ISLAMABAD: Ministry of Planning, Development and Special Initiatives has stated that probability of achieving financial closure of 700-MW Azad Pattan Hydropower project and 1124-Kohala Power project was low, official sources told Business Recorder.
This information was shared with the Ministry of Foreign Affairs during a meeting convened to finalise agenda for the visit of caretaker Prime Minister Anwaar-ul-Haq to China.
Pakistan and China are expected to sign several pacts including export of donkey hides, etc., and ML -1 at reduced cost along with reduced operational speed.
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Ministry of Planning, Development and Special Initiatives noted that MoUs on coastal tourism development and Gwadar and urban development of Gwadar City were part of the 47 tentative deliverables for the visit to China. A positive response was still awaited on these projects from the Chinese side. Possibility of announcing these MoUs was not affirmative.
Ministry of National Food Security and Research noted that protocols on exports of donkey hides and dairy products were ready to be signed by the Chinese side. However, protocol for export of heated beef remained with Pakistan Mission in Beijing and was yet to be signed.
On establishment of Pakistan Space Centre, the meeting was informed that framework agreement was signed in November 2022 and a loan agreement worth $ 145 million was shared with the Chinese side in April 2023. A response from the Chinese side is still awaited. If required, Pakistan Mission in Beijing may push Chinese side.
The framework agreement of Pakistan multi-mission communication satellite system was approved by the Cabinet on August 9, 2023.
A response was awaited from Chinese side. MoFA was also informed of three additional agreements received from the Pakistan Atomic Energy Commission during the visit of Chinese premier, He Lifeng, which could not be signed during the visit. MoFA would share these agreements with the Economic Affairs Division.
Director Planning from the Ministry of Railways conveyed that the first framework agreement for ML-1 was signed in 2017. The 3rd addendum to this agreement, following cost rationalization was now ready to be announced during the 3rd Belt and Road Forum (BRF).
The last PC-1 was approved for $ 9.81 billion in October 2022. After rationalization the cost went down to $ 6.67 billion. Its envisaged speed would remain at 160 km/h but its operational speed has been reduced to 120-140 km/h. All documentation would be completed by November 30, 2023 following which in December 2023, a final meeting with the Chinese side could take place.
Director Planning further conveyed that he was the focal point from the Ministry of Railways for further coordination with regard to ML1.
On Karachi Circular Railway (KCR), Joint Secretary Economic Affairs Division informed that the revised feasibility, received from the Government of Sindh was shared with the Chinese side in April 2023. A response from Beijing was still awaited.
Ministry of Planning highlighted that the Chinese side still needs more time for the project, since other major projects like ML-1 were currently under discussion.
