Prime Minister of Pakistan Imran Khan will visit China for a bilateral relationship to take attention of the Chinese government in the Power sector and re-establishment of Pakistan Steel Mills (PSM). The Pakistani delegation will work with China to redistribute industries in the CPEC SEZ.
Due to weak economic conditions, the main aim of the premier is to request a $3 billion loan to manage the foreign reserves and fast the economic growth as well. The Prime Minister is likely to talk about a new repayment policy for loans lent to power producers. Islamabad had already solved its matter with independent power producers (IPPs) on the pending payments.
PTI government is of the view that the previous government was involved in energy projects with high input costs with the Chinese firms. The Current government criticized the previous governments on total cost of various projects related to the power sector. The Present government through diplomatic channels requested the Chinese to reduce the rate of return which was decided with the PML-N government but the Chinese firm refused to accept the suggested rate of return offered by the PTI government. In this visit, both governments will sit to discuss this matter.
The PM visit also has importance due to the present condition of Afghanistan after the withdrawal of US forces. Islamabad delegation, on a three-day visit, will pay special attention to geostrategic ties with China and also focus on mutual benefit and understanding. This visit will also be very important due to the strain in relations between the US and China. Pakistan and its new security policy for 2021 will engage all countries on geoeconomics conditions rather than a geostrategic approach.
According to Pakistan's foreign ministry, Imran Khan will discuss further strategies in investment, power sector and technology. China is progressing by leaps and bounds in information technology. Pakistan is very impressed due to China’s growth in technology. Pakistan will discuss export-related matters with Chinese firms for mutual benefit.
Owing to the high deficit in the energy sector, Pakistan would seek support from its Chinese counterpart in the energy sector. “Seemingly, it is a good opportunity to advance the discussion on Shanghai Electric Power (SEP)’s interest in acquiring K-Electric as the deal has been at a standstill since 2016,” an official said.
Pakistani ministries successfully resolve outstanding payments of Rs 23,000 crore related to IPPS. After solving this matter, the Pakistan government will feel it comfortable discussing the energy sector matter with the Beijing government. Pakistan is paying the IPPS in installments. The first instalment has been paid to independent power producers. The next instalment will be paid next month. Pakistan will pay instalments to all power generation companies.
The PM visit will mainly focus on the bilateral relationship with China amid US-China tensions. Connectivity, the Power sector, and information technology will be the main areas of discussion in the upcoming meetings.
Source:
https://tribune.com.pk/story/2341512/pms-china-trip-to-draw-investment-in-power-sector
Published by: Book Club