BEIJING: Existing projects under the China-Pakistan Economic Corridor (CPEC) will see tangible success within two years, while they are already boosting business exchanges between the two countries, Ahsan Iqbal, Federal Minister for Planning, Development & Reform, told the Global Times in an exclusive interview in Beijing.
The CPEC is the flagship project of the “One Belt, One Road” (B&R) initiative, according to media reports. Formally called the Silk Road Economic Belt and the 21st Century Maritime Silk Road, the B&R initiative was proposed in 2013.
“The CPEC is the first project in the world which will show to the world that the One Belt, One Road vision is a reality,” Iqbal said, noting that major progress has been made in the energy sector in 2015, helping Pakistan to relieve its severe energy shortage.
In 2015, work on a number of electricity-generating plants progressed smoothly, the minister said. This includes a 1,320 megawatts coal-fired plant project in Port Qasim, another coal-fired plant project of same capacity in Sahiwal, and coal mine and power production projects in Thar.
“We are hoping to add 16,000 megawatts of capability with these projects, and work on them is progressing on a very fast basis. They will be completed one by one starting from the end of 2017, and the energy shortage issue would be overcome by summer 2018,” the minister said.
“The CPEC is helping Pakistan address its energy crisis; it will light up offices, factories, homes and hospitals. Through [cooperation in] electricity, the CPEC will be a shining example of cooperation between China and Pakistan,” Iqbal said.
For Chinese companies, the energy sector cooperation offers great business opportunities, as these are investments at commercial rates and the Pakistani government will buy the power.
“What is more important is that Chinese contractors are saying that they are going to complete these projects faster than they complete projects of similar workload back in China, boosted by their sense of mission to help Pakistan, and also due to the strong support given by the Pakistani government,” Iqbal said.
About the Gwadar Port, Ahsan Iqbal said, the minister said the progressive improvement of infrastructure in and around the Gwadar Port has greatly boosted business exchanges between the two countries.
Gwadar Port is a deep-water port in southwestern Pakistan, which sits at the gateway of the Strait of Hormuz in the Arabian Sea.
“The port’s operator is expecting 20,000 Chinese businesspeople to visit the port to investigate investment potential within the year,” Iqbal said, noting that such an influx of entrepreneurs would help fast-track development of the port.
The Pakistani government has handed over land to the port’s operator, the China Overseas Ports Holding Company, in 2015 to speed up work on a free trade zone, and infrastructure is being built up, the minister said.
Progress has also been made in the construction of an international airport and expressways linking the port to existing main highways.
“Every month there are business delegations form China to visit Pakistan to discuss opportunities with Pakistani businessmen,” Iqbal said, “The great opportunity is we have technology and investment in China and location and low-cost production in Pakistan.[With] the four factors combined, we can produce many competitive items for export.”
Gwadar Port is also unique in its potential and future growth opportunities, with roads that will connect the port to Quetta, Baluchistan Province and Sindh Province expected to be completed by the end of this year.
“With improved connections, many businesses in Pakistan and cities will like their logistics to be rerouted through the Gwadar Port. There is even interest among central Asian countries to use Gwadar for their trade with outside world,” the minister said.
“The Gwadar Port also has the potential to serve ports in the Persian Gulf, as big ships that come to the Gulf ports have clearance difficulty in passing in and out the Gulf, taking them three to four days to get in or out and unload. If the big ships can come to Gwadar, and smaller ships here take their cargo to the Gulf ports, it would make the Gwadar Port a great transshipment port,” Iqbal said.
