CPEC is the stimulus that the Pakistan economy needs for rapid growth, Minister for Planning Ahsan Iqbal said on Thursday.
Giving the keynote speech at an event in Islamabad on the China Pakistan Economic Corridor organized by the Institute for Policy Reforms, Ahsan Iqbal said that the CPEC initiative and the large investment boost that it brings is a special achievement of the PML-N government. He said that not only will the CPEC investment boost our economy, but it will also create synergies for continued growth in the country.
The minister addressed many of the issues raised in various forums regarding the transparency of CPEC projects, selection of routes on the CPEC alignment and implementation issues with CPEC projects. Iqbal also gave details of the expected foreign assistance due for CPEC projects.
Earlier in his opening comments, Institute for Policy Reforms Chairman Humayun Akhtar Khan said that CPEC had received wide attention, but given its importance, needed in depth discussion. He requested that government give details of project completion timelines, their financing plan, and strategy for effective implementation. He said that connection between markets, both within the country and throughout the region would change the fundamentals of doing business in Pakistan and in the region.
In an overview of CPEC, IPR Executive Director Ashraf Hayat welcomed the China Pakistan Economic Corridor project. He said that the project had the potential to fundamentally change the Pakistan economy. Looking at the broader “One Belt One Road” initiative, he said that it would connect about 60 countries through a complex network of roads, rails, ports and oil pipelines. He expressed support of the IPR for CPEC. He said that a major share of the $46 billion was for power projects to be implemented in the private sector. He requested information on how many of these projects had achieved financial close or are near financial close. He said that these projects should have been under construction if these are to become operational by 2018.
He gave financial progress of projects to be financed from public sector funds. He felt that allocations made so far seemed low. Government must strike a balance between the competing objectives of fiscal deficit limits placed under the IMF programme and additional spending of about Rs 200 billion annually on CPEC projects.
In his talk, General Sikander Afzal briefed participants on the security arrangements for CPEC. He said that between 17,000 and 32,000 additional security personnel would guard over 14,000 Chinese workers in Pakistan. The military had a four-layer programme to provide security for CPEC projects and workers. The military is setting up a special security division with 12,000 additional personnel. Number of security personnel would be increase all around, he said, and added that six additional wings of the Frontier Corps with 5,700 personnel would be added in Balochistan. In Punjab, 3,500 police officers, 900 Rangers, 4,100 private security guards, and 740 Askari Guards would protect various projects of the economic corridor. Pakistan Marines and the border security forces would also guard the port and its adjacent routes.
Deputy chief of mission of the Chinese Embassy in Islamabad reiterated the commitment of the Chinese government to the China Pakistan Economic Corridor project. He said that this bilateral relationship would further deepen the friendship between the two countries and strengthen Pakistan and the region.
In his closing comments renowned economist and IPR Managing Director Dr Hafiz Pasha elaborated on the macro-economic and operational implications of CPEC implementation. He said that the projects are critical for Pakistan and that IMF must be made aware of this fact.