BRI projects to be revived: Iqbal

Islamabad:

Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal said on Tuesday that the government hoped to give new impetus to projects under China’s Belt and Road Initiative (BRI) as it sought to boost the country’s struggling economy.

“The government is looking forward to setting up joint ventures for renewable energy projects, agricultural production and possibly luring some Chinese companies to relocate to Pakistan,” Iqbal, who also heads the committee working on the China-Pakistan Economic Corridor project (CPEC). , he said in an interview with Bloomberg.

“I am very optimistic because I was in China recently and had meetings with their senior leadership … so I see a lot of interest from the Chinese side to revive the momentum for CPEC and also take it to the second phase,” he said.

Pakistan is seen as a flagship destination for BRI projects, with CPEC, which includes a port in the southern city of Gwadar and new power plants, being the crown jewel. Progress on new projects stalled in the wake of the Covid-19 pandemic and amid Pakistan’s ongoing economic difficulties that required the intervention of the International Monetary Fund (IMF).

According to the Bloomberg report, about $25 billion worth of projects came online in the first phase, including power plants that ended the chronic electricity shortage. A committee approved a long-delayed rail upgrade project last week.

The project will be done in two phases, “so there is not much burden on Pakistan,” Iqbal said. The railway, in its first phase, will stretch from Karachi to Multan, a little more than halfway to the capital, Islamabad.

The government has also completed some key BRI projects that were pending for years: a water supply project in Gwadar, dredging work at the port and an electricity transmission line from Iran.

“So all these things really help China to see that the new government is serious and restored their confidence that now Pakistan is serious about CPEC initiatives,” Iqbal said.

To mark the 10th anniversary of CPEC last year, China’s Vice President He Lifeng unveiled five new corridors, including one focused on development to boost economic activity in Pakistan.

A change to the second phase would likely involve Islamabad stepping back while urging the private sector to forge partnerships with Chinese companies.

The other big focus, albeit a long-term one, is to try to attract Chinese companies that are considering relocating from China amid rising labor costs and heightened geopolitical tensions.

Published in The Express Tribune, May 29^u2024.

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