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Gwadar Oil City: Pakistan, China to sign agreements in early 2008

By Sajid Chaudhry

ISLAMABAD: During the forthcoming visit of Chinese president in early 2008, Pakistan and China are set to sign agreements on Chinese investments in Gwadar Oil City, incentives for setting-up of Special Economic Zones (SEZs), Gwadar seaport development programme for expansion of bilateral trade and strengthening of investment relations.

All these initiatives are considered to be essential for the success of Trade Energy, Transport and Industrial Corridor between Pakistan and China, a senior government official told Daily Times on Tuesday.

A steering committee headed by deputy chairman Planning Commission and comprising minister of State for investment, secretary general revenue division, prime minister’s advisor on energy and members from all four provinces, and concerned federal ministries have been directed to prepare well before the visit of Chinese president and within 90 days incentive packages for realising the targets of the corridor.

Energy advisor has been directed to recommend within 60 days the oil concessions for Chinese companies with the objective of attracting Chinese companies to bring in at least 200 rigs to Pakistan. This policy will be open to other interested exploration companies as well.

President of Pakistan has approved establishment of Trade Energy, Transport and Industrial Corridor between Pakistan and China.

To implement the initiatives for realising the objectives of the corridor, president has also approved constitution of a 16-member policy, supervisory board and constitution of over 10 members steering committee.

The corridor would require a set of 14 important measures to make this initiative a success. It has been decided that Pak-China bilateral working group would be constituted to prepare and finalise the action plan for building the Multi-Model Corridor. General attractive concessions would be given for the development of SEZs.

Site for China-Saudi Oil refinery in proposed Oil City at Gwadar would be identified and terms and conditions for investment would be decided on priority basis. Government of Balochistan has been asked to identify state land for development of projects at Gwadar out of which 50 square kilometres land will be allocated to Chinese developers at nominal rates for establishment of SEZs.

The Gwadar Sea Port development programme (Arthur D Little and Chinese Plans), which has been approved would be negotiated with Chinese investors to attract investment in this area. Financial incentives equal or better than Chinese SEZs would be provided to the investors in the said area.

Under the corridor plan, a high speed and capacity link of Gwadar with international optical fibre cables would be established. As an essential first step, coal mining would be commenced by setting up a joint venture company comprising of Pakistani stakeholders and foreign companies.

Federal government has already showed its willingness to resolve the issue of land for economic zones in different parts of the country, in addition to special lease of land at Karachi, Lahore, Islamabad and Peshawar for international entrepreneurs including Chinese companies to build 15-20 story offices and business support centres residency blocks for the perspective investors.

The policy and supervisory board would be constituted for providing strategic vision by laying down policy guidelines, ensuring timely decisions and regular monitoring of the progress. It has been decided that the President of Pakistan will head the board and other members would be prime minister, federal ministers of Ports and Shipping, Communication, Railways, Petroleum and Natural Resources, Industries and Production, Commerce, Water and Power, governor and chief minister Balochistan, minister of State for investment, deputy chairman Planning Commission, secretary general finance, secretary general revenue division and secretary Foreign Affairs.

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