ISLAMABAD: Ministry of Foreign Affairs (MoFA) has asked Ministry of Finance and Power Division to resolve payment issue of Chinese power companies as this issue is impediment to future energy cooperation with China, well-informed sources in Finance Ministry told Business Recorder.

This issue, along with others, was raised during the recent visit of Caretaker Prime Minister, Anwaar-ul- Haq Kakar to China. Minister for Power and Petroleum, Muhammad Ali along with the key man in PPIB also attended meetings with the Chinese power companies’ representatives.

Recently, Private Power & Infrastructure Board (PPIB) conveyed its reservations with respect to power plants including Chinese IPPs to the State Bank of Pakistan (SBP) for not converting their PKR into USD amounting to $600 million, which is creating serious issues for the power producers. The GoP has to pay over Rs 300 billion to Chinese power companies.

According to sources, during the visit of caretaker Prime Minister to Beijing, Minister for Power Muhammad Ali held a meeting with Vice Administrator for Chinese National Energy Administration (NEA) where the issue was also raised.

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“Payment of dues at an early date and streamlining the procedures for future payments without delay is essential as early resolution of Revolving Account issues, pending for a long time,” the sources added.

Power Division has also been asked to firm up Pakistan’s response on the Chinese proposal on the draft minutes of the next JWG on Energy meeting.

On cooperation in renewable energy including photovoltaic project, Power Division has been asked to firm up Pakistan’s response on the draft MoU on renewable energy as proposed by the Chinese side.

The sources said, during meeting on Gwadar Port, Chinese Premier LI said that port’s potential for becoming a hub for regional connectivity could be realized if the power supply issues to the port were addressed.

Ministry of Foreign Affairs has asked Power Division to bring clarity on going ahead with construction of 300 MW Gwadar coal-fired power plant, adding that if this plant is not feasible, an alternate may be devised.

On industrial cooperation, the sources said, in his meeting with caretaker Prime Minister, Chinese Premier Li expressed China’s support in developing industrial development parks and SEZs in Pakistan based on market principles.

MoFA has asked SIFC and Board of Investment to commence internal discussions on the revision of SEZs policy.

Ministry of Commerce and FBR will prepare investment proposals, preferably in the area of mines and minerals, renewable energy, agriculture, fisheries and animal husbandry, tariff rationalisation, allowing duty free import of raw materials for producing value added goods, especially in export oriented goods.

The sources further stated that early implementation of ML-1 was reinforced in the joint press release issued at the conclusion of caretaker PMs visit to Beijing for the 3rd BRF.

Ministry of Railways and Deputy Chairman Planning Commission will coordinate with Chinese NRA for visit of technical experts in November and for financing committee’s early visit to Beijing as well as preliminary online meeting to discuss the financing terms of the project. This has already been conveyed to Ministry of Railways.

Karakoram Highway (KK) realignment) 9 Raikot-Thakot, Section project has been included in the joint press statement issued at the conclusion of PM’s visit to Beijing. Fast track approval of PC-1 of the project with early finalization of financial modalities with the Chinese side was agreed. D.I Khan Zhob road project required coordination with Chinese Ministry of Transport to finalize feasibility study by December 2023 and Ministry of Communications and Planning Commission would expedite the process.

On convening of remaining JWG meetings, Ministry of Planning, Development and Special Initiatives has been asked to prepare for the 13th Joint Cooperation Committee (JCC) meeting as it is essential to hold Joint Working Group (JWG) meeting during 2023 and 2024. Both ministries have also been asked to make formal requests with the proposed timelines to the Chinese side for convening JWG meetings.

Copyright Business Recorder, 2023


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werwer Nov 09, 2023 06:33am
Forward it to the SFIC.... they seem to be in charge of everything
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faisal Nov 09, 2023 03:41pm
Just ask any agriculture department officer. They can pay it alone with their hard earned income.
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Cool boy Nov 09, 2023 07:45pm
Recently kalasra blamed two Nawaz owned cpec plants for all this corruption... Bin Qasim and sahiwal coal...
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