KCR project's financing: EAD yet to forward Sindh government's request to China

The Sindh government's request regarding concessional financing for Karachi Circular Railway (KCR) project is pending with the Economic Affairs Division (EAD).

The EAD has to forward the said request through the embassy of China in Islamabad to Ministry of Commerce, Beijing China, EXIM Bank and other concerned agencies, Business Recorder has learnt.

The 9th Joint Coordination Committee (JCC) of China-Pakistan Economic Corridor (CPEC) in its meeting in November last year took the decision that the Pakistan side will shortly submit the financing request to the Chinese side.

Sindh government requested Federal Secretary Finance to a move a summary for the ECC regarding issuance of sovereign guarantee for the project as already approved by then Prime Minister on 9th November, 2017.

Also framework agreement is pending in Ministry of Planning, Development & Special Initiatives for its concurrence from the Federal Cabinet and onward transmission to the National Development & Reforms Commission, Beijing, China.

Revival of KCR was included in CPEC framework and its concurrence was accorded in the 6th JCC meeting held in Beijing on 29th December, 2016.

PC-I of the Revival of KCR was approved by ECNEC on 6th October, 2017 at the cost of Rs.207,546.327 million (US$ 1,971 million).

Administrative approval was also issued on 30th November, 2017. Since then the Government of Sindh has pursued various important issues with the Federal Government for implementing Revival of KCR which are evident from the correspondence and Minutes of 7th JCC, 8th JCC, 9th JCC and 5th & 6th Transport Joint Working Group meetings.