukat Aziz/Salman Shah say there was no major investment in manufacturing sector for job creation last eight years. Delays in sanctioning public as well as private sector power projects were covered with excuses of 15 percent rise in demand for power as against six percent forecast. And, expansion of cellular network and unprecedented sales of mobile phones became the touchstone for economic progress.
Demographic of a young society were cited as the future potential for growth. However, providing the right skills for the ever-growing workforce was given lip service. Untrained and illiterate youngsters are said to be the ready fodder for terrorist groups. There was no effort to induce agriculture-based industries and bring value-addition for agriculture produce.
The new economic team, headed by Finance Minister Ishaq Dar, is already working on a white paper to apprise the nation about those who destroyed Pakistan's economy and left the new government to beg from friendly country for budgetary support.
http://www.brecorder.com/index.php?id=7201...m=&supDate=
Thank you China. 
Along side money for Dam. I hope money is utilised for Dam.
I disagree with tone of article though. I am sure exports doubled over the years. They were made in factories werent they.
I hate opininated journalists. With their poor choice of a career.
I disagree with tone of article though. I am sure exports doubled over the years. They were made in factories werent they.
I hate opininated journalists. With their poor choice of a career.
QUOTE(Mangla @ Apr 6 2008, 09:59 PM) 
Along side money for Dam. I hope money is utilised for Dam.
I disagree with tone of article though. I am sure exports doubled over the years. They were made in factories werent they.
I hate opininated journalists. With their poor choice of a career.
I disagree with tone of article though. I am sure exports doubled over the years. They were made in factories werent they.
I hate opininated journalists. With their poor choice of a career.
Exports have increased. Not as much as we wanted them to, but they have increased. You have to remember that last year (2007), with all its political tension was bad for our exports as well.
I don't know how much the exports went up compared to previous years, but the main problem has been budget deficit. Can we only expect the deficit to rise considering PPP and other looters are in charge? Surely, expenditure on luxury items is bound to increase...
QUOTE
The new economic team, headed by Finance Minister Ishaq Dar, is already working on a white paper to apprise the nation about those who destroyed Pakistan's economy and left the new government to beg from friendly country for budgetary support.
Author Bias ... or ... Author bias?
LOL!
Ishaq Dar has barely anything to show from his personal portfolio
China is our time tested freind and a allied nation of Pakistan.
Sino-Pak Allied forces brothers for peace.
Sino-Pak Allied forces brothers for peace.
The new economic team, headed by Finance Minister Ishaq Dar, is already working on a white paper to apprise the nation about those who destroyed Pakistan's economy and left the new government to beg from friendly country for budgetary support.
When he has time from IMF & WB meetings for commission based loan .. than only he can make this white paper ! Heck he does not even have time to visit China .. let' alone make a white lie paper !
When he has time from IMF & WB meetings for commission based loan .. than only he can make this white paper ! Heck he does not even have time to visit China .. let' alone make a white lie paper !
QUOTE(ABBASIA @ Apr 6 2008, 08:12 PM)
President's visit: China to announce $500 million support
The new economic team, headed by Finance Minister Ishaq Dar, is already working on a white paper to apprise the nation about those who destroyed Pakistan's economy and left the new government to beg from friendly country for budgetary support.
http://www.brecorder.com/index.php?id=7201...m=&supDate=
The new economic team, headed by Finance Minister Ishaq Dar, is already working on a white paper to apprise the nation about those who destroyed Pakistan's economy and left the new government to beg from friendly country for budgetary support.
