RAG-IV 06/21/2022 1
05/02/2023 1RAG-IV
05/02/2023 2
Sequence of Presentation
• Introduction• Scope of Study• Prospective socio economic benefits• Controversies attached with the project • Role of provinces and other departments• Analysis and conclusion• Workable strategies
"Pakistan launches strategic port". BBC News. 2007-03-2RAG-IV
05/02/2023 RAG-IV 3
Team RAG-IV
• Mr. Asad Ullah Larik (Pakistan Customs Service)• Mr. Anwar Ul Haq Azad Capt. (R) (Pakistan Administrative Service)• Munawar Ali Mithani (Ex-PCS)• Nisar Ahmed Burki (IRS)• Rizwan Bashir (Pakistan Customs Service)
05/02/2023 4
Introduction
• China hopes that Pakistan plays a greater constructive role in regional and international affairs. We would like to work with Pakistan to safeguard peace, stability, development and prosperity in the world” …..Sun Weidong, China’s Ambassador to Pakistan.
RAG-IV
05/02/2023 RAG-IV 5
Scope
Prospective Socio Economic BenefitsControversies attached with the ProjectRole of ProvincesRole of Planning commission, WAPDA, PPIB and MoFStrategy both at Strategic and Operational levels for Short and
Medium term to enhance Socio-economic condition of the Country
05/02/2023 RAG-IV 6
PROSPECTIVE SOCIO-ECONOMIC BENEFITS
05/02/2023 RAG-IV 7
Prospective Socio-Economic Benefits
• China’s investment surpasses all foreign investments• Investments of $274 billion- GDP will increase by 15 %• Provincial harmony- better connectivity• Expected energy generation-17045MW• Encouragement for foreign countries to invest in Pakistan• Increased productivity in industrial sector & Allied activities
05/02/2023 RAG-IV 8
Prospective Socio-Economic Benefits
• Special Economic Zones export oriented industries• Increase in HDI-Baluchistan and KPK and Sindh• Opening in Job Opportunities• Communication network-1300 Km long fiber optic fiber project
amounting to 44 million$• Reduced dependence on IMF and World Bank• Income from cargo handling, freight etc
05/02/2023 RAG-IV 9
Prospective Socio-Economic Benefits
• Cooperation in Interdiction of narcotics with China• Increase in Tourism• Image building of Pakistan• Poverty reduction• Transport sector Expansion• Infrastructure development
Rail & RoadSea, air and Dry Ports
05/02/2023 RAG-IV 10
Controversies attached with the Project
05/02/2023 RAG-IV 11
Controversies attached with the Project
• Route Dispute• Whether Punjab oriented?• Demography of Gwadar• Control over resources• Internal displacement & compensation• Location of economic zones• Orange line project• Indian Objections on route
05/02/2023 RAG-IV 12
Role of Provinces
05/02/2023 RAG-IV 13
Role of Provinces
• Ownership of CPEC• Provision of land and allied services• Law and order situation • Awareness and consensus building• Security assistance to law enforcement agencies
05/02/2023 RAG-IV 14
Role of Provinces
• Identification of commercially viable sites for SEZs• Land acquisition• Constitution of Committee to monitor progress of projects
at provincial level• Skilled and Technical Work force for upcoming projects• Strengthening provincial P&D departments and BOI to
liaison with Federal government
05/02/2023 RAG-IV 15
Role of Planning Commission, WAPDA, PPIB, and MoF
05/02/2023 RAG-IV 16
Role of Planning commission
oScientific planning for all projects and coordination with provincial P&Ds and BOIs
oRelease and update information regarding:oRouteso Economic zoneso Energy projects
oExpeditious approval of projectsoTimely and effective meeting of 10xmember of steering committeeoCost benefit Analysis of the projects
05/02/2023 RAG-IV 17
Role of WAPDA
• Finalization of hydro power projects at upper Indus• Up-gradation of transmission lines• Construction of new Grid stations• Acquisition of Land for installation of transmission lines and grids• Expedite surveys and feasibility reports
05/02/2023 RAG-IV 18
ROLE OF MINISTRY OF FINANCE
• Analysis of time frame and payback modality• Cost benefit analysis of soft loans• Timely release of funds
05/02/2023 RAG-IV 19
ROLE OF PUBLIC POWER & INFRASTRUCTURE BOARD
• One Window Facilitator • Recommend and facilitate development of power policies• Coordinate with Provincial governments, AJK and regulatory bodies in
implementation of power policies• Execute, administer and monitor contracts awarded under CPEC • Expedite existing and new power projects
05/02/2023 RAG-IV 20
Analysis & Conclusions
05/02/2023 RAG-IV 21
Strengths
• Infrastructure Development• Industrialization• Energy sufficiency• Employment
Weaknesses
• Corruption• Poor Human
Resource• Fledgling consensus
05/02/2023 RAG-IV 22
Opportunities
• Human Resource development• Room for negotiation• Provincial harmony
Threats
• International Conspiracies• Terrorism• Separatist Elements• Political Instability• Climate Degradation• Local manufacturing
industry
05/02/2023 RAG-IV 23
A Road to Socio-Economic development
OrAnother Missed Opportunity
Conclusion to Analysis
05/02/2023 RAG-IV 24
Workable Strategies
05/02/2023
NATIONAL AWARENESS PROGRAMME
Diagnosis• Recent controversial
