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5/3/2016 RAG-IV 1

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-


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IV
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)

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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.

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Scope

Prospective Socio Economic Benefits


Controversies attached with the Project
Role of Provinces
Role of Planning commission, WAPDA, PPIB and MoF
Strategy both at Strategic and Operational levels for Short and
Medium term to enhance Socio-economic condition of the
Country

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PROSPECTIVE SOCIO-ECONOMIC BENEFITS

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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

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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

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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 & Road
Sea, air and Dry Ports

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Controversies attached with
the Project

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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

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Role of Provinces

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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

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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

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Role of Planning Commission, WAPDA, PPIB, and
MoF

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Role of Planning commission

oScientific planning for all projects and coordination with provincial


P&Ds and BOIs
oRelease and update information regarding:
o Routes
o Economic zones
o Energy projects
oExpeditious approval of projects
oTimely and effective meeting of 10xmember of steering committee
oCost benefit Analysis of the projects

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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

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ROLE OF MINISTRY OF FINANCE

• Analysis of time frame and payback modality


• Cost benefit analysis of soft loans
• Timely release of funds

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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

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Analysis & Conclusions

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Strengths Weaknesses

• Infrastructure • Corruption
Development
• Poor Human
• Industrialization Resource
• Energy sufficiency • Fledgling consensus
• Employment

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Opportunities Threats
• Human Resource • International
development Conspiracies
• Room for negotiation • Terrorism
• Provincial harmony • Separatist Elements
• Political Instability
• Climate Degradation
• Local manufacturing
industry
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Conclusion to Analysis

A Road to Socio-Economic
development
Or
Another Missed Opportunity

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Workable Strategies

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NATIONAL AWARENESS PROGRAMME

Diagnosis Action Plan ( Short Term)


• Recent controversial • Quarterly meeting of the parliamentary
statements and committee on CPEC
apprehensions of China • Awareness programmes and Seminars be
about capacity of arranged at provincial and federal level.
Pakistan to seriously
undertake the project • Regular programmes on electronic and print
media showcasing the benefits of project

5/3/2016 "Politicians hit out at 'unfair' Pakistan-China Economic Corridor". The Express Tribune. 22 April 2015 25
Action Plan ( Medium Term)
Diagnosis
• Recent controversial • Inclusion of prospective benefits in the
statements and curriculum
apprehensions of China • Liaison of Federal and Provincial information
about capacity of Ministries
Pakistan to seriously
undertake the project • Role of PEMRA

Resources
Ministry of Information to utilize the available resources
Outcome
Development of national consensus and expeditious implementation of
projects
5/3/2016 "Politicians hit out at 'unfair' Pakistan-China Economic Corridor". The Express Tribune. 22 April 2015 26
RESOLUTION OF DISPUTE ON ROUTES
Diagnosis Action Plan ( Short term)
• Briefing by planning commission to all stakeholders
• Route Dispute • Ministry of information to broadcast programmes
showcasing progress of work on western route.
• Justification of eastern route viz a viz China’s concerns
Resources
Parliamentary committee and planning commission
Outcome
Development of national consensus on routes and prioritization
5/3/2016 "Economic corridor: Chinese official sets record straight". The Express Tribune dated 2 March 2015 27
SUPPORT TO MANUFACTURING SECTOR
Diagnosis Action Plan
• Influx of Chinese • Development of SEZs, exemptions and utilities
goods • Qualitative improvement in manufacturing sector
• Construction of cold storages

Resources
Ministry of industries in collaboration with Ministry of commerce and FBR.
Outcome
Concerns of traders will be addressed leading to effective trade policy.

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SELECTION OF SITES FOR ECONOMIC ZONES
Diagnosis Action Plan (short and medium term)
• Feasibility studies
• Lackluster • Acquisition of land for SEZs
response of • Earmarking of funds for construction of SEZs
Provinces • Completion of formalities for award of status of SEZs
Resources
Ministry 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.
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LEGISLATIVE PROTECTION
Diagnosis Action Plan ( Short &Medium term )

• Chequered political • Promulgation of an ordinance at Federal and


history and Provincial level for protection of CEPC project
apprehension of • Ordinance may be approved later on by respective
foreign investors assemblies.

Resources
Federal and Provincial Law Ministries.
Outcome
Continuity of the project and building of investor confidence
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IMPROVEMENT IN TECHNICAL EDUCATION
Diagnosis Action Plan ( Short & Medium term)
• Establishment of technical and vocational institutes
along proposed sites of SEZs
• Poor Technical and • Strengthening of TEVTAs
vocational human • Revision of curriculum
resource • Capacity building of faculty
Resources
National technical and vocational authority and all provincial TEVTAs.
Outcome
Trained 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
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China Morning Post dated 11 December 2015
RELOCATION OF COAL BASED POWER
PLANTS
Diagnosis Action Plan ( Short term)
• Coal based power • Coal based power plant planned at Punjab may
plants in Punjab be shifted to Sindh and Balochistan along the
are not feasible sea ports.

Resources
Planning Commission, MoF, and Ministry of Climate Change
Outcome
Environmental protection and saving in transportation cost
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IMPROVING SECURITY ENVIRONMENT
Diagnosis Action plan (Medium term)
• Deployment of LEAs all along CPEC
• Fresh recruitment from local population
• Security in Pakistan- • Strict Implementation of National Action Plan.
China’s prime concern • Intelligence sharing mechanism with China
• Strengthening capacity of provincial law enforcement
agencies
Resources
Ministry of defence, Ministry of interior and concerned home ministries.
Outcome
Achieving overall objectives and attracting FDI

5/3/2016 "COAS Assures Balochistan People Will Prosper With Upcoming Projects". The News dated 1 January 2016. 33
STRONG ANTI SMUGGLING POLICY
Diagnosis Action Plan ( Medium term)
• Designated cell at FBR
• Goods in transit may • Strengthening Directorate of Transit Trade
get smuggled in • Coordination with provincial governments and other
Pakistan. law enforcement agencies.
• Effective utilization of proposed Border Security Force.
Resources
Federal Board of Revenue along with concerned Provincial home ministries.
Outcome
Facilitation of transit trade and decrease in damage owing to
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smuggling/pilferage
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Final Word

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