http://www.brecorder.com/index.php?id=7201...m=&supDate=
This is what the economic situation was like when Ishaq Dar was last in charge. I wonder if the white paper will go this far back
QUOTE
Pakistan denies report on foreign reserves depletion
Asian Economic News, Dec 14, 1998
E-mail Print Link ISLAMABAD, Dec. 11 Kyodo
Pakistan on Friday denied reports that its foreign exchange reserves will be wiped out by Jan. 15, 1999 as a result of a repayment of its debt obligations due in two weeks. Finance Minister Ishaq Dar told a press conference that Pakistan has taken steps to meet its next repayment on its 40 billion dollar foreign debt without having to draw heavily on foreign exchange reserves, which currently stand at 480 million dollars. ''All payments to preferred creditors will be paid within the grace period (ending Jan. 15, 1999),'' he said, adding that the situation is not worrisome since a scheduled disbursement from a 1.3 billion dollar International Monetary Fund (IMF) package is due next month. Pakistan has been facing a foreign exchange crisis since August this year. Since then it has ceased servicing debts to bilateral donors and commercial creditors, only making repayments to the IMF, World Bank and Asian Development Fund, whom it calls ''preferred creditors.'' It attributes the foreign exchange crunch to sanctions imposed by western countries following its nuclear tests in May this year. Reports in the local press have speculated that a delay in the next disbursement under a 1.3 billion dollar IMF package agreed to last month would wipe out Pakistan's foreign exchange reserves by Jan. 15, 1999 in view of the repayments on its debt. Dar said that the 300 million dollars due to preferred creditors would be paid by Jan. 15 and that the government was chasing every dollar that was in the pipeline. Over the past few months, a large number of exporters have delayed remission of their foreign exchange earnings in view of the expected devaluation of the Pakistani rupee. Dar has said those who fail to remit their earnings by Dec. 31, 1998 will be declared defaulters and will not be eligible to benefit from export finance and other schemes. Dar ruled out the possibility of a devaluation and the introduction of a single exchange rate in place of the current multiple exchange rate.
COPYRIGHT 1998 Kyodo News International, Inc.
Asian Economic News, Dec 14, 1998
E-mail Print Link ISLAMABAD, Dec. 11 Kyodo
Pakistan on Friday denied reports that its foreign exchange reserves will be wiped out by Jan. 15, 1999 as a result of a repayment of its debt obligations due in two weeks. Finance Minister Ishaq Dar told a press conference that Pakistan has taken steps to meet its next repayment on its 40 billion dollar foreign debt without having to draw heavily on foreign exchange reserves, which currently stand at 480 million dollars. ''All payments to preferred creditors will be paid within the grace period (ending Jan. 15, 1999),'' he said, adding that the situation is not worrisome since a scheduled disbursement from a 1.3 billion dollar International Monetary Fund (IMF) package is due next month. Pakistan has been facing a foreign exchange crisis since August this year. Since then it has ceased servicing debts to bilateral donors and commercial creditors, only making repayments to the IMF, World Bank and Asian Development Fund, whom it calls ''preferred creditors.'' It attributes the foreign exchange crunch to sanctions imposed by western countries following its nuclear tests in May this year. Reports in the local press have speculated that a delay in the next disbursement under a 1.3 billion dollar IMF package agreed to last month would wipe out Pakistan's foreign exchange reserves by Jan. 15, 1999 in view of the repayments on its debt. Dar said that the 300 million dollars due to preferred creditors would be paid by Jan. 15 and that the government was chasing every dollar that was in the pipeline. Over the past few months, a large number of exporters have delayed remission of their foreign exchange earnings in view of the expected devaluation of the Pakistani rupee. Dar has said those who fail to remit their earnings by Dec. 31, 1998 will be declared defaulters and will not be eligible to benefit from export finance and other schemes. Dar ruled out the possibility of a devaluation and the introduction of a single exchange rate in place of the current multiple exchange rate.
COPYRIGHT 1998 Kyodo News International, Inc.
http://findarticles.com/p/articles/mi_m0WDP/is_/ai_53483880
Smegster : Thanks for getting back old article .. You see the main word : GRACE PERIOD & IMF package :
Pakistan denies report on foreign reserves depletion
Asian Economic News, Dec 14, 1998
E-mail Print Link ISLAMABAD, Dec. 11 Kyodo
Pakistan on Friday denied reports that its foreign exchange reserves will be wiped out by Jan. 15, 1999 as a result of a repayment of its debt obligations due in two weeks. Finance Minister Ishaq Dar told a press conference that Pakistan has taken steps to meet its next repayment on its 40 billion dollar foreign debt without having to draw heavily on foreign exchange reserves, which currently stand at 480 million dollars. ''All payments to preferred creditors will be paid within the grace period (ending Jan. 15, 1999),'' he said, adding that the situation is not worrisome since a scheduled disbursement from a 1.3 billion dollar International Monetary Fund (IMF) package is due next month.
Jeez .. I forgot to read the remaining bombshell !!
Since then it has ceased servicing debts to bilateral donors and commercial creditors
that the government was chasing every dollar that was in the pipeline. Over the past few months, a large number of exporters have delayed remission of their foreign exchange earnings in view of the expected devaluation of the Pakistani rupee.
