Islamabad: The “diamond” of the CPEC project has not fully shined due to Pakistan’s breach of promises on Gwadar Port and Free Economic Zone.
Comprehensive progress has not yet been made on Pakistan’s promises of essential facilities, timely delivery of land and connecting the port to the rest of the country.
According to sources, even after 10 years since the launch of CPEC, the port has not been connected to the national electricity grid, the promised land for the development of Gwadar Free Economic Zone has not been provided and has not been delivered. The port itself is connected to other parts of the country by road or train.
According to the Secretariat’s October assessment, the CPECs are inconsistent with commitments made under the $7 billion IMF programme.
The coalition government has pledged to the IMF that by 2035 it will end all concessions to special economic and export processing zones.
Sources said that these issues were raised during a meeting chaired by Planning Minister Ahsan Iqbal recently. He also issued instructions to solve these problems, dozens of such instructions have been given by the Minister of Planning many times in the past.
Sources said that China raised all outstanding issues during the 13th Joint Cooperation Committee meeting in May this year, but the situation remains as it is. Pakistan handed over the management and operation of Gwadar Port to China Overseas Port Holding Company Private Limited for a period of 40 years.
For Pakistan, this port is the hub of CPEC and the “gateway” for the rest of the world. Apart from the agreement, no major new agreement was signed under the CPEC.Gwadar Port Authority had committed to give the land to the China Overseas Ports Holding Company, however, according to the documents, the zone is still under the control of the Navy and the Pakistan Coast Guard.
Several meetings have been held in the past to resolve this issue. Pakistan had also promised full tax exemptions, but China Overseas Ports Holding Company’s trade is still subject to various provincial taxes, stamps and other duties on import of raw materials. The completion of the railway facility, M8 road link and other roads was Pakistan’s responsibility, however several important projects, the M8 and other roads are still under construction.
According to the report, Gwadar lacks facilities such as gas and transportation facilities and lack of electricity transmission. During the JCC meeting, Pakistani officials said that water supply lines from the 1.2 MgDROD plant have been connected to Gwadar Port and New Gwadar International Airport.
Two feeders have also been installed to provide electricity to the North Free Zone, while electrification of the South Free Zone is expected to be completed by June 2025. Pakistani officials said that the issue of RMB internationalization has already been taken up with relevant authorities, recommending that Gwadar Free Zone (GFZ) be included in the legal framework of Export Processing Zones and Special Economic Zones in Pakistan. Facilities should be provided according to the work.
