Financing projection for five years: $9.82 billion inflows, $6.81 billion outflows expected under CPEC

The Ministry of Planning, Development and Reform gave financing projection of $ 9.82 billion inflows and $6.81 billion outflows during next five financial years, ie, 2019-23 under China Pakistan Economic Corridor (CPEC). According to documents and briefing of Federal Secretary Ministry of Planning Zafar Hasan to Senate Special Committee on CPEC, there is expected financing projection of $ 2.78 billion inflows and $ 1.01 billion outflows during 2019-20 under the CPEC.
The Ministry also predicted $ 3.5 billion inflows and $ 1.23 billion outflows during 2020-21, $ 2.5 billion inflows and $ 1.88 billion outflows in 2021-22 and $ 1.04 billion inflows and $ 2.69 billion outflows in financial year 2022-23 under CPEC. The committee which met with Senator Sherry Rehman in the chair at Parliament House on Thursday, discussed CPEC financing and debt uptake, second phase of CPEC and establishment of Special Economic Zones (SEZs).
According to documents, there is a total 932 MW demand of power for seven notified Special Economic Zones (SEZs) while only 73.2 MW power is available for this purpose. The documents further revealed that approximately Rs 18.5 billion would be incurred on the provision of power to 9 SEZs. PC-1 has been prepared by the Power Division for this purpose and Rs 1.4 billion already earmarked in the PSDP 2019-20 and the Board of Investment (BoI) will prioritized the power supply to the SEZs in consultation with Power Division and SEZs developers.
The BoI would complete the process of SEZs proposals within 45 days mainly focusing on confirmation of availability of gas while the cost of provision of utilities to SEZs would be met through PSDP. Under section 27(i) of the SEZ Act, 2012, "the Federal and Provincial governments to ensure the provision of gas, electricity and other utilities at the designated zero point of each SEZ."
While briefing the Committee about CEPC projects, Secretary Planning Zafar Hasan said that at least five SEZs (Dhabeji, Rashakai, M-3 Faisalabad, ICT and Bostan) would be established in the county with Chinese collaboration during next five years (2019-23).
He said that under energy projects a total of 18751 workers including 12314(66 %) Pakistani workers and 6437 (33%) Chinese workers are working under energy projects and a total of 49631 workers including 39880 (79.5 %) Pakistanis and 10671 (20.5%) Chinese are working under transport and infrastructure projects.
The Secretary told the Committee that China would provide $ 1 billion grant to Pakistan for various small projects of health, vocational training, crop-livestock, agriculture and social sectors and hospital etc. He said that in first phase, $ 200 to $ 300 million would be spent for 16 small projects. He said that China had set up an aid agency on the lines of USAID, called CIDCA, and will be providing pure grants, with no repayment, to many of the Socio-Economic component of CPEC, because these are aimed at poverty alleviation and development assistance in key sectors identified by the government of Pakistan.