What about those money of PML-N hierarchy who transferred in the night before the freezing of Foreign Exchange accounts in Pakistan by GOP !
Pakistan denies report on foreign reserves depletion
Asian Economic News, Dec 14, 1998
E-mail Print Link ISLAMABAD, Dec. 11 Kyodo
Pakistan on Friday denied reports that its foreign exchange reserves will be wiped out by Jan. 15, 1999 as a result of a repayment of its debt obligations due in two weeks. Finance Minister Ishaq Dar told a press conference that Pakistan has taken steps to meet its next repayment on its 40 billion dollar foreign debt without having to draw heavily on foreign exchange reserves, which currently stand at 480 million dollars. ''All payments to preferred creditors will be paid within the grace period (ending Jan. 15, 1999),'' he said, adding that the situation is not worrisome since a scheduled disbursement from a 1.3 billion dollar International Monetary Fund (IMF) package is due next month.
Jeez .. I forgot to read the remaining bombshell !!
Since then it has ceased servicing debts to bilateral donors and commercial creditors
that the government was chasing every dollar that was in the pipeline. Over the past few months, a large number of exporters have delayed remission of their foreign exchange earnings in view of the expected devaluation of the Pakistani rupee.
What about those money of PML-N hierarchy who transferred in the night before the freezing of Foreign Exchange accounts in Pakistan by GOP !
Sino-Pak friendship forever.
the new government is going to take out huge loans, make pakistan seem to get back onto its feet and when in 10 years we are in 50 billion dollars in debt you will be happy
Thank you our dear friend china.
Now the article does seem biased is there anything more objective that doesn’t have an axe to grind? The last paragraph alone put me off.
Now the article does seem biased is there anything more objective that doesn’t have an axe to grind? The last paragraph alone put me off.
Salaam
Strange isn't it that 23rdMarch we had 4 grey-toned JF-17s flying,
Yesterday we got these new radars hosted by ACM and guested by the Americans..
Where Admiral , Chief of the Naval Staff of Pakistan, is in China with the Chinese brothers and friends to inspect the F-22Ps
Pakistan is being active, that's what I can say! Something is going on...
And suddenly China invests 500 million USD and streches out for MORE CLOSE defence co-operation....
Anyways
China-Pakistan dosti zindabad!
Wang Sooye!!
Strange isn't it that 23rdMarch we had 4 grey-toned JF-17s flying,
Yesterday we got these new radars hosted by ACM and guested by the Americans..
Where Admiral , Chief of the Naval Staff of Pakistan, is in China with the Chinese brothers and friends to inspect the F-22Ps
Pakistan is being active, that's what I can say! Something is going on...
And suddenly China invests 500 million USD and streches out for MORE CLOSE defence co-operation....
Anyways
China-Pakistan dosti zindabad!
Wang Sooye!!
Salaam
Strange isn't it that 23rdMarch we had 4 grey-toned JF-17s flying,
Yesterday we got these new radars hosted by ACM and guested by the Americans..
Where Admiral , Chief of the Naval Staff of Pakistan, is in China with the Chinese brothers and friends to inspect the F-22Ps
Pakistan is being active, that's what I can say! Something is going on...
And suddenly China invests 500 million USD and streches out for MORE CLOSE defence co-operation....
Anyways
China-Pakistan dosti zindabad!
Wang Sooye!!
Jazba-e-Kashmir : the amount of knowledge our forces are going to harness is mind boggling & for best results visit Bharat Rak$hit they are completely bowled out !
Strange isn't it that 23rdMarch we had 4 grey-toned JF-17s flying,
Yesterday we got these new radars hosted by ACM and guested by the Americans..
Where Admiral , Chief of the Naval Staff of Pakistan, is in China with the Chinese brothers and friends to inspect the F-22Ps
Pakistan is being active, that's what I can say! Something is going on...
And suddenly China invests 500 million USD and streches out for MORE CLOSE defence co-operation....
Anyways
China-Pakistan dosti zindabad!
Wang Sooye!!
Jazba-e-Kashmir : the amount of knowledge our forces are going to harness is mind boggling & for best results visit Bharat Rak$hit they are completely bowled out !
