The current administration hopes to give projects covered by China’s Belt and Road Initiative some new life as it works to strengthen the nation’s struggling economy, according to federal minister for planning, development, and special initiatives Ahsan Iqbal, who made this statement here on Tuesday.
In addition to collaborating on agricultural projects and the relocation of some Chinese businesses to Pakistan, the government is looking forward to cooperative ventures for renewable energy projects. As stated in a Bloomberg interview, Ahsan Iqbal is co-chair of the committee in charge of the China-Pakistan Economic Corridor.
“Well, I’m really optimistic since I recently visited China and met with their top leadership.Consequently, I see a lot of desire on the Chinese side to advance CPEC into its second phase and to rekindle its momentum,” he stated.
CPEC, which comprises new power plants and a port in the southern town of Gwadar, was viewed as the centerpiece project for Pakistan, which was considered a leading location for BRI initiatives.
The COVID-19 pandemic and Pakistan’s ongoing economic challenges, which have necessitated the participation of the International Monetary Fund, caused the progress on new projects to stop.
Power plants that eliminated the country’s long-standing power shortfall were among the about $25 billion worth of projects that went online in the first phase, according to a Bloomberg story. A much-needed railway renovation project was approved last week by a Pakistani committee. “To ensure that Pakistan is not overburdened,” Iqbal stated, the project would be completed in two stages.
Initial train service will connect the southern coastal city of Karachi with Multan, which is located little over halfway to Islamabad, the capital. A Gwadar water supply project, port dredging, and an Iranian power transmission line are among the major BRI projects that the government has completed that had been languishing for years.
As a result, Iqbal stated, “all these things really help China see that the new government is again serious and it restored their confidence that now Pakistan is, you know, serious about CPEC initiatives.”
In an effort to stimulate Pakistan’s economy, China’s Vice Premier He Lifeng launched five new corridors last year to commemorate the CPEC’s tenth anniversary, one of which was directed at growth.
Islamabad taking a step back while pushing the private sector to form alliances with Chinese companies would probably be one shift in the second phase. With labor prices rising and geopolitical tensions increasing, the other major focus—albeit a long-shot prospect—is to attempt and draw in Chinese companies considering migrating from China.
Given that China’s high cost of living is forcing more than 80 million jobs to be shifted outside, Iqbal remarked, “that would be a success.”
They visited Cambodia, Laos, and Vietnam, as you may know. Right now, it’s very packed. He continued, “So it’s true that they’re searching for new locations.”