statements and apprehensions of China about capacity of Pakistan to seriously undertake the project
Action Plan ( Short Term)• Quarterly meeting of the parliamentary
committee on CPEC • Awareness programmes and Seminars be
arranged at provincial and federal level.• Regular programmes on electronic and print
media showcasing the benefits of project
"Politicians hit out at 'unfair' Pakistan-China Economic Corridor". The Express Tribune. 22 April 2015 25
05/02/2023 26
Diagnosis • Recent controversial
statements and apprehensions of China about capacity of Pakistan to seriously undertake the project
Action Plan ( Medium Term)
• Inclusion of prospective benefits in the curriculum• Liaison of Federal and Provincial information
Ministries• Role of PEMRA
Resources Ministry of Information to utilize the available resources
OutcomeDevelopment of national consensus and expeditious implementation of
projects "Politicians hit out at 'unfair' Pakistan-China Economic Corridor". The Express Tribune. 22 April 2015
05/02/2023 27
RESOLUTION OF DISPUTE ON ROUTES
Diagnosis
• Route Dispute
Action Plan ( Short term)• Briefing by planning commission to all stakeholders• Ministry of information to broadcast programmes
showcasing progress of work on western route.• Justification of eastern route viz a viz China’s concerns
ResourcesParliamentary committee and planning commission
OutcomeDevelopment of national consensus on routes and prioritization
"Economic corridor: Chinese official sets record straight". The Express Tribune dated 2 March 2015
05/02/2023 28
SUPPORT TO MANUFACTURING SECTORDiagnosis
• Influx of Chinese goods
Action Plan
• Development of SEZs, exemptions and utilities• Qualitative improvement in manufacturing sector• Construction of cold storages
ResourcesMinistry of industries in collaboration with Ministry of commerce and FBR.
OutcomeConcerns of traders will be addressed leading to effective trade policy.
05/02/2023 RAG-IV 29
SELECTION OF SITES FOR ECONOMIC ZONES
Diagnosis
• Lackluster response of Provinces
Action Plan (short and medium term)• Feasibility studies• Acquisition of land for SEZs• Earmarking of funds for construction of SEZs• Completion of formalities for award of status of SEZs
ResourcesMinistry of Industries, National Industrial Park, Federal Board of Revenue,
OGDC, WAPDA, and provincial P&Ds and Finance Ministries.Outcome
Speedy establishment of economic zones and related infrastructure.
05/02/2023 RAG-IV 30
LEGISLATIVE PROTECTION
Diagnosis
• Chequered political history and apprehension of foreign investors
Action Plan ( Short &Medium term )
• Promulgation of an ordinance at Federal and Provincial level for protection of CEPC project • Ordinance may be approved later on by respective
assemblies.
ResourcesFederal and Provincial Law Ministries.
OutcomeContinuity of the project and building of investor confidence
05/02/2023 31
IMPROVEMENT IN TECHNICAL EDUCATION
Diagnosis
• Poor Technical and vocational human resource
Action Plan ( Short & Medium term)• Establishment of technical and vocational institutes along
proposed sites of SEZs • Strengthening of TEVTAs• Revision of curriculum • Capacity building of faculty
ResourcesNational technical and vocational authority and all provincial TEVTAs.
OutcomeTrained human resource to cater enhanced industrial needs.
Zhen, Summer (11 November 2015). "Chinese firm takes control of Gwadar Port free-trade zone in Pakistan". South China Morning Post dated 11 December 2015
05/02/2023 RAG-IV 32
RELOCATION OF COAL BASED POWER PLANTS
Diagnosis • Coal based power
plants in Punjab are not feasible
Action Plan ( Short term)• Coal based power plant planned at Punjab may
be shifted to Sindh and Balochistan along the sea ports.
ResourcesPlanning Commission, MoF, and Ministry of Climate Change
OutcomeEnvironmental protection and saving in transportation cost
05/02/2023 33
IMPROVING SECURITY ENVIRONMENTDiagnosis
• Security in Pakistan-China’s prime concern
Action plan (Medium term)• Deployment of LEAs all along CPEC• Fresh recruitment from local population• Strict Implementation of National Action Plan.• Intelligence sharing mechanism with China• Strengthening capacity of provincial law enforcement agencies
ResourcesMinistry of defence, Ministry of interior and concerned home ministries.
OutcomeAchieving overall objectives and attracting FDI
"COAS Assures Balochistan People Will Prosper With Upcoming Projects". The News dated 1 January 2016.
05/02/2023 RAG-IV 34
STRONG ANTI SMUGGLING POLICY Diagnosis
• Goods in transit may get smuggled in Pakistan.
Action Plan ( Medium term)• Designated cell at FBR• Strengthening Directorate of Transit Trade• Coordination with provincial governments and other
law enforcement agencies.• Effective utilization of proposed Border Security Force.
ResourcesFederal Board of Revenue along with concerned Provincial home ministries.
Outcome Facilitation of transit trade and decrease in damage owing to
smuggling/pilferage
05/02/2023 RAG-IV 35
Final Word
05/02/2023 RAG-IV 36