China is a helpful nation and we appreciate that. The sad part is the fact that we have to borrow from them. We seriously need to get the energy crisis solved and I'm still blown away from the fact that we have a food crisis. I mean wtf, is it because of drought? Mismanagement?
QUOTE(ZPak @ Apr 8 2008, 04:14 AM)
China is a helpful nation and we appreciate that. The sad part is the fact that we have to borrow from them. We seriously need to get the energy crisis solved and I'm still blown away from the fact that we have a food crisis. I mean wtf, is it because of drought? Mismanagement?
http://www.financialpost.com/analysis/colu...1a1&k=55279
QUOTE
Who caused the world food crisis?
Terence Corcoran, National Post
Published: Tuesday, April 08, 2008
We are now by all accounts in the midst of a global food crisis: key grain prices were up 40% to 130% in the last year, people are protesting and hardship is mounting. But it could soon be worse. Governments and agencies all over the world are gearing up for a global "New Deal" on agriculture policy to solve the food crisis, which means the people who brought us the food crisis are the same people who now want to fix it.
The World Bank reports that prices of staples have jumped 80% since 2005. The price of rice hit a 19-year high last month, and wheat rose to a 28-year high, twice the average price of the last 25 years. Factors behind the surge in prices are varied, including bad weather in some regions, soaring demand from growing populations, and US$100-a-barrel oil.
But no factor gets more consistent credit for food price turmoil than the international biofuels stampede. Spurred on by what can only be described as massive subsidies and supporting regulations, farmers all over the planet are giving up on food production and shifting to fuel production.
The biggest biofuels boosters are in the United States, Europe and Canada. In the U.S., the leading Democratic candidates are campaigning on even more aid for ethanol. Canada's Conservative government, playing to the farm lobby and a coterie of rent-seeking corporations, has showered millions on the biofuels market. Regulations forcing consumers to convert to biofuel automobiles are in the works.
As the world food market is thrown into chaos, no Canadian politician has yet been asked to answer for Canada's role. Canada's agriculture policy is largely aimed at dodging trade bullets at the Doha Round of talks that could undermine Canada's trade-killing farm policies. The biofuels subsidies and mandates sink Canada's farm economy deeper into the arms of government policy.
Developing countries are also promoting biofuel programs. In the Philippines, where people are protesting soaring prices for rice, the government recently passed the Biofuels Act to mandate and subsidize biofuel production. Meantime, the Philippine government is considering using policy powers to to take over rice warehouses to prevent merchants from stockpiling.
Warnings that ethanol programs, brought on by absurd national energy policies and myths about reducing the risk of climate change, could severely disturb food production and prices, have been issued for years. Now that the consequences have materialized, a new policy stampede is in the making.
It starts at the top, where the G8 -- home of the world's leading biofuels subsidies -- is being called on to do something. At the World Bank, president Robert B. Zoellick last week proposed a "New Deal for Global Food Policy." The bank estimates that 33 countries face potential social unrest because of the "acute hike in food and energy prices."
The United Nations, previously a big booster of biofuels, is now issuing warnings. The head of the UN panel on climate change, Rajendra Pachauri, said the other day that the world must take great care in developing biofuels. "Several questions have arisen on even the emissions implications of that route, and the fact that this has clearly raised corn prices," he said. "We should be very, very careful about coming up with biofuel solutions that have major impacts on production of food grains and may have an implication for overall food security."
Too late for that science alert from the UN. So now what is to be done? Agencies and governments all over the world are now busy dreaming up and imposing fix-it programs. Countries are banning exports of grains, imposing price controls and drafting new laws and regulations to counter the price surges.
There are rumours that the Doha trade talks are about to produce an agreement, or at least a meeting about a possible agreement. That might help, but not much. Farm production and food trade, even after some liberalization, would still be too much the domain of governments and the United Nations. Food is a trade issue before it is a food issue. In the case of biofuels, it became a climate-policy game that lost sight of food.
Terence Corcoran, National Post
Published: Tuesday, April 08, 2008
We are now by all accounts in the midst of a global food crisis: key grain prices were up 40% to 130% in the last year, people are protesting and hardship is mounting. But it could soon be worse. Governments and agencies all over the world are gearing up for a global "New Deal" on agriculture policy to solve the food crisis, which means the people who brought us the food crisis are the same people who now want to fix it.
