Connect with us

Hi, what are you looking for?

Latest News
• NA session will be held at 10am Friday • PM Imran Khan announces 70 thousand ‘Rehmatulil Aalameen Scholarships’ for all Pakistanis • Govt. to spend Rs5.5b on this scholarship annually, Rs28bn in five year • Covid-19 precautionary should be observed in court premises: PHC • KP Doctors threaten to go on strike for regularisation of service • IHC suspends cabinet’s decision to dismiss Drap CEO • CDA to ensure water supply during Ramadan • 135 law enforcement officials injured in the violent clash with TLP activists • LHC issues notices to British council, ministry over plea again physical attendance in O&A level exams • Punjab govt. to set up special courts for overseas Pakistanis • PM to announce package for Sindh: Haleem Adil Sheikh • Sindh’s share in national resource reduced due to ‘faulty’ census: CM Sindh • Centre tells SHC that agency is formed to deal with assault, kidnapping • Govt moving towards PSM revival: Soomro • PN ship returns after relief mission in Africa • SC summons Sindh chief secretary over water cess law • ECP allows perusal of PTI’s financial documents • Law will decide sugar barons’ fate: PM Khan • PM, Uzbek president agree to boost bilateral ties • Pakistan set to achieve fiscal sustainability: IMF • ECC exempts three Punjab power plants from LNG purchase • Afghan troops ‘fully capable’ of defending country: President Ashraf Ghani • Denmark cuts AstraZeneca vaccine altogether • Bangladesh imposes strict lockdown in Dhaka • Sputnik V vaccine does not cause blood clots: Russia • Jordan arrested senior suspect over contact with Saudi crown prince
News Alert
    • Covid Updates: 5,395 cases reported while 118 deaths recorded in last 24 hrs
    • Currently, 77,294 cases are active in the country
    • The death toll reaches 15,872 in Pakistan
    • 3,645 people recovered in last 24 hrs
    • The current positivity rate is 8.34% in the country 

Economy

CPEC is Staying Like China Grt Wall; A B2B Framework agreement on industrial cooperation Likely

Pakistan and China are likely to sign a bilateral framework agreement on industrial cooperation under the China-Pakistan Economic Corridor (CPEC)

Pak China framework agreement on industrial cooperation is on cards

ISLAMABAD: Pakistan and China are likely to sign a bilateral framework agreement on industrial cooperation under the China-Pakistan Economic Corridor (CPEC) even though Islamabad has declined negotiated divestment of Pakistan Steel Mills (PSM) to Chinese firms.

Informed sources said a Chinese delegation has been engaging with Pakistan authorities for a government-to-government (G2G) deal on the country’s largest industrial complex which shutdown operations in June 2015.

In this regard, Federal Minister for Finance and Revenue, Industries and Production Muhammad Hammad Azhar presided over a meeting on economic and industrial cooperation under CPEC to address outstanding issues. The sale of PSM to Chinese state-run firms under the G2G arrangement also came up for discussions.

The sources told media that during the meeting, also attended by privatisation minister and secretaries of finance and privatisation, authorities explained to the Chinese side that G2G arrangement on PSM was not possible under the country’s privatisation law and the entity was now on top of the divestment list and at an advance stage.

Beijing aiming for G2G deal on Pakistan Steel Mills

Sources said the Framework Agreement on Industrial Cooperation was earlier expected to be signed during the Joint Cooperation Committee of the meeting tentatively scheduled in the last week of March.

An official statement said Federal Minister for Privatisation Muhammadmian Soomro, CPEC Authority Chairman Lt Gen Retd Asim Saleem Bajwa, Chinese Ambassador in Islamabad Nong Rong and Federal Secretaries for Finance and Privatisation Commission attended the meeting.

Mr Hammad said that CPEC was of “utmost importance for Pakistan” as it would enhance industrial production, upgrade energy and communication infrastructure and improve connectivity with the region. CPEC would generate abundant employment and investment opportunities in Pakistan and beyond, he added.

The Chinese ambassador, who led the delegation, also agreed that CPEC was “of immense importance for the Chinese companies” and will expand and strengthen economic cooperation for achieving common objectives and guarantee a prosperous future for both the nations.

The finance minister “stressed the need for the early completion of projects falling under the umbrella of CPEC” and noted that “time was of essence in meeting project deadlines so that the economic benefits could reach to the people of both the countries and contribute towards overall economic growth and development”.

Emerging profitable Concerns?

Last year, the government had decided to sack 100 per cent of about 9,350 employees to facilitate the privatisation of PSM. According to an old summary of the Ministry of Industries and Production, the “failure of the country’s mother industry was an unending story of unchecked corruption, inefficiency, and over-employment”.

The Pak-China Investment Bank had declared in 2015 that with an initial investment of $289m (about Rs29 billion), provision of uninterrupted electricity supply and a new management, Pakistan Steel had the potential of becoming a profitable enterprise given its ideal location, market and facilities.

The country’s largest industrial complex could generate the funds required for expanding its production capacity to three million tonnes, the bank said. It further proposed a development and expansion plan with a capital investment of $288.77m in the first phase, $300.4m in the second and $296.62m in the third phase. The total investment required was $885.8m, or approximately Rs100bn.

On the basis of field surveys, extensive data and in-depth discussions, the financial advisers had concluded that the PSM was a steel enterprise which had a high starting point, complete process chain and the advantages of resource acquisition and regional market.

The advisers were of the opinion that because it was located near a coastal city with over 20m population and close to the 50,000-tonne bulk cargo wharf relying on raw material and fuels import, the PSM owned rare logistic cost advantages. With the expansion of its production capacity in future, its harbour could also be used to ship products to the rest of the market.

Written By

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

Facebook

Entertainment

Setting another precedent of love, an American woman embraced Islam, travelled to Pakistan to marry a young TikToker from Rawalpindi. Daniel, 40, from Washington...

Latest Updates

Mian Muhammad Nawaz Sharif, former prime minister, has asked Opposition Leader in the Punjab Assembly Hamza Shahbaz to monitor the election campaign for the...

Latest Updates

Injured Shadab to go and Fakhar with 193 to stay On; Bad Weather to play a role too.

Latest Updates

ISLAMABAD: Cricketer Hasan Ali and his wife Samyah Khan are now proud parents of a baby girl. The bowler took to social media and...

Copyright © 2021 The Truth International