Pakistan has urged China to accelerate the visit of its technical and financial teams to finalize agreements for the first phase of the $10 billion Karachi-to-Peshawar Railway Line (ML-1) and to establish model special economic zones (SEZs) in Karachi and Islamabad.
During a review meeting on CPEC, Planning and Development Minister Ahsan Iqbal informed attendees that he had requested the Chinese ambassador to dispatch these teams during recent discussions in Islamabad. He emphasized the importance of synchronized technical and financial expert visits for efficient progress on ML-1.
Recalling the Chinese premier’s October visit, Iqbal noted the premier’s assurance of sending railway experts, which Pakistan eagerly awaits. A combined effort by technical and financial teams would aid in finalizing funding arrangements for ML-1’s $1.1 billion initial phase, focusing on the Karachi-Hyderabad section.
The minister directed the economic affairs division, railways ministry, and finance ministry to complete preparations to facilitate the simultaneous resolution of technical and financial issues. The Chinese ambassador assured that the technical team’s visit would proceed as planned.
Iqbal highlighted the Karakoram Highway (KKH) and ML-1 as major CPEC components, stating that KKH’s second phase would continue based on earlier commitments without requiring new agreements.
Moreover, Pakistan requested China to develop model SEZs in Karachi and Islamabad to serve as prototypes for replication across other SEZs. Iqbal noted that these zones would be developed on a turnkey basis.
The Board of Investment was tasked with finalizing land availability in Islamabad for SEZ development, while the power division and Pesco were instructed to energize the internal network of Rashakai SEZ to meet current power demands.
Additionally, the Federal Board of Revenue (FBR) clarified that Gwadar’s tax exemption policy under the Finance Act grants tax holidays and incentives to the China Overseas Port Holding Company (COPHC) and Free Zone businesses. Relevant notifications were shared with Chinese authorities, ensuring no turnover tax applies to SEZ enterprises in Gwadar.
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