The World Bank reports that prices of staples have jumped 80% since 2005. The price of rice hit a 19-year high last month, and wheat rose to a 28-year high, twice the average price of the last 25 years. Factors behind the surge in prices are varied, including bad weather in some regions, soaring demand from growing populations, and US$100-a-barrel oil.
But no factor gets more consistent credit for food price turmoil than the international biofuels stampede. Spurred on by what can only be described as massive subsidies and supporting regulations, farmers all over the planet are giving up on food production and shifting to fuel production.
The biggest biofuels boosters are in the United States, Europe and Canada. In the U.S., the leading Democratic candidates are campaigning on even more aid for ethanol. Canada's Conservative government, playing to the farm lobby and a coterie of rent-seeking corporations, has showered millions on the biofuels market. Regulations forcing consumers to convert to biofuel automobiles are in the works.
As the world food market is thrown into chaos, no Canadian politician has yet been asked to answer for Canada's role. Canada's agriculture policy is largely aimed at dodging trade bullets at the Doha Round of talks that could undermine Canada's trade-killing farm policies. The biofuels subsidies and mandates sink Canada's farm economy deeper into the arms of government policy.
Developing countries are also promoting biofuel programs. In the Philippines, where people are protesting soaring prices for rice, the government recently passed the Biofuels Act to mandate and subsidize biofuel production. Meantime, the Philippine government is considering using policy powers to to take over rice warehouses to prevent merchants from stockpiling.
Warnings that ethanol programs, brought on by absurd national energy policies and myths about reducing the risk of climate change, could severely disturb food production and prices, have been issued for years. Now that the consequences have materialized, a new policy stampede is in the making.
It starts at the top, where the G8 -- home of the world's leading biofuels subsidies -- is being called on to do something. At the World Bank, president Robert B. Zoellick last week proposed a "New Deal for Global Food Policy." The bank estimates that 33 countries face potential social unrest because of the "acute hike in food and energy prices."
The United Nations, previously a big booster of biofuels, is now issuing warnings. The head of the UN panel on climate change, Rajendra Pachauri, said the other day that the world must take great care in developing biofuels. "Several questions have arisen on even the emissions implications of that route, and the fact that this has clearly raised corn prices," he said. "We should be very, very careful about coming up with biofuel solutions that have major impacts on production of food grains and may have an implication for overall food security."
Too late for that science alert from the UN. So now what is to be done? Agencies and governments all over the world are now busy dreaming up and imposing fix-it programs. Countries are banning exports of grains, imposing price controls and drafting new laws and regulations to counter the price surges.
There are rumours that the Doha trade talks are about to produce an agreement, or at least a meeting about a possible agreement. That might help, but not much. Farm production and food trade, even after some liberalization, would still be too much the domain of governments and the United Nations. Food is a trade issue before it is a food issue. In the case of biofuels, it became a climate-policy game that lost sight of food.
President’s visit to China: Agreements to be signed to attract Chinese investment
By Sajid Chaudhry
ISLAMABAD: During the President of Pakistan’s visit to China both the countries are set to sign agreements or MoUs on Chinese investment in Gwadar Oil City, incentives for setting up of Special Economic Zones, Gwadar seaport development programme for expansion, oil and gas exploration by Chinese companies.
All these initiatives are considered to be essential for the success of Trade Energy, Transport and Industrial Corridor between Pakistan and China, a senior government official told Daily Times on Wednesday.
A Steering Committee headed by Deputy Chairman Planning Commission and comprising Minister of State for investment, Secretary General Revenue Division, Prime Minister’s Advisor on Energy and members from all four provinces, and concerned federal ministries have developed proposals including incentive packages for Chinese investors for realising the targets.
Energy Advisor Wing has developed the oil concessions for Chinese companies with the objective of attracting them to bring in at least 200 rigs to Pakistan. This policy would be open to other interested exploration companies as well.
To implement the initiatives for realising the objectives of the Corridor, President has already approved constitution of a 16 member Policy and Supervisory Board and constitution of over 10 members Steering Committee.
The Corridor would require a set of 14 important measures to make this initiative a success. It has been decided that Pak-China bilateral working group would be constituted to prepare and finalise action plan for building the Multi-Modal Corridor. General attractive concessions would be given for the development of Special Economic Zone (SEZ).
Site for China-Saudi Oil refinery in proposed Oil City at Gwadar should be identified and terms and conditions for investment to be decided on priority basis. Government of Balochistan has already been asked to identify state land for development of projects at Gwadar out of which 50 square kilometers land be allocated to Chinese developers at nominal rates for establishment of (SEZ).
The Gwadar Sea Port development programme, which has been approved, would be negotiated with Chinese Investors to attract investment in this area. Financial incentives equal or batter than Chinese SEZ would be provided to the investors in the said area.
Under the Corridor Plan a high speed and capacity link of Gwadar with international optical fiber cables is to be established.
Federal government has already showed its willingness to resolve the issue of land for economic zones in different parts of the country, in addition to special lease of land at Karachi, Lahore, Islamabad and Peshawar for international entrepreneurs investors including Chinese companies to build 15 to 20 story offices and business support centres residency blocks for the perspective investors.
The Policy and Supervisory Board has been constituted for providing strategic vision laying down policy guidelines, ensuring timely decisions and regularly monitoring the progress. It has been decided that President of Pakistan will head the Board and other members are Prime Minister, Federal Ministers of Ports and Shipping, Communication, Railways, Petroleum and Natural Resources, Industries and Production, Commerce, Water and Power, Governor and Chief Minister Balochistan, Minister of State for Investment, Deputy Chairman Planning Commission, Secretary General Finance, Secretary General revenue Division and Secretary Foreign Affairs.
http://www.dailytimes.com.pk/default.asp?p...10-4-2008_pg5_1
By Sajid Chaudhry
ISLAMABAD: During the President of Pakistan’s visit to China both the countries are set to sign agreements or MoUs on Chinese investment in Gwadar Oil City, incentives for setting up of Special Economic Zones, Gwadar seaport development programme for expansion, oil and gas exploration by Chinese companies.
All these initiatives are considered to be essential for the success of Trade Energy, Transport and Industrial Corridor between Pakistan and China, a senior government official told Daily Times on Wednesday.
A Steering Committee headed by Deputy Chairman Planning Commission and comprising Minister of State for investment, Secretary General Revenue Division, Prime Minister’s Advisor on Energy and members from all four provinces, and concerned federal ministries have developed proposals including incentive packages for Chinese investors for realising the targets.
Energy Advisor Wing has developed the oil concessions for Chinese companies with the objective of attracting them to bring in at least 200 rigs to Pakistan. This policy would be open to other interested exploration companies as well.
To implement the initiatives for realising the objectives of the Corridor, President has already approved constitution of a 16 member Policy and Supervisory Board and constitution of over 10 members Steering Committee.
The Corridor would require a set of 14 important measures to make this initiative a success. It has been decided that Pak-China bilateral working group would be constituted to prepare and finalise action plan for building the Multi-Modal Corridor. General attractive concessions would be given for the development of Special Economic Zone (SEZ).
Site for China-Saudi Oil refinery in proposed Oil City at Gwadar should be identified and terms and conditions for investment to be decided on priority basis. Government of Balochistan has already been asked to identify state land for development of projects at Gwadar out of which 50 square kilometers land be allocated to Chinese developers at nominal rates for establishment of (SEZ).
The Gwadar Sea Port development programme, which has been approved, would be negotiated with Chinese Investors to attract investment in this area. Financial incentives equal or batter than Chinese SEZ would be provided to the investors in the said area.
Under the Corridor Plan a high speed and capacity link of Gwadar with international optical fiber cables is to be established.
Federal government has already showed its willingness to resolve the issue of land for economic zones in different parts of the country, in addition to special lease of land at Karachi, Lahore, Islamabad and Peshawar for international entrepreneurs investors including Chinese companies to build 15 to 20 story offices and business support centres residency blocks for the perspective investors.
The Policy and Supervisory Board has been constituted for providing strategic vision laying down policy guidelines, ensuring timely decisions and regularly monitoring the progress. It has been decided that President of Pakistan will head the Board and other members are Prime Minister, Federal Ministers of Ports and Shipping, Communication, Railways, Petroleum and Natural Resources, Industries and Production, Commerce, Water and Power, Governor and Chief Minister Balochistan, Minister of State for Investment, Deputy Chairman Planning Commission, Secretary General Finance, Secretary General revenue Division and Secretary Foreign Affairs.
http://www.dailytimes.com.pk/default.asp?p...10-4-2008_pg5_1
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